FHA LOAN PROGRAM: LOW CREDIT SCORES MORTGAGE LENDERS HOUSTON

In today’s market, where the purchase of properties is on the rise and homeownership has seen an increase, finding low credit scores mortgage lenders Houston is not a problem. You will find that there are several low credit scores mortgage lenders Houston who are willing to discuss different government loans for low credit scores options with you. Among them, you will find the FHA home loan to be one of the most popular programs out of all the different loans that are available for homeowners with a lower score.

But what is an FHA loan and why is it considered to the top pick amongst the different government loans? Let us explain.

The FHA program is administered by the US Federal Housing Administration who insures this loan for buyers to provide a layer of protection to the lender. Due to this extra security, low credit scores mortgage lenders Houston are more willing to consider approving applicants with lower credit score. However, this does not mean that if you apply, you will be guaranteed an approval – not at all. There are several conditions attached to the approval of the FHA loan that must be met by the applicant to qualify.

Let’s take a look at some of these basic requirements:

  • A steady source of income coming in monthly – this can include the two most recent paychecks as well as recent tax returns.)
  • You must have a credit score that is not less than 500 to qualify for the FHA program.
  • The house that you are planning to purchase must be first appraised by an appraiser that is approved by the FHA department.
  • You should not be behind on your taxes – this includes income tax as well as any student loan taxes.
  • The lender that you approach must be approved by the FHA. Therefore, make sure that before you go through the hassle of finding and selecting a lender, double-check to see if they are FHA approved.
  • The home loan is applicable to only those properties that you are planning to occupy and live in. It does not extend to properties that you plan to rent out or purchase for investment purposes.

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