Capital Home Mortgage Austin

Austin FHA Home Loans

Know Your Buying Power
Have Questions?
Cash-Out or Save Today

Austin FHA Mortgage Lender

FHA Loans In Austin

Welcome to Capital Home Mortgage Austin. Are you wondering about AustinFHA 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 preapproved 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 / Low Fees

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Austin Customer Service

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

Austin Mortgage Rates

Capital Home Mortgage Austin is dedicated to offering Great Austin Mortgage Rates.

Call now to speak with a Loan Officer or request a no obligation custom rate quote.

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)

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)

Austin FHA 203K Loan

FHA offers a rehabilitation loan that can be used either with a purchase of a new home or as part of a refinance.  The FHA 203K Home loan is offered to allow homeowners to purchase less than perfect homes or to bring the current home up to date with improvements.

Purchase and Refinance

On Purchases, Max Loan is lesser of:

  • Adjusted As-is Value plus allowable financeable rehabilitation cost plus fees/reserves; or 110% of After-Improved Value (100% for condominiums)

On Refinances, Max Loan is lesser of:

  • Existing Debt plus financeable Rehabilitation Cost plus Prepaid and Closing Cost; or 97.75% multiplied by lesser of: As-is value plus rehabilitation cost; • 110% of After-Improved Value (100% for condominiums)

Eligible Properties

(Owner-Occupied Only):

  • PUDs (Planned Unit Developments)
  • 1 to 4 Units
  • Doublewide Manufactured Home
  • Condominium (in FHA Approved Projects)

Mixed Use Properties Allowed:

  • A minimum of 51% of the entire building’s square footage must be used for residential use.

FHA 203K Full Rehab

  • Full 203K – allows improvements to exceed the 35K cap on renovations.  The improvements are not limited cosmetic, but can be include major structural including an addition. This can be combined with a purchase or with a fully documented refinance. 

FHA 203K Streamline Rehab

  • Streamline 203K – allows for up to 35K of improvements to be financed into the loan.   This can be combined with a purchase or with a fully documented refinance. The improvements are typically cosmetic, but can be limited structural as long as the improvements are not for an addition.
Not Sure? Take a Look at Other Austin Mortgage Programs

Austin Texas Mortgage Team

Conor Hayhurst

Managing Director
NMLS 743506

Kelly Cameron

Loan Officer
NMLS 178093

Kelvin Thompson

Loan Officer
NMLS 2050042

Jonathon Cummins

Loan Officer
NMLS 270657

Austin Mortgage Company Reviews

What is a FHA Mortgage Loan?

FHA stands for “Federal Housing Administration” which is part of HUD ”Housing and Urban Development”.Established in 1934 and prompted by the great depression FHA had one goal: to make homeownership affordable. A great step in our nation’s history as the majority of Americans were renters, not having large down payments that traditional banks required.It is important to understand that FHA doesn’t lend money.  FHA instead provides lenders a guarantee that covers the lenders from loss in the event of a foreclosure. It simple terms FHA insures the portion of the loan that a buyer would have would normally had to put down to qualify for a traditional loan, allowing for small down payments to purchase.  All FHA loans require mortgage insurance.  The mortgage insurance comes in an upfront fee, which can be financed into the loan and a monthly fee made through the mortgage payment.  These installments from the payments support the guarantee fund and makes FHA loans possible.  This fee is fixed for the term of the loan and is the same regardless of credit.