FHA Loan Facts and Information for College Station Home Buyers

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FHA Loan Facts and Information for College Station Home Buyers

The Federal Housing Administration, or FHA, insures private loans that are issued for new and existing houses, and loans for home repairs.  This agency of the government has been around since 1934, helping potential homeowners realize their dreams.  Today, the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans. 

fha1For some time, FHA insured loans in College Station (and at national levels) were becoming increasingly rare.  This had much to do with increased home prices, which were well out of the limit set by FHA per county, and the popularity of interest-only and no-down payment loans. 

However, with the housing bubble popped and FHA changing some of their rules, these insured loans are quickly becoming a very popular option.  For one, FHA has established higher loan limits – allowing homeowners access to FHA insured loans even on a higher priced home; the current limit for fixed-rate 30 year mortgage on a one family home in Brazos County is $271,050.  Additionally, lower home prices in the general market and a low down payment requirement have made these FHA insured loans an extremely desirable trend.  As a result, half of the FHA’s current portfolio originated in 2009.  The huge current benefit is the ability to get into a home with a low down payment.  This is why FHA’s market share has gone from 3% a couple of years ago to a whopping 50%.

I have researched the FHA rules and requirements, and put together a list of some things you should know about this program:

  • You should go to an FHA approved lender or broker.  Brazos County on the whole, and College Station and Bryan have many to choose from.  Visit http://www.hud.gov/ll/code/llslcrit.cfm to find your best option.
  • And FHA loan requires only a 3.5% down payment and you can get this down payment as a gift!  Employers, relatives, even non-profit government agencies can offer down payment assistance.
  • Because FHA insures your mortgage, lenders may be more willing to give borrowers loan terms that make it easier to qualify.
  • Your debt to income ratio is important.  Don’t make a huge credit purchase before applying for an FHA loan, and if you can pay off that auto loan before applying, do so!

For a moderate-income buyer who can’t afford a large down payment, an FHA insured loan is a viable option to your path to homeownership.  If you are a College Station or Bryan resident hoping to buy a home, or if you are interested in learning more about how an FHA insured loan can help you achieve this, please call me.

Clay Lee – Realtor  claylee

Century 21 Beal, Inc.

(979) 255-1839

[email protected]

Timeless Service, Quality, and Experience Guaranteed

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