Home ownership has never been more affordable than it has ever been. With an abundant supply of homes for sale combined with the mortgage rates at its historic lows, buyers are in the best position to achieve their dream of homeownership now than ever before.
Purchasing a home is not as difficult as most media make it be. On the contrary, there are different loan programs available on purchase loan transactions. Each one of the loan programs has its own merit. A typical borrower in today’s market not only can choose the right program for their particular need, they can also choose from different purchase loan options.
The basic purchase loan programs available for types of purchase loans available are:
- FHA Mortgage Loans – These loans are insured by the Federal Housing Administration under the jurisdiction of the Housing and Urban Development or HUD.
- VA Mortgage Loans – Designed for people who served the military and their eligible spouses. A 100% loan program for eligible servicemen and women.
- Conventional Loans – Mortgage loans that are not insured or extended by the federal government but still conforms to Fannie Mae and Freddie Mac underwriting guidelines.
- Conforming Loans – Mortgages that are equal to or less than the set loan limit and funding criteria by Fannie Mae and Freddie Mac federal regulator.
- Non-conforming Loans – Mortgage loans that do not meet the criteria set by the government-sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and Ginnie Mae.
- Non-qualified Mortgage or Non-QMs – They are mortgage loans that do not conform to the conventional loan guidelines. A totally different set of guidelines and eligibility requirement applies to Non-QM loans.
- USDA Mortgage Loans – Another 100% financing offered to rural property owners or borrowers looking to buy a home in a rural setting or outside the big city limits. It is the most stringent of all the loan programs available due to their 100% financing nature.
The above-mentioned mortgage programs are available for residential home loans in Texas. Each one of them has their respective eligibility requirements and guidelines. Although they may sound similar and the same, they all differ from each other. Confusing as it may seem, they are not that complicated and with proper guidance from a highly qualified Originator, every borrower can attain their goal of home ownership with a very favorable result.
For more information, please contact our Home Loan Specialists at (281) 860-2533 or use any of the tools on this website.