Capital Home Mortgage Austin

Austin FHA Home Loans

Home Purchase
Save Today
Have Questions?

Austin FHA Mortgage Lender

FHA Loans In Austin

Welcome to Capital Home Mortgage Austin. Are you wondering about Austin FHA Home Loans and if an FHA loan is right for you? We can help you understand the advantages of an Austin FHA Home Mortgage and if it is the right loan for you. Capital Home Mortgage is a direct Austin FHA mortgage lender offering great mortgage rates with low fees. 

What Is An FHA Loan?

A government-backed mortgage that the Federal Housing Administration insures is known as an FHA loan. FHA home loans are particularly well-liked by first-time homeowners since they have lower minimum credit score requirements and down payments than conventional loans. More than 83 percent of all FHA loan originations were for borrowers buying their first houses, according to the FHA’s 2020 Annual Report.

Although the government insures these loans, third-party mortgage lenders originate and underwrite them.

How Does An FHA Loan Work?

The U.S. Department of Housing and Urban Development is in charge of the Federal Housing Administration (FHA). The Federal Housing Administration insures the loans that FHA-approved lenders originate. All around the United States and its territories, FHA insures mortgages for single-family houses, multifamily buildings, residential care facilities, and hospitals.

Lenders are safeguarded from losses through FHA mortgage insurance. The FHA will pay a claim to the lender for the outstanding principal amount if a property owner defaults on their mortgage. Lenders can provide more mortgages to homebuyers because they are taking on less risk.

Loans must meet specific requirements to be eligible for FHA insurance.

FHA Loan Terms

Fixed interest rate FHA loans have periods of 15 and 30 years. Flexible underwriting requirements set by the agency are intended to help enable borrowers who might not be eligible for private mortgages an opportunity to buy a home.

Mortgage insurance premiums (MIP) are required for FHA loans, and they serve as protection against loss for the lender in the event of a default by the borrower. When borrowers make less than a 20% down payment, mortgage insurance is usually a requirement. The borrower must pay two mortgage insurance premiums on every FHA loan:

  • Upfront: When the borrower applies for the loan, they must pay the upfront mortgage insurance premium, which is 1.75 percent of the total amount. The amount of the financed loan may include the premium.
  • Monthly: Annual mortgage insurance premium: 0.45 percent to 1.05 percent, depending on the loan term (15 vs. 30 years), the amount of the loan, and the original loan-to-value ratio, or LTV. By dividing the premium by 12 as a monthly payment.

FHA Eligibility Requirements

Borrowers must adhere to the following lending requirements to be eligible for an FHA loan:

  • Have a FICO score of 500 to 579 with 10% down or a FICO score of 580 or higher with 3.5% down.
  • A verifiable two-year work and residence history.
  • As demonstrated by bank statements, federal tax returns, and pay stubs, have a reliable source of income.
  • Use the property as your principal residence.
  • Ensure the property is assessed by an FHA-approved appraiser and complies with HUD requirements.
  • Have a front-end debt ratio (monthly mortgage payments) of no more than 36% of gross monthly income.
  • Have a back-end debt ratio (mortgage plus all monthly debt payments) of no more than 45% of gross monthly income (lenders could allow a ratio up to 50 percent, with compensating factors).
  • Following bankruptcy or three years after a foreclosure, wait for one to two years before applying for a loan (lenders might make exceptions on these waiting periods for borrowers with extenuating circumstances).

Apply For An FHA Loan With Capital Home Mortgage

Capital Home Mortgage offers a full range of options for every mortgage need as a direct mortgage lender and servicer. Our FHA loan professionals at Capital Home Mortgage will work with you to find the most acceptable lending package to suit your goals and budget. 

Call (512) 237-7400 to get started on your path to homeownership, or Apply Online to get pre-approved for an FHA home loan in Austin.

Why Austin is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Austin Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Austin Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Austin FHA Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Austin FHA Purchase Loan

FHA Home Loans are mortgage loans for 1st time home buyers, buyers with limited credit, buyers with less than perfect credit and buyers with higher debt to income ratios.  As the goal of FHA is to make homeownership more attainable, FHA underwriting guidelines are less strict than other mortgage loan programs.  This FHA flexibility allows for easier loan qualification making the barrier to homeownership less challenging.
  • Simple Qualifying
  • Small Down Payment
  • Seller Paid Closing Costs to 6%
  • Flexible Underwriting
  • Higher Debt to Income Ratios Allowed
  • Lower Credit Scores Allowed
    • 580 with 3.5% Down Payment
    • 500 with 10% Down Payment
  • Manufactured Housing OK (Subject to Restrictions)
FHA Purchase Home Lender
FHA Home Loans are mortgage loans for 1st time home buyers, buyers with limited credit, buyers with less than perfect credit and buyers with higher debt to income ratios.  As the goal of FHA is to make homeownership more attainable, FHA underwriting guidelines are less strict than other mortgage loan programs.  This FHA flexibility allows for easier loan qualification making the barrier to homeownership less challenging.
  • Simple Qualifying
  • Small Down Payment
  • Seller Paid Closing Costs to 6%
  • Flexible Underwriting
  • Higher Debt to Income Ratios Allowed
  • Lower Credit Scores Allowed
    • 580 with 3.5% Down Payment
    • 500 with 10% Down Payment
  • Manufactured Housing OK (Subject to Restrictions)

Austin FHA Refinance Loan

FHA offers a streamline refinance program that simply reduces the interest rate and lowers the payment or shortens the term of the loan.  This rate and term option can be fully documented loans, or can be reduced documentation.  The other FHA option is a cash-out refinance allowing homeowners the ability to access the equity in the property. (Not Allowed in Texas)
  • Streamline – Rate and Term Only
    • No Appraisal
    • No Income Verification
  • Full Documentation
    • Rate and Term
    • Closing Costs Can be Rolled In
    • Lower Credit Scores Allowed
      • 580 with 3.5% Down Payment
      • 500 with 10% Down Payment
    • Manufactured Housing OK (Subject to Restrictions)
FHA Home Refinance Lender

FHA offers a streamline refinances that simply reduces the interest rate and lowers the payment or shortens the term of the loan.  This rate and term option can be fully documented loans, or can be reduced documentation. The other FHA option is a cash-out refinance allowing homeowners the ability to access the equity in the property. (Not Allowed in Texas)

FHA Standard Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 80% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

FHA Streamline Refinance

  • FHA to FHA
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates

Austin FHA 203K Loan

Not Sure? Take a Look at Other Austin Mortgage Programs

Austin Mortgage Team

Conor Hayhurst

Manager
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325

Austin Mortgage Company Reviews

Texas Cities

Houston Home Loans

San Antonio Home Loans

Dallas Home Loans

Austin Home Loans

Fort Worth Home Loans

El Paso Home Loans

Corpus Christi Home Loans

Laredo Home Loans

Lubbock Home Loans

Amarillo Home Loans

Brownsville Home Loans

Killeen Home Loans

Midland Home Loans

Waco Home Loans

Odessa Home Loans

Abilene Home Loans

College Station Home Loans

Beaumont Home Loans

Wichita Falls Home Loans

San Angelo Home Loans

San Marcos Home Loans

Galveston Home Loans

Tyler Home Loans

McAllen Home Loans

Stephenville Home Loans

Texarkana Home Loans

Round Rock Home Loans