There are many home loan programs out there specifically designed to meet the needs of Texas First Time Homebuyers. Whether you need a minimal down payment, low interest rate, homebuyer education, or just a little more personal attention, I'm here to help. Although I work with all demographics, loan types, and sizes, my specialty is First Time Homebuyers. Below you will find a brief explanation of the loans that will help you achieve your dreams. I know you will have questions along the way, so don't hesitate to pick up the phone and call or shoot me an email anytime.

FHA loans are insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Although FHA loan programs are designed to help creditworthy low-income and moderate-income families, it's important to not that they are available to ALL homebuyers.

FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on FHA loans are generally market rates, while down payment requirements are lower than for conventional loans.

Some of the benefits of FHA financing:

• Only a 3.5 percent down payment is required.
• Closing costs can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than conventional loans
• FHA limits the amount lenders can charge for some closing cost fees (e.g. the origination fee can be no more than 1% of mortgage).
• Loans are assumable to qualified buyers.

For frequently asked questions, please visit the following web address:

http://www.hud.gov/buying/comq.cfm

For Maximum FHA lending limits in Texas, please visit the following web address:

https://entp.hud.gov/idapp/html/hicost1.cfm

USDA loans are made by lenders and are guaranteed by the United States Government for up to 100 percent of the purchase price!  The only caveats are the property must be in a defined rural area and you must meet their income restrictions.  One of the great things about living in Texas is that all of major metropolitan areas are surrounded by USDA deemed rural land.  So, in a day where 100 percent financing is impossible to come by, Texans fledge on! 

For property eligibility, please visit the following web address:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

For income restrictions, please visit the following web address:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&urlToLoad=http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm&NavKey=incomelimit@12

Conventional loans are somewhat a thing of the past when it pertains to First Time Homebuyers.  Although there are still programs out there with a minimum 3 percent down payment, the truth is the mortgage insurance associated with the loans are so expensive that the pros don't outweigh the cons.  By putting an additional .5 percent down on an FHA loan you will save hundreds in terms of monthly payment.  That being said, there are situations where an FHA loan is not an option. This generally comes into play when the home being purchased is above FHA lending limits for the County you are purchasing in as the conventional programs will let you obtain a loan up to $417,000.  Otherwise, FHA is always the better option.

For information regarding Texas Vet and Traditional VA Home Loans, please visit www.texas-vet-home-loans.com.