Find The Perfect Home Loan
Our commitment to you is unwavering. Whether you’re a first-time buyer, a seasoned homeowner, or looking to refinance, we’ve got the perfect home loan waiting for you. Our experienced mortgage team is here to guide you through the process, ensuring you find the best-suited loan for your dream home.
Explore some of our popular home mortgage loans below to see the various options available. However, we know that finding the ideal loan can be overwhelming. Don’t worry; our knowledgeable team is just a call away! Reach out to us, and together, we’ll navigate the mortgage landscape to determine the best home loan for you.
Types of Mortgages
A fixed rate mortgage locks in the same interest rate for the entire payment term, even if you’re paying across several decades. An adjustable rate mortgage (ARM) features an interest rate that changes over time, usually every year after an initial fixed period.
Conventional loans are not insured by the government and harder to secure. If you have sufficient credit, steady income, and a down payment, you’ll generally find interest rates attractive. It’s easier to qualify for a government-insured loan, but they are generally less generous when it comes to interest rates. You’ll also probably have to buy mortgage insurance with a government-insured loan.
A conforming loan amount falls within maximum size limits set by two government-controlled corporations. A jumbo loan amount exceeds the maximum size limits set for a home loan. You’ll need excellent credit, a large down payment, and, in most cases, a willingness to pay higher interest rates for a jumbo loan.
A conventional loan is a type of mortgage loan that is not insured or guaranteed by any government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional loans are backed by private lenders, including banks, credit unions, and mortgage companies.
Key characteristics of conventional loans include:
- Down Payment: Conventional loans typically require a higher down payment compared to government-backed loans. The minimum down payment can vary but is generally around 5% to 20% of the property’s purchase price.
- Private Mortgage Insurance (PMI): If the down payment is less than 20%, borrowers may need to pay for private mortgage insurance to protect the lender in case of default. Once the loan-to-value ratio (LTV) reaches 80%, PMI can often be removed.
- Credit Requirements: Conventional lenders usually have stricter credit score requirements compared to some government-backed loans. A higher credit score can help borrowers secure more favorable interest rates and terms.
- Use: Conventional loans can be used for various purposes, including purchasing a primary residence, a second home, or an investment property. They can also be used for refinancing existing mortgages.
An FHA loan, also known as a Federal Housing Administration loan, is a mortgage loan insured by the Federal Housing Administration, which is a part of the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to help first-time homebuyers, low-to-moderate-income borrowers, and those with limited down payment funds or lower credit scores to achieve homeownership.
Key features of FHA loans include:
A VA loan, or Veterans Affairs loan, is a mortgage loan program offered to eligible military service members, veterans, and their surviving spouses. Created by the U.S. Department of Veterans Affairs, VA loans are designed to help current and former military personnel achieve homeownership with favorable terms and benefits. To be eligible for a VA loan, veterans must meet specific service requirements, and surviving spouses must meet certain criteria as well. VA loans can be used for various purposes, including purchasing a primary residence, refinancing an existing mortgage, or making home improvements.
Key features of VA loans include:
A jumbo loan is a type of mortgage loan that exceeds the loan limits set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. These loan limits are established to standardize mortgage loans and are typically lower in less expensive housing markets. In 2023, for most counties in the Dallas-Fort Worth Metro, the conforming loan limit is $726,200 for a single-family home.
A USDA loan is a type of mortgage loan offered by the United States Department of Agriculture (USDA) through its Rural Development Guaranteed Housing Loan Program. USDA loans are designed to encourage rural and suburban homeownership by providing eligible borrowers with affordable financing options.
Key features of USDA loans include:
Debt Service Coverage Ratio (DSCR)
A Debt Service Coverage Ratio (DSCR) loan is a type of mortgage loan that is commonly used for investment properties. DSCR is a financial metric that lenders use to assess the borrower’s ability to cover the debt payments on the property. In a DSCR loan, the lender evaluates the property’s cash flow by comparing the property’s net operating income (NOI) to the debt service, which includes the principal and interest payments on the loan. The DSCR is calculated by dividing the property’s NOI by the total debt service.
A DSCR of 1 or higher indicates that the property’s cash flow is sufficient to cover its debt obligations. Generally, lenders prefer a DSCR of 1.25 or higher to provide a safety margin and ensure the property generates enough income to cover expenses and debt payments comfortably.
Bank Statement or 1099-Statement Loans
A bank statement loan, also known as a self-employed mortgage or a stated income mortgage, is a type of mortgage loan designed for self-employed individuals or business owners who may have difficulty providing traditional income documentation, such as W-2s or tax returns, to qualify for a mortgage.
Key features of Bank Statement loans include:
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“Figure: 7TAC §80.200(b)”
“Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas, 78705. Complaint forms and instructions may be obtained from the Department’s website at WWW. SML.TEXAS.GOV. A toll-free consumer hotline is available at 1-877-276-5550. The Department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the Department prior to the payment of the claim. For more information about the Recovery Fund, please consult the Department’s website at WWW. SML.TEXAS.GOV.”