FHA loans in Texas are some of the easiest loans to get when purchasing a new home. The requirements and down payment amounts are lower than some other loan options that are available. To get an FHA loan, you need to have a median FICO score (credit score) of 580 and 3.5% of the loan for a down payment.
Don’t have 3.5% saved up in your checking account or savings account? There is another option available. What can you do if you don’t have 3.5% of the loan for a down payment? You can get a donor to gift you the money. Ask a family member or friend. See if they will gift you the money for the down payment. As long as they don’t expect the money to be repaid, you can take the money as a gift. Then, you can have them fill out an FHA gift letter when they give you the down payment money.
There are three keys to getting an FHA loan in Texas: steady employment record, personal finances in order, and an understanding of your available budget.
Employment Record
The first key is your employment record. Prior to applying for an FHA loan, it is recommended that you have a steady employment history. If you’ve switched jobs or went without a job for a few years, get a steady job. You should have steady employment for 2-5 years to show that you are a good risk for a home loan.
Personal Finances
In addition to a strong employment record, the second key to applying for FHA loans in Texas is to have your personal finances in order. You must pay your bills on time. If you have credit cards, you need to pay more than the minimum payment each month. Additionally, it is best if you haven’t opened a bunch of new loans or credit cards in the last several months. While having available credit card funds is a positive, opening new credit cards requires a credit check and those checks can lower your credit score.
Understand Your Budget
The last key to applying for FHA loans in Texas is having a firm grasp on your budget. How much money you spend on your bills each month? What does your frivolous spending look like? How much can you afford each month in a mortgage payment? Once you’ve answered those questions, you need to consider additional expenses, such as water, electric, gas, property taxes, home upkeep, and other necessities. Once you estimate how much all those expenses add up to and subtract it from your available monthly resources, you will be left with how much you can spend on a mortgage. Remember your debt to income ratio must be below 43% when selecting a house to purchase.
Contact Signature Lending Services Now
The keys to getting an FHA loan in Texas is having good credit, a steady work history, and selecting a house that is within your budget. When preparing to apply for a home loan, have all your documentation ready for a faster approval process.
Getting an FHA loan in Texas does not have to be complicated. If you want expert advice to guide you through the process and help you have the most pleasant home-buying experience, contact Signature Lending Services. Signature Lending Services is an experienced industry leader. To get started with a Veterans Home Loan in Texas, call (877) -948-2562.