Selecting a home mortgage can be a grueling process on its own, and more so, because of the broad spectrum of choices available in the home mortgage market. Take the guess work out of your selection process by finding your loan officer for life, Shelly Roark.
All of your questions will be answered for you, and you will be sure to understand which is your best option when it comes to selecting a home mortgage. Get started on your home mortgage selection today, with these quick-fact, descriptions below.
*All loan amounts all subject to change and counties may have differing loan limits.
When a home buyer is prepared to make a second, or consecutive purchase, a Conventional loan could be their best option. This type of loan is a great match for a more experienced home buyer.
- An above average, or high credit score
- At least 3% down and/or have a 2nd loan
- You carry private mortgage insurance (PMI)
- A down payment of 20% or more
A conventional loan is maxed out at an amount of $510,400. The loan will be insured by Fannie Mae of Freddie Mac.
An FHA loan is insured by The Department of Housing and Urban Development (HUD). This government loan is regulated dependent upon the county in which the home buyer lives. Shelly Roark works within the Travis County area, in which the maximum loan amount is $404,800, for a single family dwelling. Other Central Texas maximum FHA loan amounts are as follows:
- San Antonio – $393,300
- Houston – $331,760
- Dallas/ Ft. Worth – $404,800
An FHA loan is a great match for a 1st time home buyer. This type of loan could potentially allow for a small down payment and, sometimes, credit score, as well as often offer more leniency in another way as well, accept a lower credit score, and offer more leniency regarding job history.
This type of loan is guaranteed for Veterans, by the U.S. Department of Veteran Affairs. All past, or current military with a certificate of eligibility from the VA, have an opportunity to apply for this type of loan, although there is a requirement for time served.
A few up-front benefits of a VA loan are as follows:
- A lower credit is acceptable
- No PMI required
- Zero money down
- Buyer has limited list of closing costs to pay
- Seller, or lender are required to pay remaining closing costs
Aside from a less demanding application process, the applicant is also considered for a more lenient qualification on their debt to income ratio, credit score, and job history. Finally the loan maximum is topped out at $510,400.
Often times a USDA loan is used to aid in Rural Development, and commonly referred to as an RD loan. The loan is only available for borrowers living in rural areas.
A USDA loan beneficially offers the borrows a more lenient qualifying process:
- Lower income requirements for the buyer
- Credit score flexibility
USDA loans are intended specifically for a 1st time home buyer. The requirement states that you have never purchased a home, or you have not purchased a home within the past three years.
Other Home Mortgage Options
Non-conforming of Jumbo Loan
A loan amount in of $510,400 or higher is considered a Jumbo Loan. Requirements are simply a higher credit score requirement than other loan options, as well as strict qualification requirements. Your mortgage specialist will provide you with detailed qualification considerations.
Down Payment Assistance
This type of assistance requires a zero percent (0%) down payment, however the buyer must apply and qualify for the assistance. This assistance can be used in conjunction with all loan types, aside from a Non-conforming/ Jumbo loan.
Offered as an option to refinance, to reach a lower rate, and either stretch or lessen your total pay out. You can request a cash out in order to withdraw the money from the equity of your mortgage. In the state of Texas, the maximum of amount of equity allowed to pull, is 80%.