Texas FHA Financing

The changes in the mortgage market since mid year 2007 have reverted many borrowers to get back to basics.  FHA financing has been a long standing outlet for many clients who need an extra hand in purchasing or refinancing a home.

Texas, as well as other states, have their own list of guidelines and regulations for FHA loans.  You can visit the website for HUD to find out the lending limits for FHA loans per county.  https://entp.hud.gov/idapp/html/hicostlook.cfm  This link will allow you to search out the loan amount that FHA allows for the county that you are interested in purchasing.

FHA has very unique guidelines but a vast amount of benefits.  These benefits include 6% seller concessions, nonoccupying co-mortgagors, down payment assistance and more.  FHA also allows those with not so good credit to qualify for a home purchase.  Typically, lenders require a 580 or higher middle FICO score to qualify.  FHA allows for alternative lines of credit for those who do not have a credit score at all.

The History of FHA

Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development's (HUD) Office of Housing in 1965.

When the FHA was created, the housing industry was flat on its back:

• Two million construction workers had lost their jobs.
  
  
• Terms were difficult to meet for home buyers seeking mortgages.
  
  
• Mortgage loan terms were limited to 50 percent of the property's market value, with a repayment schedule spread over three to five years and ending with a balloon payment.
  
  
• America was primarily a nation of renters. Only four in 10 households owned homes.
  

During the 1940s, FHA programs helped finance military housing and homes for returning veterans and their families after the war.

In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately apartments for elderly, handicapped and lower income Americans. When soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA's emergency financing kept cash-strapped properties afloat.

The FHA moved in to steady falling home prices and made it possible for potential home buyers to get the financing they needed when recession prompted private mortgage insurers to pull out of oil producing states in the 1980s.

By 2001, the nation's home ownership rate had soared to an all time high of 68.1 percent as of the third quarter that year.

The FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages since 1934. FHA currently has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio.

In the more than 60 years since the FHA was created, much has changed and Americans are now arguably the best housed people in the world. HUD has helped greatly with that success.

Contact us today to get a quote for your FHA mortgage.  We have in house underwriting for all our FHA loans.  Call us today!!!