Home Loans In Arlington, Texas

Dallas is one of the fastest-growing cities in the USA. The booming economy, the low cost of living, the great weather, and the cool neighborhoods — are just some of the many reasons why, every year, tens of thousands of individuals and families decide to call Dallas home.

How To Qualify For A Mortgage In Arlington Texas

If you’re considering buying a home in Dallas soon, knowing the minimum mortgage qualifications can assist you in finding the appropriate lending program for your needs.

Qualification criteria for a house loan vary according to the type of mortgage you want, but the following are the minimum requirements for the most common types of mortgages:

• Down Payment

Most conventional mortgages need a 10% – 20% down payment, although some borrowers may qualify for as little as 5%. If your down payment is less than 20%, you will need mortgage insurance, which protects the lender in the event of a default. After achieving 20% equity in your property, you should be entitled to cancel your mortgage insurance.

• Credit Score and DTI

Conventional conforming mortgages typically require a credit score of at least 620. Still, specific lenders may require a higher score if other indicators, such as a high debt-to-income, increase your credit risk.

Most lenders need a DTI ratio of 45 percent or less; however, Fannie Mae allows DTIs of up to 50% on loans underwritten through its automated Desktop Underwriter system, with compensating factors. Manually underwritten loans must have a DTI of less than 36%.

• Loan-to-Value Ratio

Loan-to-value ratios for single-family primary residences cannot exceed 97 percent for fixed-rate loans for highly-qualified borrowers, 95 percent for adjustable-rate mortgages, and 80 percent for cash-out refinances. Conventional loans generally require a 5% down payment, whereas FHA requires a 3.5% down.

• Income and Employment

When qualifying loan applicants, lenders seek proof of income and steady employment.

If employed, you will have to present recent pay stubs, two months’ worth of bank statements, and two years’ worth of W-2s. If you are self-employed, you must provide two years’ worth of personal and business tax returns, your latest financial statement, and three months’ business bank statements.

Some home loans, particularly those guaranteed by the federal government, like FHA and VA loans, have lower down payment and credit score qualifications. However, you must meet loan-specific requirements to qualify for these mortgage types.

Arlington, TX Mortgage Lender

Are you in the market for a new home in Dallas? Do you want to work with the best mortgage lender in Dallas? Look no further; Capital Home Mortgage offers a variety of home loan program that suits every buyer’s need.

Not all mortgage lenders in Dallas are the same. As the top mortgage lender in Dallas, Capital Home Mortgage offers a flexible underwriting guideline suited to fit any borrower. From low-interest rates and low fees to an on-time closing, we take pride in providing top-notch customer service while always meeting our deadlines.

Ready To Apply For An Arlington Home Loan?

Whether purchasing your first or second home, our Capital House Mortgage can help you realize your dream of homeownership in Dallas.

At Capital Home Mortgage Arlington, we know the difficulties of obtaining financing for a home in Dallas, particularly for first-time buyers. With our unique advantage as a direct mortgage lender in the state, we can assist you in securing a suitable home loan and purchasing the ideal home for your family.

We have the tools and resources to accelerate the loan application, underwriting, and funding processes. You can count on us for fast and smooth mortgage applications and closings.

Let’s discuss your mortgage options. Get in touch with us today at (817) 779-7133 or use the tools on this site.