Are you in the market to buy a home but just don’t have (or don’t want to) put 20% down?
Do you maybe have less-than-perfect credit and are just looking around for answers and a way to qualify with less hassles?
Is it your first time buying a home and have tons of questions and just don’t really know where to start?
Whether you are looking to simply learn more about how much you can get approved for a new home or needing to refinance out of your high interest rate loan, you have come to the right place – FHALoanHouston.com.
We understand how important it is to make your home affordable with low rates, give you more than enough options when buying or refinancing, as well as being your tour guide through the maze of FHA financing which is why we are the leading experts in Houston on the FHA loan program.
What is the FHA Loan Program?
An FHA loan is a type of mortgage loan that is insured against default by the Federal Housing Administration (otherwise known as FHA).
Back in the 1930′s during The Great Depression, the FHA loan was created by the government (Department of Housing and Urban Development) to stimulate the housing market make buying a home affordable again.
Houston FHA insured mortgages are available in today’s real estate market. You can even use the FHA 203k loan program for fixing up homes as well!
Here’s a video that explains FHA mortgages in 2025 and how they work:
Benefits of an FHA Loan
FHA Loans are:
- Easier to Qualify For – because these types of loans are backed by the federal government, FHA approved lenders are usually more likely to approve you.
- Lower Down Payment – FHA mortgages in Houston only require a 3.5% down-payment which makes it easier for people to have an opportunity to buy a home. In addition to that, the down payment can even come in the form of a gift from a family member or relative.
- Lower Mortgage Insurance – since putting down a small down payment, your mortgage insurance is minimal.
When it comes to FHA financing, we are your Houston FHA Home Loan experts providing FHA loans in Houston and all throughout Texas.
We offer highly competitive 30 and 15 Year FHA interest rates and incredibly competitive closing costs when it comes to your home loan in Houston – hands down.
How do we do this?
Our experienced FHA loan experts:
- Work directly with FHA-Endorsed Banks;
- Have longstanding investor relationships that provide a wide variety of FHA financing options;
- Use streamlined, paperless loan processes with e-Sign technology;
- Efficiently combine in-house processing, underwriting, closing and funding under the same roof to ensure maximum accuracy and reliability.
You can also read some more of our reviews and see what other happy clients are saying.
How to Qualify with an FHA Home Loan Lender
- With a down payment of only 3.5%, which makes FHA loans ideal for homebuyers who don’t have enough capital to save for a larger down payment.
- Steady employment history
- Verifiable income (pay stubs, W-2s, federal tax returns, bank returns)
By selecting an Houston Approved FHA Lender to help with homeownership, you can rest assured that your expectations can be met when purchasing a home, as we understand how stressful it can be.
Credit Scores for Texas FHA Loans
Unlike conventional loans, the credit score requirements with mortgage lenders are much more lenient, as there is no minimum credit score. As of 2025, you can get approved with a lower credit score down to a 580 FICO score, and in some situations, can go even lower depending on extenuating circumstances.
Regardless of your situation, we help you so that can approved.
First-Time Homebuyers
The purchase of your first home can be overwhelming, and you need some solid home buyer advice. The good news is that we’re here to help you every step of the way when buying your primary residence.
First, let’s talk about homebuyer education.
- Know your credit score and credit history before applying for a mortgage. You can get a free copy of your credit report from all three credit bureaus at AnnualCreditReport.com.
- Start saving early for a down payment and closing costs. The National Association of REALTORS® suggests saving at least $3,000 for a down payment and $2,000 for closing costs.
- Consider whether you want to buy a home now or later. If you’re not sure, now is the time to talk to a real estate professional about your current financial situation and whether or not buying is right for you right now.
- Don’t get discouraged if your credit score isn’t great. There are mortgage products available for borrowers with scores as low as 500.
Then, let’s talk about owning your home:
- Pay down debts and improve your credit score before you start shopping for a mortgage.
- Don’t increase your debt load when you start shopping for a mortgage.
