What is a Houston FHA loan?

This is a mortgage made by a private lender where the lender is insured against default by the Federal Housing Administration.

What is the limit for a FHA mortgage?

In Harris County the maximum loan amount for a single family home is $200,160 as on September 2006.

What are the income requirements?

You should earn enough so that the total mortgage payment is less than 30% of your total gross income. Total finance payments including the mortgage plus things like car payments, credit cards and other monthly obligations should be 41% or less.

What if I have had a bankruptcy or foreclosure?

A bankruptcy needs to be 2 years old and a foreclosure 3 or more years ago? Your most recent credit should be mostly good.

How much is required down?

FHA loans often require only 3% down and the money can come from a family member, or charitable organization as a gift. Most other types of loans don’t allow this.

Do I have to pay closing costs in addition to my down payment?

It is often possible to finance closing costs.

Are the rates good?

Yes, FHA loans have very competitive rates.

Can a FHA loan be used to refinance a home?

Yes, if you qualify.

Is a FHA loan always the best program?

No, At one time the FHA loan was one of the few ways to get a mortgage with a small down payment and a good rate. Now there are other loans that in some cases offer better terms. A good lender can give you options and help you select the program that is best for your needs.

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Texas residents can get more information at my Houston FHA mortgage site or call our office at 281-537-7800.

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