The Different Types of Home Mortgage Loans Offered in Amarillo TX

The Different Types of Home Mortgage Loans Offered in Amarillo TX
June 26 11:36 2018 Print This Article

Well, they say everything is bigger in Texas. This phrase seems to apply to almost every aspect of living in the Lone Star State, including real estate costs. The cost of owning a home in any part of Texas is higher than most states. Many people require some form of financial assistance to make their dream of owning a home a reality. This financial assistance is usually in the form of a mortgage.

If you are in the market for a home in Amarillo, Texas, you have plenty of financing options. If you are looking for home mortgage loans, Amarillo TX, banks and other financial institutions have a lot of options for you. If you are a first-time home buyer, there are a lot of programs to help you get the finances you need to buy the home you’ve always wanted. Some of these programs offer the best terms in the state.

What Types of Mortgage Loans Are Offered?

 Mortgage is one of the most common ways of paying for a new home. A mortgage is essentially a loan that pays for your home, and the house itself is the collateral. There are several types of mortgage loans in the United States. These include:

  • Conventional Loans. A conventional mortgage is a home loan that isn’t backed by the government.  This type of mortgage is mostly preferred by people with excellent credit ratings and a high down payment. A conventional loan meets the Fannie Mae conforming loan requirements. Even with government assistance and small down payment, a conventional loan can still be a good option.
  • FHA Loans. This FHA is the most popular type of mortgage loan. This type of loan offers great terms and is easy to qualify for. You need a fair credit score (580 and above) and a relatively low-down payment to qualify. There are many other incentives and programs that FHA loans offer, and that’s why many people find this type of mortgage appealing.
  • VA Loans. VA loans are exclusively offered for veterans and active duty military personnel. With a VA loan, you can buy your first home without any down payment. Members of the general public cannot apply for VA loans.
  • USDA Loans. A USDA loan is a no down payment mortgage option available for rural and some specific suburban properties. USDA loans come with 100 percent financing. USDA loans are given to low-income households with a credit rating of at least 620. You must not have too much debt to qualify.

There are many other types of home loans in the country, some vary from lender to lender. For first time buyers looking for home mortgage loans, Amarillo TX lenders offer certain programs designed to help you get the best home loan deal. Look at offers side by side before you chose one.

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Lana Walton
Lana Walton

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