People wish to buy a home and live comfortably without the need of paying any rent. Houses are not easy to buy, and the mortgage loans are the only option that makes the wish of homebuyers come true. The city of Houston has many comfortable and amazing houses which can easily be bought with the help of either conventional or government assisted home loans.
The first time homebuyers with moderate income have many affordable options offered to them by the Department of Housing. The first time homebuyers mostly consist of a newly married couples who are just beginning their professional and married life and experience different financial constraints. Of all the loans, the FHA loans are the best loans and provide all the assistance and support that the first time owners need and deserve. The best FHA lenders in Houston make it easy for potential homebuyers to obtain the FHA loan even with less than perfect credit score and high debt to income ratio.
The FHA loans are known for their lenient requirements, particularly when it comes to credit score, debt to income ratio, down payment, and interest rates. The credit scores are a significant factor without which the loan application is not approved. The credit scores are determined by FICO (Fair Isaac Corporation) and classified as
- 800 to 850: Excellent score
- 740 to 799: Very Good score
- 670 to 739: Good score
- 580 to 669: Poor score
- 300 to 579: Bad score
The best FHA lenders in Houston help those homebuyers to buy a home who have failed to get the conventional loans offered by banks and private lenders. The banks have stringent rules and do not approve loan application on poor or bad credit as there is all the chance that the homebuyer would default on the mortgage payments. The FHA lenders, on the other hand, ask for
- 3.5% down payment poor credit score (580 or above); and
- 10% down payment on bad credit score (500-579)
The best FHA lenders in Houston only provide the loans because the FHA loans are guaranteed by the government and the loss of the lender will be paid if the homebuyer default on the loan amount. The FHA lenders also accept debt to income ratio as high as 50% when the standard of acceptance in the conventional loan is 43%. The interest rates of FHA loans are also less as compared to conventional home loans.
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