Federal Housing Administration (FHA) Mortgage Loan
Federal Housing Administration
FHA is a great option for clients with less down, past credit blemishes, and/or looser debt to income requirements. It is generally a 30 year fixed rate and is more flexible with underwriting. It also has more lenient requirements than conventional for any past collection or charge off accounts. We can currently go down to a 580 credit score with FHA. The guidelines for FHA are found in the HUD 4000.1.
FHA maximum loan amounts vary by county. Collin County's 2018 FHA limit for a single family residence is $386,400. With using the minimum down of 3.5%, this would put the max sales price at $400,414. You could still purchase a house for a higher amount with FHA, but your down payment percentage would go up since the maximum loan would be the $386,400. The limit for a 2 family house is $494,650; a 3 family house $597,900 and a 4 family house $743,100.
Team Neal at First Choice has expansive FHA knowledge and has been ranked nationally on their goverment loan production. Our 30 years of experience comes in extremely beneficial to help you with this type of financing.