Mortgage Articles

A Helpful Guide For A Texas FHA Loan Qualifications

8 Things You Need To Know To Qualify For A FHA Loan In Texas

Part 2

6. Choosing The Right Type Of FHA Loan

Different types of FHA loans are offered by lenders and the most common type remains 30 years fixed interest loan. There is also the option of an FHA loan with a fixed interest rate for a period of 10 to 25 years and you also have the option of an adjustable-rate FHA loan. With an adjustable-rate FHA loan, you will benefit from fluctuating interest rates at particular time periods.

For instance, a 3/1 adjustable rate FHA loan allows a fixed interest rate for the first 3 years but the interest rate is reset every year after that. You can get an adjustable loan with different periods of a fixed-rate term such as 3/1, 5/1, 7/1, or 10/1 with the 30-year loan. However, the FHA loans with fixed interest rates are more popular as adjustable-rate loans are deemed riskier by buyers.

7. Understanding FHA Loan Costs

An FHA loan also comes with the mandatory cost of private mortgage insurance. It is the insurance that protects the lender in case the borrower defaults and as a borrower, you need to pay an upfront fee as well as a monthly fee. It is essential for everyone who opts for less than 20% down payment.

8. Starting The Application Process

If you have checked everything and you think you will qualify for an FHA loan, and it is now time for you to apply, you should first try to get pre-approved with your chosen lender. It could be a credit union or local bank or an online mortgage lender or an independent mortgage broker.

Start the process with multiple lenders and ask for quotes for payments, fees as well as rates. Keep in mind that there is huge competition in the mortgage lending business even with an FHA loan, and even a slight difference in the closing costs or interest rates can help you save thousands of dollars.

Mortgage Lending Texas

Here at Mortgage Lending Texas, our team has mortgage professionals all over Texas. We are dedicated to helping our clients get the highest quality service for all their mortgage needs. We are committed to get our clients the lowest rates and to help them choose the best from multiple loan programs in The Woodlands, Tomball, San Antonio, Spring, Houston, Austin, and Dallas, Texas.

Our team of mortgage professionals has multiple years of experience and we will work with you to make sure that you get a customized home loan that is exactly right as for your situation and meets your expectations. Whether you are buying your first home or buying your dream home or refinancing a loan or consolidating debt, our team of highly experienced loan officers will make sure you are able to find the right loan at the lowest possible rate.

We strive to create a lasting relationship with our clients to allow us to serve our clients for many years in the future. We are different from other mortgage companies that operate nationwide. We promise that all your information will always be safe and private. We have a well-earned reputation in the lending community for trustworthiness and reliability.

Contact our expert mortgage professionals, call us today, or use our interactive tools that are on offer on our site. We cant wait to meet you. Click here to go to the first article in this series.

A Helpful Guide For A Texas FHA Loan Qualifications

8 Things You Need To Know To Qualify For A FHA Loan In Texas

Part 1

With the help of FHA loans, you can now fulfill your dream of owning a house with a low payment or limited credit. Here is what you need to know about qualifying for an FHA loan and things you can expect.

The FHA loan program allows you to buy a home with just 3.5% of the property value as a down payment even when you have a credit score that is lower than as required by traditional mortgage providers.

It is also important to understand that the FHA loan program is not limited to low-income applicants or first-time homebuyers. Here is what you need to know about FHA loan qualifications.

1. Verifiable Income

One of the biggest factors that affect your qualification for an FHA loan is your ability to repay the loan. Here is a rough criterion you need to meet in terms of income:

The mortgage payment should be below 35% of your income before taxes and all your monthly debt payments including your mortgage, credit cards, car loan, or any other loan should be within 48% of your income.

If all these things sound confusing, feel free to use our home affordability calculator to figure out the maximum amount you can afford to spend on a home. If your dream property costs more than what you can afford now, you should try to pay off as much debt as possible before applying for an FHA loan.

