Compare Loans: Which loan is right for me

When searching for your next home, you’ll likely discover many types of home loans in Texas through which you can finance your mortgage. In fact, Texas lenders offer so many options, it can be difficult to know which one to choose. Because getting the right loan is essential for strong financial health going forward, we’ll outline the key loans available to you.

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Loans by Property Type

  • Primary Loans: A primary loan is one you use for your primary residence. You can only have one primary residence at a time, but you can share it with other people. Several options exist within primary loans, making it easier to find one that fits your situation.
  • Secondary Residences: A secondary residence is any residence other than your primary one. Secondary residences are often referred to as vacation homes, and they must be for your exclusive use. A mortgage for a second home differs from a loan for a primary residence, making it important that you understand the differences.
  • Investment Property Loans: An investment property is any real estate property the owner doesn’t occupy and purchased with the intent of earning a return on the investment, either through rent or future resale.
  • Loans for Financing Condos: Financing a condo can be considered a primary loan, secondary residence loan, or investment property loan. Talk to a lending expert about securing a loan for financing a condo bsaed on your specific situation.

Traditional Loans

  • Conventional Loans: A conventional loan is a type of creditor agreement that doesn’t use the Veterans Administration or the Federal Housing Administration. Conventional loans are some of the most common loans when looking to buy a home.
  • Jumbo Loans: A jumbo loan is any loan where the amount borrowed is greater than the limit set by Freddie Mac and Fannie Mae. The current maximum loan amount under these programs is $726,200.

Government Loans

  • FHA Loans: An FHA loan is a home loan backed by the Federal Housing Authority, which allows for lower interest rates and down payments. You must meet certain eligibility requirements to receive an FHA loan.
  • VA Loans: VA loans are private loans backed by the Veterans Administration. VA loans are available to most active-duty service members, veterans, and their spouses.
  • USDA Loans: USDA loans are available for properties in designated rural areas. Using a USDA loan removes many of the restrictions associated with other programs.

Specialty Loans

  • First Time Home Buyers: There are several programs available to help first-time homebuyers in Houston and throughout Texas, which can lower down payments and interest rates.
  • Give Back Program: Discounted home buying programs are available for first responders, veterans, and cancer survivors.
  • Educator Mortgage: Special mortgage programs are available for teachers, librarians, coaches, school faculty, nurses, professors, and more.
  • FHA 203K Rehab Loans: 30-year fixed rate loans are available for improving a current home or buying a home that needs repairs.
  • DACA: Residents with DACA (Deferred Action for Childhood Arrivals) status are eligible for this low down payment mortgage program backed by the FHA.

Down Payment Assistance Programs

  • TDHCA: This program provides down payment assistance for low-income families.
  • SETH: Eligible homebuyers in Texas have access to this down payment and closing cost assistance program.
  • TSAHC: This lending program from the Texas State Affordable Corporation aims to help low-income households and other underserved demographic groups.

Which Loan Is Right for Me?

As you can see, many loan programs exist for Texas homebuyers. To find the right loan for your situation, we recommend speaking with one of our loan specialists today. Whether you’re looking for the best fixed-rate mortgage, a renovation loan in Texas, a TSAHC loan, or something else, our team will help ensure you end up on strong financial footing with your next loan.