The FHA loan is one of the most popular mortgage programs for homebuyers It requires just a 3.5% down payment and offers flexible credit requirements If you’re wondering what type of homes you can buy with FHA financing, this guide will explain your options.
What is an FHA Loan?
FHA stands for Federal Housing Administration. This government agency insures loans made by approved lenders, protecting them from losses if the borrower defaults.
In exchange, lenders must follow FHA guidelines that enable easier access to home financing. Key features include:
- Down payments as low as 3.5%
- Lenient credit score requirements
- Lower income and debt-to-income limits
- Allows gifts and grants for down payment funds
FHA mortgages do require mortgage insurance But the premiums are low, especially for buyers with higher credit scores.
FHA Loan Limits
The maximum FHA loan amount varies by county. But in most areas, the 2022 conforming loan limit is $420,680.
Certain high-cost counties have even higher FHA limits up to $970,800. You can look up the limit for any area using HUD’s FHA mortgage limits lookup tool.
This means you can use FHA financing to buy a single family home, condo, townhouse, or manufactured home anywhere in that price range.
Types of Homes Eligible for FHA Loans
Provided the home meets certain requirements, FHA mortgages can be used to purchase:
- Single family homes
- Townhouses and condos
- Modular homes
- Manufactured homes
- Multi-unit homes of 1-4 units
The property must be your primary residence and meet FHA appraisal guidelines regarding safety, soundness, and security.
Finding FHA Eligible Homes For Sale
When house hunting with an FHA loan, focus your search on these types of listings:
1. HUD Homes
HUD sells homes they’ve acquired from foreclosures and other government programs. Find listings in your state on HUDHomeStore.com.
2. Bank-Owned (REO) Properties
Lenders sell foreclosed homes they’ve repossessed. Search REO listings through sites like HomePath.com and local bank websites.
3. MLS Listings
Any home listed for sale on the MLS by an agent is eligible for FHA financing provided it passes inspection. Just filter for FHA on real estate sites.
4. New Construction
Many builders now offer new homes approved for FHA loans. Ask builders in your area about FHA-eligible inventory.
5. Auctions
Both government agencies and private companies sell real estate via auction. You can use an FHA loan to bid on and purchase auction properties.
Getting Pre-Approved for an FHA Loan
Before looking at homes, get pre-approved for a mortgage. Pre-approval shows sellers you’re qualified and ready to buy. To get pre-approved:
- Submit your application to a lender that offers FHA loans
- Provide documents to confirm your income, assets, and credit
- Get your credit report pulled and FICO score reviewed
- Have the lender analyze your debt-to-income ratio
- Get a pre-approval letter with your maximum loan amount
This makes the process of finding and purchasing an FHA home much faster and easier. Shop with confidence knowing your financing is secured.
Making an Offer on an FHA Home
Once you find the perfect home, make an offer right away in competitive markets. Include these key points in your offer letter:
- Your pre-approved FHA loan amount
- Down payment percentage of at least 3.5%
- Earnest money deposit amount
- Proposed closing date
- Requested seller contributions (if any)
- Contingencies like financing and appraisal approval
Negotiate any counteroffers and get the purchase agreement signed by all parties. Then move forward with the loan process.
Getting Your FHA Loan Approved
After the offer is accepted, the lender will underwrite your mortgage application and arrange for the appraisal. Be prepared to:
- Provide additional documentation as needed
- Pay for the appraisal upfront (around $500)
- Complete a final loan application
- Get income, assets, and credit re-verified
- Receive conditional loan approval
Once the appraisal is back and your credit still meets guidelines, the lender issues final loan approval.
Closing on Your FHA Home Purchase
In the final weeks, you’ll complete the closing checklist:
- Final walkthrough inspection
- Sign closing disclosures and loan documents
- Bring certified funds for down payment and closing costs
- Pay upfront mortgage insurance premium
- Receive final Closing Disclosure
- Sign ownership deed and receive keys!
Finding Your Dream Home With an FHA Loan
An FHA mortgage opens doors to buyers who may not have the funds or credit for conventional financing. Take advantage by getting pre-approved and using online search tools to find FHA-eligible properties.
With an FHA loan in hand, you can confidently make an offer when you find the perfect home. The low down payment requirement gives buyers more options at lower price points too.
Consult a lender to find out if you qualify and get pre-approved. Then use this guide to smoothly navigate the process from offer to closing. With the right strategy, you can land your dream home using an FHA mortgage!
Fha Approved – Dallas Homes for Sale
There are currently 4164 homes for sale matching fha approved in Dallas at a median listing price of $450K. Some of these homes are “Hot Homes,” meaning theyre likely to sell quickly. Most homes for sale in Dallas stay on the market for 44 days and receive 3 offers. Popular neighborhoods include Las Colinas, Preston Hollow, North Dallas, Valley Ranch, and Lakewood. This map is refreshed with the newest listings matching fha approved in Dallas every 15 minutes.
In the past month, 1034 homes have been sold in Dallas. In addition to houses in Dallas, there were also 1021 condos, 237 townhouses, and 62 multi-family units for sale in Dallas last month. Dallas is a minimally walkable city in Dallas County with a Walk Score of 46. Dallas is home to approximately 1,197,970 people and 787,965 jobs. Find your dream home in Dallas using the tools above. Use filters to narrow your search by price, square feet, beds, and baths to find homes that fit your criteria. Our top-rated real estate agents in Dallas are local experts and are ready to answer your questions about properties, neighborhoods, schools, and the newest listings for sale in Dallas . Our Dallas real estate stats and trends will give you more information about home buying and selling trends in Dallas . If youre looking to sell your home in the Dallas area, our listing agents can help you get the best price. Redfin is redefining real estate and the home buying process in Dallas with industry-leading technology, full-service agents, and lower fees that provide a better value for Redfin buyers and sellers.