2. Down Payment – 3.5%

The minimum down payment you need to make for an FHA loan stands at 3.5%. However, it is close to 6% of the purchase price of the home in reality as you also need to pay the closing costs. This closing cost also includes the upfront mortgage insurance premium which is equivalent to 1.75% of your home’s value. You can bring this insurance premium down to 1.25% when you undergo an FHA approved credit counseling program before you close the deal.

3. Credit History

Established credit history is a must and you need to have at least 2 lines of credit such as a credit card and a student loan in order to qualify for an FHA loan.

4. FICO Score Range 580 to 640

The minimum FICO score you need for qualifying for an FHA loan program is 580. However, you should know that FHA is not the lender but it acts as an insurer and the minimum credit score requirements are set by the lender. This minimum score is often around 640 when it comes to FHA loans. Keep in mind that conventional mortgages usually require a FICO score of around 700.

You can check your credit score for free if you don’t already know it. If your score is above 640, is completely safe to apply for an FHA loan. If your credit score is below this limit, get in touch with the chosen mortgage lender and inquire about their minimum scores to process FHA loan applications. Keep in mind that you should do all this before making an official application.

5. Remain Within FHA Loan Limits

You cannot borrow as much as you want with an FHA loan as there are federally set limits that depend on your state and county. However, in most cases, the limits aren’t low enough to prevent you from buying a home that is expensive.

Contact our expert mortgage professionals, call us today, or use our interactive tools that are on offer on our site. We cant wait to meet you. Click here to go to the next article in this series.

Applying For Mortgage In Texas? Here Are The Pre-approval Requirements

5 Necessities For Texas Mortgage Pre-Approval

Part 1

While there may be some excitement in looking for a home to buy, anyone who really wants to buy will delay the open house visit and start at the lender’s office. Pre-approval letters are expected by most sellers, and a buyer having one will show an ability to get financing, giving them a better chance of negotiation.

There are five things that buyers need – employment verification, good credit, proof of income and assets, and some important documents for a mortgage pre-approval.

Pre-approval vs. Pre-qualification

A pre-approval has more value than a mortgage pre-qualification, but pre-qualifications have their use in showing the amount a buyer can afford to spend. Under the pre-approval, both documentation has been verified and the buyer’s credit has been check by the lender. Positive checks will result in a loan amount being approved for 60 to 90 days.

Talking with a lender and getting a letter of pre-approval gives many benefits to potential buyers. Budgeting and loan options can be discussed with the lender after pre-approval. Any problems with the buyer’s credit will be found when the lender checks for them. The price range will also be set and the home buyer will figure out their maximum borrow amount.

After an appraisal is done for the buyer and property has a loan applied to it, the final loan approval will be done.

Pre-approval Requirements

Good credit, employment verification, proof of income and assets, and more documents are needed by a lender in order to get mortgage pre-approval. Here you’ll find more information about how to obtain the necessary things to be pre-approved for mortgages:

1. Proof of Income

Year to date income and recent pay stubs indicating income, W-2 wage statements given through the most recent two years, bonuses or alimony, and tax returns from the most recent two years are needed by buyers to prove their income.

2. Proof of Assets

In order to show that they have down payment money, cash reserves, and money for closing costs, the borrower will have to provide investment account statements and bank statements.

Depending on the loan, the down payment, which is a percentage determined by the selling price, can be different. Unless 20% of the home’s purchase price is being put down, the buyer will have to either pay a funding fee or mortgage insurance premium or pay for PMI or private mortgage insurance, as required by the loan. Depending on the loan that is being pursued, other factors, such as the FICO credit score of the buyer and DTI or debt-to-income ratio, will be needed along with the down payment for pre-approval.

Loans conform to enterprise guidelines that are government-sponsored, with one exception in the form of jumbo loans. First-time buyers and buyers with low or moderate-income are perfect for Home Possible and HomeReady loans, which are provided by Freddie Mac and Fannie Mae respectively.

