FHA HOME LOANS

FHA Loans.
A Flexible Path Home.

FHA loans can make homeownership more accessible for Texas buyers with flexible credit requirements and low down-payment options. They can be especially helpful for first-time buyers, but you do not have to be a first-time homebuyer to qualify.

At a Glance

3.5% DOWN

Qualified buyers may be eligible for an FHA loan with as little as 3.5% down.

FLEXIBLE CREDIT

FHA guidelines may provide more flexibility for buyers with less-than-perfect credit.

PRIMARY HOME

FHA financing is designed for eligible properties you intend to occupy as your primary residence.

The Basics

FHA loans are government-insured mortgages designed to make homeownership more accessible. They offer flexible qualification guidelines and lower down-payment options while still providing the stability of a traditional mortgage.

LOW DOWN PAYMENT

Qualified borrowers may purchase a home with as little as 3.5% down.

FLEXIBLE CREDIT GUIDELINES
FHA guidelines can offer more flexibility for buyers who may not meet conventional loan requirements.

GIFT FUNDS ALLOWED
FHA guidelines allow eligible gift funds to help with the down payment and closing costs.

SELLER CONTRIBUTIONS
FHA guidelines may allow sellers to contribute toward eligible buyer closing costs, subject to program limits.

Who Can Qualify for an FHA Loan?

FHA loans are available to first-time and repeat homebuyers purchasing an eligible primary residence. Qualification is based on factors including credit, income, employment, debt-to-income ratio, available funds, and the property itself.

CREDIT HISTORY

FHA guidelines may provide greater flexibility for borrowers with past credit challenges.

STEADY INCOME

Borrowers must demonstrate sufficient qualifying income and the ability to repay the mortgage.

PRIMARY RESIDENCE

The home generally must be your primary residence.

ELIGIBLE PROPERTY

The property must meet FHA eligibility and appraisal requirements.

Benefits

FHA financing offers several advantages that can make buying a home more achievable, especially for buyers who need greater flexibility with their down payment, credit history, or available cash.

LOWER DOWN PAYMENT

FHA loans may allow qualified borrowers to purchase a home with as little as 3.5% down.

MORE FLEXIBLE CREDIT

FHA guidelines may offer additional flexibility for borrowers whose credit history makes conventional financing more difficult.

GIFT FUNDS & CLOSING COST HELP

Eligible gift funds may be used toward the down payment and closing costs, and seller contributions may also help reduce eligible out-of-pocket closing expenses.

COMPETITIVE LOAN OPTIONS

FHA loans offer fixed-rate and certain adjustable-rate mortgage options, giving qualified buyers choices for financing their primary residence.

LOAN COMPARISON

Compare Options

FHA financing can be a great option, but it isn’t automatically the best choice for every buyer.

We’ll compare the numbers and help you understand which loan program best fits your finances and homebuying goals.

Loan Program Comparison

FHA vs. CONVENTIONAL Conventional financing may offer lower mortgage insurance costs for buyers with stronger credit, while FHA may provide more flexibility with credit and down payment.

FHA vs. VA Eligible veterans and service members should compare FHA with VA financing, which may offer 0% down and no monthly mortgage insurance.

FHA vs. USDA Eligible buyers purchasing in qualifying areas may want to compare FHA with USDA financing, which may offer 100% financing subject to program requirements.

COMPARE LOAN OPTIONS

FAQ

Have questions about FHA financing? Here are a few of the questions Texas homebuyers ask us most often.

Do I have to be a first-time homebuyer to use an FHA loan?

No. FHA loans are available to both first-time and repeat homebuyers who meet program requirements.

How much do I need for an FHA down payment?

Qualified borrowers with a credit score of 580 or higher may be eligible for a minimum down payment of 3.5%. FHA financing may also be available with certain lower credit scores, but a larger down payment and additional requirements may apply.

Does an FHA loan require mortgage insurance?

Yes. FHA loans generally require an upfront mortgage insurance premium and an annual mortgage insurance premium that is typically included in the monthly payment. How long the annual premium remains depends on the loan terms and initial loan-to-value.

Can I use gift funds with an FHA loan?

Yes. FHA guidelines allow eligible gift funds from acceptable sources to be used toward the down payment and certain closing costs when documentation requirements are met.

Can I use an FHA loan for an investment property?

FHA financing is generally intended for a primary residence, not an investment property. Borrowers must meet FHA occupancy requirements.

Ready to Explore Your Options?

You don't need to figure out FHA financing on your own. Our Texas mortgage team will help you compare your options and determine which loan program fits your homebuying goals.

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1st Alliance Mortgage LLC - NMLS 1407 | 4438 State Highway 6 S, Ste. 201, College Station, TX 77845

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Notice To Texas Loan Applicants: Consumers wishing to file a complaint against a mortgage banker, or a licensed mortgage banker residential mortgage loan originator, should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, TX 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov

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A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov