First-time buyers
I grew up a renter kid, so I know what it's like when owning a home feels like it's for other people. FHA is one of the most common ways first-time buyers get in the door.
FHA loans in Fort Worth: more room on credit, still a real loan.
FHA gets a bad rap it doesn't deserve. For a lot of buyers it's the loan that actually gets them into a house: a few dings on the credit report, not a ton saved up, or more debt than a conventional loan likes. Here's how FHA works, who it fits, and what to send me. I'm in Fort Worth, and most of my clients are around DFW.
Apply Now (opens in new tab)Tell me the deal
I always start with a soft pull, so no hard credit ding.
What an FHA loan is
The Federal Housing Administration, part of HUD, insures the loan. You don't borrow from the government. You borrow from a lender like me, and FHA's insurance is what lets lenders say yes to files a conventional loan would pass on.
That's the trade. FHA is more forgiving on credit and debt, and in exchange you pay FHA mortgage insurance. Sometimes FHA costs less overall, sometimes conventional does. I usually price both and show you side by side.
Who FHA fits
Teachers
My mom is still a teacher, so I've got a heart for teachers. I'm approved with most state and local down payment assistance programs, including ones for teachers. Eligibility depends on the program, so ask me which ones fit you.
Credit that's still healing
Late payments, collections, or a credit event in the past. FHA can look past more than a conventional loan will. After a bankruptcy or foreclosure, see how long the FHA wait typically is.
More debt than you'd like
FHA can go up to 56.99% debt-to-income with strong compensating factors, subject to qualification. Student loans, a car note, a couple of cards: send them to me and we'll see where you land.
The FHA rules worth knowing
It's for the home you live in
At least one borrower has to move in within 60 days of closing and intend to live there for at least a year. FHA isn't for rentals or second homes.
One to four units
FHA covers a house, a condo in an approved project, or a duplex, triplex, or fourplex where you live in one unit. Living in one side and renting the other is a real way to start investing. I'm an investor myself, so I like that move.
Mortgage insurance
FHA has an upfront mortgage insurance premium, which can be financed into the loan, plus an annual premium paid monthly. How long the annual premium lasts depends on the loan. I'll show you the real number.
Gifts are allowed
Money can come from family, your employer or labor union, a close friend with a documented interest in you, a charity, or a government homeownership program. It has to be documented HUD's way, so tell me early.
County loan limits
FHA has a maximum loan amount that's set by county and changes over time. Check yours on HUD's FHA mortgage limits lookup. Above it, look at conventional or jumbo.
The house gets a look too
FHA appraisals check that the home meets HUD's property standards, not just what it's worth. Older homes with peeling paint, a bad roof, or safety issues can need repairs before closing. Tell me about the house early.
Fixer-upper? FHA 203(k)
FHA's 203(k) program rolls the cost of repairs into the loan, on a purchase or a refinance. The Standard 203(k) covers bigger remodels and structural work and uses a HUD 203(k) consultant. The Limited 203(k) is for minor remodeling and nonstructural repairs, with no consultant required. I do both. More in my renovation loan guide.
FHA also covers manufactured homes that meet HUD's rules. Buying out in the country? Check USDA too.
Already have an FHA loan?
I do FHA streamline refinances. HUD's streamline is for existing FHA loans, with limited credit documentation and underwriting, and HUD doesn't require an appraisal for it. There's also a simple refinance that pays off the existing FHA loan and the costs to do it.
I don't do FHA cash-out. For cash out of your house, look at a conventional Texas cash-out.
Whether a refinance makes sense comes down to what it saves you against what it costs. If it doesn't pencil out, I'll say so.
What to send me
- Pay stubs for the last month and W-2s for the last two years
- Tax returns if you're self-employed, get commission, or own rentals
- Recent bank statements for the account the money's coming from
- Any gift or down payment assistance you're planning to use
- Your bankruptcy discharge or foreclosure dates, if you've had one
- The price range and the area you're shopping
Ready when you are.
Send the short form, call, or email. I'll pull credit, look at FHA and conventional side by side, and tell you straight which one makes sense. Self-employed and your tax returns look thin? FHA may still work, and if it doesn't, bank statement loans might.
I lend in Texas, Oklahoma, California, Colorado, Montana, Florida and Georgia, and I can help in all the other states too.
I always start with a soft pull, so no hard credit ding.
FHA loan questions
What is an FHA loan?
A mortgage insured by the Federal Housing Administration, which is part of HUD. You don't get it from the government. You get it through a lender like me, and FHA insures it, which is why FHA can be more forgiving on credit than a conventional loan.
Can I use an FHA loan for a rental or a second home?
Generally no. FHA is for the home you live in. At least one borrower has to move in within 60 days of closing and plan to live there for at least a year. You can buy a duplex, triplex, or fourplex with FHA and live in one of the units.
Does an FHA loan have mortgage insurance?
Yes. FHA charges an upfront mortgage insurance premium and an annual premium that's paid monthly. How long the annual premium lasts depends on the loan. I'll show you the real cost next to a conventional loan so you can compare.
Can family help with an FHA loan?
Yes. HUD allows gifts from family, your employer or labor union, a close friend with a documented interest in you, a charity, or a government homeownership program, as long as the gift is documented the way HUD requires.
How high can my debt-to-income ratio be on an FHA loan?
FHA can go up to 56.99% DTI with strong compensating factors, subject to qualification. Every file is different, so send me the numbers and I'll tell you where you stand.
What is the FHA loan limit in Tarrant or Parker County?
FHA limits are set by county and change over time. Look up the current number for your county on HUD's FHA mortgage limits page, or just ask me.
Apply Now (opens in new tab)Tell me the deal
I always start with a soft pull, so no hard credit ding.
General information, not a commitment to lend. FHA program rules come from HUD Handbook 4000.1. Subject to qualification and program guidelines. Not all applicants will qualify.
More answers on the FAQ page, or compare VA loans and conventional loans. Or head back home.