Housing Loans

Understanding Housing Loans

While some buyers are able to pay cash for a home, most need some form of housing loan. There are four basic types of housing loans (also referred to as “mortgage loans”):

  • Conventional loans
  • FHA loans
  • VA loans
  • USDA loans
Each of these housing loan programs has differing requirements, and details regarding each of these is best obtained from a trusted lender. I work closely with a number of local lenders and will be happy to refer you to one who is well-equipped to advise you regarding your options. You are also encouraged to ask the lender whether you may qualify for some type of buyer assistance program. For example, the SETH “5 STAR Texas Advantage Program,” which is not limited to first-time buyers, provides assistance in the form of a non-repayable gift that can be used toward a buyer’s down payment and closing costs. Buyers must meet very specific qualifications in order to receive assistance, and guidance regarding this should be obtained from your lender.

Some buyers, particularly first-time homebuyers, believe that it is important to save until they are able to make a down payment equal to 20% of the sales price of the home they wish to buy. While there may be some scenarios where this could be beneficial, IT IS NOT NECESSARY to do this. There are many types of housing loans that require a much lower down payment, and generally if you are able to pay rent in the Dallas/Fort Worth area, you will able to afford a monthly mortgage payment. You will generally be better off financially if you buy a home rather than continue renting, particularly if interest rates and housing prices increase.

If you need credit repair in order to buy a home, YOU ARE NOT ALONE. Please contact me and allow me to refer you to one of my trusted lenders, who can provide invaluable guidance regarding how to get to the point where you can achieve your dream of homeownership. This may not be as difficult as you think!