FHA Loans

FHA Loans

Many people who want to buy a home in Waxahachie, Texas, are turning to FHA loans – and for good reason. Offered through the Federal Housing Administration, this form of financing puts homeownership in easier reach.

An FHA home loan in Waxahachie is government-insured and, therefore, poses a lower risk to the mortgage lender. Because of this added security, lenders have more lenient guidelines for FHA borrowers. And for anyone with credit challenges or little cash saved to put down on a Waxahachie home, FHA financing can be an excellent option.

A credit score of 580 is typically all it takes to qualify for an FHA loan with a 3.5 percent down payment, and borrowers with scores in the 500-579 range may still be approved with 10 percent down. In addition, although past bankruptcies and foreclosures can make it difficult to qualify for a conventional mortgage, the FHA home loan program is more forgiving of major negative credit events.

With flexible eligibility guidelines, the option to make a lower down payment, limits on closing costs and interest rates that are often at or below the market average, FHA financing is quite appealing to Waxahachie homebuyers. Mortgage insurance premiums are an extra expense, but reaching 20 percent in equity or refinancing later on can eliminate that obligation.

Should you consider an FHA-backed mortgage? Whether you’re a first-time home buyer or a repeat buyer, the professional team at PRMI in Waxahachie, Texas, can help you figure out if an FHA loan meets your needs. To explore the many possible routes to homeownership, contact our mortgage company in Waxahachie today!