Your san antonio FHA Loan Experts.
Start your homebuying journey with numbers you can trust.
Your San Antonio FHA Loan Experts.
Start your homebuying journey with numbers you can trust.
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San Antonio FHA
Loans and Limits
2025 San Antonio FHA Home Loan Guide
Are you looking for an FHA Loan in the San Antonio area but not sure where to begin?
Then look no further – we are your FHA approved experts and FHA financing is our specialty!
Whether you are just searching for more information about Federal Housing Administration (FHA) loans and how they work, looking to buy a new house, or needing to refinance out of an Adjustable Rate Mortgage, our experts are here to guide you in the right direction and answer all your questions.
This special type of mortgage financing that is backed by the federal government that helps millions of people each year have the opportunity to be able to buy a home without all the strict guidelines that you probably hear about these days.
FHA Loans are:
- Easier to Qualify For
- Don’t Require a Huge Down Payment
- Less-Than-Perfect Credit is Acceptable
- Have Better Interest Rates!
Take advantage now and get a FREE, no hassle quote in under 30 seconds and see what you can qualify for!
FHA Mortgage Lender in San Antonio
FHA loans are by far one of the most popular mortgage loans available in the market today. With the crackdown of federal regulations and the impact of declining home prices, there has never been a better reason to go FHA!
In case you didn’t know, FHA stands for Federal Housing Administration. They are the guys that began the program back in the 1930’s.
These FHA loans are mortgage loans that are made by a qualified FHA loan specialist and have requirements just like the rest of the mortgage programs out there.
Texas FHA Loans are funded by a federally qualified mortgage company, but are insured by the Federal Housing Administration via FHA mortgage insurance (MIP). What this simply means is that while FHA makes the rules on what they will accept and not accept, they are not the ones that lend the money – FHA lenders do.
Texas FHA home loans are so popular because they will allow you to finance your home purchase with having much less than the traditional 20% down.
With FHA, you can buy a home with as little as 3.5% down, which allows for more people to be able to have the opportunity to buy homes.
Although a FHA mortgage is easier to get approved for than a conventional mortgage loan, there are certain FHA loan qualifications that have to be met:
Texas FHA Home Loan Requirements
Even though FHA home loans are the easiest type of loan to qualify for, you need to be able to meet these basic FHA loan requirements and qualifications.
Here are the basic qualification requirements that are needed:
- 2 years of consistent income. While you do not need to be at the same job for 2 years, we must be able to verify 2 years worth of job history. Gaps in employment can be explained, however those need to be kept at a minimum.
- Acceptable credit.Mortgage guidelines change daily so while there is no “specific” score that is needed, ideally you should be at least at a 580. Learn more about credit score requirements here.
- Down payment. At the moment, 3.5% is the down-payment requirement. You can receive this as a gift from family or relatives if you do not have it saved up already.
These basic guidelines scratch the surface of what is needed.
FHA financing is specifically designed for the average American that is really looking to purchase a home, however you can also refinance with FHA as well.
If you are looking to get pre-qualified in order to buy a home, your best chances will be with FHA due to the looser guidelines.
FHA Home Loans
Federal Housing Administration Loans, otherwise known as FHA, is a program that is run by the Department of Housing and Urban Development (HUD), and has helped millions of people realize the dream of home ownership in this ever changing mortgage environment. We are here to help answer all your questions, whether you’ve bought a home before, or are a first time home-st don’t know where to begin.
The process of buying a home can be confusing to a lot of people, even for first time home buyers and those that have bought a home before – this is why you need to find the best FHA lenders that will lay out everything step-by-step and hold your hand throughout each stage:
- Pre-Approval. This is the first step you need to take in order to find out if you can buy.
- Processing. The next step is to collect all your documents and order the appraisal.
- Underwriting. Verifications are done at this stage to make sure that everything matches up with what is on your loan application.
- Closing. We will send closing documents to the title company and make sure you get the keys to your home!
Our mission is to help you do what it takes so you can have a place to call home here in the San Antonio area!
If you are looking into buying a home with FHA or have never bought a home before the process may seem complicated, but here at Canopy Mortgage, LLC, we can help with an FHA Loan in San Antonio and surrounding areas!
How Much Can You Afford?
What you can afford and how much you qualify for depends on your income, credit rating, current monthly expenses, down payment and the interest rate. It’s best to speak with us, an FHA-approved lender, to help you find out how much you can afford for homes in Bexar County. They can also pre-approve your loan there by making it easier for you to then shop for your new home. There are also some online tools you can use, and some tools that your real estate agent can help you with.
You should remember that pre-qualification (an informal estimate of how much you might borrow) is just to give you a preliminary idea of what you can afford, and to identify any major problems that you will want to fix. It’s not a guarantee that you will be approved for a loan-but you will want to get pre-qualified to avoid any surprises.
