Houston is at the heart of the State of Texas and home to some of Fortune 500 companies, of which the state vaunts more than any other prefecture in the United States. Going by this demographic, it is then easy to understand why every resident is seeking a great mortgage and hence become part of the progressive statistics of this city. Since 1934 when the program started nationally, the state has been supporting the loan which it offers to applicants who qualify. Here are the major features of the FHA Home Loan Houston offers.
- FHA home loan Houston can last between 15 to 30 years.
- The money down option is 3.5 percent.
- There is an online application form for applicants to fill other than the printed form.
The maturity period of the Houston FHA Home loan is long enough and remains largely the same as any other city across the United States. The long period of majority allows ample repayment and gives room for equity to accumulate over the years. The accumulated equity is important because it makes it possible for one to qualify for a home equity loan. Alternatively, you can apply for the 203(k) option which gives you the freedom to perform renovations to the home. The 30-year maturity period normally comes with a permanent interest rate, enabling the applicant to escape the blunt of changing market conditions like the ones experienced during the housing bubble of 2008.
With a deposit of 3.5 percent of the principal, an applicant for FHA Home Loan Houston gains an edge over a commercial loan applicant for a mortgage of the same value. Here is an example for a home that is worth $200,000.
FHA: 3.5/100*200,000=$7000
Conventional: 20/100*200,000=$40,000
The gap is almost six times, and this is why going for the FHA home loan Houston has an added advantage in comparison with commercial options.
Houston FHA Home Loan
Providers of Houston FHA home loan are now offering the loans online, thus eradicating the queues and loss of time that the traditional process usually occasions. The technology which goes by the name e-sign is present in Texas sites. It allows the applicant to fill and authenticate all details including name, residence, mortgage limit and credit score among others.
Finally, the Houston FHA Home loan is not all about a permanent rate. The Adjustable Rate program also provides would-be mortgagors a chance to alter their rates in the future. Those already paying back their existing home loan can adjust it to match lower, existing rates. This is possible through a refinance program that the government facilitates.