House is a necessity that nearly every person needs and more so when they marry and want to start a family. The department of housing provides all kinds of support and financial assistance in the form of home loans to people who look to buy a home but do not have adequate means to fulfill their wish. The homebuyer assistance provides a wide range of conventional and government mortgage loans to people wanting to change their existing homes or first-time homebuyers looking for a suitable home according to their needs and budget.
The best mortgage lenders in Houston Texas for first-time homebuyers are approved lenders who offer government-backed loans which have lenient terms as compared to conventional loans. There are few factors that decide the acceptance of loan application, which is credit score, debt to income ratio, down payment, interest rates, and monthly income of the homebuyer. The first time homebuyer fails to qualify for conventional loans as the banks require a good credit score and a large amount as a down payment. Credit scores play a crucial role as lenders use it to determine the financial ability of the homebuyer making regular repayments or not.
The best mortgage lenders in Houston Texas offer government assisted loans which include the Federal Housing Administration (FHA) loans, Veteran Affairs (VA) loans, and United States Department of Agriculture (USDA) loans. The government mortgage loans are guaranteed by the government, which reduces the financial risk and allow the mortgage lender to provide loans to potential homebuyers.
The FHA loans are best when it comes to qualifying for loans with low credit scores and paying the small down payment. The homebuyer with poor credit score makes 3.5% while a homebuyer with bad credit must make 10% down payment to secure the loan. The VA loans offer the most benefits to the war veterans when it comes to home loans. The veterans do not have to pay any down payment or mortgage insurance; the closing costs and interest rates are also less as compared to other mortgage loans.
The best mortgage lenders in Houston Texas, also offer USDA loans to promote homeownership in rural areas in the state of Texas. The benefits of USDA loans are no down payment and 100% financing for first-time homebuyers with moderate income.