Texas FHA Mortgages
If you live in Texas, you're used to big things. Big cars, big houses, big meals, big hats�. But currently, another big item that many people may completely overlook is big savings in the Texas real estate market! With the economy a bit slower than average, the housing market is favoring buyers and most can save considerable sums of money right now, particularly with the right loan choice.
But if you're a first time homebuyer, the right loan choice can seem as elusive as that perfect house. Thankfully, the Texas FHA loan program can make your decision a bit easier. Managed by the Federal Housing Administration, the Texas FHA loan program is targeted at first time home buyers who might not have the credit or the savings to qualify for conventional loans, which often require near perfect credit scores and 20% of the home's purchase price as a down payment. When a buyer receives a Texas FHA loan, the Housing Administration provides a guaranty to the bank which makes the loan less risky, enabling the bank to provide loans even to buyers who would not normally qualify.
FHA Loan Advantages
The advantages of a Texas FHA loan don't just end with qualification, however. The program has many loan options to fit nearly every lifestyle, and has competitive rates. In addition to relaxed credit requirements, borrowers are able to roll closing costs (generally amounting to between $6,000 and $8,000) into the loan, and the down payment need only be 3.5% of the purchase price.
Texas FHA Loan Limits
Check with your lender to begin the qualification process for this exciting loan program today. While you're there, be sure to ask about the current loan limits for your area. The current limit in most areas is $271,050 for a single family dwelling, but high cost of living areas have higher limits to make sure that borrowers in these areas can still afford to buy a home with a Texas FHA loan. For instance, San Antonio's limit is currently $332,500, while borrowers in Austin can receive up to $288,750. Your lender will have the limits that apply to you, particularly if you're buying a multi-family dwelling since the amount varies based on not only location, but also on number of units in the dwelling.