FHA Loans In Waco

The Federal Housing Administration has insured affordable and eligibility-flexible mortgages across the country for decades. Mortgages guaranteed by the FHA have been the go-to option for first-time and repeat homebuyers when conventional loans are unavailable. It’s possible to qualify and get approved for an FHA-backed mortgage even if you were denied a conventional loan.

Top Reasons To Get an FHA Loan in Waco, TX

FHA loans are notoriously simple to qualify for and have incredibly competitive interest rates. They’re not perfect, but they are often a first-time homebuyer’s best shot at homeownership. Let’s find out why.

• Low Credit and Income Qualifications

The Federal Housing Administration guarantees FHA loans, which is why lenders can offer FHA loan products with less demanding requirements than most mortgages. You may qualify for an FHA loan with a credit score as low as 500.

• Low Down Payment Requirement

The FHA loan lets you buy a home with little down payment. While the amount of down payment required can vary, borrowers with a credit score of at least 580 are eligible for the 3.5% down payment rate. If you have a lower credit score, somewhere in the 500-579 range, you’ll have to make a down payment of at least 10%. 

• Wide Range of Mortgage Products

The FHA offers numerous loan types to accommodate borrowers in virtually any circumstance. The Federal Housing Administration has insured many home loans, from standard, single-family home loans to 203k loans, for purchasing and renovating fixer-upper homes. No matter your budget or the type of home you wish to finance, there’s bound to be an FHA loan to satisfy your needs and requirements. 

• Plenty of Assistance and Grant Programs

FHA loans also allow down payments and closing cost assistance grants to reduce the out-of-pocket expense of a new mortgage. These grants are typically made available to first-time homebuyers and cover a portion of the home’s purchase price. Sometimes, these grants are non-repayable; you will never have to pay them back.

Visit your local city Housing office to find down payment assistance programs available in your area.  

• Easy to Refinance with FHA Streamline

If you already have an FHA mortgage, you may be able to save time and money with the FHA Streamline Refinance program. Use it to lower your monthly payment by refinancing to a lower rate or extending the term of your loan. No credit check or appraisal is needed.

• It Can Be Used to Purchase Fixer-Upper Homes

The FHA 203(k) loan allows you to purchase or refinance a home that needs repairs, then combine the real estate renovation costs into one mortgage. With a cash-out refinance, you refinance your mortgage for more than you owe and get the difference in cash, which you can use to fund your renovation, among other things. 

Is an FHA Loan Right For You?

Whether you’re a first-time homebuyer with a small down payment, a senior looking to draw income for your home, or newlyweds looking to purchase and renovate a charming fixer-upper, there’s an FHA loan for you!

FHA loans are designed to accommodate as many different homebuyers as possible. Regardless of your circumstances, if you are interested in purchasing or refinancing a home in Waco, the home loan experts at Capital Home Mortgage can help you determine if the FHA loan is a good fit. 

Call us at (254) 213-7343 for inquiries and information about our FHA home loan products.