Midland Home Purchase Loans

Few things are more meaningful than buying a home for the first time. And for many people, this is the most crucial financial decision ever made. 

A mortgage loan enables you to purchase a home for yourself or your family and is also an essential component of your financial security. When the value of your home increases, so does your net worth. Many homeowners will later remortgage their homes to obtain desperately needed funds.

A mortgage loan enables you to purchase a home for yourself or your family and is also an essential component of your financial security. When the value of your home increases, so does your net worth. Many homeowners will later remortgage their homes to obtain desperately needed funds.

Your Home Loan Options in Midland, TX

There’s nothing like the thrill of buying your first home. But before you apply for a mortgage, you should carefully consider your home loan options to ensure you’re getting the most out of your hard-earned savings.

You may use the following types of home loans and mortgage programs to buy a home in Midland:

•  Conventional Loans

Any mortgage not provided or insured by the government is considered a conventional loan. They are, by far, the most popular type of home loan, available through virtually every mortgage lender in the country.

• FHA Loans

FHA loans are government-backed mortgages, specifically by the Federal Housing Administration. These loans are intended to make mortgages more accessible to middle- and low-income borrowers. You can get them from FHA-approved lenders near you.

• VA Loans

Veterans and their surviving spouses are eligible for VA home loans, guaranteed by the Department of Veterans Affairs. These loans have features not found in most mortgage programs, such as zero down payment and no mortgage insurance premiums.

• USDA Loan

The USDA Home Loan is another government-insured mortgage offered to rural homebuyers. Like the VA loan, it typically requires no down payment, but you can only use it to purchase a primary home located in USDA-eligible areas.

• Jumbo Loans

Jumbo loans are mortgages that exceed the conforming loan limits Fannie Mae and Freddie Mac set. These loans are ideal for purchasing luxury homes or properties in major cities or other high-cost areas. 

Fixed-Rate vs. Adjustable-Rate Mortgage

Aside from the type of home loan, another important choice you have to make as a homebuyer is between a fixed-rate and an adjustable-rate mortgage. 

• Fixed-Rate Mortgage

Most people choose fixed-rate mortgages because they have the same payment schedule for the life of the loan, which can be anywhere from ten to thirty years.

•  Adjustable-Rate Mortgage

Adjustable-rate mortgages have variable annual percentage rates. They are a good choice for people who want to sell or refinance their homes within the next five to ten years, as the initial mortgage interest rates are relatively low.

Down Payment and Fees

Most conventional home loans require a down payment of between 5% and 20%, while FHA-guaranteed loans need borrowers to put down at least 3.5%. Some government-backed mortgages, like the USDA and VA loans, may be obtained without any down payment, but they are for only a specific group of borrowers. 

Aside from the down payment, mortgages have other fees that must be paid during the closing, collectively referred to as the “closing costs.” The closing costs can be anywhere between 2% and 6% of the loan value, but there are several mortgage assistance programs available to homebuyers who could use some financial help. 

Need Help with Your Midland Home Loan?

Capital Home Mortgage is a full-service mortgage company serving homebuyers in Midland and the rest of Texas. We have a wide range of mortgage options, including FHA, VA, Conventional, USDA, Jumbo, and HUD 184 loans for Native Americans.

We are a direct mortgage lender, which means we can offer you lower rates and fees without sacrificing the high-quality service you deserve. Our mortgage experts are here to answer any questions and streamline the application process for your convenience.

We’ve made a name for ourselves in Texas by providing outstanding service to homeowners, and we’re ready to put our expertise to work for you.