Buying a home is difficult enough. Then, once you have found your perfect home, you have to go through the intimidating process of applying for a mortgage. The wide variety of mortgage types can make this process daunting and confusing. The ideal mortgage meets your financial needs and has criteria that you can qualify for. Not every loan is going to be right for everyone, and there can be a lot of information to sift through.
At Manuel Mortgage in Cypress, our goal is to match every borrower with the loan that is best for them. With so many loan types that vary in criteria and benefits, there is sure to be a loan type that works for you and your family.
Best for: People with good credit who can afford a large down payment.
Unlike FHA or VA loans, conventional loans are not guaranteed or insured by federal agencies. This type of loan requires a larger down payment, as they remain a higher risk for lenders without that federal protection. Due to this risk, this loan calls for buyers who are in secure financial standing who are less likely to default. With this loan, a large down payment is required which allows the lender to offer lower mortgage rates, resulting in long-term savings for the buyer. Generally, these low rates are fixed and save the buyer money over the life of the loan.
Best for: People with lower credit scores who want a lower down payment.
Buyers with credit scores as low as 580 can qualify for an FHA loan (backed by the US Federal Housing Administration). This loan has easier qualification criteria than a conventional loan for those with lower credit scores, higher debt ratios, and even prior foreclosures and bankruptcies. FHA loans also require lower down payments, as little as 3.5% down, and reduced mortgage insurance premiums, making them more affordable for lower-income buyers than most conventional loans.
Best for: US veterans, service members, and spouses.
A VA loan is guaranteed by the US Department of Veterans Affairs. It is available to veterans, service members, and their spouses. For these qualified buyers, VA loans offer flexible lending options and affordable rates. The purpose of this loan is to allow veterans and service members to obtain home loans that work with their financial situations. The benefits of this loan include zero down required, easy qualification standards, no mortgage insurance required, and loan limits as high as $453,100.
Best for: People who want to live outside of city limits.
USDA Rural Development Loans offer 100-percent financing and different terms and rates than a conventional loan. This low-cost funding is intended to boost the economic viability of rural areas. This loan is perfect for people wanting to live in rural areas outside of city limits. The benefits of a USDA loan include zero down payment, low monthly USDA fees, more affordable upfront funding fees, flexible closing cost payment options, simple qualification criteria, and process, and open availability to both first-time and current homeowners.
New Construction Home Loans
Best for: People wanting to build their dream house.
With a New Construction Home Loan, you can afford to construct a new home on land that you own, or purchase land to construct a home on. These loans differ from conventional loans in that they have shorter repayment periods, higher interest rates, and variable rates. Construction loans allow you to cover several large costs associated with new home construction including the cost of materials, design costs, fees charged by a construction firm, the purchase price of land to build your home on, and other miscellaneous costs.
Best for: People buying luxury homes or in high-priced markets.
Jumbo loans offer funding beyond the limits of conventional loans. This can be necessary for people buying luxury homes or in high-priced markets. A jumbo loan requires that the buyer has a high credit score and low debt ratios. This loan offers competitive terms on large loan amounts and is available with both fixed-rate and adjustable-rate options. Borrowers can also apply for interest-only jumbo loans that result in lower monthly payments and increased cash flow.
Best for: People buying a home that requires immediate renovation.
Renovation loans combine the cost of renovation with your mortgage, making it possible to immediately update or remodel your property. This loan is ideal for people looking to purchase a home that is in the perfect location but does not meet the buyer’s other standards. Common renovation needs include AC installation, kitchen remodeling, flooring replacement, and more. If you are interested in buying a home that you know will need remodeling and repair, this may be the loan best suited for your situation. There are several different options for renovation loans including FHA 203K Full loans, FHA 203K Streamlined loans, Homestyle loans, Conventional Rehab loans, HUD REO with Repair Escrow, and Underwriter or Appraiser-Required Repairs.
Contact Manuel Mortgage Today
At Manuel Mortgage in Cypress, we offer a wide variety of loan and mortgage types for Texas homeowners, so you are sure to find one that is a match for you. Whether you are just starting the process of searching for a home or need to apply for a mortgage today, our expert staff can help.
If you have questions or would like more information, call Manuel Mortgage today. We can’t wait to hear from you!