Learn More About Mortgages
One of the most common misconceptions about mortgages is that you must have great credit, little to no debt, and at least a 20% down payment saved up to get approved. However, this couldn't be further from the truth! Today's buyers can choose from countless different types of home loans—but unfortunately, this can make the shopping process a bit overwhelming. Here are a few of the most common options available to buyers in the Houston area.
Conventional loan
- Can last from 15 to 30 years
- Can have a fixed or adjustable rate
- Requires a high credit score, good financial history, and a 20% down payment
- Can be applied to all home types
VA loan
- Available for active, retired, or veteran members of the armed forces
- Backed by the Department of Veterans Affairs
- Low down payment requirements with no mortgage insurance
- One-time funding fee may be necessary
FHA loan
- Less strict income and credit requirements
- Financed through the Federal Housing Administration/HUD
- Wide range of lower down payment options
- Requires mortgage insurance and can have higher interest rates
USDA loan
- Targeted towards rural areas
- Low down payment requirements
- Targeted towards buyers with a modest, steady income
- Check map for eligibility
Balloon mortgage
- Payments are based on a 30-year loan but are paid over 5 – 7 years
- At the end of the term, the borrower must pay off the balance or refinance
- Often comes with lower interest rates and credit requirements
- A good option for buyers who don't plan to stay in their home for very long
My First Texas Home
- Financed through the Texas Homebuyer Program
- Offers a 30-year, low interest rate mortgage
- Provides up to 5% of the first lien mortgage amount towards down payment or closing costs
- Only available for veterans and first-time buyers
My Choice Texas Home
- Financed through the Texas Homebuyer Program
- Offers a 30-year, low interest rate mortgage
- Up to 5% of down payment and closing cost assistance
- Available to veteran or repeat buyers
Lender-Specialty Loans
- Certain banks or lenders offer their own loan programs
- Can have lower interest rates or down payment requirements
- May be tailored to first-time or low income buyers
- May require membership for eligibility
Ready to Calculate Your Monthly Payments?
Now that you know all about home loans, it's time to start crunching some numbers! Feel free to use my mortgage calculator to figure out your monthly mortgage payments at various home price points, interest rates, down payments, insurance and tax costs, and more. Have questions? Check out my buyer resources or give me a ring—I'd be happy to guide you in the right direction.