U.S. veterans, spouses that aren’t remarried, and service members can get VA or Veterans Affairs loans. No money down is required with these loans. In order to prove that certain funds aren’t loans, a gift letter may be needed if a buyer obtains assistance money for the down payment from a relative or friend.

You can use any of the interactive features on our website or call us anytime to speak to a diligent mortgage professional directly. We hope to work with you soon! Click here to go to the second article in this series.

Knowing The Types Of Texas Conventional Loan

6 Conventional Loan Types That All Texas Home Buyers Need To Know

Conventional loans are a common mortgage option, that even works for first-time home buyers. Yet you may not know that there are different types of conventional loans.

Here is more information about the primary conventional mortgage product types, and how they differ and what they might mean to you.

1. Conforming Conventional Loans

If conventional loans are under the maximum loan amounts that the Federal Housing Finance Agency has set and it matches the other loan standards that the Fannie Mae or Freddie Mac have set, it is known as a “conforming loan”. Because Freddie and Fannie are both government-sponsored enterprises, these are also known as “GSE loans”.

2. Nonconforming Conventional Loans

When conventional loans exceed the FHFA loan limit or it has used underwriting standards which differ from the ones set by Freddie Mac and Fannie Mae, it is known as a “nonconforming conventional” loan. The Jumbo loan is one of the common non-conforming conventional loans. You might require a Jumbo loan if you need finance for something that exceeds $484,350, in most of the counties in the U.S.

3. Fixed-Rate Conventional Loans

Whether they are nonconforming or conforming, every mortgage comes with interest that you have to pay back. With fixed-rate conventional loans, your interest rate will remain the same for the duration of the mortgage. Most buyers prefer the 30-year fixed-rate conventional loan since it translates into affordable monthly payments. There are also shorter terms made available.

4. Adjustable-Rate Conventional Loans

This is an alternative to fixed-rate mortgage as these loans offer an ARM or adjustable-rate mortgage. The conventional loan linked with an adjustable-rate is also called hybrid ARM, which has a rate that might go down or up over time. ARM rates typically adjust annually, from the initial fixed-rate period which is usually 3, 5, 7, or 10 years.

5. Low-Down-Payment Conventional Loans

There was once a time where obtaining conventional loans would require a 20% down payment. Since borrowers that match these requirements only need 80% of the value of the home, this is also known as the “80/20 conventional loan”. However, the requirements for down payments have become a lot more flexible.

  • 3% Down Payment: Home Possible and HomeReady are two conventional-mortgage options that require low down-payments, sometimes as little as 3%. This is also known as a “3-down conventional loan”. Borrowers that qualify for the 3% down payment, have to obtain finance for the remaining 97%.
  • 5% Down Payment: The borrowers that have a low credit score may have to put down a 5% down-payment or more to obtain one of the conventional loans. This means that they would have to finance 95% of the value of the home.
  • Zero Down Payment: If you wanted to know if you can get 100% conventional-loan financing, the answer would be yes. However, these are not always easy to find. Certain lenders which are usually credit unions provide in-house, non-conforming conventional programs for mortgages that offer 100% financing, yet specific qualification requirements usually apply.

6. Conventional Renovation Loans

It can be difficult to find the ideal home within your budget. Investing in a fixer-upper is one of the ways to own a home when move-in ready inventories are low or the price of properties is too high.

You can use any of the interactive features on our website or call us anytime to speak to a seasoned mortgage expert directly. We hope to work with you soon! 

Importance Of Having Your Own House In Texas

7 Amazing Benefits Of Owning A Texas Home

It is everyone’s dream to own a home at some point. The thought of having a space you can truly call yours is simply out of this world, and a goal worth working towards. While many people want the fulfillment that comes with owning a home, some people only see a nightmare from the same. The process of owning the house or saving up for the same can be a lifelong affair, which, to many, is nerve-wracking. The satisfaction of knowing the home is yours is, however, worth any pain. Here are some of the advantages and benefits of owning a home.

