What is the FHA?

U.S. Department of Housing and Urban Development (HUD) is an executive branch of the federal government.  The Federal Housing Administration (FHA) is an arm of HUD that administers loan programs.

The FHA provides timely closings, competitive rates and foreclosure protections for homeowners.  FHA mortgage programs are insured by the Federal government.

FHA Program 203(b)

The main feature of this program is that the borrower may make a down payment as low as 3.5 percent. The interest rate is competitive with conventional loans. The maximum amount for this type of loan is $271,000.

 FHA Program 203(k) Stream Line

The 203(k) Stream Line program is for anyone who wants to buy a home and roll into the loan, money for cosmetic repairs.

Example of some covered items:

• Repair/Replacement of roofs or flooring
• Purchase and installation of appliances
• Repair/Replace/Upgrade of heating, cooling, plumbing or electrical systems

The 203(k) Stream Line loan can be for up to the value of the property plus anticipated improvement costs, or 110 percent of the value of the property, whichever is less. The rehab cost must be at least $5,000, but there is no limit to the size of the rehab but it must not be new construction.

FHA Program 203(h) Disaster Relief

Up to 100% financing can be available for qualified borrowers that meet specific requirements.  Disasters such as fire or hurricanes maybe covered.  Call for further details. Texas FHA Loans are included.