ServicesFHA Loans
FHA Loans in Manor, TX
An FHA loan lets you buy with as little as 3.5% down and a credit score many conventional lenders turn away. We work through the small items that stall FHA files, like gift letters, MIP math and appraisal flags, so your closing stays on schedule.
What an FHA loan is and who it fits
FHA loans are backed by the Federal Housing Administration. That federal backing lets us lend to borrowers with a 580 credit score at 3.5% down, or a score between 500 and 579 with 10% down. In exchange you pay a mortgage premium, known as MIP, once upfront at closing and again monthly with the payment.
The loan is a strong fit for first-time buyers, buyers with a thin or bruised credit history, and anyone whose debt-to-income ratio runs a little high. If your score is above the mid-700s and you have 5% or more to put down, a conventional loan may cost less over time. We price both so you can see the difference instead of taking our word for it.
Most FHA files that slip do so over details: an undocumented deposit, a gift letter missing the donor's account info, or a peeling window sill the appraiser writes up. Catching those early is most of our job.
What we handle on an FHA loan
Credit and DTI review
We pull your credit and calculate your front-end and back-end debt-to-income ratios the way an FHA underwriter will. If a small balance paydown moves you into a better approval tier, we tell you which account and why.
Down payment sourcing
FHA allows gift funds from family, but the money has to be traceable. We prepare the gift letter, collect the donor's bank statement and document the transfer so the deposit does not get flagged as unexplained.
MIP and payment breakdown
The upfront premium is 1.75% of the base loan and is usually rolled into the balance. We show it separately from the annual premium so you know exactly what is principal, interest, taxes, insurance and MIP.
Appraisal preparation
FHA appraisals check HUD minimum property standards: working utilities, safe handrails, a sound roof and, on pre-1978 houses, no chipped or peeling paint. We walk you and your agent through the common write-ups before the appraiser arrives.
Seller concession planning
Sellers can contribute up to 6% of the price toward your closing costs on an FHA loan. We help your agent write that into the contract correctly so the credit actually lands at closing.
Signs an FHA loan may be the right call
Your score sits below 680
Conventional pricing gets steep in this range. FHA rates are far less sensitive to credit score, so the gap often favors FHA.
Savings are short of 5%
With 3.5% down and seller-paid closing costs, many buyers get into a house years earlier than they could otherwise.
A family member wants to help
FHA is generous with documented gift funds, and the full down payment can come from a gift.
Your debt ratio is on the high side
FHA underwriting can accept higher back-end ratios when there are offsetting strengths such as cash reserves or a steady job history.
Past credit trouble is behind you
FHA has defined waiting periods after a bankruptcy or foreclosure, often shorter than conventional rules. We confirm your exact eligibility date from the discharge or sale paperwork.
How an FHA loan moves from first call to closing
- 1
Pre-qualification call
A loan officer goes over your income, debts, savings and credit by phone or video. You leave the call with a realistic price range and a list of documents to gather.
- 2
Document review and pre-approval
We read two years of W-2s or tax returns, recent pay stubs and two months of bank statements line by line. Large deposits, employment gaps and collection accounts get explained in writing now, not in a rush during underwriting.
- 3
Contract, appraisal and underwriting
Once you are under contract, we order the FHA appraisal and move the file into underwriting. If the appraiser calls for a correction, we coordinate with your agent on how the seller completes it and how it gets re-inspected.
- 4
Clear to close and closing
You receive your Closing Disclosure at least three business days before signing. We go through each line with you so nothing at the title office is a surprise.
What moves the cost of an FHA loan
Your rate and total cost depend on the loan details and the market on the day you lock, so we quote from your actual file. We give rate quotes by phone after reviewing your numbers, and we show the trade-off between paying points and taking a slightly higher rate.
- Down payment and MIP duration
- With less than 10% down, the annual MIP stays for the life of the loan. Putting 10% or more down lets it drop off after 11 years, which changes the long-term math.
- Credit score
- FHA pricing is flatter than conventional, but scores below 620 still carry a higher rate or added cost.
- Loan amount and county limit
- FHA caps the loan amount by county. Buyers near the Travis or Williamson County limit may need a larger down payment or a conventional loan instead.
- Seller credits and points
- Seller concessions can cover closing costs or buy down the rate. How you split them affects both cash to close and the monthly payment.
- Lock timing
- A longer rate lock protects you during a slow closing but can carry a small pricing adjustment. We match the lock length to your contract dates.
FHA loan questions we hear often
Something not covered here? (512) 271-4623
Can I use an FHA loan if I am not a first-time buyer?
Yes. FHA has no first-time buyer requirement. The main rule is that the property has to be your primary residence, and you generally can hold only one FHA loan at a time.
Can I get rid of FHA mortgage insurance later?
If you put less than 10% down, MIP stays on the loan. The usual way out is to refinance into a conventional loan once you have about 20% equity. We can run that comparison when your values and rates make it worth a look.
What will the FHA appraiser look for?
Beyond value, the appraiser checks safety, security and soundness. Common flags are peeling paint on older houses, missing handrails, exposed wiring, a roof near the end of its life and utilities that are off. Most are minor and get corrected before closing.
Can I buy a duplex with an FHA loan?
Yes, FHA allows two to four units as long as you live in one of them. Projected rent from the other units can help you qualify, subject to the appraiser's rent estimate.
How long does an FHA closing take?
Timing depends mostly on how complete the file is and how quickly the appraisal comes back. A file with documented assets and no open appraisal items moves much faster, which is why we front-load the paperwork.
See whether you qualify for FHA
One phone conversation with a loan officer tells you your likely price range, down payment and monthly payment with MIP included. Bring a recent pay stub and a rough idea of your savings.