ServicesFHA Loans
FHA Loans in Manor, TX
An FHA loan can get you into a house with a small down payment and credit that isn't perfect. We show you what it costs today and what it costs ten years from now, so you pick the loan that still makes sense later.
What an FHA loan is and who it fits
An FHA loan is a mortgage backed by the Federal Housing Administration. With the government standing behind it, lenders can accept a lower credit score and a smaller down payment than most conventional loans allow. With a score of 580 or higher, the minimum down payment is 3.5 percent.
The trade-off is mortgage insurance. You pay an upfront premium at closing and a monthly premium after that. If you put down less than 10 percent, that monthly premium stays for the life of the loan unless you refinance out of it. That is the part many borrowers never hear about until years later.
We have spent 11 years in the mortgage industry, and we've been NMLS licensed for 10 of them. In that time we've learned the honest answer is sometimes FHA and sometimes not. We run the numbers both ways and show you the gap.
What you get when we handle your FHA loan
- A side-by-side with conventional
- We price your loan as FHA and as a conventional loan if you qualify for both. You see the monthly payment, the cash to close and the mortgage insurance over five and ten years.
- Pre-approval you can shop with
- Once we review your income, assets and credit, we issue a pre-approval letter. Sellers and agents take an offer more seriously with one attached.
- Help with gift funds
- FHA lets family members give you money toward the down payment. We walk you through the gift letter and the bank paper trail underwriting will ask for.
- Appraisal guidance
- FHA appraisers check safety and condition, not just value. We tell you what tends to get flagged so you can raise it with the seller early.
- One loan officer start to finish
- You deal with the same person from the first call to closing. Meet at our office, or by phone and video if that's easier.
Signs an FHA loan may be the right call
Your credit score is in the 580s or 600s
Conventional pricing gets steep at these scores. FHA rates often hold up better for borrowers in this range.
You've saved less than 5 percent
A 3.5 percent down payment can get you buying sooner instead of waiting years to save more.
You had a credit setback a while back
FHA has set waiting periods after a bankruptcy or foreclosure, and they are often shorter than conventional rules. We can check where your dates fall.
Your debts run a little high
FHA can allow a higher debt-to-income ratio when the rest of the file is solid.
Family wants to help
If a parent or relative is chipping in for the down payment, FHA handles gift money cleanly.
How an FHA loan moves from first call to closing
- 1
Phone conversation and application
We talk through your goals, income and savings, then take your loan application by phone. It usually takes under an hour.
- 2
Documents and pre-approval
You send recent pay stubs, W-2s, two months of bank statements and ID. Self-employed borrowers add tax returns. We review it all and issue your pre-approval.
- 3
Contract and FHA appraisal
Once you're under contract, we order the FHA appraisal. The appraiser confirms value and checks items like peeling paint, roof condition and working utilities.
- 4
Underwriting
The underwriter verifies everything and may ask for a letter or two explaining a deposit or a job change. We tell you exactly what's needed and why.
- 5
Closing
You review your final numbers ahead of time, sign at the title company and get your keys.
What moves the cost of an FHA loan
The rate is only part of the picture. Mortgage insurance, closing costs and how long you plan to keep the loan all change what you really pay. We lay these out in writing so the cheapest loan today doesn't turn into the expensive one later.
- Down payment size
- Put down 10 percent or more and monthly mortgage insurance ends after 11 years. Put down less and it stays until you refinance or sell.
- Credit score
- A higher score usually means a better rate. Even a 20-point bump before you apply can be worth waiting a few weeks for.
- Upfront mortgage insurance
- FHA charges an upfront premium on every loan. Most borrowers roll it into the loan amount, which lowers cash to close but adds to the balance.
- Seller help with closing costs
- FHA allows the seller to pay up to 6 percent of the price toward your closing costs. Negotiating this can cut what you bring to the table.
- Loan limits and property type
- FHA caps how much you can borrow based on the county, and the Travis County limit applies to purchases around Manor. Two- to four-unit properties have higher limits.
FHA loan questions we hear often
Something not covered here? (512) 956-7745
Is an FHA loan only for first-time buyers?
No. Anyone who will live in the property as their main residence can use one. Many repeat buyers choose FHA because of credit or down payment. You generally hold one FHA loan at a time.
Can I get rid of the mortgage insurance later?
If you put down less than 10 percent, the only way out is to refinance or sell. Many borrowers refinance into a conventional loan once they reach about 20 percent equity and their credit has improved. We factor that likely refinance into the comparison up front.
Can I buy a duplex with an FHA loan?
Yes. FHA covers properties with up to four units as long as you live in one of them. Rent from the other units can sometimes help you qualify.
Is the FHA appraisal harder to pass?
It is stricter on safety and condition. Things like missing handrails, exposed wiring or a failing roof can hold up closing until they're fixed. Most move-in-ready houses pass without trouble.
Do you work with buyers outside Manor?
Yes. We help FHA borrowers across the area, including Pflugerville, Elgin, Hutto and Round Rock. Everything can be handled by phone and video if you don't want to come to the office.
See your FHA numbers next to the alternatives
Tell us what you're buying and what you've saved. We'll take your application and show you the FHA cost today and down the road.