Killeen FHA Home Loans

Homeownership is a long-standing goal for many Americans, but it cannot be easy if you have less-than-perfect credit scores. The US Department of Housing and Urban Development (HUD) makes it easier to access the home financing you need through its federal mortgage assistance program — the Federal Housing Administration (FHA).

Are you looking to obtain an FHA home loan in Killeen? We can help you get the necessary funding here at Capital Home Mortgage. These loans can be an excellent option for first-time homebuyers or those who want to purchase homes but struggle with less-than-perfect credit.

Killeen FHA Loan Requirements

To qualify for an FHA loan in Killeen, you’ll need to meet specific criteria laid out by the HUD.

Starters need a credit score of 580 or higher – this is lower than the minimum requirement for most conventional loans. You’ll also need a down payment of 3.5% of the home’s purchase price, depending on how good your credit history is. Meanwhile, a borrower with a credit score from 500 to 579 may also be eligible for an FHA loan, provided you provide at least 10% as a down payment.

Since a home loan is a significant investment, your credit history will be checked thoroughly before approval. So, if you have bad or limited debt obligations such as taxes that need to get settled before applying for this opportunity, make sure they are paid off first, so these do not affect how likely we’ll approve the application.

Killeen FHA Loan Limits

The FHA loan limit is the maximum amount homebuyers can finance through the Federal Housing Administration’s mortgage insurance program. These loan limits are set at the county level and fluctuate yearly based on changes in median home values across the country.

FHA home loans in Killeen have loan limits based on the number of units in the home and the county’s median home price. According to the FHA website, its low-cost area range starts from $420,680 to approximately $809,150. On the other hand, its high-cost area ranges from $970,800 to $1,875,275.

Remember that checking with the FHA website every year is the only way to know if your limits have changed.

Types of FHA Loans in Killeen

Besides having loan limits, the FHA also offers different home loans that are perfect for borrowers. At Capital Home Mortgage, we offer a variety of loans for your home. You can choose from the standard FHA loan or Section 203(b), a renovation loan or Section 203(k), an energy-efficient mortgage program (EEMP), and a growing equity mortgage or Section 245.

• 203(b)

The FHA 203(b) is the most popular home loan program, also known as the “regular” FHA loan. It is perfect for first-time homebuyers, requiring only a minimum down payment of 3.5%, and has more flexible credit requirements than others.

• 203(k)

The “rehab” or “renovation” FHA 203(k) loan allows you to purchase a home and finance the repairs all in one loan. This type of mortgage can be perfect for buyers looking at fixer-uppers or foreclosure properties.

• EEMP

The energy-efficient mortgage program helps borrowers finance energy-efficient home improvements into their mortgages. Acquiring this type of loan is an excellent option for those who want to make their homes more eco-friendly.

• Section 245

The growing equity mortgage is for borrowers who expect their income to go up. Your monthly payments with this kind of loan start modest and progressively rise as you build equity in your home.

Apply for an FHA Loan in Killeen

If you think an FHA loan is perfect for you, don’t hesitate to contact Capital Home Mortgage. We’re a trusted mortgage company in Killeen that can help you through home buying. We’ll be with you every step, from finding the right home to obtaining the loan without hassles. 

Call us today at (254) 213-7343 to get started!