Essay about The Federal Housing Administration 203(B) Loans

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As a newcomer to the world of home buying in the state of Texas, it’s important to do research on loans and mortgages. Maybe you’re fed up with making rent payments or maybe you’re newly married and ready join the ranks of being a home owner. Put simply, you know you don’t have a lot of money and homes that need some repairs or updating are the only homes in your price range. This situation may seem less than ideal, but is one that many people are finding themselves in. Fear not, this is the age of do-it-yourself. Did you know you can actually receive assistance to help you buy a house needing repairs or updates? The Federal Housing Administration, a sector of the United States Department of Housing and Urban Development, provides FHA …show more content…
It needs to be a one-to-four unit family home and can be located anywhere, whether urban or rural. You must intend to use the potential property as your primary residence, even if it is not a single-family home. So, if it is a duplex, triplex, or fourplex, then you are required to occupy one of the units.

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

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