Conventional, Conforming Loan : This is the most common type of loan. The minimum down payment is typically 5%. In Texas, you can get a loan up to $417,000 utilizing this loan (however if you need to borrow more, there are always ways). This loan proves to be more efficient than other types, however can be a little more difficult to qualify for if you're a first time homebuyer, or have credit issues. Adjustable Rate Mortgages (ARMs) and Fixed Rate Mortgages (FRMs) are both available as a conventional loan. ARMs are fixed for 3, 5, 7, or 10 years, and FRMs are 10, 15, 20, 25, or 30 years, and are fully amortized.
Conventional, Non-Conforming Loan: This is a common loan type if you are putting 20% down, and need a loan above $417,000. This loan is a little tougher than the conforming loan to qualify for, but is also common.
FHA Loan: This government insured loan typically comes with lower interest rates with a lower down payment to folks who need it to qualify. The catch? There is mandatory mortgage insurance. However, if you want a home, in some instances this is the way to go. Both ARM and Fixed options are available.
VA Loan: This government guaranteed loan is set aside for US Veterans. This is a loan that offers up to 100% financing for those who have served in the military with excellent rates and no mortgage insurance.
USDA Loan: This loan is great for a rural area; 100% financing is available for folks who qualify. There are strict income and area restrictions, however if you meet them, you can buy a home with nothing out of pocket.
*If you have dings in your credit, unstable income, or any concerns about qualifying for a mortgage, give me a call. I can give you a good, solid answer as to where you stand, and what you need to do to be approvable. Everyone deserves a chance to own a home, and that includes you. Let's work together and make your dreams a reality.*
