Houses are one of the most expensive things to buy as many of the homebuyers do not have substantial financial resources to pay the full purchase price. Many of the homebuyers aspiring to change their existing home and even first-time homebuyers rely on home loans to buy a home.
The property market in the city of Houston is on the rise, and many people wish to live a luxury and comfortable life in their Texas home. The homebuyer assistance program consists of both the conventional and government-backed loans which people can obtain. The best mortgage lenders in Houston Texas, mostly consists of lenders who offer government assisted loans to first-time homebuyers having a moderate income. The conventional mortgage loans are only given by banks to homebuyers having a good credit score.
In mortgage loans, credit score plays a vital role in acceptance or rejection of loan application. The credit scores are classified by FICO (Fair Isaac Corporation) and range from 350 to 800. The scores above 600 are considered good, while scores below 600 are called poor and bad credit scores. The best mortgage lenders in Houston Texas offer potential homebuyers Federal Housing Administration (FHA) loans and Veteran Affairs (VA) loans. The FHA loans are very popular because of lenient qualification terms when it comes to credit score requirement. The mortgage lenders ask homebuyer with poor credit score (580 or below) to make 3.5% down payment, while homebuyers having bad credit (500-579) have to make 10% down payment. The down payment option of FHA loans is best as compared to a conventional home loan.
The VA loans, on the other hand, are considered the best option when it comes to mortgage loans, but the loans are only given to war veterans, their families, and currently serving military men and women. The VA loans do not even have any credit score criteria and offer benefits such as no down payment, no mortgage insurance, and low interest rates and closing costs.
The FHA and VA loans are both guaranteed by the government which removes the financial risk and allows best mortgage lenders in Houston Texas to provide the loans with easy options and either 10 years, 15 years, or 30-year loan term. The mortgage lenders also offer USDA (United States Department of Agriculture loans) to encourage first-time homebuyers to buy a home in rural areas.