San Antonio FHA
Loans and Limits

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:

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-buyer and just 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!

FHA loans are not particularly FICO score driven and because of this, it opens up the doors for millions of people with not so perfect credit so that they can be able to buy a home they can call their own. We truly understand that not every situation is “cookie-cutter” and that each individual person is different which is why we take a personalized approach to your mortgage needs.

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

San Antonio FHA Lender Guidelines

FHA Loan Limits in San Antonio 2024

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. In addition, Congress has for the time being eliminated Down Payment Assistance programs. There is a movement in the legislature to reinstate these community programs. You can however receive a gift from a family member for the down payment. Give your loan officer a call to find up to date guidelines concerning down payment assistance.
• 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.