Brownsville Home Purchase Loans

Finding the right property is only half the battle in your journey to home ownership. Unless you have the financial capacity to purchase a home entirely on cash, the other half is choosing the type of mortgage to help you pay for it.

Home loans are usually offered at 10-to-30-year terms. You’ll be repaying your mortgage over a long period of time, so it’s critical to find a loan that fits your needs and budget. Capital Home Mortgage is here to help you find the best mortgage for your situation and make buying a home in Brownsville as simple as possible.

Top 5 Mortgages for Brownsville Homebuyers

If you’ve bought a home before, you already know that mortgage products are not created equal. Some have stricter regulations or require a hefty down payment, while others may only need 3%. Home loans only qualify people with almost perfect credit, but there are also those aimed at borrowers with marginal credit and lower incomes.

Here are the most popular types of home purchase loans today:

     – Conventional Loan

Conventional loans are the most popular type of home purchase loan because they’re less restrictive, have fewer fees, and have less detailed qualification requirements.

Unlike most of the home loans on this list, conventional mortgages are not guaranteed by the federal government. Instead, they adhere to guidelines established by two private agencies, Fannie Mae and Freddie Mac.

     – Jumbo Loan

Jumbo loans are called such because they are used to fund the purchase of more expensive homes that exceed FHFA limits. Jumbo loans are typical in areas with higher home prices, such as New York City, Los Angeles, San Francisco, and Hawaii.

A jumbo loan may be your best option if the amount you’re looking to borrow is higher than the most recent conforming loan limits. But because these loans involve a more considerable amount of money and are harder to sell because they do not conform to GSE guidelines, they are typically more stringent. To qualify, you’ll need a larger down payment, a higher FICO score, and a lower DTI ratio.

     – FHA Loan

FHA loans boost homeownership across the United States by lowering the down payment amount, credit score, and qualification requirements for home loans offered under the program. 

FHA loans are popular among first-time home buyers because they only need a credit score of 580 to qualify for the 3% down payment rate. However, these benefits still come at a cost because FHA loans require borrowers to pay an upfront funding fee and a mortgage insurance premium that could last for the life of the loan.

     – VA Loan

VA loans are exclusive to active and retired military personnel and their families. These loans, backed by the United States Department of Veterans Affairs, provide significant benefits to those currently or previously serving in the United States Armed Forces.

To qualify for a VA Loan, you must have served in the United States military for 90 days of active duty during a war or 181 days of active duty during peacetime, or you must be the surviving spouse of a military member who has not remarried. Interested applicants must provide their lender with a Certificate of Eligibility (COE). 

     – USDA Loan 

Despite being named after the United States Department of Agriculture, USDA loans are not only for farmers. They are designed to promote rural development by extending loans with more lenient terms to qualified borrowers looking to purchase a home in designated “rural areas” in the country. 

When most people hear of USDA loans, they think of homes in remote towns. But that’s not the case. According to the USDA, 97% of US territory is classified as “rural,” including many small towns and suburbs of major cities.

Let Us Help You Find the Right Mortgage

Different homebuyers have different budgets, lifestyles, and requirements. That said, the right home loan for one household may not be ideal for the other.

You have plenty of things to consider when deciding between various mortgage loans. Factors like your credit score, income, debt, and property location all impact the home-buying process and the types of mortgages available to you.

Are you buying a home in Brownsville? Capital Home Mortgage can help you find a customized solution that fits your needs. Call us today at (956) 307-3422!