Types of Loans
Purchasing Your New Home
Finally, you’ve found it: your dream home. You and your family are excited to move in and begin the rest of your lives. But you have an obstacle – the infamous loan process. Luckily, we can make the loan process a more relaxing experience, and we have a plan to make the process go faster and more efficiently.
Whether you are purchasing a new home or an existing home, it is important to first find out which type of loan is best for you and your family.
Each loan type has different guidelines:
FHA Loans – Allows for a 3.5% down payment and less-than-perfect credit. The seller can also help pay a large portion of the buyer’s closing costs and prepaids. A gift from a family member can also be used for the down payment and all costs to close. This loan type is sometimes considered a first-time home buyer program, but can be used over and over.
VA Loans – You must be an eligible veteran to qualify for this type of loan. There is no down payment required and the seller can pay some or all of the buyers’ closing costs. Credit can also be less than perfect for this type of loan.
Conventional Loans – A 5% down payment is normally required for this loan. Better-than-minimal credit is required. Loan amounts on conforming loans are up to $417,000.
Jumbo Loans – Loans with loan amounts above a $417,001 require at least a 5% down payment. The down payment does increase with larger loan amounts. Great credit and good reserves are required.
USDA Loans – USDA loans in Texas allow 100% financing, no down payment required.
Down Payment Assistance Loans – These are very specific loans and they have many different types of requirements and restrictions. Please see Down Payment Assistance Programs.
Loans are subject to credit and property approval. Other guidelines may apply. Rates are subject to change daily.