At Txhomenow, our job is to find all the Texas down payment assistance programs you qualify for, gather all the information those programs require, and make sure you’re eligible for assistance so that you can realize your dream of becoming a homeowner. We have helped many Texans just like you receive help with down payments and closing costs that they couldn’t otherwise afford.
These government programs have some minimum requirements you must meet before they approve you. They are designed for individuals who work hard and show financial responsibility, but who have dings on their credit score due to medical bills or other unforeseen expenses. If you have a steady income but don’t have enough cash in your bank account to afford a 20% or 30% down payment on a home, Txhomenow is ready to help.
FHA loans are one option for homebuyers who can’t afford a traditional down payment amount. The FHA, or Federal Housing Administration, is the world’s largest mortgage insurer, having insured tens of millions of properties since its creation in 1934. The FHA insures loans for individuals and families who are struggling to find affordable housing because they do not meet the requirements set forth by traditional mortgage lenders. With a mortgage from an FHA-approved lender, you can pay highly reduced down payment and closing cost amounts.
With a standard mortgage, a 20% down payment on a $150,000 home would be $30,000. That’s a lot of money to come up with at one time, especially if you’re raising a family. FHA loans require much less. If your credit score is at least 580 or higher, you could qualify for a 3.5% down payment. Your down payment on that same home would be reduced to $5,250 — a much more attainable amount.
FHA Loan Requirements
There are several criteria you must meet in order to qualify for an FHA loan.
- The loan must be for a 1 to 4 family dwelling.
- The property must be the borrower’s primary residence.
- Borrowers with a 580 credit score qualify for 3.5% down payments.
- Borrowers with a 500 – 579 credit score qualify for 10% down payments.
- Borrowers can have a debt-to-income ratio as high as 56.9%, depending on the strength of the borrower.
- Borrower must have proof of a steady income.
The FHA is known for its generous mortgage lending guidelines. The 2019 FHA lending limits for single-family properties in Texas are as follows:
- Most Texas Counties: $314,827
- Dallas-Fort Worth Metroplex (All 13 Counties): $395,600
- Austin Area: $389,850
- Houston Area: $331,200
- San Antonio Area: $359,950
The exact amount you get approved for will depend on your debt and your income. Your FHA-approved mortgage lender must feel that you will be able to make your monthly payments without causing yourself a financial hardship.
We work tirelessly to connect you with down payment assistance programs and reduced down payment loans, like the ones offered by the FHA. We know their criteria for eligibility, and our specialists will make sure you meet them. Generally, you must be able to prove that you have income and that it will continue; make less than $96,000 per year; attend an online homebuyer education course; and have a credit score of 580 or above. By meeting these guidelines, you will have the best chance of being approved by the assistance programs we present to you.
If you’re uncertain that you’ll qualify for our help, call one of our down payment assistance specialists today. They will guide you toward a higher credit score so that you will be eligible for even more help.
Call Txhomenow for Pre-Approval in Hours
If you supply all the information we request, you can receive a decision in as few as 48 hours! We understand how nerve-wracking it can be to sit around for weeks and jump through countless hoops, just to be denied in the end. Txhomenow streamlines the downpayment assistance process. We stand by you every step of the way and we are always happy to answer your questions.
If you dream of owning a Texas home, contact us today to get started! We service the Dallas-Fort Worth area and all the surrounding counties. Let us help you afford the down payment that’s standing between you and the home of your dreams.
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