Types of Home Loans for Buyers in Texas
Purchase
A purchase loan, or purchase money loan, is a loan issued by the seller to the buyer that funds all or part of a home purchase.
Refinance
Refinancing replaces an existing mortgage with a new one to obtain benefits such as a better interest rate or loan term.
FHA & USDA
FHA & USDA loans are insured by government bodies and are generally utilized by those with lower credit scores or incomes.
Conventional
The most common of all loan types in Texas, conventional home loans are those that are not part of a specific government program.
Condos
Condo loans can be more restrictive than other types of home loans. We work to streamline the condo mortgage process for our clients.
Non-Warrantable
Some condos are “non-warrantable,” which means they must be bought using a portfolio loan rather than a conventional mortgage.
VA
Backed by the Department of Veterans Affairs, VA loans are intended for service members, veterans, and their families.
Investor
Investor loans are mortgages for purchasing an investment property, including rental properties and houses intended for flipping.
Jumbo
Jumbo loans are mortgages for properties that exceed conforming limits for conventional loans established by the FHFA.
Jumbo Investment
Jumbo products also exist for purchasing investment properties. At Town Lake Lending, we offer robust loan options for investors.
Asset Qualifier
Asset based mortgages allow purchasers to qualify for larger loans using liquid assets, such as holdings in money market accounts or CDs.
Close in LLC
We offer options for closing a mortgage in an LLC. This may be attractive for investors or those seeking greater financial privacy.
100% Remote Closing
We can complete closing fully remotely for several types of home loans we offer throughout Texas, with no visit required.
Non-QM
Non-qualified mortgage loans enable buyers to qualify based on factors outside of traditional income verification methods.
DSCR
A debt-service coverage ratio loan is a type of non-QM loan that enables investors to qualify for mortgages based on rental income.
2nd Liens
A second lien is a mortgage taken out on a property that already has an existing mortgage. It may be an alternative to a jumbo loan.
Bank Statement
Bank statement loans provide an alternate method of documentation for self-employed borrowers to verify their income.
Start Here
Ready to start your home buying journey? Complete an application form and an expert mortgage lender will be in touch to review the details with you.
Follow
The Pre-Approval Process
Once pre-approved, you will know your maximum purchase price, maximum loan amount, the loan type that aligns best with your financial goals, and the estimated funds you will need.
Key Steps
Consultation
Application
Pre-Approval
Shop for a Home!
FAQs
What is the difference between being pre-qualified and pre-approved?
Being pre-approved means that you have completed an application and provided all required documentation, and that a mortgage loan advisor has thoroughly reviewed and confirmed the accuracy of your income, assets, and credit. Most listing agents will not allow a Realtor to schedule a private viewing of a home unless the Realtor provides a pre-approval letter from a lender confirming the home buyer’s qualification status. When you are pre-approved, you can shop for a home confidently, your Realtor can negotiate on your behalf strategically, and you will stand out amongst home buyers when multiple offers are placed on the same home.
Will you pull my credit?
To pre-approve you for a home loan, we must pull your credit. A credit report provides a wealth of knowledge that allows us to fully and accurately pre-approve you for a home loan. In addition to providing credit scores and minimum monthly payments due on existing loans – both of which are requirements for home loan approval – it also informs us of other items which could increase or decrease your maximum loan approval amount.
There is one thing to be mindful of when having your credit pulled. The credit reporting agencies – Equifax, Experian, TransUnion – can sell your personal information (including unlisted phone number, credit score, current debt, debt history, property information, age, gender and estimated income) to debt collectors and financial services companies. The sale of your information is called a “trigger lead.”
What does this mean for you? After a mortgage company pulls your credit, you might receive multiple unsolicited phone calls from financial services companies. (Some clients have reported receiving dozens of calls within 24 hours of having their credit pulled.)
How can you stop credit bureaus from selling your information?
Go to optoutprescreen.com or call 1-888-5-OPT-OUT (1-888-567-8688). The major credit bureaus operate the website and phone number.
Does Town Lake Lending sell my information?
Absolutely not, and we never will.
How long does a pre-approval last?
A credit report is valid for 120 days so technically that is how long your pre-approval lasts. If you purchase a home within this timeframe, then we will not pull your credit a second time. If you purchase a home outside of this 120-day period, then we will need to pull it again and recommend doing so just before you submit an offer on a home. This allows us to refresh your pre-approval and gives us confidence to put our reputation on the line by calling the listing agent to inform him or her of how well qualified you are to purchase their client’s home.
How much down payment is required to buy a home?
If the home will be your primary residence, then your down payment can be as low as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on a VA loan.