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Mortgage Tools

Learn about how Texas Mortgages work and plan for the future!

The Mortgage Lending Process and Loan Types

The Texas Home Loan Application Process

Your first step is to apply online or call and visit with a Lone Star home loan expert. We’ll take you through all the options, discuss rates and loan types and help customize a loan just for your specific lending needs.  What to expect when applying for your home loan:

During your free consultation, a loan officer will:

  • Review your scenario and provide best loan options
  • Review available rates and fees
  • Calculate your exact borrowings & repayments
  • Explain all fees, charges, and the general process
  • Show you ways to save money
  • Help determine if refinancing is right for you
  • Provide a no cost loan estimate
  • Read more about the Texas Home Loan Process

Fixed Rate Mortgage Loans

Fixed rate loans are the standard Texas mortgage loan type for the majority of home financing, and are available in a variety of terms from 10 to 30 years. This loan offers a consistent or “fixed” payment throughout the life of the loan. Standard fixed rate terms: 10, 15, 20, 25, or 30 years. By choosing a lower fixed rate period, you can realize a substantial savings in interest over the life of the loan.

Adjustable Rate Mortgage Loans

Adjustable Rate Loans are a great fit for home buyers who plan to sell or refinance their home between 5 and 10 years and are looking for the lowest possible mortgage rate available. Adjustable rate mortgages are fixed for periods of five to ten years. Adjustable Rate Mortgages (ARMs) are fixed for the initial period and then adjust depending on the index that the mortgage is tied to. The new rate at the adjustment period is determined by the index and a fixed margin that was established at the beginning of the mortgage loan. Call today for a quick consult on Adjustable Rate Texas mortgage loans.

First Time Home Buyer?  FHA Loans are probably your best option

A FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers; rather, it provides protection through mortgage insurance (MIP) against losses as the result of homeowners defaulting on their mortgage loans. Available to all buyers, FHA loan programs are primarily designed to help low- and moderate-income families who do not meet requirements for conventional loans that adhere to more strict underwriting guide lines. However, there are cases in which borrowers who are eligible for conventional financing would still choose a FHA loan. FHA loan programs are particularly beneficial to those buyers with less available cash as the required down payment is lower than for conventional loans. Rates on FHA loans are also generally lower than conventional Texas mortgage loans.

Are you a Texas Vet?  Let us help with your VA Home Loan

Texas VA loans are made by VA approved lenders and are guaranteed by the U.S. Department of Veterans Affairs (VA) to eligible veterans. The guaranty means the lender is protected against loss if the loan fails to repay. In most cases, no down payment is required on a VA guaranteed loan, and the borrower usually receives a lower interest rate than is ordinarily available with other loans. Mortgage insurance is not required; however, the VA charges a funding fee to issue a guarantee. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount or waived if the veteran is disabled. Veterans that are eligible are all active duty, honorably discharged Veterans with 22 months service, or reservists with 6 completed years—or a qualifying combination. A Certificate of Eligibility or Statement of Service is required to qualify for the VA loan.

USDA Texas Mortgage Loans for Rural Properties

A USDA Loan is guaranteed by the US Department of Agriculture (USDA) and is intended for the purchase of rural property. USDA mortgage loans require a reasonable credit history along with income restrictions. USDA loans allow for 100% financing with the ability to finance closing costs and repairs, provided the property appraises. There are many benefits to USDA home loans in Texas.

Conventional Texas Mortgages—Loans Under $453,100

Conventional mortgage loans in Texas are the most common types of home mortgages, and are insured by either Fannie Mae or Freddie Mac. With down payments as low as 5%, conventional loans offer better terms with lower mortgage insurance costs and rates based on credit rating. Additionally, conventional home loans offer the ability for borrowers to finance multiple properties including second homes as well as investment properties.

Loans More than $453,100—Jumbo Mortgage Loans

Jumbo / Non-Conforming Mortgages also referred to as Jumbo Mortgages. They are unique in that they are not secured by either Fannie Mae, Freddie Mac, or FHA. These mortgage loans are made possible using private investor programs. This difference means that there is no guarantee provided to the investor, so consequently the mortgage’s guidelines are not standardized and are subject to the investors’ requirements. Typically these guidelines are more restrictive, yet make it possible for larger purchases to be financed at competitive rates.

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