Texas FHA Mortgage Loans

According to a recent government FHA press release, over 18,000 Texas homeowners may be eligible for a secure fixed rate mortgage with more affordable FHA-insured loans that is pending approval by the U.S. Congress and HUD. Urban Development Secretary Alphonso Jackson announced to a bipartisan legislative proposal that would significantly help homeowners refinance their existing adjustable non-prime mortgages or purchase new homes through HUD's FHA home loan opportunities. Most borrowers have been hit with property value reductions, but the Federal Reserve has been pumping a lot of capital into the market in an effort to ease the housing crisis. The result is that you can get access to the best interest rates ever and these loans are insured by the government. So reap the benefits with a refinance mortgage from the FHA.

Texas Mortgage Rates have Dropped Below the 4% Level with the FHA!

Texas mortgage loan limits were recently increased with the economic stimulus bill of 2008. FHA restricts loan amounts by state, county, or metropolitan statistical area.

"This reform package would bring the FHA into the 21st century, and break the vicious cycle of foreclosure and depreciation," Jackson told the League of United Latin Americans Citizens National Veterans Summit. As part of the Bush Administration's comprehensive plan to help millions of American families keep their homes, the President has called on Congress over the last 2 years to modernize the FHA by increasing its loan limits in high cost areas, making down-payment requirements more flexible, and introducing fair pricing of insurance. These FHA home loan reforms, which are included as part of The Expanding American Homeownership Act, would qualify 250,000 more low-income families and minorities around the nation for the FHA's government-backed mortgage loan product this year.

Jackson also pointed to HUD's FHA Secure loan product as a positive example of the President's aggressive efforts to provide immediate relief to families at risk of foreclosures. "For the first time, people with sub-prime loans who are behind on payments as a result of reset interest rates can get home refinancing with the FHA. Since the President announced FHA Secure home loans in August, we've helped over 70,000 homeowners who are current or past due on their mortgages stay in their homes. We could help hundreds of thousands more in the coming year. But we cannot do it alone," Jackson added.

The FHA Secure, which expands the FHA's ability to offer refinancing to more creditworthy homeowners, is on track to help 300,000 families avoid foreclosure this year. On average, homeowners are saving $400 a month with FHA Secure or $30,000 over the life of their new, low-cost federally insured loan. Eligible families must show a history of on-time mortgage payments, have a good debt-to-income ratio, and demonstrate stable employment.

Understanding the mortgage process can be complicated, and Jackson highlighted a new private alliance he helped create that is assisting at risk borrowers keep their homes. Made up of companies representing 90 percent of the non-prime loan market, the HOPE NOW alliance has contacted more than a half million borrowers. Under their plan, HOPE NOW is working with Americans who could be eligible to refinance their existing loans, be moved into an FHA Secure loan, or have their current interest rates frozen for five years.

As part of the Administration's campaign to educate Americans about homeownership and help them avoid predatory lenders, this week the President created the Advisory Council on Financial Literacy. Jackson also said HUD is distributing 4 million copies of a new bilingual "Home Economics" brochure that details the five steps Americans need to take to become financially literate and prepared to own a home they can afford. Additionally, the President continues to increase funding for HUD's 2,300 counseling agencies - up 150% since 2001. "Whatever decision you make on a home, the most important thing is to be prepared and informed.