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FHA Loan Houston

Better Rates. More Approvals. The FHA Loan Has it All.

Check FHA Eligibility Now

fha lender houston tx
FHA loans have given millions of people the opportunity to buy their very first home.

Are you in the market to buy a home but just don’t have (or don’t want to) put 20% down?

Do you maybe have less-than-perfect credit and are just looking around for answers and a way to qualify with less hassles?

Is it your first time buying a home and have tons of questions and just don’t really know where to start?

Whether you are looking to simply learn more about how much you can get approved for a new home or needing to refinance out of your high interest rate loan, you have come to the right place – FHALoanHouston.com.

At FHALoanHouston.com, we understand how important it is to make your home affordable, give you more than enough options when buying or refinancing, as well as being your tour guide through the maze of FHA financing which is why we are the leading experts in Houston on the FHA loan program.

FHA Loans are:

  • Easier to Qualify For – because these types of loans are backed by the federal government, FHA approved lenders are usually more likely to approve you.
  • Lower Down Payment – FHA mortgages in Houston only require a 3.5% down-payment which makes it easier for people to have an opportunity to buy a home. In addition to that, the down payment can even come in the form of a gift from a family member or relative.
  • Lower Credit Borrowers Qualify – because FHA loans are backed by the government, this opens up a lot of doors for individuals that may not have the best credit, but still want to take advantage.
  • Better Interest Rates – since the Federal Housing Administration insures these loans against default creating less risk to lenders, FHA loans will usually have better mortgage rates than most other types of loans in the market.

What is an FHA Loan?

An FHA loan is a type of mortgage loan that is insured against default by the Federal Housing Administration (otherwise known as FHA).

Back in the 1930′s during The Great Depression, the FHA loan was created by the government to stimulate the housing market make buying a home affordable again.

Since then, FHA loans have been the cornerstone of the American Dream by allowing lower down payments, better fixed rates, and easier qualifying standards.

what is an fha loan
Knowing how an FHA loan works in regards to guidelines and requirements can help you get approved quicker and get better rates.

Houston FHA insured mortgages are actually one of the best types of mortgage loans available in today’s real estate market because they allow more people to have an opportunity to buy.

Here’s a video that explains FHA mortgages in 2019 and how they work:

The “FHA Myth”

Many people believe that the FHA (Federal Housing Administration) is a company that lends the money, however FHA is a government organization that insures the loan while FHA approved lenders like us are the ones that lend the money.

If a loan defaults, FHA will step in and pay and because of this, mortgage lenders are more willing to lend.

They simply set all the basic rules when determining what they are willing to insure, and as such, there is always a lot of confusion when it comes to FHA guidelines.

While the FHA sets the basic minimum FHA guidelines of what types of loans they are willing to insure, FHA lenders will sometimes put in place an added layer of security which is called an “overlay”. This simply means that even though FHA has their minimum guideline, lenders will add their own in addition to it.

Why do they do this?

Because of what happened a few years ago during the mortgage crisis, lenders basically want to cover themselves in case of a default, so they take any extra measures to insure that the borrower is within their risk threshold as well as keeping their default rates low, because this effects more than you may think.

Let’s take a look at an example:

FHA Loan Scenario

Let’s say there’s an FHA lender (we’ll call them “Lender A”) that has really loose guidelines and is lending out money to borrowers that should be “borderline” approved.

By this, we mean they’re approving loans for people that have extremely low credit scores and obvious signs that they haven’t kept up with their finances.

Well, if those “risky” borrowers end up going into foreclosure (or default), FHA needs to step in to pay those claims since they are insuring the loan.

Each time this happens, FHA makes a note on the lender that issues the loan because the Federal Housing Administration (FHA) gives all FHA lenders their very own “credit grade”.

They routinely monitor each specific lender’s FHA loan performance, and if they are consistently paying out claims because Lender A is approving and issuing sketchy loans, there’s a very good chance that either the lender will be cut off from making FHA loans altogether or possibly have their “cost” to make FHA loans go up due to Lender A’s higher risk.

