What You Need to Know About Texas Home Buyer Programs

Paying a mortgage is a 15 or 30-year commitment, which is a long time. This is the reason why many consider renting over buying a home. Renting is beneficial if you do not see yourself in a certain place for a long time but if you have been in the same home for years, you are essentially making the mortgage payment – to your landlord.

It is time that you re-evaluate your options. The good news is that the Texas state government and the US federal government provide special programs for first-time homebuyers. The programs are designed to help low to moderate income homebuyers who are struggling to get the money together to make a purchase.

Here are some of the effective down payment assistance that you can consider:

FHA (Federal Housing Administration) loans
Many Americans consider FHA loans because it offers as little as 3.5% down payment and FICO credit score of 580 or higher. Usually, conventional mortgages call for 20% down payment.

This loan is best for those who do not have money for a down payment and good credit history. FHA loan is included in the mortgage portfolio of lenders across the country. When the homeowner fails to pay the loan, the responsibility will fall to the FHA. However, you must know that if your credit score is 580 or higher, you will be required to pay 10% down payment or more depending on your threshold.

VA (Veterans Affairs) loans
Veterans refer to the current members of the US military, their spouses and other beneficiaries. These people are eligible to apply for a VA loan through the Department of Veterans Affairs.

This loan is best for those servicemen who lack capital for a normal down payment but have monthly income to complete a mortgage. As long as your home value falls within the VA loan standards, you can have as much as 100% of the price enclosed by your VA loan.

USDA (United States Department of Agriculture) loan program
The USDA encourages people to move into semi-rural or rural areas around the US. USDA loans are similar to VA loans in the sense that they do not come with minimum down payment requirement – allowing you to finance up to 100% of your home’s value.

Good Neighbor Next Door Program
This program is put to attract pre-K through 12th-grade teachers including emergency personnel, police officer, and firefighter. In this program, you get a flat 50% discount on the value of your home.

Fannie Mae/Freddie Mac
Fannie Mae’s HomeReady mortgage requires lower down payment – lower than FHA loan at 3%. You must ensure though that your monthly income does not go over the US median. Freddie Mac has The Home Possible: 95% LTV and Home Possible Advantage: 97% LTV mortgages.

My First Texas Home
The TDHCA (Texas Department of Housing and Community Affairs) manages My First Texas Home Program. The program offers a 30-year fixed-rate loan with easy to meet stipulations.

Remember that the loan will depend on your needs. With patience and effort, you will find a loan with cheap down payment requirements and low credit score minimums.

8 ball pool hack

Interesting Aspects That No One Tells You about 8 Ball Pool

personalized gifts toledo oh

Understand the effective ideas for a personalized gift