Are you currently living in Texas? If you have been thinking about purchasing a new home or looking for the best first time home buyer programs in Texas, you may not be aware of the latest requirements necessary for getting a home loan. In Texas, the requirements may be different than what you would expect in neighboring states like Louisiana or Arizona. It’s good to know what to expect when you speak to a loan professional. As with any loan, there are minimum requirements that you must meet. Without doing so, you may not be able to qualify. To achieve eligibility, here are the things that you need to have to meet the requirements for home loans in Texas today.
What Type Of Credit Score Do You Need?
What are the home loans program in Texas? If you need a loan, one of the first things that a loan professional will do is run your credit score. They need to know that you can be trusted. If your credit score is 620 and above, you have a high chance of getting qualified by many of the local lenders in the area. If it is not 620, the only way that you would be able to qualify is by getting a cosigner or perhaps putting more money down. If that is the case, you would need to clearly show that your debt to income ratio is adequate, and your gainful employment would be more than enough to make the payment.
What Type Of Income Do do You Need For A Loan?
The amount of money that you earn is measured by loan professionals before they can qualify you for any loan. By measured, this means that they will look at your net income, as opposed to the gross amount that you are paying before taxes. This is the money that you will have available to spend and pay your bills. If you do not make at least four times the amount of the mortgage, it is unlikely that you will qualify. Even if you had good credit, perhaps in the 700 range, it would still be questionable as to whether or not they would allow you to have a loan through their business.
What About The Property Location?
Unless you are working with a personal lender, or an investor, the homes that you get at Texas home mortgages must be located in the state of Texas. In conjunction with this, the purchase price limits must not be exceeded. Unless you have an extensive amount of available cash, you will have to purchase homes that fall under this criteria. You can also ask about conventional loan rates and requirements for 2020.
What Type Of Home Can You Purchase?
If you are a first-time homeowner, the only way that you were able to get that loan was by investing in the single-family home that you purchased. You may have also purchased a single unit in a condominium complex. They need to test you to see if you can make the payments. This is common throughout all of the states that offer loans. As mentioned before, the credit score that you have is very important. It is built up by making payments on credit cards, loans, and other things that require monthly amounts. Therefore, if you get a loan, it will likely be for a single-family home that is well within the purchase price limits in the state of Texas.
Can You Purchase A Manufactured Home Or A Duplex?
Some lenders will allow you to purchase a manufactured home. These are difficult to get financing for in general. Unless you have established credit, it is unlikely that they would be happy to accommodate you. Duplexes fall under this category. The only way that this will not be a problem is if your credit is exceptional and your monthly payments from your job are excessively high. Otherwise, you may have to find someone to help you as you are applying for this loan as duplexes and manufactured housing units are not as popular with loan officials.
What Types Of Home Loans Can You Apply For In Texas?
The types of home loans that are available will include conventional loans, FHA loans, VA loans, USDA loans, and also first-time homebuyer mortgages. They also have Texas bond programs, Texas VLB loans, and if you are a teacher, they have loan programs for educators.
This brief overview of the many requirements for home loans in Texas should give you a cursory understanding of this process. If you can qualify, depending on the type of loan that you are applying for, it could take several weeks for it to be approved. However, if you do have good credit, and an outstanding job, you could prequalify right away. It just depends on what type of home you are purchasing, the type of loan that you would like to obtain, and how much that loan will be for when compared to your credit. Always study the process of buying a house in ten steps to avoid future issues.