Odessa Home Purchase Loans

The most challenging aspect of purchasing a home may be competing in today’s competitive real estate market. A close second is settling on a suitable mortgage loan.

The type of loan you choose today will affect your finances for the next 15 or more years. You need to check, study, and compare all your options to make the best decision for yourself and your family. 

Types of Home Loans for Odessa Homebuyers

Determining which type of mortgage is best can be challenging, given the wide variety available. To help you decide, we break down the top seven home loan options in Odessa, TX:

– Conventional Loans

Conventional Loans are the most common type of mortgage. They are backed by Freddie Mac or Fannie Mae but are not insured by the federal government. They usually can require anywhere between a 5% to 20% down payment, but some are offered with a 3% down payment rate to qualified applicants. Most conventional loan lenders require borrowers to have a good credit score (620 or higher) and history, among other requirements. 

– Jumbo Loans

Jumbo loans are conventional loans that go beyond the loan amount limits Fannie Mae and Freddie Mac set for each local market. For this reason, most banks and credit unions charge higher interest rates and require a larger down payment for jumbo loans. Capital Home Mortgage offers Jumbo loans in Odessa at very competitive rates and with as little as a 10% down payment.

– FHA Loans

The Federal Housing Administration, or FHA, guarantees mortgages made by FHA-approved lenders under the FHA Home Loan Program. The FHA is the world’s largest insurer of residential mortgages, insuring millions of properties since 1934. Moreover, mortgages backed by the agency are offered with lower credit and down payment requirements than most mortgages in the market. Borrowers with credit scores of at least 580 can obtain an FHA loan at a 3.5% down payment.

 – VA Loans

The VA loan is an excellent way for veterans and active military service members (or their qualified family members) to purchase their primary residence. Home loans under the VA program require zero down payment and no mortgage insurance. VA loans are originated by local lenders like Capital Home Mortgage but are backed by the Department of Veterans Affairs. 

– USDA Loans

With a USDA loan, you can buy a primary residence in qualified rural and suburban areas with no money down. The United States Department of Agriculture backs this financing under its Rural Development program. USDA home loans are only available in certain areas around the country and have income limits based on the size of the applicant’s household.

 – Renovation Loans

A home improvement or renovation loan provides homeowners access to the money needed to fix up their homes. Homebuyers can also use a renovation loan to purchase a fixer-upper and fund the repairs. If you’re looking at buying a home that needs some work, you may check out popular home renovation loan options such as the Fannie Mae HomeStyle® and the FHA 203(k) loan. 

– Manufactured Home Loans

Manufactured homes are homes “manufactured” in factories following building codes established by the United States Department of Housing and Urban Development (HUD). The houses are delivered to their location, where they are fixed on a foundation (usually permanent) temporary of the buyer’s choosing.

There are conventional and government-backed loan programs to help you finance the purchase of a manufactured home and the land it will sit on. Your options include Fannie Mae MH Advantage, Freddie Mac Manufactured Home Mortgage, FHA, VA, or USDA loans for manufactured homes.

Fixed-Rate vs. Adjustable-Rate Mortgages 

Many mortgages have a fixed interest rate. This means that the rate will not change for the duration of the loan—typically 15 or 30 years—regardless of whether interest rates rise or fall in the future. A variable or adjustable-rate mortgage (ARM) has an interest rate that fluctuates over the life of the loan based on the changes in the market’s interest rates. 

Home Loans Tailored to Your Needs

There is no such thing as the best or perfect home loan. There is only the right mortgage loan for you, determined by your individual preferences and situation.

Whatever your circumstances may be, you can rely on the loan specialists at Capital Home Mortgage to assist you in locating a home loan that meets your financial and lifestyle requirements. Whether you are a first-time homebuyer or a homeowner looking for investment homes, we have options that will work for you. Contact us today at (432) 218-4828!