FHA HOME LOANS & MORE IN GRAPEVINE, TX
Conventional Loans:
A conventional loan is a loan insured by private investors, that can be done with a middle credit score as low as 600. If your credit score is over 720, a conventional loan can be more advantageous than an FHA loan. There are two types of conventional loans: a conforming loan and a jumbo loan. A conforming mortgage loan is a loan with a loan amount up to $453,100 that also fits guidelines set forth by Fannie Mae and Freddie Mac. A jumbo mortgage loan is a loan over the conforming loan cap that often times has a lower interest rate than a conforming loan. With recent guideline changes, the new minimum down payment for a conventional loan is 3%. You can either get a 10,15, 20, 25, or 30 year fixed rate, or choose to go with an adjusted rate mortgage that fluctuates with the market. The debt-to-income ratio for conventional loans can go up to 50%. For those that qualify, you can also use the MCC tax credit with a conventional loan, which allows the homebuyer to claim up to $2,000 annually as a tax credit toward their federal income tax liability.
FHA Loans:
An FHA loan is a government insured loan that’s popular with borrowers since the minimum down payment is often times lower than conventional loans and the qualification requirements are more flexible. The minimum down payment required by the government is 3.5%, and a family member can actually “gift” it to the borrower. FHA loans with only 3.5% down can be done with a middle credit score as low as 580, with other compensating factors. You can either get a 15, 20, or 30 year fixed rate loan and the debt-to-income ratio can go up to 56.9% as long as federally required residual income tables are met. For those that qualify, you can also use the MCC tax credit with an FHA loan, which allows the homebuyer to claim up to $2,000 annually as a tax credit toward their federal income tax liability and qualify for about $20,000 more home.
USDA Loans:
A USDA loan is a 100% financing government insured loan great for borrowers living in rural areas. Since this loan is area specific, please check with us to make sure the area you’re looking in qualifies. To qualify for this loan, annual household income must not exceed 115% of the annual median income for that area. USDA loans are 30 year fixed rate notes that can also be done with a middle credit score as low as 580, with other compensating factors. USDA loans have a lower mortgage insurance premium than FHA loans, which lowers your monthly payment. For those that qualify, you can also use the MCC tax credit with a USDA loan, which allows the homebuyer to claim up to $2,000 annually as a tax credit toward their federal income tax liability and qualify for about $20,000 more home.
Reverse Mortgage:
A reverse mortgage is a great option for senior homeowners, that uses the home’s equity as collateral. In general, the loan doesn’t have to be repaid until the surviving homeowner permanently moves out or passes away. To be eligible for a reverse mortgage, the FHA requires all homeowners must be at least 62 years of age. If there is an existing mortgage balance, it can be paid off completely with the proceeds of the reverse mortgage loan at closing. For the most part, there are no credit score requirements for a reverse mortgage.
VA Loans:
A VA mortgage is a 100% financing government insured loan for our veterans. VA loans are 15, 20, 25, or 30 year fixed rate notes that can also be done with a middle credit score as low as 580, with other compensating factors. VA loans also don’t have a mortgage insurance premium like FHA & USDA loans, which lowers your monthly payment. Borrowers qualify for VA financing if you meet one of the following criteria:
- You have served 90 consecutive days of active service during wartime
- You have served 181 days of active service during peacetime
- You have more than 6 years of service in the National Guard or Reserves
- You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability