ServicesFHA Loans
FHA Loans in Bee Cave
An FHA loan lets you buy with a modest down payment and a credit history that is still being built or rebuilt. We look at your numbers carefully, tell you plainly whether FHA is the right fit, and show you what it will cost over time.
A loan built for buyers who are almost there
The Federal Housing Administration backs FHA loans, which allows lenders to take lower down payments and credit scores than most conventional programs. A score of 580 or above means a minimum of 3.5 percent down, and gift funds from family can pay part or all of it.
The cost is mortgage insurance. FHA adds an upfront premium and a monthly one, and with under 10 percent down the monthly premium lasts as long as the loan unless you refinance later. For that reason, every FHA quote we give sits next to a conventional one.
We start by working with where you are now. If one collection account or a single high card balance is all that stands between you and better terms, we say so, and a quick fix sometimes beats switching loans altogether.
What we handle on an FHA loan
FHA and conventional, side by side
Using your actual credit and down payment, we price FHA next to a conventional loan and show the payment, mortgage insurance and cash to close for both.
A credit review with next steps
We go through your report line by line. If an error or one balance is dragging your score down, we explain what to tackle first and what can wait.
Documenting gifts and down payment funds
FHA sets particular rules for gift letters and tracing donated money. We guide you and the giver through them so underwriting does not stall.
Preparing for the FHA appraisal
Beyond value, the appraiser checks basic safety and soundness under HUD standards. We explain what they watch for, like peeling paint on an older house or a missing handrail, so surprises are rare.
Planning seller concessions
FHA lets the seller put money toward your closing costs. We help you and your agent settle on how much to request in your offer.
Signs an FHA loan may suit you
You have a small down payment
You have saved a few percent to put down, but not the larger sum many conventional programs favor.
Your credit is rebuilding
A late payment, medical debt or short credit history has held your score under the range where conventional pricing works well.
Your debt ratio is on the high side
A car payment or student loans raise your ratios. FHA guidelines may allow more room when the rest of your file is strong.
A relative is offering help
A parent or family member plans to gift part of the down payment, and you want the paperwork right from day one.
You have FHA now and rates are lower
An FHA streamline refinance may cut your payment with less paperwork than a full refinance. If moving to conventional to shed mortgage insurance is the better move, we will tell you.
How an FHA loan moves from first call to closing
- 1
A pre-qualification call
We meet by phone, video or at our office to go over income, debts, savings and goals. You come away knowing whether FHA fits and about what price range to look in.
- 2
Application and pre-approval letter
You send pay stubs, tax returns and bank statements. We review your credit and provide a pre-approval letter your agent can include with an offer.
- 3
FHA appraisal and underwriting review
After you go under contract, an FHA appraiser inspects the property. Underwriting reviews your file, and we handle their questions so you are kept informed.
- 4
Closing day
Your final numbers come to you in advance and we review them together. At closing you sign, funds transfer and the keys are yours.
What shapes the cost of an FHA loan
A few measurable items set your rate and total cost, and we can look at them early. Each one is put in writing so you understand why your numbers come out as they do. Nothing appears at closing that we have not already gone over.
- Where your score sits
- A higher score generally brings a better rate. Under 580, FHA calls for at least 10 percent down.
- How much you put down
- Putting down 10 percent or more cuts how long you pay the monthly mortgage insurance premium.
- Upfront and annual premiums
- The upfront premium is typically added to the loan, and the annual premium is divided into your monthly payments. Both depend on your loan amount and term.
- County loan limits
- FHA limits how much you can borrow by county. In western Travis County, that cap can determine whether FHA covers the price range you are after.
- Seller help and lock timing
- Seller concessions you negotiate reduce your cash to close, and the length of your rate lock also affects pricing.
FHA loan questions we hear often
Something not covered here? (512) 881-7587
I have owned property before. Can I still use FHA?
Yes. FHA is open beyond first-time buyers. The key requirement is that the property be your primary residence, so investment and vacation purchases are out.
Does FHA always cost less than conventional?
No. With good credit and more money down, a conventional loan often comes out cheaper because its mortgage insurance can be removed later. We price both and show you the gap in plain numbers before you choose.
Can an FHA appraisal hold up an offer on an older house?
It may add a step if the appraiser notes a safety issue such as exposed wiring or damaged roofing. Many are small, and the seller can fix them before closing. We help you and your agent plan for this ahead of time.
Will FHA mortgage insurance ever go away?
With 10 percent or more down, it ends after 11 years. With less down, it lasts until you sell or refinance. After you build enough equity, a refinance into a conventional loan may remove it, and we will tell you honestly when that pays off.
How much experience do you have?
We bring 11 years in the mortgage industry to each FHA file and have been NMLS licensed for 10 years. It shows in the details, such as knowing how underwriters review a gift letter.
See if FHA is the right fit before you shop
A short conversation tells you what you qualify for, what the mortgage insurance adds and how FHA compares with a conventional loan. We serve buyers in Bee Cave, Lakeway, Dripping Springs and nearby communities by phone, video or at our office.