- Don’t buy more house than you can afford. If you can only afford a $200,000 home, don’t apply for a $250,000 mortgage. You’re more likely to default when your loan payment is too much for you to handle financially.
- Talk with a real estate professional before writing up your offer.
Texas FHA Mortgage Loan Refinance
Another great way to use FHA to lower your mortgage payment is to refinance your home with FHA.
FHA refinances are also very popular among home-owners who were initially placed in a high interest rate sub-prime loan, but since rates have dropped, several borrowers are flocking FHA to lock in a lower rate, regardless of the type of home loan or loan amount that they have.
We provide you the latest in financial tools that will enable you to make smart and money saving choices by providing you up-to-date interest rates and loan breakdowns so you can learn about your options, including an FHA Streamline refinance.
Frequently Asked Questions
How do FHA loan rates compare to other available options?
Generally, FHA financing has lower rates that all other mortgage loan programs.
Does FHA lend the money or do lenders?
Many people believe that the FHA (Federal Housing Administration) is a company that lends the money, however FHA is a government organization that insures the loan while FHA approved lenders like us are the ones that lend the money.
If a loan defaults, FHA will step in and pay and because of this, mortgage lenders are more willing to lend.
They simply set all the basic rules when determining what they are willing to insure, and as such, there is always a lot of confusion when it comes to FHA requirements.
While the FHA sets the basic minimum FHA guidelines of what types of loans they are willing to insure, FHA lenders will sometimes put in place an added layer of security which is called an “overlay”. This simply means that even though FHA has their minimum guideline, lenders will add their own in addition to it.
Why do they do this?
Because of what happened a few years ago during the mortgage crisis, lenders basically want to cover themselves in case of a default, so they take any extra measures to insure that the borrower is within their risk threshold as well as keeping their default rates low, because this effects more than you may think.
Let’s take a look at an example:
Let’s say there’s an FHA lender (we’ll call them “Lender A”) that has really loose guidelines and is lending out money to borrowers that should be “borderline” approved.
By this, we mean they’re approving loans for people that have extremely low credit scores and obvious signs that they haven’t kept up with their finances.
Well, if those “risky” borrowers end up going into foreclosure (or default), FHA needs to step in to pay those claims since they are insuring the loan.
Each time this happens, FHA makes a note on the lender that issues the loan because the Federal Housing Administration (FHA) gives all FHA lenders their very own “credit grade”.
They routinely monitor each specific lender’s FHA loan performance, and if they are consistently paying out claims because Lender A is approving and issuing sketchy loans, there’s a very good chance that either the lender will be cut off from making FHA loans altogether or possibly have their “cost” to make FHA loans go up due to Lender A’s higher risk.
After all, FHA isn’t in the “check cutting” business. They are in the making homes affordable business.
Imagine what can happen if hundreds or even thousands of FHA-approved mortgage companies begin to issue marginal FHA loans..
Not only does it get very expensive for FHA to continue paying the claims and put them in a position to go out of business (yes, they need to make money), but more importantly, it gets more expensive for everyone that’s involved in the process.
Nobody wins.
Loosey Goosey Guidelines + High FHA Claims = Higher Costs/Less Options for Everyone
At the end of the day, it’s all a balancing act.
While there are some lenders that are extremely strict, there are also others that will give you a loan as long as you have a heartbeat.
Our approach is that we look for ways to approve your loan in every way imaginable, and if we can’t, we’ll put together a game-plan to help you eventually get to where you need to be.
As your local Houston FHA Lender, we just want to make sure that your situation makes sense and your mortgage needs are met.
Whether you’re trying to determine if you qualify or if you’re interested in finding out what kind of documentation you’ll need to ultimately get started on your loan, we can provide you the information you’re looking for.
Additionally we’re more than happy to take your phone calls so feel free to get in touch.
Get Started
We encourage everyone to check out their options, even if they have challenged credit. We look forward to answering all your questions and are here for you every step of the way and serve several areas around Houston.
Take a few seconds and check your FHA eligibility below – it is 100% FREE and takes less than 30 seconds.