Applying for Your FHA loan
We can help you complete a loan application and have you sign a several forms authorizing the lender to verify (check on) your employment, income and savings. Using that information, we will order an FHA case number, an identification number specifically for your loan application.
FHA Appraisal
After you’ve found a home that you like, we will also order an appraisal to find the value of the property and its condition. Lenders in Texas will also review the this to determine if the value of the property supports the sales price and to see if any property repairs are required. The lender then makes a decision on your application.
Signing Closing Papers
When all the requirements are met, you’re finally ready to go to “closing” to sign a few papers so you can take ownership of your home.
Make sure you read over everything and to bring valid government issued ID’s as well as any funds that are needed to close. We will let you know ahead of time what is needed so you can have a stress free experience!
FHA Loan Requirements
Understanding the requirements for FHA is very important. While FHA qualifications can vary from lender to lender, these are the basic ones:
- Must have consistent employment history to be able to verify for at least 2 years. It doesn’t have to be with the same employer.
- Must have a valid Social Security Number, provide proof that you have permanent residency status, or show that you are a lawful permanent resident alien living in the United States.
- The down payment requirement for FHA is 3.5% of the purchase price. This can be given to you as a gift from a family member if needed (and documented), but the minimum investment you must have on the transaction in 3.5%.
- Can only be used for homes that you are going to be living in; investment homes and secondary residences won’t work.
- Your home must be appraised by an FHA-approved appraiser.
- Usually you must be at least 2 years out of bankruptcy and have shown the ability to re-establish yourself with your responsibilities in terms of credit. Some exceptions can be made due to extenuating circumstances beyond your control, but just keep in mind that is on a case-by-case basis and other factors will be looked at.
- If you have had a foreclosure, 3 years is the waiting period usually. Since FHA is more lenient, exceptions can be made if there were extenuating circumstances, but the FHA lender must look at your entire loan file and make a determination.
San Antonio FHA Lender Guidelines
One of the most important things is to know what your debt-to-income ratio is:
- Front end ratio. This includes your mortgage payment, mortgage insurance, property taxes, and homeowner’s insurance. When you add all these up, they must be less than 31% of your gross income. This isn’t set in stone and we have seen many more borrowers get approved beyond this number, so that is why it’s best to get in touch with us.
- Back end ratio. This number is your mortgage added to the rest of your monthly debt. Take all your minimum payments for credit cards, card payments, student loans, etc, and after you add this to your mortgage, this number must be less than 43% of your gross income. Again, this isn’t the end-all-be-all and you can go higher, but it will depend on other compensating factors.
FHA Loan Limits in San Antonio 2025
Here is the link to find FHA loan limits. Please also call us to confirm LINK
FHA First-Time Homebuyer
If you are an FHA First Time Home Buyer and looking to apply with the FHA mortgage program, we can help hold your hand throughout the entire process of getting approved.
If you are a first time home buyer, the time has never been better to explore financing through FHA program. With sub prime loans gone in the market, many first time buyers are left with questions about what is the best option for them.
First time home buyers represent a large share of the lending market and they receive a lot of attention. Many do not have established credit histories or a lot of money to put down for a down payment (because they are usually fresh out of college or still early in their careers).
Credit Score to Qualify for FHA Mortgage Loan
- Credit score – One of the primary market benefits of an FHA loan has always been that credit scores were not a factor. A borrower with great credit scores could definitely have their loan approved more easily, but someone with some credit problems could still get approved – provided they had a well documented common sense explanation for their credit problems and could show that the problem had been resolved. In spite of not relying on credit scores, FHA foreclosure rates went down while conventional mortgage foreclosure numbers went up in spite of their almost excessive reliance on credit scores. The FHA underwriter will evaluate the entire credit profile to determine the borrower’s likelihood of repayment. Past credit issues may be overlooked if new credit has been re-established. Also, other compensating factors may apply. Generally a credit score of 580 is needed for automated approval and a few banks will underwrite a file with scores as low as 540. One of the best things about FHA loans is that you don’t need “perfect credit” to get approved. All credit types are welcome.
- Bankruptcy okay – Chapter 7 bankruptcies are allowed if discharged over 2 years ago (or 1 year with extenuating circumstances). Chapter 13 bankruptcies are allowed with a minimum of 1 year of on time plan repayment and trustee approval.
- Little or No Money Needed – FHA loans allow the seller to pay up to 6% of the sales price toward the closing costs. You can receive a gift from a family member for the down payment and closing costs as well.Can I get down payment assistance?Yes! There are some programs you don’t even have to be a first time home buyer, and there may be no income restrictions. The down payment comes in the form of a second lien, either forgivable or repayable. You can also use these funds to help pay for your closing costs! Please call for more details- 512-743-5512.