After all, FHA isn’t in the “check cutting” business. They are in the making homes affordable business.

Imagine what can happen if hundreds or even thousands of FHA-approved mortgage companies begin to issue marginal FHA loans..

Not only does it get very expensive for FHA to continue paying the claims and put them in a position to go out of business (yes, they need to make money), but more importantly, it gets more expensive for everyone that’s involved in the process.

Nobody wins.

Loosey Goosey Guidelines + High FHA Claims = Higher Costs/Less Options for Everyone

At the end of the day, it’s all a balancing act.

While there are some lenders that are extremely strict, there are also others that will give you a loan as long as you have a heartbeat.

Our approach is that we look for ways to approve your loan in every way imaginable, and if we can’t, we’ll put together a game-plan to help you eventually get to where you need to be.

As your local Houston FHA Lender, we just want to make sure that your situation makes sense and your mortgage needs are met.

Whether you’re trying to determine if you qualify or if you’re interested in finding out what kind of documentation you’ll need to ultimately get started on your loan, we can provide you the information you’re looking for.

Additionally we’re more than happy to take your phone calls so feel free to contact us.

When it comes to FHA financing, here a few ways you can put FHA to work for you.

FHA Home Loans

fha home loan houston tx

With a down payment of only 3.5%, FHA loans offer a great solution for several first time home buyers in Houston. By selecting an Houston Approved FHA Lender, you can rest assured that your expectations can be met when purchasing a home, as we understand how stressful it can be.

Houston FHA Loans offer many advantages, and as such, we make the process of purchasing a new home in the state of Texas simple and stress-free by offering you a streamlined process from start to finish!

Please feel free to check the FHA Mortgage Loan Limits in Houston as well as what’s needed to start when applying for your FHA purchase loan.

FHA Streamline Refinance

fha refinance houston tx

Another great way to use FHA to lower your mortgage payment is to refinance your home with FHA.

FHA refinances are also very popular among home-owners who were initially placed in a high interest rate sub-prime loan, but since rates have dropped, several borrowers are flocking FHA to lock in a lower rate, regardless of the type of home loan that they have.

We provide you the latest in financial tools that will enable you to make smart and money saving choices by providing you up-to-date interest rates and loan breakdowns so you can learn about your options, including an FHA Streamline refinance.

Benefits of an FHA Loan

When it comes to FHA financing, we are your Houston FHA Home Loan experts providing FHA loans in Houston and all throughout Texas.

We offer the best 30 and 15 Year FHA interest rates and most competitive closing costs when it comes to your home loan in Houston – hands down.

How do we do this?

By Offering You the Best FHA Rates in Houston
Because we have exclusively specialized in FHA loans since 2004, we have developed some of the best investor relationships in order to give you the best rates and save you even more money
By Giving You FREE, Expert FHA Advice
Buying a home or refinancing a home can be a confusing maze at times. Rest assured that your FHA loan is in good hands and we’ll help guide you in the right direction when you need us most.
By Speeding Up Your Loan Process
With in-house underwriters, streamlined processing, and proprietary e-sign technology, you’ll have the peace of mind knowing that systems are in place to get you closed and funded in time.

At FHALoanHouston.com, we have experts that:

  • Work with Direct FHA-Endorsed Banks;
  • Employ the HIGHEST number of Certified Mortgage Bankers under one roof in the state of Texas;
  • Use streamlined,  paperless loan processes with e-Sign technology;
  • Efficiently combine in-house processing, underwriting, closing and funding under the same roof to ensure maximum accuracy and reliability.

You can also read some more of our reviews and see what other happy clients are saying.

Get Started

We encourage everyone to check out their options, even if they have challenged credit. We look forward to answering all your questions and are here for you every step of the way.

Take a few seconds and check your FHA eligibility below – it is 100% FREE and takes less than 30 seconds.