1. Social Benefits

Owning a home in a certain community makes you want to belong. You even start feeling attached to its people and the city in general. This is the reason you will want to be involved in any community event around your neighborhood. You even get to have a lasting relationship with other homeowners in the neighborhood.

2. Freedom

Owning a home gives you the freedom to do anything you wish with space and surroundings. You can choose to renovate the house, make a few additions, or even have a garden at the back. This is unlike living in a rented apartment where the landlord has the final say. In addition to this, you can choose what fixtures and amenities you wish to have in the house, and make it happen.

3. You Can Be Proud Of Your Achievement

Many people will be beside themselves with pride after making the last installment for their homes. You have not only achieved a life-long dream but are also sure your family is secure with a home. The security that comes with owning a home, and building up equity from the same, means you can work towards owning a nicer home in the future. You are also sure your family will always have a roof over their head

4. A Home Is An Investment

A home is one of the most significant investments anyone can make. A house, unlike some assets, appreciates with time. This is to say; your home will be worth a lot more in a few years, hence one of the best decisions you ever made. In addition to this, your debt goes down as you pay down the mortgage while its value appreciates significantly.

5. Gain Equity

Equity and investment are directly linked. The more you make payments for your mortgage, the more money you will have for reinvestment. Much of the money paid towards the mortgage goes to paying the principal and the rest to paying the interest off. The principal amount becomes equity that you can use for home upgrades.

6. Tax Benefits

The government uses tax incentives as a way of encouraging citizens to own homes. You thus get to enjoy tax benefits when you make your mortgage payments. This comes particularly in handy when making the initial mortgage payment.

7. Put A Stop To The Need To Move

One thing about renting a house is that you are never really sure how long you will be there. This, however, isn’t the issue when you are a homeowner. Homeownership means you can plan your future even better, hence some form of financial relief. You can thus make gradual improvements to your home to make it more functional and better.

Before making a decision, let one of the experts at Mortgage Lending Texas help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

The Best First Time Home Buyer Programs In Texas

When people are looking for a home that they wish to purchase in Texas, they will want to be specific with the things that they are looking for in a home. They should think about how many bedrooms they wish to have and other such details. When they start to look for a home, they need to have a price in mind and have an idea about the process of buying a house in ten steps. The price will directly relate to what they can afford to pay when they are purchasing a home. Since they may have to sit down and draw up a budget, this will be important to them as they go about looking for the home that they wish to live in.

The Best First Time Home Buyer Programs In Texas

Buying a home in Texas is an exciting time and for many people, the first time is the best one. They will want to look into the program that will help them the most when they are looking for their first home in Texas. Here are some of the programs that will assist them when they are looking for their first home:

1. Texas Mortgage Credit Certificate

The Texas Mortgage Credit Certificate is a program that deals with a homebuyer’s federal tax liability. It offers them a dollar on the dollar reduction and this gives the new homebuyer great leverage when they want to purchase a home. You can also see conventional loan rates and requirements for 2020 if you would like to have more options.

2. My Choice Texas Home (MCTH)

This is a program that will help with down payments for the new homebuyer. It will give up to a 5% assistance on the mortgage loan. This is very beneficial to many people. This can make an incredible difference for people that want to by a home. It allows them to get the down payment that they need. 

3. Fannie Mae’s HomeReady

Another option for homebuyers in Texas is Fannie Mae’s HomeReady mortgage. They will need to put 3% down on this FHA loan. This is a traditional way for many homebuyers to purchase their homes. 

4. 30-Year Fixed Interest Loans

What are the Home Loans Program in Texas? These are loans that many first time home buyers will benefit from. They are provided by the Texas Department of Housing and Community Affairs (TDHCA) Texas. Many people have benefitted from these loans because they allow them to buy a home for the first time in Texas. Since the interest is fixed for 30 years, they never have to worry about it going up in the future. This can also help them in many ways if they decide to refinance in the future.      

