Buying a home is a dream of many. But realizing the dream is not easy, especially if you want to buy it in Texas and you are a low or medium-income holder. But nowadays, there is relief. You can finance your home with an FHA loan.
Do you know what is an FHA loan? Well, insured by the Federal Housing Administrative and offered by FHA-approved lenders, it is a home loan that allows buyers to get the approval with a 3.5% down payment and 500 credit score. So, if you find it difficult to arrange a decent amount for the down payment or don’t have a good credit score, you can apply for this loan and buy a home.
And there are several lenders, who offer an FHA loan 500 credit score Texas. You can compare and choose one of the reputable lenders and apply for the loan. But before that, would you like to know who can qualify for this loan program. Here is the answer –
First-time home buyers
First-time home buyers prefer FAH home loan programs as it allows them to put just a 3.5% down payment. Besides, they can even get approval as little as 500 credit score. And the sellers can pay the closing cost and the prepaid fees. Nowadays, most young people are struggling with a sluggish economy. Any opportunity to part with less cash is one to be considered. If you already have a property in mind, you should check with a mortgage lender to see if your desired property would qualify under the program. However, typically the maximum number of units the property can have is 4.
Do you want to refurbish your home? Do you think you can handle a fixer-upper? If you want to completely customise a home, then an FHA loan can help you by rolling the total cost of the remodel or repairs into one loan. Besides, you can also refinance the cost of the repairs or remodel into a new FHA loan.
The senior citizen
Are you a senior citizen, who wants to opt for a reverse mortgage program? FHA would be the right choice for you. Are you 62 years or more old? Do you own your home outright or have a very low balance? Then, you can qualify for this reverse mortgage loan that will turn your home equity into cash that you can use to meet monthly expenses.
The mobile home owner
There are two types of loans for the ones who wish to purchase a mobile home or a factory build house. There is one type of loan for people who already own the land, which the home is on and another for mobile homes that are or will be located in a mobile home park. You can check the detailed information online and then decide what to do.
Have you found yourself in one of the lucky types? Well, it is great. Then, what to wait for? Check the necessary steps and apply for the loan today.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.