Texas Home Loan Programs

Mortgage Application

Texas home mortgages provided by the FHA is a great way to buy a house if you are a first-time buyer. They are offered by several FHA-approved lenders all throughout the country. The programs include various plans for different buyers if they meet specific requirements:

  •    Having a minimum credit score of 620;
  •    Must meet the income requirements;
  •    The property must be located in Texas;
  •    The property must not exceed purchase price limit;
  •    The Property must be a single-family home.

If you meet these requirements, then you will be eligible to take home loans through various programs. Here is a quick overview of the Texas home mortgage programs available.

Texas Conventional Home Loans

These loans are for buyers who have excellent credit. They offer rates based on credit score. These home loans have fewer hurdles to cross compared to FHA, VA and USDA home loans. The loans provide more and flexibility thus are harder to qualify for such as a substantial credit.

Texas FHA Home Loan

These are mortgages insured by the Federal Housing Administration. FHA loan programs are primarily designed to help low- and moderate-income families who do not meet requirements for conventional loans. Some advantages of FHA loans are a little down payment which is usually around 3.5%, lower interest rates, lower credit requirements, and no prepayment penalties.

Texas VA Home Loans

The VA Home Loans are loans specifically for veterans of the country to help them settle into Texas. Some of the requirements for this type of loans are that veterans must provide several documents related to their income and military service, which include a VA Certificate of Eligibility, past two years W-2 statements, one month of most recent LES or pay stubs, etc. These Home loans provide various benefits for the veterans such as low-interest rates, easy qualification, no prepayment penalties, 4% seller concession, financing of funding fees, and more.

Texas USDA Home Loans

This type of loan which is guaranteed by the US Department of Agriculture allows you to purchase a home with no down payment. Its goal is to help the rural community thrive by making home ownership more affordable. Some of the benefits include purchase of rural property, 100% financing, no maximum on loan amounts, low monthly mortgage insurance, and no restrictions on seller concession.

We hope this article provides you a better idea of the Texas home mortgage loan market. Reach out to a mortgage lender today if you are ready to get the ball rolling on securing financing for your new Texas home.