The number of FHA mortgage loans is close to one-quarter of all loans originated and closed today. There are a few reasons why that’s the case. First, major mortgage lenders are just beginning to approve FHA mortgage applications for borrowers whose credit scores are at least 580 or higher. This is a 60 point drop from the FHA required credit scores of 640 or higher just a year ago.
An additional reason FHA loans are in demand is that they only require a 3.5 percent down payment against a home’s purchase price. Buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure.
There are FHA guidelines when it comes to loan limits that vary from county to county. In the DFW area, single-family loan limits are $334,650 while a 2-unit (duplex) loan limit is $428,400. You can check specific loan limits by county by clicking here.
For many home buyers, the FHA (Federal Housing Administration) mortgage is among the most lenient and forgiving mortgage program available. To find out if you’re FHA-eligible complete the form below or contact me at (214) 770-1499.