If you are buying a house for the first time, it’s important to know how to apply for an FHA loan.
Federal Housing Loans (FHA Loans) are available for buyers who have low credit scores and minimal savings for a down payment. First-time buyers who don’t qualify for a conventional loan may be able to get a FHA loan to purchase their home.
Closing costs on FHA loans are often cheaper. FHA mortgage loans can be a life-saver for buyers who aren’t financially strong enough to secure a conventional loan.
To apply for an FHA loan, you will need a lender who issues FHA loans in Texas and you must meet the FHA Loan requirements.
What You Need to Qualify for a FHA Loan
Getting an FHA loan is easier than getting a conventional loan, but you need still a few things to qualify.
First, to qualify for an FHA loan, you’ll need a verifiable income.
You will have to provide your lender with pay stubs and tax returns. These documents prove that you have enough income and financial stability to make your mortgage payments.
Your mortgage payment can not exceed 35% of your take-home pay. If you have other debt, your debt-to-income ratio can not exceed 48% including FHA loan you are applying for.
The biggest draw of FHA loans is that they only require buyers to put down 3.5%.
Conventional loan down payment requirements are a barrier to can be a barrier to homeownership for some people. FHA loans make owning a home more attainable for those who can’t save enough for a traditional down payment.
It’s best to save 6% as a down payment to account for closing costs.
Next, to qualify for an FHA loan you’ll need a credit score of at least 580 and two open lines of credit.
If you can, it’s best to eliminate all debt before applying for the mortgage loan.
Once you have good credit and a down payment ready, you can meet with a lender to get pre-approved for the loan.