FHA Loans

FHA Home Loan Options with New Horizon Mortgage

Specializing in FHA lending, New Horizon Mortgage, offers FHA loans throughout all of Texas. If you're interested in finding out more about applying for an FHA loan with New Horizon Mortgage, Call Now – toll-free: (866) 310-0333 or e-mail info@nhmisa.com
 
Frequently Asked Questions (FAQ) – FHA Mortgage

What is an FHA mortgage? 

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

What are the advantages of an FHA mortgage?

FHA loans are an attractive option, especially for first-time homeowners. Typically FHA loans are easier to qualify for than conventional loans. This is because it requires a low down payment (3.5%) and you can have less-than-perfect credit. Anyone interested in purchasing a home but can’t afford a traditional down payment of 20% or can’t get approved for private mortgage insurance (PMI) should consider applying for an FHA loan. New Horizon Mortgage provides competitive FHA mortgage rates and low fees. There is no cost to apply for an FHA loan with New Horizon Mortgage. Call Now – toll-free (866) 310-0333 or e-mail info@nhmisa.com

What are the drawbacks of an FHA mortgage?

Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront – or, it can be financed into the mortgage – and the other is a monthly payment. The Upfront Mortgage Insurance Premium (UFMIP) is 1.75% of the loan amount regardless of the credit score. Furthermore FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser. Additionally FHA loans have a maximum loan amount that vary by state and county.

Loan limits as of January  1, 2015:

San Antonio, TX (MSA)

One-Family Two-Family Three-Family Four-Family
$316,250 $404,850 $489,350 $608,150

Austin-Rock Rock, TX (MSA)
 
One-Family Two-Family Three-Family Four-Family
$331,200 $424,000 $512,500 $636,900

Dallas-Plano-Irving, TX Metropolitan Division
 
One-Family Two-Family Three-Family Four-Family
$310,500 $397,500 $480,450 $597,100

Houston-Sugar Land-Baytown, TX (MSA)
 
One-Family Two-Family Three-Family Four-Family
$326,600 $418,100 $505,400 $628,050

 

To find out the FHA mortgage limits in your area, click here

Another downside to an FHA loan is that the loan option requires a monthly mortgage insurance premium (MIP) payment that is nonrefundable. Known as an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. It is based on a borrower's loan-to-value (LTV) ratio, loan size, and length of loan. There are different Annual MIP rates for loans with a term > 15 years than there are for loans with a term < or equal to 15 years.

When You Will Stop Paying Mortgage Insurance on an FHA Loan?
 
For all mortgages regardless of their amortization terms, any mortgage involving an original principal obligation (excluding financed Up-Front MIP (UFMIP)) less than or equal to 90 percent LTV, the annual MIP will be assessed until the end of the mortgage term or for the first 11 years of the mortgage term, whichever occurs first.
 
For any mortgage involving an original principal obligation (excluding financed UFMIP) with an LTV greater than 90 percent, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first.
 
Note: FHA calculates LTV as a percentage by dividing the loan amount (prior to the financing of any UFMIP) by the lesser of the purchase price (if applicable) or the appraised value of the home.


What credit scores are required to obtain an FHA loan?

New Horizon Mortgage provides FHA loans for qualified borrowers with credit scores 580 and above.

  • FHA Purchase = 580 Minimum Credit
  • FHA Streamline Refinance = 620 Minimum Credit  
  • FHA Limited Cash-Out Refinance = 640 Minimum Credit

Want to find out if you qualify for an FHA loan?

Call now – toll-free (866) 310-0333 or e-mail info@nhmisa.com for a free Pre-Qualification consultation. You can even Apply Now by clicking the link below. 
 


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