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FAQ'S
Rio Grande Valley Real Estate FAQs | Frank Sustaita Realtor
FAQ'S
Common Questions Answered
What credit score do I need to qualify for an FHA loan?
Most lenders require a minimum credit score of 580 to qualify for the 3.5% down payment option. Some lenders may approve scores between 500–579, but those require a 10% down payment.
How much do I need for a down payment?
FHA loans allow you to buy a home with as little as 3.5% down if your credit score is 580 or higher. This makes FHA loans one of the most accessible options for first-time buyers.
Can I use gift funds for an FHA down payment?
Yes. FHA loans allow your entire down payment and closing costs to come from gift funds, as long as they come from an approved source (like family, employer, or close friend) and include a signed gift letter.
Are FHA loans only for first-time homebuyers?
No — FHA loans are available to anyone who meets the requirements. You just need to use the home as your primary residence and meet the credit, income, and debt-to-income guidelines.
What is the debt-to-income ratio (DTI) required for FHA loans?
Most lenders look for a DTI of 43% or lower, though some will approve up to 50% with strong compensating factors like higher credit or savings.
Do FHA loans require mortgage insurance?
Yes. FHA loans require upfront mortgage insurance (UFMIP) and monthly mortgage insurance (MIP). These protect the lender and are required for most FHA loans, especially those with low down payments.
Texas law requires all real estate licensees to give the following information about brokerage service to prospective sellers, tenants, buyers and landlords