Finally having the guts to buy your first home can be both exciting and overwhelming. Exciting as you can now invest in something you can call your own, but it gets a little overwhelming, especially when dealing with the financing aspect of home buying.
Nobody said it was easy, but through the help of proper research and time management, everything will fall in its place. When buying a home, there are lots of things you should consider; location, market value, and loan options.
Texas is one of the best places to invest for first time home buyers. It offers prime locations, low down payment terms, and the overall financing requirements are not complicated compared to other countries.
Below are the common types of home loans in texas you should know before purchasing your first home:
Federal Housing Administration (FHA) Loan
This home loan option is available under the regulations of the United States Department of Housing and Urban Development. It is a mortgage loan program with low down payment requirements. Borrowers with 580 and above credit score can easily be qualified for as low as 3.5% down payment of the total contract price. Guidelines are easy to meet, and that is why it is highly recommended for first-time home buyers.
Veterans Affair (VA) Home Loan
This particular type of home loan in Texas is provided by private institutions regulated by the U.S Department of Veterans Affairs. It is specifically available for borrowers who formerly and currently serving the military. It allows people in service to take advantage of favorable terms, including low-interest rates and not being obliged to make a down payment.
In this home loan option, the VA guarantees the mortgage made by qualified lenfavorableders. The department acts as a guarantor if the borrower can no longer pay the mortgage. Applicants should have at least 620 and above credit, scoring to get approval under this home loan terms.Image Source: https://cdn.pixabay.com/photo/2017/09/07/08/54/money-2724248_960_720.jpg
USDA Rural Housing Service
The U.S Department of Agriculture guarantees the mortgage as regulated by Section 502 of Section of the Housing Act of 1949. It is often offered to families with low-to-moderate incomes who can enjoy friendly terms including no down payment and lower and fixed interest rates.
However, the only property available under this home loan program should be in eligible rural or suburban areas.
The Texas Department of Housing and Community Affairs (TDHCA) offers a home loan program ideal for first-time homebuyers. The program offers a 30-year fixed-rate loan with lower interest rates and simple credit requirements.
Aside from first-time homebuyers, those buyers who have not been a homeowner for the past three years are also eligible to apply for this home loan program.
Getting the keys to your first home may be complicated and full of challenges, but it will surely be worth it. Take these types of home loans in texas points as your first stepping stone in your home buying journey. There are other home loan options available, just make sure to choose the one that fits your ability to pay.