4 Mortgage Loan Options for Houston First Time Home Buyers

Hi, thank you for stopping by. As you may know, our goal is to provide first time home buyers with information and help they can use. Today we will touch on mortgage loan options that are available first time home buyer. Let us begin with FHA loan:

FHA loans: This is the most popular loan for first time home buyers. You can qualify for an FHA loan with a credit score between 500 - 579, with 10 percent down payment, or with a credit score of 580 and higher with only 3.5 percent down payment. Mortgage insurance premiums (MIP) will be required for the life of the loan. There are also no income limits. This mean both low and high income earners can qualify.

USDA loans: These loans are best for first time home buyers with low- to moderate-income that plans on purchasing their home in a qualifying rural area. The government does not have a minimum credit score requirement to qualify for this loan, however lenders will usually require a minimum score of about 640. This loan does not require any down payment.

Conventional loans - Can be ideal for first time home buyers with good credit. Unlike FHA, VA and USDA loans, conventional loans are not government-backed, however, their rates are usually a bit more competitive. Although, down payment can be as low as 3%, your debt-to-income (DTI) will typically needs to be below 36%. Private mortgage insurance will be required if you put less than 20% down.

VA loans: Are best for active and veteran military personnel and their families. There is no minimum credit score requirement to qualify for this loan, however lenders will usually require a minimum score of about 620. This loan does not require a down payment, but does have a funding fee requirement. This fee can range from 1.4% to 3.6% of the loan amount. Disabled veterans receiving disability compensation from VA for service-connected injury is exempt from paying this fee. Also, because private mortgage insurance is not required, monthly mortgage payments should be lower.

So there you have it. Nothing but facts, quick and to the point. For more information on mortgage option, ask your Realtor for help on working with a capable loan officer that can answer all your questions and get you the right mortgage loan.

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana