Essay about The Federal Housing Administration 203(B) Loans
There is no necessary income requirement in order to be eligible for these FHA purchase loans. In some states, a credit check may be required for certain purposes, but will not be the sole indicator of whether or not you will receive the loan. Instead, they may look to your past of making payments and whether they have been reliable or not. However, to receive Texas FHA loans, all major lenders are now requiring that you maintain a credit score of 620. This is now enforced due to changes in the Texas real estate market.
You will still need to make a down payment for the loan; however, it is much lower than other conventional loans (ringing in as low as 3.5% of the purchase price) but you can pay more than the minimum if you wish to do so. The down payment can even be made via a donation to the interested homeowner. This means a family member, a charity, or a government agency can aid you in making the down payment. In fact, 203(b) loans are the only ones that allow 100% of the down payment to be paid by someone other than the home-buyer. With a low down payment, as much as 96.5% of the housing costs will be