The Federal Housing Administration insures the FHA loan programs, but the FHA-approved lenders can issue the mortgages. If you are eyeing on an FHA loan, you need to find a lender who is eligible and experienced in providing you with the loan. Over the years, the FHA loan has gained much popularity for the benefits. If you want to run this loan process smoothly, you need the help of a lender.
For finding the best FHA lenders in Houston, create a checklist. It is best to shop around before finalizing the right lender for your situation. Nevertheless, go through the rest of the article and make sure your lender provides the following options. Also, you need to remember the tips before finding an FHA lender.
Availability of Down Payment Assistance Program
Find an FHA-approved lender who can provide you with down payment assistance in the form of a forgivable community second loan. When you cannot afford a down payment and closing costs, the DPA loan is quite helpful. It offers up to 6% on the final mortgage amount as a forgivable community second loan. Make sure you have at least 600 credit score and are buying the property for a primary residence. The lenders do not restrict the benefit to the first-time homebuyers, and the highest sales price is $331,760. As long as you are choosing the property in Liberty County, Brazoria County, Harris County, and other chosen areas, you are good to go. Of course, every lender does not offer this program, so you should ask if necessary. Don’t forget to read about the eligibility requirements, either.
Help You with Mortgage Calculator
No matter what your friends say, you cannot purchase the first house you see. The whole buying process is quite complex, and you should check whether you can afford it or not. FHA lenders let borrowers use the home loan calculator and walk through the process. By using the online tool, a borrower can understand how much he/she needs to save for a mortgage. The more you use it, the better you can recognize your ability to afford a mortgage. Plus, the calculator requires a special mention for helping every borrower in budget planning. You can make an informed decision and become a big-time saver.
FHA Loans Demand PMI
As you are rooting for the lowest down payment, which is 3.5%, you will have to pay for private mortgage insurance. PMI is waived off when you are putting 20% of the loan value. The FHA PMI cannot be removed because you need to gain adequate equity. When your down payment is under 10%, the private mortgage insurance goes on for the life of the loan. If the down payment is 10%, the private mortgage insurance runs for 11 years.
As long as your lender is willing to provide the necessary help, you need not stress about the whole process. You can get the right loan program and take one step closer to fulfilling your lifelong dream. So, get ready to find a local FHA-approved lender in Houston now!
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.