Having options is always a good thing. But when you are a first-time homebuyer, your mortgage choices might seem limited. Conventional loan programs can be more difficult to qualify for as they come with stricter income, credit score, and down payment requirements. The good news is, FHA Loans are an option, and a great one for many Texas buyers because it solves many problems new buyers may face.
What makes the FHA mortgage so attractive to first-time buyers? Compared to conventional loans, FHA includes…
- Lower credit score requirements
- Lower down payments
- Part of down payment can be a gift from a family member
- Lower income-to-debt ratio
- Higher percent of financing
- Upfront mortgage insurance premium can be financed into the loan amount
- Eligible for FHA Streamline Refinancing later on
Think the FHA loan is right for you? Before you sit down with an FHA mortgage lender, you’ll need to gather some essential documents that paint a favorable picture of your finances, including:
- Valid Social Security number
- Last two pay stubs
- Tax returns for the past two years
- Bank statements
- Investment securities and earnings statements
- List of debts and minimum monthly payments for each
- Other income statements or disclosures if applicable
- Profit and loss statements for self-employed borrowers for the past two years.
FHA loans aren’t always the right fit for every borrower. First United Bank Mortgage can help you make the right decision. We are professional FHA financing consultants with years of experience, offering aggressive Texas FHA mortgage pricing.