Credit Scores Are Important For First HomeBuyers In Texas

When looking for a home in Texas for the first time, it is important that a person take a look at their credit report. They will want to make sure that they are paying their bills on time, reducing their debt, and looking at their credit score. A credit score of 580 is very important for a person to get the loan that they want when they are buying a home for the first time in Texas.  

Here Are Some More Specifics On First Time Home Buying In Texas

What are the requirements for home loans in Texas? People must make sure that they meet the requirements if they wish to get the help that they need. They will want to do a checklist to be sure that they can meet all of them so that their experience with buying a home will be a good one. Here are the requirements that they need to make sure that they meet:

1. Credit Score

For buying a home in Texas for the first time, people will need to make sure that they have a credit score of 620. If they do not, they will need to take steps to improve theirs. They will be able to do this as they make changes in their lives that will really make a difference for them.  

2. Income And Loan Requirements

There are income requirements that they must meet. These can change so they need to make sure that they check for the current income requirements where they are. Loan requirements are the same way.

3. Property Location

The property must be located in Texas. It has to meet certain price limits so a person needs to be sure that they are looking at the right type of properties. It also must be a single-family home or single-family condominium. There may be some of the duplexes or manufactured homes that will be allowed too.  

Buying a home in Texas for the first time is an exciting experience for many people. They are so happy to get their own space and once they move in, they begin decorating as soon as they can. They absolutely love the feeling that it gives to them at any given time.

The Best First Time Home Buyer Programs In Texas

When people are looking for a home that they wish to purchase in Texas, they will want to be specific with the things that they are looking for in a home. They should think about how many bedrooms they wish to have and other such details. When they start to look for a home, they need to have a price in mind and have an idea about the process of buying a house in ten steps. The price will directly relate to what they can afford to pay when they are purchasing a home. Since they may have to sit down and draw up a budget, this will be important to them as they go about looking for the home that they wish to live in.

The Best First Time Home Buyer Programs In Texas

Buying a home in Texas is an exciting time and for many people, the first time is the best one. They will want to look into the program that will help them the most when they are looking for their first home in Texas. Here are some of the programs that will assist them when they are looking for their first home:

1. Texas Mortgage Credit Certificate

The Texas Mortgage Credit Certificate is a program that deals with a homebuyer’s federal tax liability. It offers them a dollar on the dollar reduction and this gives the new homebuyer great leverage when they want to purchase a home. You can also see conventional loan rates and requirements for 2020 if you would like to have more options.

2. My Choice Texas Home (MCTH)

This is a program that will help with down payments for the new homebuyer. It will give up to a 5% assistance on the mortgage loan. This is very beneficial to many people. This can make an incredible difference for people that want to by a home. It allows them to get the down payment that they need. 

3. Fannie Mae’s HomeReady

Another option for homebuyers in Texas is Fannie Mae’s HomeReady mortgage. They will need to put 3% down on this FHA loan. This is a traditional way for many homebuyers to purchase their homes. 

4. 30-Year Fixed Interest Loans

What are the Home Loans Program in Texas? These are loans that many first time home buyers will benefit from. They are provided by the Texas Department of Housing and Community Affairs (TDHCA) Texas. Many people have benefitted from these loans because they allow them to buy a home for the first time in Texas. Since the interest is fixed for 30 years, they never have to worry about it going up in the future. This can also help them in many ways if they decide to refinance in the future.      

Credit Scores Are Important For First HomeBuyers In Texas

When looking for a home in Texas for the first time, it is important that a person take a look at their credit report. They will want to make sure that they are paying their bills on time, reducing their debt, and looking at their credit score. A credit score of 580 is very important for a person to get the loan that they want when they are buying a home for the first time in Texas.  

