College Station FHA Loans

To help Americans acquire homes more efficiently, the U.S. government insures home loans from approved lenders through the Federal Housing Administration (FHA). These secured mortgages are FHA-insured mortgages.

FHA home loans are less strict in credit score and down payment requirements. You can only get them from FHA-approved lenders. Capital Home Mortgage is an FHA-approved mortgage lender that can help you secure an FHA loan to buy a home. 

FHA Loan Requirements

Even though FHA loans are generally more liberal regarding eligibility requirements, lenders will still formally review your application. 

One of the most important considerations in establishing eligibility for an FHA home loan is your credit score. Ideally, you should have a score of at least 580 and be able to raise a minimum down payment of 3.5%. A FICO score of between 500 and 579 may still qualify you for an FHA loan, provided you can afford a 10% down payment. 

Aside from FICO scores, lenders will also look at your past two years of credit history, steady employment, and sources of income.

FHA Loan Programs

There are different kinds of FHA loans. Each type of loan has its purpose, and knowing them can help you make a better choice in getting your home mortgage.

• 203 (b) Loan

A traditional FHA loan is a go-to product if you want to purchase a new home for your family. This type of loan is available to borrowers with stable employment and income. 

• 203(k) Mortgages

Are you in the market for a house in California but can’t afford a brand-new property? You can buy old homes at a lower price and renovate them. FHA 203(k) mortgages enable you to get a single loan for two purposes: buy a house and renovate it.

• Reverse Mortgage

Also known as Home Equity Conversion Mortgage (HECM), it is reserved for seniors aged 62 and above. A reverse FHA mortgage can help provide additional cash flow by converting part of their home’s equity into cash. Reverse mortgages are a great option to enjoy the value of your home during retirement.

• Energy Efficient Mortgage Program

Solar panels, insulation, and wind energy systems can help lower your monthly utility bill. By choosing the FHA Energy Efficient Mortgage Program, you can obtain financing to buy these energy-saving upgrades. 

• Section 184 Mortgage

The Section 184 Indian Home Loan Guarantee Program is a mortgage program specifically designed for American Indians, Alaska native families, or tribally designated housing entities. Congress established it in 1992 to facilitate homeownership and increase access to capital in Native American communities.

• Section 245(a) Loan

Do you want a mortgage loan with payments proportional to your income over time? You can opt for an FHA 245(a) loan. It’s designed for borrowers who expect to see an increase throughout the loan. Monthly payments start low and gradually increase over time. 

Apply For An FHA Loan In College Station

Can’t decide which FHA home loan program best suits your needs? Our mortgage experts at Capital Home Mortgage can help you understand the intricacies of mortgage loans in California. 

Moreover, as direct mortgage lenders, we handle every aspect of the process, including funding the loan amount. This allows us to offer competitive interest rates and a quicker, more efficient application process. 

Call us at (979) 393-0049 to speak with our loan officers about your next FHA home loan in College Station.