Home Loans In Round Rock, Texas

Welcome to Capital Home Mortgage Round Rock. Part of the Greater Austin metropolitan area, Round Rock is the seventh-best American small city to live in, according to Money magazine’s August 2008 publication. The real estate market in Round Rock trended up 43.1% year-over-year with an average per square footage of $221, very competitive indeed.

As exciting as the idea of being a homeowner might be, it’s always accompanied by a lot of skepticism. And while it’s better to make the purchase when you feel 100% ready, there are circumstances where buying a home is a matter of urgency. 

Down Payment Requirement

When purchasing a property, you will typically be required to make an initial payment equivalent to a percentage of the home’s total purchase price. This is referred to as the down payment. Homebuyers, especially first-time homebuyers, often struggle to achieve this amount.

The required down payment amount varies according to the type of loan you apply for and other factors.  And although there are mortgages that don’t require a down payment, not everybody can qualify for them.

If zero-down-payment loans are not an option for you, applying for down payment assistance may help you fund your first home.

Do You Qualify As A First-Time Home Buyer?

Most government and charitable programs have stringent criteria for determining who qualifies as a first-time homebuyer. 

The definition of a first-time buyer is anybody who has not owned any interest in a real estate property in the last three years. There are different home loan programs, and some are specific to first-time home buyers.

Down Payment Assistance Programs

Down payment assistance programs may be sponsored by various organizations, including your local or state housing authority or a nonprofit organization. Typically, they take the form of:

• Grants – 

The grant is the most valuable type of down payment aid. This is because grants’ funds are considered “gifts,” and homeowners never have to repay them.

• 0% Interest Forgivable Loans – 

Forgivable mortgage loans are second mortgages that do not need repayment as long as the borrower resides in the home for a specified number of years.

• 0% Interest Deferred-Payment Loans – 

Deferred payment loans are also second mortgages that you are not required to pay for until you move, sell, or refinance your mortgage or finish paying your first loan.

• Low-Interest Loans – 

Your lender (or another organization) may offer you the chance to obtain a second mortgage with your first simultaneously. The proceeds from this loan can be used to cover your down payment. Some lenders or organizations may offer these second loans to first-time homebuyers at no interest.

• Matched Savings Programs – 

In a matched-savings program, a bank, government agency, or non-profit organization, agrees to match whatever amount the homebuyer deposits into a specified account.  The total amount of funds can then be used as a down payment for the mortgage.

Down Payment Assistance Eligibility

To qualify for down payment assistance, you’ll typically need a credit score of at least 620 and an income that fulfills the program’s requirements. The majority of programs consider your debt-to-income ratio as well.

Some programs may also require that:

* The property is located in a particular area or location.

* The homebuyer enrolls in a home-buying and financial education class.

* The homebuyer occupies the home for a specific amount of time.

The amount of down payment assistance you receive can vary according to the program. Specific programs offer a percentage of the home’s purchase, while others have a fixed monetary amount. When searching for programs to apply for, thoroughly examine their qualifications, whether the program is a grant or loan, and the amount of aid available.

Additionally, you should ensure that your lender accepts the down payment assistance you apply for.

Round Rock, Texas Mortgage Lender

At Capital Home Mortgage, we work with many types of borrowers — from first-time homeowners to seasoned investors. We are a full-service Round Rock Mortgage Company providing a comprehensive selection of home loan options along with excellent mortgage rates. 

Whether you are a first-time homebuyer interested in an FHA Home Loan, active duty or retired veteran in need of a VA Home Loan, or an experienced buyer seeking a conventional home loan in Round Rock, Texas, we got you covered!

Making Home Loans More Accessible

Capital Home Mortgage is a direct mortgage lender in Round Rock, Texas. This means that we manage the lending process from start to completion; we make all decisions, from application to funding. Our in-house processing and underwriting enable us to approve and close your mortgage without unnecessary delays.

We pride ourselves on offering our clients the best rates and a stress-free home buying experience. Call us at 512-237-7400 and speak with one of our Home Loan Specialists to get you started on your path to homeownership!