3 Most Beneficial Home Loans for Home Buyers in Texas

1
(No Transcript)
2
Despite the fact that there are several home loan
options available for homebuyers in Texas, many
fail to take the benefit of some of the most
beneficial Texas home loan programs such as the
VA home loans, FHA loans, USDA mortgage loans and
more. Instead, they opt for the conventional loan
programs that are less beneficial and have lesser
features as compared to the ones just mentioned.
One of the reasons for home buyers failing to
take the benefit of these loans is their lack of
awareness. In this blog post, we discuss the
three most beneficial home loan types that buyers
must consider at the time of applying for a home
loan.
3

• FHA loans are funded by private lenders, however,
  they are backed by the Federal Housing Authority.
  As the loans are insured by the government,
  lenders have relaxed qualification criteria for
  giving out these loans to home loan borrowers.
  Here are some of the benefits of taking an FHA
  home loan.
• Down payments as little as 3 percent as compared
  to the traditional loans that require a down
  payment between 5 to 10 percent.
• The Mortgage Insurance payments that borrowers
  need to make on a monthly basis are much less as
  compared to conventional loans.
• As opposed to the 3 percent allowable seller
  contribution to the closing costs in traditional
  loans, the FHA loans allow sellers to contribute
  6 percent.

4

• Just like the FHA, VA loans are also guaranteed
  by the government. These loans, however, unlike
  the FHA loans are not offered to everyone. The VA
  loans are offered only to qualified active
  service duty members, veterans and their
  surviving spouses. The benefits of VA loans are
  as follows.
• There is no down payment applicable in VA loans.
• VA loan borrowers need not pay the private
  mortgage insurance (PMI) that FHA borrowers pay
  in the form of Mortgage Insurance Premium (MIP)
• The interest rates are not only lesser than the
  conventional loans, but they are less than FHA
  and USDA loans also.

5

• The United States Department of Agriculture is
  the government organization that partners with
  lenders to assist rural home buyers get a Texas
  USDA home loan at competitive rates and easy to
  replay loan terms. Borrowers who apply for USDA
  loans get the following benefits.
• Just like the VA loans, USDA loans provide
  homebuyers 100 percent financing. In other words,
  they need to make a zero down payment at the time
  of buying a home.
• USDA loans do require borrowers to make an
  upfront premium that is 2 percent of the loan
  amount. The good news, however, is that borrowers
  can finance the upfront premium, as well.

6
Whether you are a first time home loan applicant
or have already taken a home loan in the past, it
is always advisable to consult a home loan
consultant before applying for a home loan.
Consultants can not only help you take a loan
that best serves your requirement, but can also
advise you against taking the ones that have
hidden charges or unclear terms and conditions.
 If you are looking for a home loan in Texas,
there are more than few good home loan
consultants who can help you with the same.
7
(No Transcript)