The mortgage loans are the core of buying a home and helping aspiring homebuyers to buy and own a home. Houses are one of the most expensive things to purchase that require substantial financial support, which unfortunately most people do not have. The potential homebuyers with financial constraints mostly rely on different mortgage loan options offered to them by the Department of Housing.

The first time homebuyers have to go through a lot of problems in buying a home as they are not familiar with the buying process and steps to take when needing a home loan. The first time homebuyers mostly have moderate income and look for government assisted home loans as they fail to qualify for conventional loans offered by banks and private lenders. The Federal Housing Administration (FHA) loans are considered to be the best loans which aspiring homebuyers can obtain. The FHA lenders for bad credit in Houston make it possible for homebuyers with even bad credit to still buy a home. The credit scores are the most significant aspect of every mortgage loans without which the loan would not be approved. The credit scores are categorized by FICO (Fair Isaac Corporation) and used by lenders to judge the financial ability of the borrower (homebuyer) to make timely mortgage repayments or not. The credit scores are ranged as

• 800 to 850: Excellent score
• 740 to 799: Very Good score
• 670 to 739: Good score
• 580 to 669: Poor score
• 300 to 579: Bad score

The FHA loans are known for their lenient qualification terms among all the other home loans. The homebuyers worried from loan rejection due to low credit scores or high down payment can always apply and get FHA loans. The FHA lenders for bad credit in Houston only ask for a 10% down payment from first time homebuyers having a bad credit score (579-500). The interest rates of the FHA loans are also less as compared to other mortgage loans.

The FHA loans are guaranteed by the government, which not only is an opportunity for first time homebuyers but more importantly, the financial risk of the FHA lenders is reduced. The FHA lenders for bad credit in Houston provide the loans to homebuyers who satisfy the loan requirements which includes having a high monthly income, low debt to income ratio, and have no outstanding debt to pay.