Here Are Some More Specifics On First Time Home Buying In Texas

What are the requirements for home loans in Texas? People must make sure that they meet the requirements if they wish to get the help that they need. They will want to do a checklist to be sure that they can meet all of them so that their experience with buying a home will be a good one. Here are the requirements that they need to make sure that they meet:

1. Credit Score

For buying a home in Texas for the first time, people will need to make sure that they have a credit score of 620. If they do not, they will need to take steps to improve theirs. They will be able to do this as they make changes in their lives that will really make a difference for them.  

2. Income And Loan Requirements

There are income requirements that they must meet. These can change so they need to make sure that they check for the current income requirements where they are. Loan requirements are the same way.

3. Property Location

The property must be located in Texas. It has to meet certain price limits so a person needs to be sure that they are looking at the right type of properties. It also must be a single-family home or single-family condominium. There may be some of the duplexes or manufactured homes that will be allowed too.  

Buying a home in Texas for the first time is an exciting experience for many people. They are so happy to get their own space and once they move in, they begin decorating as soon as they can. They absolutely love the feeling that it gives to them at any given time.

What are the Home Loans Program in Texas

If you need to obtain a home loan in Houston Texas in the next few weeks, you may want to look at the many different home loan programs that are available. Those that reside in Texas have many programs at their disposal, many of which are very easy to qualify for. The same prerequisites for loans that exist in other states are certainly applicable for loans in Texas. However, not all of the loan programs are the same. Some of them make it very easy for first-time homebuyers to get financing. Here is a cursory overview of the different home loan programs in Texas that you may qualify for.

Different Home Loan Programs In Texas

There are several different home loan programs in Texas that you may be interested in and you need to know the process of buying a house in ten steps. First of all, there is the Texas first-time homebuyer assistance program. This is a program set up to make it easy for people to purchase their very first home. As most people know, is often difficult to find a lender that will trust you if this is your first one. There are also homebuyer mortgage assistance programs in Texas for those that have owned their own home in the past. There is also the FHA program, and other housing and community assistance programs, that may lead you to a lender that will be willing to help.

What Type Of Qualifications do You Need To Obtain A Loan?

What are the requirements for home loans in Texas? First of all, you need to have a full-time job. Second, your credit needs to be right around 640. Third, you should not have an inadequate debt to income ratio. Fourth, the home that you are purchasing should qualify for the available different types of funding. For example, larger homes that exceed half $1 million may not qualify for certain programs designed for first-time buyers. Finally, you need to have money to put a down payment on a home. This can sometimes be tens of thousands of dollars. There are certain circumstances where your interest rate can be dramatically reduced if you can put even more money down on the home you are purchasing.

How To Find Lenders In Texas That Offer These Programs

The first thing you will want to do is look for a loan broker. That is perhaps the easiest way to find out what is currently available. They will have relationships with multiple lenders throughout Texas. They will take your information one time, disseminate that to potential lenders, and many of them will provide you with an estimate of the total cost. Some of them may even prequalify you based upon your income level and your credit score. You can also contact banks directly, fill out their paperwork, and find out whether or not you will qualify. If you happen to work for a business that is connected to a credit union, this might be the easiest way to get financing. If you are a veteran, VA loans are available. Finally, FHA loans for first-time buyers apply to those that would like to obtain their first house. All of this information is readily available on the Internet. You can also search through the Yellow Pages to find these lenders. It is only by getting multiple estimates from these different lending institutions that you can decide who will prequalify you, and also which ones offer you the best deals. You can also ask for conventional loan rates and requirements for 2020.

Final Tips On Obtaining A Home Loan In Texas

If you do need to qualify for a home loan quickly, you should contact a representative of the SETH or TSAHC programs. They can assist with down payments, sometimes in the form of a grant, and eligible people may also receive help with the cost of closing. By asking these questions, and connecting with organizations that can offer this assistance, you could save thousands of dollars when you purchase your home. These are programs that are exclusive to the residents of Texas. As long as you are getting a home in the state, these will likely apply to you.

