Texas FHA Loans - FHA Home Loans -FHA Loans

An FHA purchase loan is a low down payment government loan program offered by HUD - Housing and Urban Development. The minimum down payment required is 3.50% of the sales price. You can only purchase a 1 to 4 unit home you intend to live in and take possession of within a 60 days from closing. FHA loans are also available for refinance loans.

If you are purchasing a rural home, check out our USDA zero down rural housing loans. These loans are designed for moderate income families and have income limits.

Veterans and active duty military personnel should consider using a VA loan. No down payment is required on loan amounts up to $417,000.

2010 FHA Loan Limits for Texas
Property Type	Floor *	Austin Area	San Antonio Area
1 Unit	$271,050	$288,750	$332,500
2 Unit	$347,000	$369,650	$425,650
3 Unit	$419,400	$446,800	$514,500
4 Unit	$521,250	$555,300	$639,400
* Floor is the maximum loan amount allowed in most counties in Texas.

Guidelines

FHA Guidelines Summary
Purpose	Occupy	Units	Max. LTV/ CLTV	Max. Loan Amount ⁽¹⁾
Purchase	Primary	1-4	96.5%	$271,050 ⁽¹⁾
Streamline ^{(4) Refinance a FHA Loan}	Primary	1	97.75%	$271,050 ⁽¹⁾
Streamline ^{(4) Refinance a FHA Loan}	2nd Home ⁽²⁾ Investment ⁽³⁾	1-4	97.75%	$271,050 ⁽¹⁾
Rate & Term Refinance	Primary	1-4	97.75%	$271,050 ⁽¹⁾
Cash-Out Refinance	Primary	1	see Home Equity Loans
1) One unit properties - Higher limits are available in some counties. Austin = $288,750 & San Antonio = $332,500..See table below for additional loan limits.

Assumable - Yes, but the new borrower must qualify for the loan to assume it.
Bankruptcy or Foreclosure

Chapter 7
You must wait 2 years from the discharge date.

Chapter 13
You must have made all your payments on time for at least 12 months. Permission from the bankruptcy trustee is also required.

Foreclosure
You must wait 3 years from the date of the foreclosure.

NOTE: After a bankruptcy be sure to check your credit report for errors and correct inaccurate information. This can make a big difference in your credit scores and loan approval.
Buy-downs - Allowed on 30 year fixed rate purchase loans. Not allowed on ARM loans.
Cash Reserves - No reserves required on 1 - 2 unit homes. Borrower(s) must have three months' mortgage payments in reserve after closing on 3 - 4 unit homes.
Closing costs - The borrower may pay all closing costs except the tax service fee. The seller can pay up to 3% of the sales price towards your closing costs.
Credit Scores - The minimum credit score allowed is 620. If your scores are below 620 you will need credit repair to see if your scores can be raised enough to qualify.
Qualifying Ratios - Two ratios are considered for qualifying. Your total housing payment vs. your gross income and your total monthly debt payments(including the house payment) vs. your gross income. Qualifying ratios are limited to 31/43% and 33/45% for EEMs (Energy Efficiency Mortgages). Higher ratios are allowed with acceptable compensating factors.
Eligible Property Types - 1-4 unit homes, townhouse, HUD approved Condos and PUDs.
Energy Efficiency Improvements - EEMs are available on FHA loans..
Gifts and DPAs - Acceptable gifts and down payment assistance programs are allowed to be used for the required down payment.
Loan to value - up to 96.5% for purchase loans and up to 97.75% for refinance loans.
Loan Types - 15, 20, 25 & 30 year fixed rate loan. 3/1 & 5/1 FHA ARM loans are available with 1/5 caps and 1.75 margin.
Maximum Loan Amount - Based on the county your property is located in. Most counties are at the base maximum loan amount, which is $271,050. The San Antonio area is $332,500 and the Austin area is $288,750.
Look up Maximum FHA Loan Limits

Annual Mortgage Insurance - FHA loans require an annual mortgage insurance premium, paid monthly, in addition to the UFMIP listed below.

Annual Mortgage Insurance
LTV	Term <= 15 Year	Term > 15 Year
<= 90%	0	0.50%
90.01 - 95%	0.25%	0.50%
> 95%	0.25%	0.55%

Starting October 4th, 2010 the annual mortgage insurance premiums will increase to the following:

Annual Mortgage Insurance
Terms > 15 years		Term =< 15 years
LTV	Annual Rate	LTV	Annual Rate
<= 95%	0.85%	<= 90%	0.00%
> 95%	0.90%	> 90%	0.25%

Occupancy - You MUST occupy the home you intend to buy within 60 days. NO investment properties or second homes.
Residency - 1-4 family primary residences only. Second home and investment properties only allowed on streamline refinance loans, with restrictions.
Up-Front Mortgage Insurance Premium - The UFMIP for FHA loans is currently 2.25% of the base loan amount. Starting October 4th, 2010, the UFMIP will be reduced to 1% for all FHA loan types. The UFMIP can be financed up to the maximum loan limits.
Seller Concessions - Closing costs cannot be financed in the new loan amount. They can be paid by the seller. The seller can pay up to 3% of the sales price towards your closing costs.

Note:
Guidelines subject to change without notice. Additional guidelines and restrictions may apply. Submit your loan application for approval.

30 Year Fixed Loans 30 day lock.			15 Year Fixed Loans 30 day lock.
FHA Purchase Loan Rates Rates based on $200,000 Loans
Rate	Points	APR	Rate	Points	APR
4.000%	1.332%	4.939%	4.000%	-0.301%	4.491%
4.250%	-0.633%	5.023%	4.500%	-2.023%	4.736%
4.375%	-1.052%	5.113%	5.000%	-2.653%	5.144%

Notes: Minimum 3.5% down payment req'd. Refinance Loan Rates - Request analysis and estimate. FHA 3/1 ARM & 5/1 ARM loans available.	Credit Scores: >700 = subtract 0.125% pt., 620 - 660 = add 0.25 pt. All Loans - 620 Minimum.
Additional adjustments & restrictions may apply <> Contact us for an analysis and estimate

It's real easy to get a pre-qualification analysis. The results and an estimate will be emailed to you. Just click here to get started.

Rates are subject to change without notice until locked in.
Rates on this Page Last Updated:
09/09/2010 12:05 PM

Purchase Loan Application - This is a complete loan application and purchase questionnaire. It should take from 15 to 30 minutes to complete.

Click here for a general list of information needed to complete your application.
After reviewing your application and credit report, your loan will be submitted for Automated Underwriting prior to calling you to discuss your application unless additional information is needed from you.
The results will be emailed to you with an estimate for your review. Rates are subject to change until locked in. Please call our office for details about locking your rate.
Your complete loan application and disclosure forms will be overnighted to you for your review and signatures, along with copies for your records. A written list of the required documents needed and a return overnight envelope will also be included for you to return the documents to us.
The only upfront costs to you are the credit report/AUS fee($50) & the appraisal fee($400). The appraisal fee cannot be collected until you receive a Good Faith Estimate and Truth In Lending. Click here for more details on the loan process.

Note: If for some reason your loan cannot be approved through our Automated Underwriting Systems and traditional underwriting is required, some additional costs may be required and you will be advised in advance. More details on "Traditional Underwriting" can be found here.

Pre-Qualify

This is a short form that only takes a few minutes to complete.
It will give us the info we need to pre-qualify you according to your income, debts and funds available for down payment and closing costs.
The results will be emailed to you with an estimate for your review.
The Pre-Qualify form is primarily designed for borrowers with good credit since NO credit report will be pulled with this prequalification.

Email or call us if you need additional information.