ServicesFHA Loans
FHA Loans in Hutto
FHA financing opens the door for buyers with modest savings and credit that has a few dings. We take your loan application, tell you plainly where you stand, and send copies of what we find at each step, so nothing in your file is a guess.
What an FHA loan is and who it fits
FHA loans are home loans insured by the Federal Housing Administration. Because the government stands behind them, lenders can approve borrowers a conventional loan might turn away. Once your credit score reaches 580, you can put as little as 3.5 percent down, and that money can come as a gift from family.
It is not only for first-time buyers. Anyone buying a house to live in can use it. The tradeoff is mortgage insurance, which you pay up front and monthly. For some borrowers a conventional loan costs less over time, and we will tell you when that is the case.
We have been NMLS licensed for 10 years. On every FHA file we show you what we found and what we did about it: the credit report, the income math, the appraisal photos, the conditions from underwriting. You see the same papers we do.
What we handle on your FHA loan
Credit review you can see
We pull your credit and walk you through it line by line. If a collection or late payment is holding your score down, we show you which one and what clearing it would do.
Income and debt math
FHA allows a higher debt-to-income ratio than many loans. We run your numbers and give you the result on paper, so you know the price range you actually qualify for.
Gift and down payment paperwork
Gift funds need a signed letter and a clear paper trail from the giver's account to yours. We tell you exactly which statements to save before the money moves.
Appraisal follow-up
FHA appraisers check the house against minimum property standards, things like peeling paint on older houses, missing handrails or a worn-out roof. When the report comes back, we send you the photos and notes and explain any required fixes before closing.
Underwriting conditions
Underwriters often ask for one more pay stub or a letter about a deposit. We tell you what they asked for, why, and when it is cleared.
Signs an FHA loan may be the right call
Your down payment is small
You have saved a few percent, not 20. FHA was built for that.
Your credit score is in the 500s or 600s
Scores that make conventional pricing expensive often still work well with FHA.
You had a rough patch
A bankruptcy or foreclosure in the past does not rule you out. FHA has set waiting periods, and we can check where you are on that clock.
Family is helping with the money
FHA is friendly to gift funds from relatives, as long as the paperwork is clean.
Your debts run a little high
Car payments and student loans can push you past conventional limits. FHA may still let you qualify.
How an FHA loan moves from first call to closing
- 1
Phone call and application
We talk through your income, savings and the kind of house you want. Then we take your loan application by phone, at our office or over video.
- 2
Pre-approval with the numbers shown
We pull credit, review your documents and issue a pre-approval. You get a copy of the credit summary and the payment math we used.
- 3
Contract and FHA appraisal
Once you are under contract, we order the FHA appraisal. You get the appraiser's photos and any required fixes, and we help you and the seller sort out who handles them.
- 4
Underwriting
The file goes to underwriting. Each condition they send back comes to you in writing with a plain note on what it means.
- 5
Closing
We send your closing figures ahead of time and go over them with you. You sign, and you get the keys.
What moves the cost of an FHA loan
Your rate and your total cost come from a few things, and we show you each one on your loan estimate. Nothing gets added at closing that you did not see first. We can give you rate quotes once we know your credit and down payment.
- Credit score
- A higher score usually means a better rate. Small changes, like paying down one card, can sometimes move it.
- Mortgage insurance
- FHA charges an upfront premium, usually rolled into the loan, plus a monthly premium. How long the monthly part lasts depends on your down payment.
- Loan amount and county limits
- FHA sets a maximum loan amount by county, and Williamson County has its own limit. A bigger loan means bigger monthly mortgage insurance.
- Seller help and closing costs
- FHA lets the seller pay part of your closing costs. How much you negotiate changes the cash you bring to closing.
FHA loan questions we hear
Something not covered here? (512) 518-6206
What credit score do I need for an FHA loan?
The FHA minimum is 580 for the 3.5 percent down option. Between 500 and 579, you need 10 percent down. Lenders can set their own floors on top of that, so we will tell you where you land after we see your report.
Does FHA mortgage insurance ever go away?
If you put down less than 10 percent, the monthly premium stays for the life of the loan. With 10 percent or more down, it drops off after 11 years. Many borrowers later refinance into a conventional loan once they have built enough equity to drop it.
Is an FHA loan only for first-time buyers?
No. Repeat buyers can use it too. The main rule is that the house has to be your primary residence.
What happens if the appraiser flags something on the house?
The required fixes have to be done before closing, usually by the seller. We send you the appraisal photos so you can see the issue yourself. Then the appraiser comes back to confirm it was handled.
Can I use FHA financing on a duplex?
It can work on a building with two, three or four units, as long as you live in one of them. In some cases the rent from the other units can be counted to help you qualify. We will look at the leases or rent estimate and show you how it changes your numbers.
Ready to see if FHA works for you
Give us a call and we will take your application, look at your credit together and show you what we found. If a conventional, VA or USDA loan fits better, we will say so.