What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. FHA loans are designed to make homeownership more accessible by allowing lower down payments and more flexible credit requirements.
FHA loan benefits
- Low down payment options (as low as 3.5% in many cases)
- Flexible credit guidelines compared to many conventional loans
- Competitive interest rates
- Available for purchase and refinance
- Assumable loan feature (subject to approval)
Who FHA loans are for
- First-time home buyers
- Repeat buyers purchasing a primary residence
- Borrowers with limited savings for a down payment
- Borrowers rebuilding credit (guidelines apply)
FHA purchase loans
FHA purchase loans allow eligible borrowers to buy a primary residence with a low down payment. Gift funds may be allowed for the down payment and closing costs, subject to FHA guidelines.
FHA refinance options
FHA offers multiple refinance options depending on your current loan:
- FHA Rate and Term Refinance: Replace your current loan to improve rate or term
- FHA Streamline Refinance: Simplified refinance for existing FHA loans (net tangible benefit required)
- FHA Cash-Out Refinance: Access home equity for qualified borrowers, subject to FHA limits
Helpful FHA refinance pages: FHA Streamline Refinance | FHA Cash-Out Refinance
FHA property requirements
FHA loans are for primary residences only. Properties must meet FHA appraisal and safety standards.
- Single-family homes
- 2–4 unit properties (borrower must occupy one unit)
- Condos (FHA-approved projects only)
- Manufactured homes meeting FHA requirements
How the FHA loan process works
- Pre-approval review based on income, credit, and goals
- Home shopping and contract (purchase loans)
- FHA appraisal and underwriting
- Final approval and closing
Frequently asked questions
What credit score is needed for an FHA loan?
FHA guidelines allow lower credit scores than many conventional loans, but minimum score requirements depend on the down payment and lender guidelines.
Do FHA loans require mortgage insurance?
Yes. FHA loans require upfront and monthly mortgage insurance premiums (MIP).
Can FHA loans be used for investment properties?
No. FHA loans are only for primary residences.
Are FHA loans assumable?
Yes. FHA loans are generally assumable, subject to lender approval and FHA guidelines.
How long does an FHA loan take to close?
Many FHA loans close in about 30–45 days, depending on appraisal timing and underwriting conditions.
Talk to an FHA loan specialist
To see if an FHA loan is right for your purchase or refinance in Lewisville TX (75056) or anywhere in Texas, contact Liberty Home Mortgage today.
📞 Phone & Text: 713-955-4685
✉️ info@libertyhomemortgage.com
🌐 www.libertyhomemortgage.com
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Equal Housing Lender • Company NMLS: 321164 • Aslam Mansoor NMLS: 184238
Liberty Home Mortgage • 4400 State Hwy 121 STE 300 • Lewisville, TX 75056
Compliance notice: FHA loans are subject to underwriting approval, FHA guidelines, and lender requirements. Not all borrowers will qualify. Program terms and requirements may change without notice.