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FHA Loans


FHA loans have been helping people become homeowners since 1934. Some key benefits of FHA loans are:


• Low down payments


  • • Low closing costs

  • • Easy credit qualifying
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KBHS Home Loans, LLC, is an FHA Approved Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government.  KBHS Home Loans, LLC is a Delaware Limited Liability Company headquartered at 8650 Freeport Parkway South, Suite 250, Irving, TX 75063 (877) 698-6300. Company NMLS #1542802
 

 

 

 


Buying your first home?

 

FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan.  Available on 1-4 unit properties.

Want a fixer-upper?

 

FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan.  Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.

Want to make your home more energy efficient?

 

You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

 


FHA mortgages are home loans that are insured by the Federal Government.  This insurance protects the lender from losses suffered if the home goes into foreclosure.  It is not the same as hazard insurance or insurances that pay in the event the borrower dies or becomes disabled.

 

FHA allows a buyer to purchase a home with as little as 3.5% down.  They tend to be more lenient on areas such as credit, funds to close and co-borrowers.

 

Most loans use a method of analyzing credit called credit scoring in the underwriting process. Studies have demonstrated a direct relationship between low credit scores and higher mortgage delinquency rates. As a result many lenders have established minimum credit scores at which they will accept loans. Unfortunately, a lack of credit, old delinquencies or incorrect information on the credit report can cause a low credit score. FHA does not have specific credit score requirements, however most lenders do. Although a high credit score may assist in getting the mortgage approved, a low score is not automatically cause for denial. If the credit scores are low, then it is up to the borrower to demonstrate his/her ability and willingness to pay the loan back. This allows the borrower to explain the circumstances surrounding the credit difficulties and have that explanation considered in the underwriting process.

 

The underwriter on an FHA loan will review the credit and payment history of a customer concentrating on the most recent 12 to 24 months. I f the customer has had a good payment record over the past 12 to 24 months they can often get approved for a mortgage even when Conventional financing has turned them down.  An experienced loan officer can help the customer clearly tell their story and will often make suggestions as to how to make the file more acceptable to FHA.  Because of FHA's leniency, some borrowers with past credit problems elect to use FHA for loans when they have a substantial down payment rather than getting a higher interest rate conventional loan.  FHA tends to be more flexible than Conventional financing in the money needed to purchase the home.

 

In an FHA mortgage the customer must put at least 3.5% of the sales price into the transaction.  Some of this money may be used for down payment and the rest for closing costs.  Keep in mind, however, that the total cost to close on an FHA is commonly over the 3.5%.  With the down payment, closing costs, money to establish escrows for taxes and insurance plus interest to finish out the month of closing, the total costs can be closer to 6 or 8% of the sales price.

 

The interest rate that you select will also have a bearing on the total costs.  If you select a lower rate so that you can reduce your payment, you may end up paying additional money towards "points".  At the same time if you are comfortable with a slightly higher payment you may find a lender that is willing to reduce the costs to close in favor of a higher interest rate.

 

FHA allows the borrower to get the funds necessary to close from several sources.  They include such areas as personal savings, gifts, grants, loans from retirement accounts and seller contributions.

 

 
 
 

Refinance

We can assist you in locking a long-term fixed rate or refinance and get cash out.  We can help!  To get started click here

Purchase

Purchasing a home will likely be one of the most important investments you'll ever make. We can help!  To get started click here

FHA loans

FHA home loans provide higher loan to value, lower rates and enable more people to qualify.  We're FHA experts... We can help!
To get started click here

 

 

 

Licensing Information  -  KBHS Home Loans, LLC Licensing Disclosure

KBHS Home Loans, LLC is a Delaware Limited Liability Company headquartered at 8650 Freeport Parkway South, Suite 250, Irving, TX 75063 (877) 698-6300. Company NMLS #1542802 (www.nmlsconsumeraccess.org). Licensed by Arizona Mortgage Banker # 0939988; Texas SML Mortgage Banker Registration. Contact a KBHS Home Loans, LLC representative to learn more. KBHS Home Loans, LLC offers many loan products. This is not a commitment to lend. Program restrictions apply. KBHS Home Loans, LLC policy is to treat all applicants and borrowers in a fair and consistent manner and without regard to race, color, religion, national origin, age (provided the applicant or borrower has legal capacity to enter into a binding contract), sex, marital status, disability familial status, receipt of public assistance, or exercise of rights under the Consumer Credit Protection Act, or any other prohibited basis identified under state law. © 2017 KBHS Home Loans, LLC. All Rights Reserved.