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Texas Lending consists of 4 general types of mortgages. Most can be fixed or adjustable interest rates (even interest-only). But which one is right for you? Below the loans are listed, starting with least costly.
The least expensive Texas Lending option are Conforming Loans (sometimes called Conventional Loans). But to be less expensive, they require: 5% or more down payment, credit scores above 650, and reserves. "Reserves" is savings remaining after you pay your down payment and closing costs.
This type of lending requires full income documentation. Sometimes this is hard for self-employed or commission paid TX borrowers, if they are aggressive with their tax deductions.
VERY IMPORTANT: To avoid PMI, you will need a first lien and a second lien. One loan with PMI can cost you the equivalent of another 1% interest rate--making the total cost MUCH higher than the disclosed interest rate!
FHA and VA Loans
Another Texas Lending alternative which is usually the second least expensive are the Government Loans Programs. FHA is available for borrowers who qualify (and within the FHA loan limit for your Texas County).
VA loans are available for qualified current military service members and also for those honorably discharged.
These Texas Lending programs can be less expensive than alternative loans because the Federal Government backs them, protecting lenders if borrowers default.
Full income documentation is required. Like Conforming Loans above, this can sometimes be difficult for self-employed or commission paid TX borrowers.
Reserves are not required. VA allows for 100% loans, FHA for 97%. (FHA Loans with Down Payment Assistance can avoid the out-of-pocket down payment expense, like a 100% mortgage!)
FHA and VA lending are both much more lenient about credit requirements than Conforming Loans.
To pre-qualify for a mortgage, click on:
Texas Lending
Niche Loans
Another Texas Lending alternative are Niche Loans. Usually, these require less documentation and are perfect for self-employed borrowers using aggressive tax preparers. Their tax returns often don't show enough income to qualify for a loan, even though they are quite successful and can easily pay a mortgage.
Examples of Texas Lending Niche Loans can be Stated Income, No Income-No Ratio, and No Doc.
Other variations of Niche lending can help when one borrower has good credit and the other borrower has bad credit.
Jumbo Loans are another example. Jumbo loans exceed the Conforming Loan limit of $400,000. They can be full income or limited / no income documentation.
Reserves are typically not required. 100% financing is available, typically for credit scores above 560-580. Like Government Loans, Niche Loans are much more lenient on credit issues.
Subprime Loans (sometimes called "B" and "C" paper loans)
Another Texas Lending choice are subprime loans. These are for people with credit "challenges". You still may qualify for 100% financing, if your credit scores are over 560-580.
Reserves typically are not required. Income documentation can be either full or limited.
Another option is to get help from me with your credit, so you can qualify for a lower cost loan program!
To pre-qualify for a mortgage, click on:
Texas Lending
For any questions, please call or email me. You can email me by clicking : here.
You can reach me by calling (direct line): Paul Marshall
(214) 891-9626 or Toll-Free at 1 (888) 265-7830.
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