- Housing History – FHA does not require a rental or other housing history if it is not available.
- Non-occupying co-borrower allowed – FHA allows a non-occupying relative to co-sign the mortgage. The non-occupant’s income and assets can be used for qualification purposes. This is generally used for parents to help their children buy a home. The name for this is the “kiddy condo loan”
- Property types – 1-4 unit, condos, town homes, modular homes, and manufactured homes.
- No cash reserves required – Unlike most conventional loans, FHA does not require you to have cash reserves on 1-2 unit properties. A borrowers profile is graded on an FHA score card. The FHA score card takes into consideration income, assets, job tenure, debt to income ratio’s and credit scores. Having reserves can help strengthen the overall credit profile.
FHA Streamline Refinance
Programs such as the FHA Streamline Refinance program have helped millions of people save money on their mortgage and all without even requiring an appraisal! For those that have been hit by falling neighborhood home values, this tends to be a very good fit and allows you an opportunity to save some money each and every month with very little risk.
There are only a few requirements to obtaining an FHA Streamline loan, they are:
- You must have been in your current FHA loan for a period of at least one year
- Your current FHA loan must be current at the time of closing the new FHA loan
- The new FHA loan must offer a lower payment or shorten the term without increasing your payment by more than $50
- If current FHA loan is an ARM, and the new loan a fixed, the interest rate on the new fixed loan may not be more than 2 percent higher than that of the ARM
That whole process generally takes no more than 30 days. One nice advantage of refinancing is that you are allowed to skip one month of your mortgage payment after you close. Depending on when in the month your mortgage closes you can possibly not make the current mortgage payment and skip the following month as well. You can use this money to payoff another bill, fix up your home, or even go on vacation.
If you are looking to refinance and want the best rate and terms, and want an easy process with more favorable guidelines, an FHA refinance loan is probably the best choice for you.
FHA Loan FAQ
Here is a list of the most common FHA loan FAQ that we get regarding FHA home loan financing. If you have any more questions, we’re just a phone call away!
How Can FHA Help Me Buy a Home?
An FHA insured mortgage offers many benefits and protections that only come with FHA:
- Easier to Qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.
- Less than Perfect Credit: You don’t have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA loan than a conventional loan.
- Low Down Payment: FHA loans have a low 3% down payment and that money can come from a family member.
- FHA can Help You Keep Your Home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, FHA has many options to help you keep you in your home and avoid foreclosure.
- FHA fixed interest rate mortgages cost less. FHA loans have competitive interest rates because the Federal government insures the loan. A fixed interest rate FHA loan will have a low interest rate compared to a sub-prime loan and the FHA loan will have fixed payments of principal and interest compared to an adjustable rate or variable interest rate mortgage or a mortgage with optional or variable payments.
- You don’t have to have perfect credit to get an FHA fixed rate mortgage. Even if you have had credit problems, such as a bankruptcy, you may still qualify for an FHA mortgage. Should you encounter hard times after refinancing your home, FHA has programs to help you keep you in your home and avoid foreclosure.
Do I Have to be a First Time Home-Buyer to Qualify?
Absolutely not. Anyone is eligible for an FHA loan as long as the loan is on a primary residence. Even if you have had FHA loans in the past, you are still eligible for FHA financing.
How Can I Improve my Credit Score?
There are many ways to go about improving your credit score.
First you want to obtain a copy of your credit report. Often there are old on incorrect items on a credit report. Secondly you will want to look at balances on different accounts. The credit bureaus like to see the amount owed on a debt at 60% of the max limit or less. Keep in mind by law debts have to fall off 7 years after they are placed on the credit report. You also want to limit the amount of times that your credit is pulled by creditors. Luckily, mortgage companies and automobile dealership inquiries are treated a little differently, so they do not impact your credit as much as some others like credit card inquiries. The other option to improve your credit is to remove the negative and incorrect items from your report. This is most successful when working with a credit repair company. These programs generally take between 45-90 days, and can have a significant impact on your credit score.
Are FHA Rates Higher than Conventional Rates?
No, in fact, they are often lower than similar conventional loans. Because the Federal government insures your loan, lenders are able to offer very competitive rates. FHA also doesn’t increase your rate based on your down payment, so you get the same rate whether you put 3% down, or 20% down. This is not the case with conventional financing.
Does FHA allow for seller paid closing costs?
FHA will allow the seller to pay up to 6% of the purchase price toward the buyer’s closing costs. This is called a seller’s concession. Most conventional loans only allow a 3% concession.
The Next Step
Hopefully, you learned everything there is to know about FHA loans.
I’m always here to help, so if after reading this entire FHA loan guide you still have more questions or would like to get a quote, just get started today!
