Loan Options

Which Loan is Right for You?

We have loan options available for everyone including, but not limited to, first-time buyers, investors, self-employed, those who need no income verification, homeowners wanting to refinance, veterans, rural homebuyers and more. Reach out today and we’ll help you figure out the best option for your situation. 

Conventional Loans

These loans are mortgage loans that are not insured by the government and are typically offered by private lenders or banks. They typically have better rates, terms, and lower fees than other types of loans, but to qualify, borrowers typically need to have good-to-excellent credit, a reasonable amount of debt, a down payment as low as 3% and stable income. They are ideal for borrowers with good credit and a down payment of at least 3%.

Jumbo Loans

A jumbo loan is a type of mortgage loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. As of 2023, the limit in Texas is $726,200. Any loan above that limit is considered a Jumbo Loan. These loans tend to have higher interest rates than conforming loans because they are considered to have a higher risk for lenders. Borrowers typically need to have good credit and a higher down payment to qualify for a jumbo loan.

FHA Loans

FHA loans are insured by the Federal Housing Administration (FHA) which is a government agency. Because of the government insurance, FHA loans have more lenient credit and income requirements than conventional loans. This makes it easier for first-time home buyers and those with less-than-perfect credit to qualify for a mortgage. FHA loans require a down payment of at least 3.5%. The borrower is also required to pay mortgage insurance premium (MIP) regardless of the down-payment amount.

VA Loans

A VA loan is a type of mortgage loan that is guaranteed by the U.S. Department of Veterans Affairs (VA) and is available to most U.S. service members, veterans, and eligible surviving spouses. One benefit of a VA loan is that it does not require a down payment, which can make homeownership more accessible for veterans and service members. Additionally, VA loans have more flexible credit and income requirements compared to other loan types. VA loans also have a limit to the amount that can be borrowed and do not require mortgage insurance. However, borrowers are required to pay a funding fee, which can be financed into the loan. VA loans also have a cap on interest rates which can make them more affordable for veterans and service members.

USDA Loans

A USDA loan is a type of mortgage loan that is insured by the US Department of Agriculture (USDA) and is available to qualified individuals who are purchasing or refinancing a home in a rural area, as defined by the USDA. These loans are designed to help low- and moderate-income individuals and families purchase homes in rural areas. One of the main benefits of a USDA loan is that it often requires no down payment. In addition, USDA loans have more flexible income and credit requirements compared to other loan types. However, there are income limits and property location restrictions for USDA loans and the property must be in an eligible rural area as designated by USDA.

Reverse (HECM)

A reverse mortgage is designed for homeowners aged 62 and above who want extra cash with the added benefit of no longer having a monthly mortgage payment. 

Here are just a few of the benefits of a reverse mortgage:

  • You can stay in your own home.
  • Eliminates the monthly mortgage payment.
  • Repayment is required only when the final borrower no longer lives in the home
  • The borrower’s heirs have the option to arrange their own financing, pay off the loan, and keep the house.  Or they may also choose to sell the home and keep the proceeds. (In the unlikely event that the loan balance is more than the home’s value, the borrower’s heirs are not responsible for repaying the difference.  FHA insurance is part of every HECM loan and satisfies the note in these rare instances.)

What can the extra cash be used for?

  • Paying off other debt
  • Covering medical bills
  • Supplementing your monthly retirement income
  • Investing in that second home by the ocean
  • Taking that vacation you’ve always dreamed of
  • And much more………