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Houston FHA Home Loans

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Houston FHA Mortgage Lender

Houston FHA Home Loans

To help Americans secure home ownership, the U.S. Department of Housing and Urban Development, through the Federal Housing Administration (FHA), insures home loans for lenders who offer affordable mortgage programs to borrowers with less than perfect credit scores. This is what the FHA home loan program is all about. 

It aims to loosen mortgage requirements and reduce lenders’ risk.

Capital Home Mortgage offers FHA home loans in Houston, Texas. Reach out to our loan officers to get more details about this mortgage program.

Houston FHA Home Loan Requirements

FHA Loans are less strict compared to conventional loans. Lenders can extend an FHA loan to borrowers with credit scores between 500 and 579, provided that the borrower will pay at least a 10% down payment. However, if the credit score is 580 and above, the down payment can be as little as 3.5% depending on your credit history.

Your credit history also affects the outcome of the FHA loan application. If you fall behind on paying your monthly revolving and installment obligations, the chances of getting approved become slim. But if you have excellent payment history, your credit score will be significantly higher and affect your application positively. 

Houston FHA Loan Limits

The FHA revises loan limits annually. For 2022, the FHA Loan limits start at $420,680 for a one-unit property in a low-cost area and $970,800 in a high-cost area. However, a four-unit property in a high-cost area can be as much as $2,800,900. 

Visit the HUD website to get the latest FHA mortgage limits.

Types of FHA Loans

Capital Home Mortgage offers the standard FHA loan or Section 203(b), renovation loan or Section 203(k), an energy-efficient mortgage program, and growing equity mortgage or Section 245.

  • FHA 203(b)

An FHA 203(b) loan is the mortgage product for purchasing a home, but we prefer to call it an FHA Purchase Loan. If you are a first-time homebuyer and still building your creditworthiness, an FHA purchase loan has more liberal requirements to help you secure your first home.

  • FHA 203(k)

An FHA 203(k) home renovation loan can cover simple repairs or significant structural improvements. There are two types of FHA 203(k) loans: (a) the standard, and (b) limited. The standard FHA 203(k) can be used to purchase an old home and renovate it, while the limited FHA 203(k) is intended for simple repairs of less than $30,000.

  • EEM Program

The energy-efficient mortgage (EEM) program helps families finance home energy efficiency improvements with the help of FHA.

  • Section 245

The growing equity mortgage or Section 245 loan aims to help borrowers who expect their income to rise. Payments at the start of the mortgage are low but gradually increase over time.

Get An FHA Loan In Houston

Capital Home Mortgage is dedicated to providing the best loan products in Houston. Our loan specialists can help you decide which FHA program best suits your situation. As direct mortgage lenders, we control the loan from application and funding while giving our borrowers competitive rates and low processing fees. 

Contact us now at (281) 674-7372 to get started.

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

Houston 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)

Houston 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)

Houston 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 Purchase Transactions, Max Loan Amount is lesser of:

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

On Refinance Transactions, Max Loan Amount 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 including site-condos)

Eligible Properties

(Owner-Occupied Only):

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

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 Full 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.
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Houston 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

Houston 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.