Conventional loans are "conforming" if they are $453,100 or less in Texas. For the most part, these loans follow the guidelines put in place by Fannie Mae and Freddie Mac. The minimum down payment is 3-5% and generally a 620 credit score. Conventional loans can be someone's primary residence, second home or investment property.
Federal Housing Administration
For many first-time homebuyers, an FHA backed mortgage makes buying a home easier or possible – thanks to less-rigid borrower requirements. FHA requires a low minimum down payment (currently 3.5%), reasonable credit expectations (580) , and more flexible income requirements.
FHA also has some specialty products such as the 203K (allows improvements to property), TSAHC (down payment assistance for teachers, fire fighters, peace officers, veterans, and low and moderate-income homebuyers). Team Neal at First Choice has expansive FHA knowledge and has been ranked nationally on their goverment loan production.
Loan amounts exceeding $453,100 are considered non-conforming or "jumbo" loans. Due to the higher loan size, these types of loans generally require more down, higher credit scores, and have more restrictive debt to income limits. The underwriting and accounting background of Team Neal at First Choice is very beneficial on jumbo loans when the clients have complex income situations (such as self-employed, in the medical field, high wealth individuals, and trusts).
USDA or Section 502 loans are primarily used to help people purchase houses in rural areas. McKinney properties do not qualify for this type of financing, but some properties in the neighboring small towns do. USDA offers 100% financing, but borrowers must also be below certain income limitations.
We LOVE VA loans!! VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. VA offers 100% financing and has looser credit requirements (600 and sometimes lower) as well as more lax debt to income requirements.
It is our personal mission to help give back to the Veterans and their families that serve our country. Amy is able to utilize her prior underwriting background and extensive knowledge in VA to help our Veterans with this great option. We have the ability to originate multiple VA loans to a client (often at the same time), Texas Veteran Land Board loans (TexVet), jumbo VA loans (> $453,100), manual underwrites, and have closed VA transactions in the shortest time allowed by law (8 days). Amy gladly works hand in hand with the realtors on these transactions to make sure they aren't scared by the old "wives-tales" of VA transactions.
Our branch sends monthly care packages to the troops, so please let us know if you know anyone that you would like us to add to our list.