FHA Home Loan Basics
An FHA home loan is a residential mortgage that is insured by the Federal Housing Administration (FHA). This means the U.S. Government insures the home loan and protects FHA-approved lenders against potential losses should a borrower default on their FHA mortgage home loan. In other words, the lender gets their money back when someone gets foreclosed. The “normal” FHA Home Loan is a 203(b) home loan but there are other types of FHA loans like a 203(k), 203(ks), etc..
Section 203(b) is the centerpiece of FHA as it promotes financing for the purchase or refinance of a new or existing primary residence. FHA is often dubbed a “first time home buyer program” but anyone can apply for an FHA home loan. FHA’s credit guidelines and down payment requirements are typically more flexible than those of conventional loans.
FHA Maximum Loan Limits
The FHA maximum loan limits increased for 2017 in North Texas. Dallas, Collin, Rockwall, and Tarrant counties now have an increased FHA loan limit of $362,250. This means that someone can now purchase a home for $375,388 and qualify with FHA’s minimum down payment of 3.5%. FHA loan limits in 2016 were $334,650, in 2015 they were $310, 500, in 2014 they were $287,500, and prior to that they were $271,050. Below is a complete list of counties in Texas with their 2016 FHA max loan amounts.
Here’s a link to FHA’s County Loan Limit Search so you can lookup the FHA loan limits for any county in America. Enjoy.