Houston and Galveston FHA Loans

If you are planning to move to Houston or Galveston, right now is a great time to apply for a Texas FHA loan. The Federal Housing Administration (FHA) and US Department of Housing and Urban Development (HUD) have been helping people afford new homes for over seventy years. Today, the FHA and HUD are helping more Americans than ever to realize the dream of homeownership and avoid foreclosure. Here are just a few of the great benefits you’ll be able to take advantage of with an FHA loan.

Low Down Payment

With a Texas FHA loan, you will be eligible to qualify for up to 96.5% financing on a new home. What this means for you is that you will only have to supply 3.5% down on the property. This is much more affordable than conventional loans, which can sometimes require as much as 20% down. Additionally, if you cannot afford even this small down payment, you can apply for the American Dream Down payment Initiative (ADDI) which will cover your upfront costs.

Lower Overall Costs

Besides having a much smaller upfront cost to obtain your new mortgage, the overall cost of the loan will be much less than conventional loans. This is because you won’t have to pay private mortgage insurance (PMI) and will get to take advantage of low, competitive interest rates. The rate you receive may even be below the current mortgage market rate.

Easy Refinancing

Once you have obtained your FHA loan, it is incredibly simple to refinance further down the road. When you apply for a streamline refinance in Texas, you won’t incur any out-of-pocket fees or have to supply any additional paperwork. There is also a cash-out refinance for people who need to borrow money against the house’s equity. The cash you receive from this loan can be used for anything from paying tuition to buying a new car to making home repairs.

Where to Start

Before you start looking for new homes in Houston or Galveston, it’s a good idea to get pre-approved for a loan. With a pre-approval you will be able to see how much you can qualify for and whether or not you meet the FHA requirements. Take a minute to fill out our secure online form and we’ll have you pre-approved for free within minutes!

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