Government Mortgage Loans
Find the mortgage loan that best fits your individual needs. If you’re a first-time homebuyer, don’t have perfect credit, or don’t have a large down payment, Texell can help with an FHA, VA, or USDA loan tailored to your needs.
FHA Loans
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- Flexible terms: Loan terms are available at 10, 15, 20, or 30 years.
- Low, fixed rates: Ensures your payment will not increase over time.
- Low down payment: As little as 3.5% of the purchase price.
- Lower credit score requirement: 640 minimum.
- Debt-to-income ratio: As high as 50%.
- Mortgage insurance premium (MIP): Up-Front MIP of 1.75% is rolled into the loan, and 0.85% is paid monthly.
- Other features: You can use gift funds toward your closing costs.
VA Loans
The Department of Veterans Administration guarantees mortgages for qualified veterans and active-duty military personnel and their spouses who are first- or second-time home buyers. Benefits of VA Loans:
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- Flexible terms: Loan terms are available at 10, 15, 20, or 30 years.
- Low, fixed rates: Ensures your payment will not increase over time.
- Low down payment: Zero down payment options available.
- Lower credit score requirement: 640 minimum.
- Debt-to-income ratio: As high as 50%.
- Private mortgage insurance (PMI): No PMI required. Non-exempt borrowers can include the VA funding fee in the mortgage loan amount.
- Other features: You can use gift funds toward your closing costs.
USDA Loans
A USDA home loan offers a 0% down payment for eligible properties and home buyers. To qualify for this loan, you must purchase a home located in an eligible rural area, as defined by the USDA.
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- Terms: 30-year loans available.
- Low, fixed rates: Ensures your payment will not increase over time.
- Low down payment: No down payment.
- Lower credit score requirement: 640 minimum.
- Debt-to-income ratio: As high as 41% to qualify.
- Monthly mortgage insurance (MMI): Required for this type of loan.
Frequently Asked Questions:
What is a fixed-rate mortgage?
A fixed-rate mortgage is a type of mortgage that has a fixed interest rate that does not fluctuate with market rates. Typically, fixed-rate mortgages refer to a “30-year fixed” loan, where the interest rate and payment will remain the same for 30 years.
What is an adjustable-rate mortgage?
An adjustable-rate mortgage is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Typically, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year.
What is the difference between the interest rate and the annual percentage rate?
The interest rate is the amount you will pay every year on your mortgage loan expressed at a percentage rate. The Annual Percentage Rate (APR) includes the interest plus any other charges, fees, or points associated with your loan. The interest rate does not include any additional fees associated with your loan. For this reason, the APR is usually higher than the interest rate.
What is “Private Mortgage Insurance”?
Private Mortgage Insurance (PMI) is generally required when you have a conventional mortgage loan and your down payment is less than 20%. If you refinance and your home’s equity is less than 20%, PMI is generally required. This insurance policy protects the lender if you stop making your mortgage payments and adds additional costs to the monthly mortgage payment. PMI is not a permanent cost, and may be removed when you have at least 20% equity in your home or the property financed.
What is an FHA Loan?
A Federal Housing Administration (FHA) Loan is a government-backed mortgage insured by Housing and Urban Development (HUD) that has historically been for borrowers seeking minimal down payment or who fall below standard lending guidelines. Today, FHA loans have emerged as the main source of financing for low down payments and/or lower credit score purchases and refinances, and provide excellent financing for most homeowners. FHA loan guidelines have recently changed to reflect higher home values in areas where FHA loan limits were previously too low to help the average household.
What is a VA Loan?
A VA loan is a loan guaranteed by the Department of Veterans Administration for qualified veterans and active-duty military personnel and their spouses who are first- or second-time home buyers.
What is a USDA Loan?
A USDA loan is a loan guaranteed by the United States Department of Agriculture (USDA). They are particularly favorable to those living in rural or low-income areas. They offer $0 money down, lenient eligibility requirements, and competitive interest rates. Homes must be located in eligible areas to qualify for a USDA loan.
1 Loans currently financed with Texell are not eligible for refinancing. Contact Texell Home Loan experts for rates on additional Mortgage Loan terms.
² APR = Annual Percentage Rate. These examples are based on an 80% LTV and a 740 or higher FICO Score. All loans are subject to credit approval, and individual rates will vary. For complete details about payments, rates, and fees, please visit our rates page or contact Texell. Rates effective 4/15/2024.
Rates are subject to change without notice and may vary depending upon credit history, loan programs, and loan terms. Rates are quoted on a 30-day lock option. For additional rates or program availability, please contact the Mortgage Department at 254.774.5104 or apply online.
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