CITY INSIGHT HOUSTON   •   April 24, 2019

3 Most common type of loans for your client:

• Conventional
  • Conventional Limit is $484,000 that your client can qualify for on a home loan and requires only one spouse’s credit pull.
• Federal Housing Administration
  • FHA Limit is $331,200
• Veterans Assistance

Both FHA and VA loans require the credit will be required from both spouses.

Typical credit requirements for a loan are 620 minimum credit.

There are 2 new loan assistance programs that the client can also qualify for, TDHCA and SETH programs for Texas.

• All programs tend to have a higher interest rate than a conventional loan.
• Loan officers recommend going ahead with a higher interest rate and in a year or two, credit and history would be improved and able to refinance the loan to a lower interest rate.

TDHCA program is downpayment specific assistance.

• It helps with 4-5% of the downpayment costs. **This loan has to be paid back at some point**
• For more information on this loan, contact a loan officer or go to https://www.tdhca.state.tx.us/

SETH program is also downpayment specific and it does not have to be paid back so its basically FREE money.

• Applicants need to go through an online class between $25-$75 for the course.
• For more information go to http://sethfc.com/

For these two types of loan, the client cannot have a second home unless is prior to closing on the second home. Must follow the rules and they cannot qualify for “more home” aka money than needed.

Veteran’s Loan limit is for $484,500 that a person can qualify for and may be done with $0 down

• There is a funding fee of up to 3.5% and cannot be combined with a private mortgage.
• Disabled veterans of 10% or more are exempt from the funding fee.
• VA is only for a primary residence or if they still qualify for “entitlement on benefits”.
• VA loans require a Termite Inspection.
• VA couples need to be married.
• It can only be a certified VA appraiser and they will take up to 10 days and to not bother them before the 10 days mark.

For further details on loans contact a loan officer to help explain in detail. When you are ready to purchase a home start HERE

To your growth and success.

Erick Mariscal