Texas Home Loan Programs

 Suppose you are interested in settling in Texas, whether in metropolitan, suburban, or rural districts. In that case, you’re probably already looking for feasible mortgage options to finance the house of your dreams. The great thing is that finance and lending institutions offer a good variety of Texas home mortgages, so you don’t have to worry so much about the chances of qualifying.

Types of Mortgage Loans

Conventional mortgages are the usual loans that lenders offer. Unlike government-insured loans, the federal government doesn’t guarantee them if a borrower defaults on the payment. Applicants for conventional loans must adhere to the rigorous standards for loan processing. Government-insured mortgages, however, have less stringent qualifications to accommodate people with minimal incomes.

• FHA Loan

One of the more popular loans among first-time homebuyers, the FHA loan, backed by the U.S Department of Housing and Urban Development, only requires a credit score of 580 and a 3.5% down payment.

•  VA Loan

A loan guaranteed by the U.S Department of Veterans Affairs is designed for the military on active service, veterans, and their spouses. Most VA loans do not have any credit score or down payment requirements.

•  USDA Loan

The U.S Department of Agriculture offers loans with low-interest rates for eligible properties in rural and suburban areas.

• Conventional-Conforming Loan

A conventional loan is any mortgage loan not insured or guaranteed by the government (such as under the Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs). Conventional loans can be conforming or non-conforming.

Mortgages considered “conforming” have satisfied the requirements set forth by Fannie Mae and Freddie Mac. Following completion of the underwriting and funding processes, conforming lenders then sell the loans to investors Fannie Mae and Freddie Mac. After being packaged into securities, the loans are offered for sale to potential buyers. Conforming loans typically have lower interest rates than non-conforming loan interest rates because conforming loans.

• Non-Conforming Loans

Nonconforming mortgages are mortgages that do not adhere to the requirements of government-sponsored enterprises (GSE) such as Fannie Mae and Freddie Mac and thus cannot be sold to them. GSE standards include, among other factors, a maximum loan amount, appropriate properties, down payment requirements, and credit qualifications. 

There are more loan programs and grants in Texas besides the well-known ones mentioned here. You can consult mortgage lenders near you to better understand their programs and offers.

Before You Get A Loan

Keep in mind that applying for a mortgage needs adequate preparation. Finding the right deal will take your time, patience, and dedication. You must be personally, mentally, and financially ready for the challenge because it is no easy feat.

• Credit Score

 Lenders put clients with good credit ratings in high regard. In the eyes of the bank or mortgage company, your credit score reflects your ability to pay on time and without delays. While plenty of mortgage loans consider clients with poor credit standing, a good credit rating will help you secure or negotiate a more economical and favorable deal with the lender.

•  Down Payment

 Most mortgages require you to pay a percentage of the property’s purchase price upfront. For most loan options, the amount of money you put down as the initial payment significantly impacts the size of the insurance you will have to pay for later. Most mortgages require the borrowers to pay for coverage until more than 20% of the loan’s equity has been repaid.

•  Assets

You must also set aside a sufficient amount for your future obligations. Consider the closing costs and agent fees—delegate funds for house maintenance and mortgage responsibilities.

Apply for a Home Loan with Capital Home Mortgage

Capital Home Mortgage Texas is a direct Texas mortgage lender and servicer that provides a comprehensive selection of Texas mortgage products to meet any and all of its customers’ mortgage-related requirements. Our highly experienced Capital Home Mortgage Texas Team will work to find the best loan program to fit your budget and your individual needs, regardless of whether you have lived in Texas all your life or have just moved here. Whether you are looking to buy your first home, refinance your existing mortgage, or consolidate your debt, we can help.

Call us at (800) 960-4565 and get started on home ownership.