Look for the best first time home buyer programs in Texas. It can even be difficult if you are getting your second or third. Getting a loan is always dependent on your financial state. They are going to check your income, debt to income ratio, and your credit score before they even begin. They need to know that each candidate is financially viable. It is also important for them to trust you. That’s why all of this preliminary research must be done by the companies that offer loans. Once you have been prequalified, they can then offer you different types of loans from 15 years to 30-year mortgages at a wide variety of interest rates. In no time, you will be living in your new home in Texas courtesy of these different home loan programs in Texas.

What Are The Requirements For Home Loans In Texas Today?

Are you currently living in Texas? If you have been thinking about purchasing a new home or looking for the best first time home buyer programs in Texas, you may not be aware of the latest requirements necessary for getting a home loan. In Texas, the requirements may be different than what you would expect in neighboring states like Louisiana or Arizona. It’s good to know what to expect when you speak to a loan professional. As with any loan, there are minimum requirements that you must meet. Without doing so, you may not be able to qualify. To achieve eligibility, here are the things that you need to have to meet the requirements for home loans in Texas today.

What Type Of Credit Score Do You Need?

What are the home loans program in Texas? If you need a loan, one of the first things that a loan professional will do is run your credit score. They need to know that you can be trusted. If your credit score is 620 and above, you have a high chance of getting qualified by many of the local lenders in the area. If it is not 620, the only way that you would be able to qualify is by getting a cosigner or perhaps putting more money down. If that is the case, you would need to clearly show that your debt to income ratio is adequate, and your gainful employment would be more than enough to make the payment.

What Type Of Income Do do You Need For A Loan?

The amount of money that you earn is measured by loan professionals before they can qualify you for any loan. By measured, this means that they will look at your net income, as opposed to the gross amount that you are paying before taxes. This is the money that you will have available to spend and pay your bills. If you do not make at least four times the amount of the mortgage, it is unlikely that you will qualify. Even if you had good credit, perhaps in the 700 range, it would still be questionable as to whether or not they would allow you to have a loan through their business.

What About The Property Location?

Unless you are working with a personal lender, or an investor, the homes that you get at Texas home mortgages must be located in the state of Texas. In conjunction with this, the purchase price limits must not be exceeded. Unless you have an extensive amount of available cash, you will have to purchase homes that fall under this criteria. You can also ask about conventional loan rates and requirements for 2020.

What Type Of Home Can You Purchase?

If you are a first-time homeowner, the only way that you were able to get that loan was by investing in the single-family home that you purchased. You may have also purchased a single unit in a condominium complex. They need to test you to see if you can make the payments. This is common throughout all of the states that offer loans. As mentioned before, the credit score that you have is very important. It is built up by making payments on credit cards, loans, and other things that require monthly amounts. Therefore, if you get a loan, it will likely be for a single-family home that is well within the purchase price limits in the state of Texas.

Can You Purchase A Manufactured Home Or A Duplex?

Some lenders will allow you to purchase a manufactured home. These are difficult to get financing for in general. Unless you have established credit, it is unlikely that they would be happy to accommodate you. Duplexes fall under this category. The only way that this will not be a problem is if your credit is exceptional and your monthly payments from your job are excessively high. Otherwise, you may have to find someone to help you as you are applying for this loan as duplexes and manufactured housing units are not as popular with loan officials.

What Types Of Home Loans Can You Apply For In Texas?

The types of home loans that are available will include conventional loans, FHA loans, VA loans, USDA loans, and also first-time homebuyer mortgages. They also have Texas bond programs, Texas VLB loans, and if you are a teacher, they have loan programs for educators.

This brief overview of the many requirements for home loans in Texas should give you a cursory understanding of this process. If you can qualify, depending on the type of loan that you are applying for, it could take several weeks for it to be approved. However, if you do have good credit, and an outstanding job, you could prequalify right away. It just depends on what type of home you are purchasing, the type of loan that you would like to obtain, and how much that loan will be for when compared to your credit. Always study the process of buying a house in ten steps to avoid future issues.

