There are many mortgage options available for Texas residents hoping to purchase homes for the first time, even if they earn low to moderate incomes or have less than perfect credit scores.

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. The FHA program was created in the 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable. Nowadays, FHA loans are very popular, especially with first-time home buyers.

• Minimum 3.5% down payment
• Down Payment and closing costs can be a gift from a parent
• Allows a higher debt-to-income ratio than Conventional loans
• Must be borrowers primary residence
• Competitive interest rates