Buying a home is a huge financial decision but don't be scared, there are plenty of down payment options available.
CONVENTIONAL LOAN
- Low down payment
- Limited mortgage insurance premiums
- Credit score needs to be higher than other options.
What you need to know…
First-time home buyers can get a conventional home loan with as little as 3% down if the mortgage meets requirements set by Fannie Mae and Freddie Mac. And if you put at least 20% down, you won’t have to pay mortgage insurance. Most lenders require a minimum credit score of 620 to qualify for a conventional mortgage, but a score around 740 earns you the best interest rates.
FHA LOAN
- Best for low credit score
- Best for low down payment. Could be as low as 3.5%
- Insured by the Government
- Strict requirements
- See if you qualify
What you need to know…
Mortgages insured by the Federal Housing Administration, or FHA, offer relaxed qualification requirements, especially when it comes to down payment and credit score. You can qualify for an FHA home loan with a credit score as low as 500, but you’ll need a 10% down payment. If your score is 580 or higher, your down payment could be as low as 3.5%. All FHA loans require mortgage insurance, which cannot be canceled.
VA LOAN
- Great option for Veterans
- Low down payment options
- Backed by the Government
- See if you qualify
What you need to know…
Guaranteed by the U.S. Department of Veterans Affairs, these mortgages are available to military members, veterans and surviving spouses. If you qualify, you’ll see benefits such as no minimum credit score and no down payment or mortgage insurance, but you’ll likely have to pay a VA funding fee.
USDA LOAN
- Low down payment
- Must be rural
- Strict requirements on area
- See if you qualify
What you need to know…
The USDA home loan program encourages rural and suburban homeownership by offering zero-down-payment mortgages to lower-income buyers. Borrowers with nontraditional credit data, like rent or utility payments, can still apply, but those with a score of 640 or above will experience faster loan processing. These mortgages can be used only in certain areas, but you don’t have to be a farmer or rancher to qualify.
Overall…
There are many other options for first time home buyers in Texas. Including down payment assistance programs to help you with the purchase of your new home.
Please give us a call at 281-352-9972 or contact here.
