Federal Housing Administration – Government Loans

FHA Loans in Dallas, Texas

The Federal Housing Administration was created in 1934 in an effort to bolster homes sales during the Depression. By financially guaranteeing loans, the FHA lifts much of the risk of non-payment and foreclosure from private lenders. It is important to remember that the FHA is not a lender; they just guarantee your loan.

Dallas County FHA Loan Limits

The Dallas County FHA loan limits as of 2020, allow homebuyers to possibly borrow up to 96.5% of the value of a home with an FHA loan (meaning a borrower will need to make a down payment of only 3.5%). Supreme Lending borrowers will need a credit score of at least 640 to qualify. With FHA loans in Dallas, down payments can come from savings, a financial gift from a family member, or a grant for down-payment assistance.

All these factors make FHA loans in Dallas popular with first-time homebuyers.

Advantages

    Bankruptcy not an automatic disqualification

    Lower interest rates

    Down payment is less

    Lower mortgage points and other closing cost requirements

    Resale can be made more quickly

    Is backed by the U.S. government

Features

    Higher upfront Mortgage Insurance Premium (MIP) than on conventional loans but monthly MIP is lower

    Loan Limits are lower than conventional

    MIP required regardless of the Loan-to-Value (LTV)

What to Consider with a FHA Loan in Dallas TX

A Supreme Lending Originator will evaluate a borrower’s qualifications for an FHA loan in Dallas as usual, but in addition to looking over a credit report, we may look at work history for the past two years and other typical payment histories, such as utility and rent payments. Keep in mind that the lower your credit score and the less you put towards a down payment, the higher the interest rate and monthly payment will be on the mortgage. It’s also important to remember that when buying a home, borrowers may be responsible for certain out-of-pocket expenses such as loan origination fees, attorney fees, and appraisal costs. One of the advantages of applying for an FHA loan in Dallas is If the seller or the builder is having a hard time finding a buyer, they may be able to help you at the closing table.