The 5 Best FHA Lenders in Texas

If you’re looking for a great home loan in Texas, you’re not alone. Right now, the Lone Star State is home to more than 28 million people. The housing market is relatively hot, with home prices having increased a solid 7 percent between June of 2017 and 2018.

With home prices on the rise, it’s smart for all you first time home buyers out there to do everything you can to keep your housing costs down. This starts with getting a great mortgage. And, since FHA loans offer low interest rates, down payments as little as 3.5%, and an ultra-low 580 credit score requirement, they’re often some of the most desirable loans for home buyers like you.

In this article, we’ll review the best FHA approved lenders in Texas and how they can help guide you on your quest to home ownership.

Texas FHA Lender #1: Rocket Mortgage by Quicken Loans

While Rocket Mortgage by Quicken Loans is available throughout the country (not just in Texas), that doesn’t make it any less of a good choice. Rocket Mortgage’s streamlined online application process means that you can get pre-approved for an FHA mortgage in just a few minutes.

Plus, their easy-to-access website offers loan tracking, so you can see when you get approved. It’ll also show you what additional information you may have to provide if you didn’t get approved.

While their online service is highly-rated, you can still get help on the phone from one of their FHA loan officers if you have questions or need a little bit of extra assistance with the mortgage application process.

Texas FHA Lender #2: Chase Mortgage

Chase Mortgage is part of J.P. Morgan Chase & Co., one of the largest financial companies in the world. As a result, they’ve been able to provide Texas homeowners with some pretty great deals on their mortgages.

One of the biggest benefits of getting your mortgage with Chase includes a streamlined documentation and submission process, which can help save you time and money, especially if you want to close quickly on a new home. Plus, if you already bank with Chase, you might qualify for additional discounts specifically tailored to existing Chase customers.

Despite that, be careful when it comes to fees. Chase typically charges fees for rate locks, loan origination, and underwriting, and those can seriously add up if you’re not paying attention.

Texas FHA Lender #3: Bank of America

Bank of America is a true financial behemoth, even more so than Quicken Loans or Chase. It has locations all over Texas, making it an excellent choice for anyone who wants in-person service throughout the entire FHA loan process.

In addition, Bank of America also has a strong online presence, boosted by the recent release of its Home Loan Navigator app, which is available for desktop and mobile. The app allows you to download paperwork, e-sign forms, and get pre-qualified for a loan.

Despite the benefits of working with Bank of America, it may not be the fastest. Some clients say that closings have been delayed, and loan processing times aren’t quite as fast as they thought they would be.

Texas FHA Lender #4: Alterra Home Loans

Alterra, a fast-growing home loan company, is gaining popularity throughout Texas. This might be partially due to Alterra’s focus on helping Hispanic and other minority homebuyers succeed in the home purchase process.

Hispanic individuals and families consist of about 70% of their customer base. Alterra focuses on trying to assist borrowers with unconventional credit histories, multiple sources of income, and multiple family members contributing to a family’s finances.

Much like the other mortgage companies we’ve mentioned, Alterra has an app, Alterra Pronto. Unlike most other apps, this one brings buyers, sellers, attorneys, real estate agents, title agents, and others together to monitor and provide input on all stages of the mortgage process.

Texas FHA Lender #5: Guaranteed Rate

Founded in Chicago in 2000, Guaranteed Rate is another one of the newer players on the Texas mortgage scene. And, like the other companies we’ve mentioned, Guaranteed Rate has moved into the electronic age by offering a free app, Digital Mortgage.

This app allows borrowers to check credit scores, upload documents securely, and engage in pretty much all the other parts of the mortgage process. In fact, you don’t even need to speak to anyone to get approved (which can be good or bad, depending on your individual preferences).

Guaranteed Rate is known to be particularly experienced with FHA loans. And while they do charge a particularly large lending fee ($1,290 as of 2018), their additional experience may make the mortgage process easier for some borrowers.

Shop Around Before You Get a Texas FHA Loan

While the five lenders above are a great way to start looking for an FHA loan in Texas, they’re far from the only options you have. If you’re serious about getting the best deal, research a variety of FHA lenders. Compare their interest rates, fees, and closing costs. Look at reviews from previous borrowers who may be able to shed light on other factors, like customer service and how fast they can really close a loan.

The more you do your homework when it comes to getting an FHA loan, the fewer unpleasant surprises you’ll have to face -- and the more money you’ll save in the long run.