FHA Mortgage Loans

FHA Home Purchase Loans are mortgages insured by the Federal Housing Administration. Clients who opt to choose FHA Loans in Houston pay for the mortgage insurance which protects the lender from a loss if the borrower were to stop making the payments.

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Since FHA will be the insurer of your mortgage, the agency's team will look at many factors as it tries to confirm what you can afford. Here are a few things about FHA mortgage loans that you should know.

FHA Logo

Loan Limits

The FHA has a maximum loan amount that it will insure, which is known as the FHA lending limit. These loan limits are calculated and updated annually, and are influenced by the conventional loan limits set by Fannie Mae and Freddie Mac. The type of home, such as single-family or duplex, can also affect these numbers.

FHA lending limits may vary from state to state and from county to county based on housing costs. In Texas the lending limits include Dalhart, Amarillo, Canyon, Wichita Falls, Lubbock, Denton, Arlington, Dallas, Fort Worth, Abilene, Snyder, Texarkana, El Paso, Pecos, Van Horn, Fort Stockton, Ozona, San Angelo, Odessa, Mdland, Del Rio, Eagle Pass, Carrizo Springs, Laredo, Rio Grande City, Brownsville, Corpus Christi, Portland, Port Lavaca, San Antonio, Galvestion, Houston, Beaumont, Austin, College Station, Lufkin, Nacogdoches, Waco... for a complete list of Texas counties and their FHA lending limits

FHA Loan Checklist

Before you start an FHA loan process there are a few things you will need. Be prepared to provide some information to your loan officer. You should have it ready now to save time later.

  • Address to your place of residence (past two years)
  • Social Security numbers
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Approximate value of all personal property
  • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals

In addition, you will need to pay for a credit report and appraisal of the property.

As the buyer and borrower, you will have items on your checklist that are required by your lender, the seller, and even the title company.

The closing checklist covers all the fees to be paid, the information to be provided, and the disclosures to be signed before the title is conveyed to you. Having this checklist ready helps you stay on track as a buyer, and ensures that your closing goes the way you expect.

  • Identification
    All parties at the closing should have valid ID.
  • Policy of Title Insurance
    You must pay for title insurance that guarantees the property is free of previous claims or liens.
  • Insurance
    Before you can close on the property, you need to secure homeowner’s insurance, which insures the property in the case of damage.
  • Closing Funds
    You must bring all funds agreed upon, in the form of a cashier’s check or via electronic wire.

Remember, because of the insurance that protects the lender from a loss if you (the borrower) default on the loan the interest rates on an FHA loan are going to be more attractive, less stringent and more flexible qualification requirements. The FHA is an agency within the United States Department of Housing and Urban Development.