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FHA offerslower down payments flexible qualification guidelines lower credit score and debt ratios easier streamlined refinancing assumable loan options .

FHA home loans are available for individuals with a 580 or higher credit score. With a 3.5% minimum down payment, it makes this loan more accessible than other mortgages.

An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA). They usually come with a lower down payment requirement and more lenient credit restrictions. In fact, the down payment on an FHA loan can be as little as 3.5% of the purchase price of the home, and they can be taken out on properties with up to four units, allowing qualified buyers to not only own their own home, but to potentially have rental income as well. Conventional mortgages have more stringent credit requirements, and the down payment is usually higher than an FHA loan.

FHA Home Loan Program Overview

FHA 203b Purchase

  • Down Payment 3.5% > 580 Credit Score
  • Down Payment 10% for 500-580 Credit Score
  • 100% Gift funds are allowed
  • No Credit Scores are OK, with alternative credit letters
  • Employment work visas such as TPS are allowed
  • Co-signers are OK!
  • Recent Grad students with new employment are OK!
  • Max loan amount in Texas is $331,020
  • Single Family residence, or 2 units (duplex), 3 plex, 4 plex allowed with 3.5% down payment
  • Low interest rates starting in the 3%'s and fixed for 30 years.

$100 Down Payment Program 203b

  • Property must be a HUD REO.
  • Loans up to county loan limits
  • Credit scores down to 500. Ratios cant exceed 43% when manual underwrite
  • The down payment is $100  
  • Seller credits up to 3%
  • Most Work Visas are ok
  • Primary residence only

Streamline Refinance FHA; Non-credit Qualifying Streamline

  • Credit Score. No Minimum  
  • 1-4 Units
  • Ratios, No Max
  • No appraisal required
  • Primary residence only
  • Loans up to county loan limits
  • No removal or addition of borrowers. Using same existing value and no debt consolidation for a non Credit Qualifying Streamline

FHA 203b With Repair Escrow: HUD REOs

  • Min credit 500 with 10% down payment . Ratios 43% max
  • Min credit 580 with 3.5% down payment . Ratios 43%
  • Min credit 580 with 3.5% down payment. Ratios 49% w AUS
  • 1-4 Units, primary residence only
  • Loans up to county loan limits
  • Property must be a HUD REO.
  • Work must be completed within 45 days of closing
  • The maximum allowed repairs is $10,000