Choose the one that best suits your financial situation
Buying a home is exciting, but figuring out the financing side of things can feel overwhelming. Chin up: Choosing a mortgage isn’t all that painful if you know the lingo. Once you’ve done some homework and nailed down a budget and down payment amount, and you’ve reviewed your credit, you’ll have a better idea of what loan works best for your needs.
If you’re a first time home buyer or have a lower than average credit score, an FHA loan may be a great option for you. These loans have lower down payments, but additional stipulations, so it’s important to know what makes FHA loans different from traditional loans.
Low down payments
Lower required credit score to qualify
Great option for first time home buyers
Whether you have a large family or your dream home is in a more expensive area in Texas, you will likely need to borrow a sizable amount of money. Conventional lenders are subject to limitations on the amount of money they can lend, which is why Jumbo Loans were created.
Useful for loans above the conventional lending limit
Stringent debt-to-income ratio requirements
High credit score required to qualify
VA loans were created for veterans, service members, and sometimes military spouses. However, it can be difficult sometimes to know if you qualify and what different options you have in a VA loan compared to a traditional loan.
Available to veterans and service members
Low down payments
Need to get a COE to qualify
TEXAS CASH OUT LOAN
Texas Cash Out Loans are often described as a cross between an equity loan and a traditional refinanced mortgage. When homeowners refinance their mortgage, they get cash for a percentage of the difference between the remaining value of the loan and the current value of the home.
Can only withdraw equity once per year
Must leave at least 20% of your house’s equity
Credit score and debt-to-income ratio will affect approval