Five Things Your Clients Should Know about FHA Loans

Reblogger Samantha Smith
Real Estate Agent with 214.422.0729

Here's another fabulous post from one of my favorite Mortgage Lenders to work with, Stephanie Stringer. FHA Loans have evolved over time & she does a wonderful job at breaking it down into the 5 most important things Buyers should know about FHA Loans.

Original content by Stephanie Stringer NMLS #246495

Five things your Clients should know about FHA LOANS

Many Americans take advantage of FHA loans when purchasing a home.  FHA loans have been around since 1934.  FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).  With the ever changing mortgage industry, FHA loans are becoming more popular than ever.  Here are a few facts you should know about FHA.

FHA Loans Are Not Only for First Time Home Buyers.  FHA loans are for everyone and not just the first time home buyers.  You could be on your forth home and still get a FHA loan.

FHA Loans are NOT only for the Lower Income Borrowers.  FHA loans are available to all ranges of income.  There are no maximum income limits when doing a FHA.  Just like any mortgage loan all income documentation must be submitted for qualification purpose.  

FHA Loans Are Not just for the Smaller Purchases.   Depending on the area you are looking to buy, FHA loan amounts can go up to $800,000.  The loan amount all depends on the county in which the buyer is looking to buy.  For the loan amounts for your county you can visit the HUD website(click here) or contact your local lender for details. 

FHA Loans are Usually more Affordable than Conventional Loans.  Rates on FHA are typically lower than a conventional loan.  Especially on the minimum down payment of 3.500% loans.  If you compared the two types of loans with the lower down payment, FHA will always have the better rate between the two.  In today's market, rates are tiered based on loan product, down payment, and credit scores. 

FHA Loans Are Assumable.  FHA Loans are assumable and Conventional Loans are NOT!  What this means is when a seller with an FHA loan sells his or her property, the loan and it's RATE can be transferred to the new buyer.  Of course the potential buyer must meet the lenders credit criteria.  Having an Assumable rate when you go sell the property is BIG Selling Tool.  Your listing agent will promote in MLS that you have an Assumable loan which means that your property will be more valuable in time when rates rise.  Example, if your current FHA loan is at 4.000% and you go sell five years from now and the rate is 10.000% as long as the potential buyer meets lenders requirements the buyers get that rate.  This would for sure make your house more marketable than the one down the street.

As you can tell from the Five Items listed above, FHA Mortgages can be Attractive to ALL buyers. 

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I have been assisting people accross Texas for over 15 Years with their Home Financing.   I am experienced with FHA, Conventional, Home Equity and VA Loans. 


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Team Honeycutt
Allen Tate - Concord, NC

Thanks for sharing your information on FHA loans.  These loans are certainly a good alternative for buyers.


Sep 28, 2011 11:15 AM #1
James Loftis - West Palm Beach, FL

Hello Samantha,

  Good information for most buyer's to know. Fha is a great program,without which a lot of people would

not be able to buy there home.

Sep 28, 2011 11:23 AM #2
Samantha Smith
214.422.0729 - Rowlett, TX
Sam I Am Houses, Simply Texas Real Estate

I agree, Stephanie puts breaks down some good info on FHA Loans for us Realtors to share with our buyers!

Sep 28, 2011 04:28 PM #3
John Cannata
214-728-0449 - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

There certainly are a lot of misconceptions about the FHA program. And although the points listed are true, they are also false. FHA doesnt mean poor credit, or lower down payment... but its a program that certainly does come in handy when someone does  have a few blemishes on their credit and/or does not have more than a 3.5% down payment. They are especially good programs for situations where the home buyer needs a non-occupying co-borrower and/or a higher DTI ratio. Overall, a good product for many reasons.

Sep 29, 2011 11:18 AM #4
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Samantha Smith

Sam I Am Houses, Simply Texas Real Estate
Questions about Lake Ray Hubbard real estate? I'm here to help!
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