What are all the different financing options and what do they mean for the buyer?

Hi,

Here are the 4 basic mortgages:
- Conventional*- credit score 620 and above, min 3-5% down, monthly PMI (Private Mortgage Insurance points) varies based on credit score)
Most popular is fixed rate mortgage for long term occupancy, but adjustable rate mortgages are also available if it is better option for you
- FHA*- Federally insured loans -credit score 580 and above, min 3.5% down, upfront MI (Mortgage Insurance Points) 1.75% of the loan and .85% monthly
- VA*- credit score 580 and above, no down payment required, only 1% of upfront MI (Mortgage Insurance) and no monthly MI points
- USDA*- credit score 640 and above, no down payment required, only 1% of upfront MI (Mortgage Insurance) and no monthly MI points (please note- USDA loans are not available for subdivision and city properties; please ask your lender for more information)
- Down Payment Assistance Programs*- There are programs available for our amazing Law Enforcement Officers, Fire Fighters, First Responders, Teachers as well as First Time Home Buyers. Please consult your Realtor and/or your lender on how to qualify for these programs and whether they are available to you.
Which mortgage you select and which lender you chose will depend on your own unique situation. Your Realtor can match you with a lender who can assist you based on the criteria you provide.
You must also know that our wonderful State of Texas encourages you to shop around for a mortgage.
It is recommended that you get prequalified with 2-3 different lenders and compare the cost each lender offers. These loan costs may vary depending on the lending institution. Ultimately, it is best for you- the consumer- to understand these costs, so you can pick the best loan with the lowest cost. A prudent Realtor will educate you on the subject and beyond that as well. *Please note: the FannieMae, Freddie Mac and Federal borrowing guidelines are subject to change.