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    Email: Todd.Frank@BankofTexas.com

  • FHA – Federal Housing Administration

  • FHA Home Loans – Opening Doors for Many Homeowners

    Ready to buy your first home? Working with limited income or money for a down payment? A government-insured Federal Housing Administration (FHA) home loan could the right solution for you. FHA loans have been helping people buy homes, whether the first or the fourth, since 1934.

    What are the Benefits of an FHA Loan?

    FHA home loan programs typically help first-time homebuyers, seniors or others with limits on what they can afford. FHA home loans offer:

    • A low 3.5% down payment
    • Flexible income and credit requirements
    • Low closing costs

    Are There Limits to an FHA Loan?

    Some FHA home loans have a loan value cap based on location, but keep in mind that the typical FHA candidate already has financial limits. That makes this less of an issue. Our minimum credit score is 640, and the chances of approval gets better as the scores get higher.

    FHA Loans Come Many Varieties and May Fit Your Needs

    FHA Fixed Rate Home Loans

    There are two types of fixed FHA mortgage terms:

    • 30-year fixed rate FHA
    • 15-year fixed rate FHA

    Both options offer the same interest rate stability, but the 15-year term has higher monthly payments, giving you a faster way to build up home equity. You can use this higher equity as a down payment when you move to your next house.

    FHA Adjustable-Rate Mortgages

    The 15-year alternative also gives you greater power to move. With a higher monthly payment, you build up more equity in the house sooner. This means you can use proceeds from a house sale to make a bigger down payment on a future purchase.

    An FHA adjustable rate mortgage (ARM) lets homeowners pay a low introductory interest rate for the first few years, then move to a new home before it adjusts, possibly upwards. If you know this is a starter home that you will leave in a few short years, then an ARM could make sense for you. We offer the 5-year ARM (fixed for the first 5 years, change annually after that, annual cap of 2 percentage point and a lifetime cap of 5 percentage points.)

    If you think you could benefit from any of these FHA program, please contact us. 

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