Capital Home Mortgage Austin

Austin Home Purchase Loans

Austin Home Purchase Lender

Options For Austin Home Buyers

It might surprise you that several financing choices are available if you have never bought a property.

When purchasing a new home in Austin, Texas, you have various home loan options, each with advantages and disadvantages. Do a thorough analysis of your financing alternatives as a prospective home buyer. Determining early on which mortgage best suits your needs will make it simpler for you to find the ideal property because the home loan application process can be lengthy.

Mortgage Loan Options In Texas For Home Buyers

You must locate the best mortgage to finance the purchase before starting your search for a new property.

The following are some of the preferred choices for Texas homebuyers:

– Conventional Loans

Mortgages that are not federally guaranteed are referred to as conventional loans. They are divided into conforming and non-conforming categories.

     a) Conforming loans – 

As the name implies, adhere to the credit, debt, and loan size guidelines the Federal Housing Finance Agency (FHFA) set forth. The current conforming loan limitations for 2022 are $647,200 for most of the nation and $970,800 in more expensive locations. 

     b) Non-conforming loans – 

On the other hand, do not follow FHFA guidelines. They can exceed the maximum loan size allowed for a given sector, or they might be made available to borrowers with less-than-perfect credit or those who have suffered significant financial setbacks like bankruptcy.

A conventional mortgage is often the best choice for purchasers with excellent credit who can afford a sizeable down payment.

– Jumbo Loans 

One category of non-conforming loans is jumbo loans. They are well-titled because these mortgages are utilized to pay for more expensive properties than those allowed by the FHFA. Homes cost more on average in places like Los Angeles, San Francisco, New York City, and Hawaii, where jumbo loans are popular.

If you need to borrow money that exceeds the most recent conforming loan limits, a jumbo loan can be your best option. But keep in mind that the requirements for these loans are often stricter and require more thorough paperwork. Jumbo loans demand better FICO scores, larger down payments, and lower DTI ratios than most traditional loans.

– Federally Insured & Guaranteed Mortgages

Although the US government does not provide money for mortgages, it offers several options for more people to own homes.

      a) FHA Loans

These government-insured mortgages are designed to make homeownership accessible to those who lack the substantial down payment or excellent credit needed for most conventional loans. For borrowers with a FICO score of at least 580, FHA loans offer a maximum financing rate of 96.5 percent with a 3.5 percent down payment. Although there are some limits, those with credit scores between 500 and 579 may still be eligible for an FHA loan with a 10% down payment.

     b) USDA Loans

Borrowers with low-to-moderate income may use USDA-guaranteed home loans to buy a home in a rural location. You must purchase a home in a USDA-qualified area and satisfy specific income standards to be eligible. A USDA-guaranteed home loan is available to qualified borrowers with no down payment.

      c) VA Loans

FHA and USDA-Guaranteed home loans are ideal options for those who cannot obtain a conventional loan due to a poor credit score or a lack of down payment resources. Because of its excellent mortgage terms, VA loans are only available to military personnel, veterans, and spouses. The VA home loan program offers eligible servicemen and women 100% financing.

If you’re looking to buy a fixer-upper, you might want to look into the FHA 203k loan or other Texas home improvement financing options.

One-Step Closer To Your Dream House

Even though these choices might seem difficult initially, you don’t have to sort them out alone. Your Capital Home Mortgage loan expert would be happy to discuss the differences with you in-depth and give recommendations for solutions that make the most sense for you.

You can rely on our home loan specialists to assist you in finding a mortgage that satisfies your needs in terms of money and lifestyle. Whether you are a first-time buyer or a seasoned homeowner, we have options that suit you.

Are you looking to purchase a brand-new house in Austin? Prequalify right away with Capital Home Mortgage! Call us at (512) 237-7400 to get started on your path to homeownership.

Why Austin is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Austin Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Austin Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Austin Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Austin Home Purchase Loans

Austin Fixed Rate Mortgage Loans

All Fixed Rate Mortgage Loans are designed to have equal payments for the specified term. These loans offer predictability and are deemed to be less risky for borrowers. Fixed Rate Mortgage Loans are available with all mortgage products and are typically offered in 15 year and 30 year terms. However, Fixed Rate Mortgage Loans are also offer in 10 year, 20 year and 25 year terms although less common due to demand.

Austin Adjustable Rate Mortgage Loans

Adjustable Rate Mortgage Loans known as ARM’s are  available with most mortgage products although limited with FHA, VA and USDA. ARM’s are great fit for homebuyers who plan to sell or refinance their home between 1 and 10 years and are looking for the lowest possible payment.  ARM’s offers lower rates during times where fixed rates are higher. An adjustable rate mortgage is fixed for a specific time then adjusts on a predetermined time period and a predetermined amount based on a financial index and a fixed margin.

Home Purchase Program Lender

Austin Fixed Rate Mortgage Loans

All Fixed Rate Mortgage Loans are designed to have equal payments for the specified term. These loans offer predictability and are deemed to be less risky for borrowers. Fixed Rate Mortgage Loans are available with all mortgage products and are typically offered in 15 year and 30 year terms. However, Fixed Rate Mortgage Loans are also offer in 10 year, 20 year and 25 year terms although less common due to demand.

Austin Adjustable Rate Mortgage Loans

Adjustable Rate Mortgage Loans known as ARM’s are  available with most mortgage products although limited with FHA, VA and USDA. ARM’s are great fit for homebuyers who plan to sell or refinance their home between 1 and 10 years and are looking for the lowest possible payment.  ARM’s offers lower rates during times where fixed rates are higher. An adjustable rate mortgage is fixed for a specific time then adjusts on a predetermined time period and a predetermined amount based on a financial index and a fixed margin.

Not Sure? Learn More About Other Austin Purchase Programs
Austin Mortgage Team

Conor Hayhurst

Manager
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325

Austin Mortgage Company Reviews

Texas Cities

Houston Home Loans

San Antonio Home Loans

Dallas Home Loans

Austin Home Loans

Fort Worth Home Loans

El Paso Home Loans

Corpus Christi Home Loans

Laredo Home Loans

Lubbock Home Loans

Amarillo Home Loans

Brownsville Home Loans

Killeen Home Loans

Midland Home Loans

Waco Home Loans

Odessa Home Loans

Abilene Home Loans

College Station Home Loans

Beaumont Home Loans

Wichita Falls Home Loans

San Angelo Home Loans

San Marcos Home Loans

Galveston Home Loans

Tyler Home Loans

McAllen Home Loans

Stephenville Home Loans

Texarkana Home Loans

Round Rock Home Loans