ServicesFHA Loans
FHA Loans in Georgetown
An FHA loan lets many buyers get into a home with a smaller down payment and more room on credit history. We explain how it works, what the mortgage insurance really costs over time, and whether it beats a conventional loan for you.
What an FHA loan is, in plain terms
FHA stands for the Federal Housing Administration. It insures home loans made by lenders like us, which means the government steps in to cover the lender if a borrower defaults. That protection is why the qualifying bar sits lower. Many borrowers can buy with 3.5% down, lower credit scores get more consideration, and the program often allows a higher share of income to go toward debts.
The trade-off is mortgage insurance. You pay a one-time premium at closing, which most people roll into the loan, plus a smaller monthly premium in every payment. If you put down less than 10%, the monthly part stays for the life of the loan unless you refinance out of it. We show you that cost in dollars, next to a conventional quote when you qualify for one, before you choose.
How we help with your FHA loan
- Two quotes to compare
- If you could qualify for FHA or conventional, we price both for you. You see the monthly payment, the mortgage insurance and the cash needed at closing for each, then decide.
- A pre-approval letter with weight
- Once we have looked over your income, savings and credit, we issue a pre-approval letter to send with your offers. It tells the seller your file has already been reviewed by a lender.
- Gift funds and seller credits
- FHA allows family to give you money for the down payment, and sellers can help with closing costs. We explain what a gift letter must include and how a seller credit should be written into your contract.
- Guidance on the FHA appraisal
- The FHA appraiser looks at safety as well as value, noting things like peeling paint on an older property or a staircase missing a handrail. If an item comes up, we explain what has to be fixed and how buyers and sellers usually handle it.
- The same loan officer start to finish
- You work with one person from your first call to your closing. You always know what comes next, which documents we need and why.
Signs an FHA loan may fit you
Your savings are still growing
When a big down payment feels years away, the smaller FHA minimum can let you start shopping now.
Your credit has a few bumps
A lower score, a thin file or some past late payments are not an automatic no. FHA weighs the whole file, especially how you have paid bills over the last year or two.
Monthly debts take a big bite
A car note plus student loan payments can leave you over the line for some programs. FHA tends to give more breathing room on debt when the rest of your file is in good shape.
A relative wants to help
Money from a parent or other family member toward your down payment works well with FHA, as long as there is a proper gift letter and the funds can be traced.
This is your first purchase
Lots of first-time buyers around Georgetown begin with FHA. It is a familiar, well-worn route, not a fallback.
How your FHA loan moves from call to closing
- 1
A first conversation
By phone, on video or at our office, we talk through what you hope to buy, your income and your savings. You come away knowing whether FHA looks like a good match and which documents to gather.
- 2
Application and pre-approval
We take your loan application over the phone, pull your credit and review your paperwork, typically recent pay stubs, W-2s or tax returns, and bank statements. Once that review is done, we send your pre-approval letter.
- 3
Appraisal and loan review
When a seller accepts your offer, we order the FHA appraisal and send your file to underwriting. If the underwriter asks for anything, we explain the request in plain words and help you clear it.
- 4
Closing day
A few days before you sign, we review your Closing Disclosure with you item by item. The numbers you see at the closing table match the ones you expected.
What moves the numbers on an FHA loan
FHA sets the guidelines, but your own file decides where your terms land within them. Two borrowers buying the same house can see different rates and different cash to close. Every figure appears on your Loan Estimate, and we go through it with you line by line. These are the pieces that carry the most weight.
- Your credit score
- A higher score usually brings a better rate, and it can lower the minimum down payment you need. Paying a card balance down or getting a reporting mistake corrected before we pull credit can shift your numbers in a real way.
- Your down payment
- The amount you put down changes more than the size of the loan. Put down 10% or more and the monthly FHA premium ends after 11 years. Put down less and it stays for the life of the loan.
- Upfront and monthly premiums
- FHA mortgage insurance comes in two parts: a one-time charge at closing and an ongoing amount folded into each payment. We show both as dollar amounts on your estimate, so you never have to do percentage math to understand them.
- The county borrowing ceiling
- Each county has a maximum FHA loan amount. Where your price and down payment put you relative to that limit can affect whether FHA works for the property you want.
- Closing costs and seller credits
- Title, appraisal and lender fees are paid at closing. Negotiating a seller credit into your purchase contract can cut how much cash you bring to the table.
FHA loan questions we hear often
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Do I have to be a first-time buyer to use FHA?
No. Anyone who meets the FHA requirements can use it, as long as the property will be the place you actually live. First-time buyers often choose it for the low down payment, but repeat buyers use it too when it fits their situation.
Will I pay the FHA mortgage premium forever?
It depends on what you put down. With 10% or more down, the monthly premium stops after 11 years. With less down, it runs as long as the loan. Many borrowers later refinance into a conventional loan once their equity has grown, and that ends the premium.
Can I use FHA to buy a duplex or fourplex?
Yes. FHA allows properties with two to four units when you live in one of them yourself. Projected rent from the other units can help you qualify, and we will show you exactly how that rental income gets counted.
What happens if the appraiser notes a problem with the property?
An FHA appraisal checks that the property is safe and sound, not whether it is pretty. A flagged item usually has to be fixed before closing, and buyers often ask the seller to handle it. We go over the report with you as soon as it arrives and explain your options.
How do I know if FHA beats conventional for me?
Your score, your savings and how long you plan to keep the loan decide it. With strong credit, conventional often costs less over time. With a smaller down payment or a lower score, FHA often wins, so we price both and you compare.
Ready to see if FHA is the right fit?
A short phone conversation is enough to start your loan application and get a clear picture of your options. We will explain every number before you commit to anything.