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Here are 3 First Time Home Buyer Programs with Low Credit Scores in Houston, TX

Owning a home is similar to a nest egg for upcoming days. The place offers comfort, solace, and privacy. Years of sharing a bathroom or living in a rented apartment can become unbearable at one point of life. To put an end to your misery, there are great home Loan programs in Texas. After all, the lenders understand very well how hard it is to buy the first home. However, most of the borrowers suffer from financial woes that bring poor credit score. If your credit is too bad or even lower than 550, you can be in huge trouble. So, isn’t it better to know which loan programs can fulfill your dream?

If you have a bad credit score, do not let it kill your dreams. This is only a factor because a lender reviews the application before approving the mortgage and sanctioning how much you can borrow. Hence, it is easy to assume how buying a home can be exciting and terrifying at the same. You can get through the intimidating process once you memorize where you can apply and where you cannot. Then your financial and emotional perspectives will flow in the same way. Go through the First Time Home Buyer Programs with low credit scores in Houston, TX and make the right decision.

FHA Loans with 500 Credit Score

For every first-time buyer living in Texas, FHA loan is a life savior. Federal Housing Administration insures the mortgage and relaxes qualification requirements according to the application. On top of it, anyone with 500-579 score can apply for the loan but the person needs 10% down payment. When your credit score is 580 and above, you will need 3.5% down payment. Here, the debt-to-income ratio is 31%-43%.

USDA Loans for Rural Ownerships

If you live in a suburban or rural area, the USDA loan program is quite helpful. It is a 100% financing mortgage which is ideal for moderate-to-low income buyers. The loan comes with zero down payment and this benefit has made the program very popular. If you have non-traditional credit data, you can apply for the loan. In any case, your credit score is 640 or above, the loan process will be faster. Also, you do not necessarily have to be a rancher or farmer to get approved. The closing costs are between 2% and 5% and the yearly mortgage insurance premium is 0.30%.

VA Loans for Veterans or Soldiers

After spending years overseas, you definitely want to build your dream home. Guaranteed by US Department of Veterans Affairs, there is no down payment required. But you need to show credit scores of 580 or above. This also happens in rare cases because lenders usually ask for at least 620 credit score. A borrower can finance 100% of the price of his/her abode. Whether you are a veteran or spouse of a military service person, you can apply for VA loans. Here, the mortgage insurance premium is not offered, either.

You can also apply for DACA loan or conventional loan program if you pass the eligibility criteria. To know which loan programs fit your profile, get in touch with professional lenders.

Author Bio: Joan Gallardo, a Senior Loan Officer, with +20 years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.

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Here are 3 First Time Home Buyer Programs with Low Credit Scores in Houston, TX


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