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| Testimonials “We just finished the purchase of our first home with Stephen Steakley as our Mortgage Banker. Stephen was wonderful to work with. He was always available for any questions we had and his experience was invaluable at getting us the right loan at the best rate! We would highly recommend Stephen to anyone looking to purchase a new home.” Dave & Donna Jenson More Testimonials > |
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 FHA
Loan andFHA Refinance Information
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 Equal Housing Lender Urban Austin Mortgage Cedar Park, Texas |
FHA LOAN FREQUENTLY ASKED QUESTIONS
Q: What is an FHA loan?
A: An FHA loan is a real estate mortgage. The mortgage is insured by FHA.
FHA mortgage insurance provides lenders with protection against losses
as the result of homeowners defaulting on their mortgage loans. Since
the FHA insures these mortgages, lenders can work with borrowers even
when they've had credit problems, accounts in collections, past bankruptcy
filings, or debt-to-income ratios that are higher than normally allowed.
The lenders bear less risk because FHA will pay a claim to the lender
in the event of a homeowner's default. Loans must meet certain requirements
established by FHA to qualify for insurance.
Q: What kinds of properties qualify for an FHA
loan?
A: Single family dwellings of 1 to 4 living units, manufactured homes
meeting FHA's property requirements and units in low-rise and high-rise
condominium projects that are FHA approved.
Q: What is the maximum FHA loan amount?
A: The maximum loan amount allowed for an FHA loan is determined by your
county of residence in Texas. Below is a chart showing the loan limits
for the types of properties available for FHA loans in the counties around
Austin and Central Texas. Don't see your county listed? Please contact
us at 512-577-8898 and we'll be happy to assist you.
Q: What are the advantages of an FHA loan?
A: FHA insured mortgages are usually easier to qualify for, making them
especially attractive for people with less than perfect credit. FHA loans
require a low down payment (currently at 3.5%) and allows relatives to
assist with the downpayment amount. In addition, the seller is currently
allowed to contribute up to 6% of the purchase price toward the buyer's
closing costs. FHA-insured mortgages are more stable because they help
people not only buy a home, but helps them stay in their homes when there
are difficulties in making mortgage payments. In return for protecting
lenders against loss, FHA requires financial institutions to offer assistance
to borrowers who are having problems making their monthly payments.
Q: Who is eligible for an FHA loan?
A: To be eligible for an FHA-insured loan, a borrower must (1) occupy
the property as the principal residence (2) possess a valid Social Security
Number (3) have a 2-year employment history (school and military service
count towards this 2-year requirement) (4) not be delinquent on any Federal
debt such as a student loan or other FHA-insured mortgage and (5) meet
flexible credit requirements.
