TexasLending.com is commonly known to customers in Dallas and beyond as mortgage banking giant Texas Lending. The company says that FHA loans are among the most popular loans in the mortgage industry. These loans have been structured to assist Americans who wish to avoid the high PMI insurance normally associated with traditional loans. However, since each lender sets its own rates and terms, Texas Lending stresses the importance of finding a mortgage lender willing to explain the details to you before signing up for an FHA loan. Here, the team at Texas Lending addresses some common questions about FHA loans.
Q: If someone has credit problems, will qualifying for an FHA loan be a problem?
Texas Lending: We regularly work with clients who have credit issues. FHA does allow for minor credit problems, Texas Lending has found. However, there is a limit to what is acceptable, and if an individual has significant credit damage, the team at Texas Lending recommends taking some time to get your credit in order before applying for a home loan.
Q: What kind of credit issues are a problem?
Texas Lending: The team at TexasLending.com says that it’s especially important that an applicant has made on-time mortgage or rent payments for the past year to two years. Most people understand that. Even if an applicant has a Chapter 13 bankruptcy, we have seen loans go through, as long as the mortgage or rent payments were on time.
Q: What if I’ve had a Chapter 7 bankruptcy or a foreclosure?
Texas Lending: A typical rule of thumb is that if it’s been two years after Chapter 7, FHA will approve a loan. If an applicant has had a foreclosure, Texas Lending usually sees FHA loans being approved after a period of three years has passed.
Q: How much of a down payment can a Texas Lending homebuyer expect with an FHA loan?
Texas Lending: The FHA requires a 3.5% out of pocket minimum. Whether you get your loan through TexasLending.com or another lending institution, it’s always 3.5%. If an applicant can’t afford 3.5%, Texas Lending recommends a gift from a relative or employer. Some government agencies also provide down payment assistance for those in need.
Q: Is there a cap on how much a borrower can get through an FHA loan?
Texas Lending: We hear this question regularly. As the team at Texas Lending tells our clients in the Dallas-Fort Worth area, the FHA will loan up to $271,050 for a primary single residence. Since this can vary by area, Texas Lending counsels each individual applicant on what the limits will be.
For more information, visit Texas Lending online at www.TexasLending.com
4100 Alpha Rd. Suite 400
Dallas, TX 75244