San Antonio FHA Loans

San Antonio, Texas, is a great place to live. If you want to move to this area, buying a house is one option for your living space. However, homes in the Lone Star State can be expensive, with the average median home selling for $270,000. A mortgage loan is the only option for most homebuyers, but qualifying for a conventional loan can be challenging. The solution is a Federal Housing Administration (FHA) loan through Arnaiz Mortgage.

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Our San Antonio FHA Loan Options

The federal government insures FHA loans so that mortgage lenders can offer relaxed requirements for each borrower. These loans make homeownership more accessible for those with lower credit scores or incomes. 

San Antonio FHA Loans: Simplifying Home Buying

When borrowers take out mortgage loans for home purchases, they accept the burden of ongoing mortgage payments. Between the upfront costs, down payment, closing costs, and these monthly premiums, it can be challenging to afford a Texas home if you have a lower credit score or less income. 

The Federal Housing Administration has stepped in to create FHA loans so mortgage lenders can approve more borrowers for homeownership. If you cannot qualify for a conventional mortgage with your lender, then an FHA loan is typically more accessible. 

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Federal Housing Administration (FHA) Loan Requirements

Before you can afford your new home in San Antonio, you must meet the requirements for an FHA loan. Although the standards may be more realistic than a traditional mortgage, there are still some requirements that’ll determine if you are eligible for an FHA loan. 

Most mortgage lenders will set a minimum credit score of 580 and a minimum down payment of 3.5% of the home’s purchase price. Thankfully, Arnaiz Mortgage is like most mortgage lenders. We can help people with a credit score as low as 500, but you need a 10% down payment for scores below 580. Your lender will verify that your income is high enough to afford an FHA mortgage loan and that your debt-to-income (DTI) ratio is no higher than 43%. Some lenders may make exceptions for lower credit scores and DTIs of up to 50%.

If you have a less-than-perfect credit score or reduced income, an FHA loan may be your only option to buy a new home in San Antonio. Contact Arnaiz Mortgage to determine your eligibility. 

FHA Loan Assistance Programs in San Antonio

Purchasing a home in San Antonio, Texas, is expensive, even with the easier qualification requirements of an FHA home loan. Fortunately, several assistance programs are available in this city and state to make affordability easier, especially for first-time homebuyers. 

  • The Homeownership Incentive Program (HIP): This program is one option that helps with the upfront costs of buying a home. HIP can lend up to $30,000 for down payment assistance as a forgivable second loan with no interest. To qualify, you must make less than the income maximum for the program and purchase a house within the price limit and the city limits of San Antonio.
  • The Home Sweet Texas Home Loan Program: If you have a credit score of 620 or more, you can also use the Home Sweet Texas down payment assistance program. This initiative offers either a low down payment grant that does not need to be paid back or a no-interest second loan that must only be repaid if you sell or refinance your property within three years.
  • The Neighborhood Housing Services of San Antonio (NHSSA): If you are a first-time home buyer in Bexar County, the NHSSA will also provide up to $20,000 in down payment assistance. To qualify, you must meet the income limits and have a credit score of at least 580, similar to qualifying for an FHA loan. 

Why Choose Arnaiz Mortgage for Your San Antonio FHA Mortgage Needs?

Arnaiz Mortgage provides mortgage loan solutions for San Antonio buyers, particularly those seeking FHA home loans. A home purchase and affording mortgage payments can be a stressful experience, but working with the right team will simplify the process. We offer competitive interest rate options and are committed to top-notch quality service. 

First, we have deep knowledge of the San Antonio market and over a decade of experience. Our loan officers intimately understand housing in this area and will give you the personal attention you deserve. 

Second, our stress-free mortgage application process is efficient and painless. You can easily apply for pre-qualification to start the FHA loan process online and quickly find out what you can afford. Whether that means an FHA loan, a VA loan, or a conventional mortgage, we ensure each product’s online application process is streamlined. 

We also have tools to help you prepare for the FHA loan process if you are still in the research phase. You can request a quote online if you want to buy a home to get an accurate estimate of your down payment, monthly payment, taxes, and private mortgage insurance premiums. You can also get a free quote to refinance an existing FHA loan. 

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Frequently asked questions about San Antonio FHA Loans

  • How much down payment is needed for an FHA loan in San Antonio?

    The average lender in San Antonio sets a minimum down payment of 3.5%. Many borrowers who use FHA loans will try to reach a 10% down payment to access better mortgage rates. Note that FHA loans typically require private mortgage insurance because the borrower cannot hit the 20% down payment threshold.

  • Can I get an FHA loan in San Antonio with a low credit score?

    It depends on the lender you choose. At Arnaiz Mortgage, we offer FHA loans to borrowers with minimum credit scores of 580, which is standard for the FHA mortgage industry. However, exceptions can be made for a less-than-perfect credit score if you are financially strong or can afford a larger down payment.

  • What are the benefits of an FHA loan in San Antonio?

    Applying for an FHA mortgage loan comes with several benefits. First, you won’t necessarily need an excellent credit score since you can qualify with 580. Second, you’ll have a reduced total loan cost because these mortgage loans usually offer lower interest rates. Last, the DTI requirements are slightly more flexible than many conventional loan products.

  • How do I apply for an FHA loan in San Antonio?

    Applying for FHA mortgage loans is incredibly easy with Arnaiz Mortgage. You simply fill out the online application with basic information, and we’ll contact you to request additional documents, completing the pre-qualification process in as little as 72 hours.

  • What is the maximum loan limit for FHA loans in San Antonio?

    FHA loan limits are usually based on your county. For Bexar County, the maximum loan limit in 2024 is $557,750 for a single-family property. If you are purchasing a duplex, the limit is $714,000.

  • Are there any first-time homebuyer programs with FHA loans in San Antonio?

    Many states and local governments want to incentivize homeownership for the general public. In San Antonio, one of these programs is the Homeownership Incentive Program, which offers second loans with no interest up to $30,000 to help cover down payments and closing costs. Neighborhood Housing Services of San Antonio also offers $20,000 for down payment assistance to first-time buyers in Bexar County.

  • What are the income requirements for FHA loans in San Antonio?

    There are no income requirements to qualify for FHA loans. If you have a low enough DTI, your eligibility will depend on the lender’s preferences. These loans typically benefit those with less-than-perfect credit who cannot apply for traditional mortgages.

  • How long does it take to get approved for an FHA loan in San Antonio?

    The FHA home loan process is relatively quick with Arnaiz Mortgage. It’s possible to close on pre-qualification within 72 hours of submitting your application. However, certain factors will impact the timeline, such as the documents you provide, the current market conditions, and the speed of communication with your loan officer.

  • Can I use an FHA loan to purchase a second home in San Antonio?

    You cannot use an FHA home loan to purchase a second or vacation home or finance an investment property. You can only use an FHA home loan to buy a primary residence.

  • What is the difference between an FHA and conventional loans in San Antonio?

    The key differences between an FHA and a conventional home loan process are the requirements for qualification and the loan limits. You may not qualify for a traditional loan based on your lower credit score or higher DTI, but you could still apply for an FHA loan and get approved. Conventional home loans also do not have limits for maximum loan amounts.

  • Are there any special FHA loan programs for veterans in San Antonio?

    If you are a US military veteran, you are probably better off pursuing a VA loan than an FHA loan. VA loans offer competitive interest rates, no down payment requirements, and no mortgage insurance premiums. You could still apply for an FHA home loan if you have a poor credit score, but the benefits of a VA loan usually outweigh those of an FHA program.