What You Need To Know About Conventional Loan Rates And Requirements For 2020

Most Americans ask what are the requirements for home loans in Texas. It is so popular that many refer to it as a standard loan. Most major banks offer a conventional loan and they all have different standards and rates that they provide their customers with. You should consult a financial advisor before deciding on which loan to take. They can give you the best assessment one which type of loan is the best for you. 

Most lenders will not give out a conventional loan to those with a credit score below 620. A 620 credit score is fairly modest. With that, many Americans fall below this score. For those who have a credit score lower than 620, it is best to seek an F.H.A loan. This is one of the only types of loans you can get with a credit score that falls below 600. 

You should not be able to qualify for a loan that offers you less than 3% when it comes to the down payment. Let’s take a $100,000 mortgage note. If you were to give a down payment that is %3 of that, you would end up putting down $3,000. Since there are many different types of conventional loans, and for most Americans, it provides the lowest rates they’ll see, 3 out of 5 homeowners currently have a conventional loan. Only those who are in financial trouble should look into getting an F.H.A backed loan instead. You can also look for the best first time home buyer programs in Texas.

Some Of The Requirements 

Besides the credit score of 620, you will need to show proof that you have a debt-to-income ration that is below 43%. You will also need to be able to come up with the down payment. Those who are looking to take out a conventional loan for 2020 should be aware that the value of the property cannot be more than $510,000 in most locations. The higher cost of living areas, like New York or California, may allow someone to take out a conventional loan on a property that is of a higher value. 

The Best Financial Shape 

Conventional loan texas might not be right for you just because you’re under the 43% debt-to-income ratio and have a credit score that’s in the 600s. It’s wise to look up the F.H.A loan if you have a credit score that falls below 700 and you are in quite a bit of debt. Those who seek out an F.H.A loan do not even have to provide proof of income. 

A conventional loan is a much better idea for those who can provide a decent down-payment. The larger the down payment, the better rate you will get. Being able to provide 20% of the value of a home will lead to much lower monthly payments than being able to provide only %3. Your credit score does not have to be in perfect condition. If you have a credit score that is in the 700s or 800s, you have the best prospects when it comes to finding low-interest rates. 

The Options 

Some are led to believe that they must have 20% of the home’s value to enter into a conventional loan agreement. While this is the ideal situation in almost all cases, it certainly isn’t necessary. There are six options to choose from when it comes to getting a conventional loan:

-Conventional Loan Without PMI- Down Payment Of 20%

-Piggyback Loan Without PMI- Down Payment Of 10%

-Conventional Loan With PMI- Down Payment Of 5%

–Conventional 97 Loan- Down Payment of 3%

–Freddie Mac Home Possible Loan- Down Payment of 3%

-Fannie Mae HomeReady Loan- Down Payment Of 3%

Interest Rates And ARP

The greatest factor that will determine your interest rate is the length of the loan. With that, being able to provide a solid down payment and having an excellent credit score can certainly improve things. Some wish to take out a shorter mortgage as it can lead to them owning their home sooner. A 5-year loan will carry a much higher interest rate and ARP than the traditional 15 or 30-year ones. 

Those who would like to take out a 15-year conventional mortgage in 2020 in average financial straits should expect to receive a 2.75% rate for both the interest and the ARP. Those who wish to take out a 30 year one should expect to see 3% for both the interest rate and ARP. Your interest and ARP may vary depending on the financial state you are in. You should also ask the process of buying a house in Ten steps to make things easier for you.

Deciding On Your Best Option

Only a financial adviser can give you the best advice on what best suits you and your family. A banker might be biased. It’s best to go to an independent one and ask what are the home loans program in Texas. With that, those on average or above-average financial standing are the best candidates for this type of loan. It’s important to not have too much debt compared to your income. Being able to provide a 20% down payment is excellent, but not needed. The higher your credit score, the better. Do your research and talk to an adviser before signing anything.