FHA Home Loans In Lubbock

An FHA-insured loan is a mortgage loan backed by the Federal Housing Administration’s (FHA) mortgage insurance and is offered by a lender that the FHA has approved. FHA mortgage insurance protects lenders against a future default by the borrower. In the past, they have made it possible for people in the United States with lower incomes to borrow money and buy homes they otherwise could not afford.

During the Great Depression of the 1930s, when foreclosures and defaults grew significantly, the federal government created a program to provide lenders with sufficient insurance. The program’s origins may be traced back to this period. Although the federal government provided funding for specific FHA programs, the agency’s primary objective was to become financially independent by collecting borrowers’ insurance premiums.

Qualification Requirements of FHA Loans

There are specific requirements to qualify for an FHA loan. Among them are the following:

• The property must be a primary residence;
• A down payment of 3.5% is required for borrowers with a credit score of 580;
• Borrowers with scores below 580 down to 500 may qualify with 10% down, and certain restrictions will apply;
• All FHA loans carry Mortgage Insurance Premium (MIP) for the life of the loan;
• Borrowers must meet the debt-to-income ratio requirement;
• The amount financed must not exceed the county loan limit;
• Borrowers must have a 2-year verifiable work and residence history
• Complete documentation is required to underwrite FHA loans.

Is an FHA Loan right for me?

FHA home loan is the most straightforward and most lenient home loan program. Because FHA mortgages are easier to qualify for, they are especially appealing to people in the following situations:

• First-time homebuyers;
• Borrowers with marginal credit and low scores;
• Low-income earners;
• Homebuyers with relatively small savings;
• Homebuyers with high debt-to-income ratio;
• Homebuyers that need extra seller concessions;

Apply for an FHA Loan in Lubbock

Capital Home Mortgage provides a comprehensive array of mortgage solutions to meet any requirement as a direct mortgage lender and servicer. Capital Home Mortgage’s FHA Loan Specialists will work with you to determine the best suitable loan terms for your needs and budget.

You can get prequalified and preapproved for an FHA loan in Lubbock by applying online or calling the office at (806) 589-3428.