The right mortgage can save you tens of thousands over the life of your loan. Here is what you need to know about each option available in Houston.
Conventional Loans
- Down payment: As low as 3%
- Credit score: 620 minimum, best rates at 740+
- PMI: Required below 20% down, removable at 20% equity
- Best for: W-2 employees with good credit
FHA Loans
- Down payment: 3.5% minimum
- Credit score: 580 minimum
- MIP: Required for life of loan
- Best for: First-time buyers, lower credit scores
VA Loans
VA loan advantage: No down payment, no PMI, competitive rates. If you are eligible, this should almost always be your first choice.
- Down payment: 0% required
- PMI: None
- Best for: Any eligible veteran or service member
Jumbo Loans
- For homes over: $832,750 in Houston
- Down payment: Typically 10-20%
- Credit score: Usually 700+
- Best for: Higher-priced Houston properties
Bank Statement Loans
- Documentation: 12-24 months of bank statements instead of tax returns
- Down payment: Typically 10-20%
- Best for: Self-employed buyers, business owners, freelancers
DSCR Loans (Investor Loans)
- Qualification: Based on property rental income, not personal income
- Down payment: Typically 20-25%
- Best for: Investors purchasing rental properties
Which Loan Is Right for You?
We start every client relationship with a detailed analysis of all options, not just the obvious one. Understanding your real buying power starts with choosing the right loan type.