Are you are looking to buy a home in Texas? If yes, then you can find a wide range of home mortgage options in the market. Due to a highly competitive market, many lending firms make attractive offers. However, choosing the right agency and the right home mortgage program can be a difficult decision. Various factors need to be taken into consideration such as your credit score, current financial condition, the area in which you want to buy the home, etc. An expert loan officer from a reputed mortgage firm can help you find the right home for you in Texas with relative ease.
Let us take a look at the types of mortgage lenders and their products available to Texas home buyers:
Conventional loans from private lenders
Conventional loans such as fixed rate and jumbo loans are available from private lenders for buying home in Texas. In a fixed rate mortgage or loan, the interest rate does not fluctuate at least for a specific period of time. Thus, these loans make it easy for borrowers to predict the amount they will be required to pay in the future.
Jumbo mortgages allow borrowers to get higher amount of loan if they meet the minimum credit score requirement. This is riskier than fixed rate loans as the amount owed in case of a default is a lot higher. Moreover, the high price of property and a large down payment are good enough reasons to turn the borrowers away.
FHA Home Mortgage Loan
FHA stands for the US government’s Federal Housing Administration. It has been designed to protect the borrowers who may find it difficult to make down payment on a loan. FHA loan has low down payment requirement (3.5%), and it’s more lenient to borrowers with low credit score. This loan program makes it easier for low income families to buy homes, which may not have been possible otherwise. However, the condition of paying an upfront fee along with a monthly premium makes this a bit more expensive option.
VA Mortgage Loan
The VA loan is for veterans and is managed by the US Department of Veterans Affairs. Even spouses of veterans or active military personnel are eligible for this loan program. The funding fee of a VA loan can be up to 3.15 percent of the total loan amount. You can get a VA loan of up to $625,500 without making a down payment.
Texas VLB Mortgage Loan
The Texas Veterans Land Board is a loan program that has been designed to help veterans returning from World War ll. This program is a good option for veterans who are not eligible for other types of home loans.
USDA Mortgage Loan
USDA mortgage loan is for low income citizens looking to buy a property in rural areas. It has some easy terms for borrowers such as no down payment and closing costs included into the loan. These loans are more suitable for people who live in rural areas and with income not exceeding 115 percent of the median income of a specific area.
Texas First Time Homebuyer Bond Program
The first time homebuyers in Texas can benefit from the easy terms offered by the Texas First Time Homebuyer Bond Program. This program is backed by $600 million set aside for the assistance of homebuyers.
The information given here is just an overview. You need the services of an established lending form on specialty mortgages to not only find the best mortgage option for you, but also for easy loan application processing.