Houston Home Purchase Loan

Getting the proper financing is the first step in buying a home in Houston. Like most people, this usually means obtaining a home purchase loan. 

Each home loan product has its unique benefits and characteristics. Of course, our mortgage specialists here at Capital Home Mortgage are happy to provide any assistance you may need, but let’s do a quick walkthrough to help you get started. 

Types of Houston Home Purchase Loans 

There are different types of home purchase loans in Houston, and it’s essential to understand which one best suits your needs so you can begin working on the eligibility requirements. 

     1) FHA Loans

FHA loans are suitable for borrowers with low credit scores or little cash for a down payment. The government backs these loans through the Federal Housing Administration (FHA), enabling lenders to accept borrowers with average or below-average credit history. 

To get an FHA loan in Houston, you’ll need a credit score of at least 580 to qualify for a 3.5% down payment. Anything lower, and you’ll need to put up a down payment of at least 10% of the property’s purchase price.

     2) VA Loans

Members of the U.S. military or their surviving spouses can get a VA home loan for zero down payment. 

One of the most notable features of VA loans in Houston is that there are no prepayment penalties, meaning you are not penalized for paying off the loan early. No mortgage insurance premiums are required, plus the property seller can contribute to the closing costs. VA home loans typically require a 620 score to qualify.

     3) Conventional-Conforming Loans

Conventional-conforming loans are mortgages with terms meeting Fannie Mae’s and Freddie Mac’s requirements. They are not government-backed and suitable only for borrowers with above-average credit scores. Since this loan is conforming, the maximum loan amount should not exceed the limit that changes yearly. 

Our credit score requirement is 620, but we prefer a higher score for more chances of approval.

     4) Jumbo Loans

Suppose the house you’re planning to buy is beyond conforming loan limits. You’ll need to obtain a Jumbo loan. This loan product is ideal for homes beyond the million-dollar mark or certain homes in expensive U.S. cities, such as New York and Los Angeles. 

The Houston Jumbo home loan program has stricter requirements than conventional loans due to the higher amounts involved. They also have a more stringent credit score, asset, and income requirements. 

     5) Non-qualified Mortgage Loans

Are you a self-employed individual with variable income? Or are you a retiree living off pension and investment? A non-QM mortgage loan is perfect for borrowers that can’t satisfy all conventional loan requirements like income and asset reserves. 

At Capital Home Mortgage, you can choose from different non-QM mortgage programs, such as the Salaried Borrowers Mortgage Loans, Debt Service Coverage Mortgage Loans, and Bank Statement Mortgage Loans.

Buying A Home In Houston

Purchasing your dream home in Houston doesn’t have to be a hectic process. At Capital Home Mortgage, we are committed to providing you with the best possible customer service every step of the way. As direct mortgage lenders, we control the loan from application to funding, allowing us to offer competitive rates and low processing fees. 

Apply For A Home Loan In Houston

Let Capital Home Mortgage help ensure a smooth home buying process for you today. Call (281) 674-7372 to speak with our loan officers about your Houston home purchase loan.