Texas Home Lending News

Many home mortgages we do for customers in Dallas are FHA loans. FHA loans are popular options for borrowers in Dallas and the rest of Texas because they allow homebuyers to buy a home with a relatively small down payment. The idea behind the FHA loan is to promote home ownership. Makes sense. FHA loans typically make it easier for people in Dallas to qualify for a mortgage. However, as attractive as these home loans are to Texas home buyers, there are some things to keep in mind.

Minimum credit scores for home buyers in Dallas FHA depend on the type of loan the borrower needs. To get a mortgage with a down payment as low as 3.5 percent, the borrower in Dallas, or anywhere else for that matter, needs a credit score of 580 or higher.

Home buyers in Dallas with less than great credit, credit scores between 500 and 579, must make down payments of at least 10 percent of the home purchase price. If you’re looking to buy a home in Dallas with a credit score under 500 you probably won’t be able to get an FHA loan. However, under certain circumstances for applicants who have what is called "nontraditional credit history or insufficient credit" there may be exceptions if certain criteria are met.

Down Payment for FHA Home Loan In Dallas

For most of Sublime Financial’s home loan customers in Texas, the FHA requires a down payment of just 3.5 percent of the purchase price of the home. That’s much less than other home loan products require. As a caveat to this, and as we continually look out for our customers at Sublime Financial, just because you can put less down, doesn’t mean that’s all you should do if you can afford more. Always look at your larger picture when it comes to your home mortgage in Dallas or the rest of Texas.

FHA borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member or a grant from a state or local government down-payment assistance program.

Costs, services and underwriting standards will vary among lenders or mortgage brokers, so it's important for borrowers to shop around. This is an area where Sublime Financial continually excels compared to other lenders in Dallas and our state.

Qualify for A Home Loan in Dallas with an FHA

It’s fairly easy to qualify for a home loan in Texas using an FHA. Since the government is guaranteeing the loan, most lenders are willing and open to approve it. It is possible for lenders to set their own standards along with it making it stricter for the borrower.

When applying for your FHA loan there are no income limits to be concerned with. If you have a high income, you aren’t disqualified like with some other first-time home buyer programs.

Sublime Financial based here in Dallas, Texas handles many FHA loans for our customers along with a host of other home loan products. We constantly strive to provide our clients with not only the best home loan options here in Dallas and the rest of the state, but compliment that with outstanding customer service.

Contact us now and let us help get you into the home of your dreams today.