Low Down Payment Loans
Benefits of HomeReady Include:
- Low down payment: As low as 3% down for home purchase or refinance loans
- Down payment & closing cost assistance: Funding can come from gifts and grants, with no minimum fund requirement from the buyer
- Affordable mortgage insurance (MI): Reduced MI coverage requirement above 90% loan-to-value
HomeReady Buyers Include Those:
- With low income
- Who are first-time or repeat homebuyers
- Who have credit scores at least 620, while scores >680 may get better pricing
- With supplemental boarder or rental income
- Seeking a purchase or refinance
Frequently Asked Questions:
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.
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 to apply online, visit here.
How Much House Can I Afford?
Lenders rely on facts and figures when approving a mortgage, and if you know these numbers, it will set you up for success when purchasing your home.
What You Need to Know About Homeowners Insurance
A home is one of the biggest purchases you’ll make, and it's important to protect your investment. This is where homeowners insurance saves the day.