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all the best Loan programs at the lowest possible price

Not all home loans are the same. Knowing what kind of loan is most appropriate for your situation helps you get the best deal.

Conventional

Conventional loans are not backed by the government, and are best for buyers with higher credit scores and low debt-to-income ratios. You can buy a home with conventional financing for as little as 3% down.

Government

FHA, VA, and USDA are loans that are backed by a government agency. Each offers less stringent credit requirements, low down payments, and less cash to close.

Jumbo

A jumbo loan is a mortgage that exceeds the conforming loan limit set by the FHFA for a given area. The conforming loan limit in Texas for 2023 is $726,200, which means any larger loan is a jumbo loan.

Self Employed

Self-employed borrowers must meet the same credit, debt, down payment, and income standards as wage-earning applicants. The part that can be tough is documenting your income. As long as you can prove steady, reliable cash flow, being self-employed should not stop you from buying a home.

Down Payment Assistance

If you’re interested in buying a home but don’t have money for a down payment, we may be able to help. To qualify, you must have a minimum credit score of 620 and meet specific income requirements.

Specialty Loans

We understand that not everyone qualifies for conventional financing. Bank statement loans, DSCR investor cash flow loans, asset qualifier mortgages, alt-doc/1099 mortgages, and more are available for those who need them.

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Popular Programs

Today’s home buyers have a wide variety of low and no-down payment mortgage options.

Most lenders today offer a 3% down loan as an alternative to the “standard” 5% down programs. It’s great for home buyers with good credit but modest savings — or for buyers who want to make a small down payment so their money is not tied up in real estate. The requirements are:

  • Credit score: 620
  • Debt-to-Income (DTI): 43% maximum
  • Private Mortgage Insurance: Required until you have 20% equity in the home
  • Verifiable income and steady, two year work history
  • Primary residence only
  • At least one applicant must be a first-time home buyer (defined as a buyer who hasn’t owned a home in the past three years)
  • No maximum income restrictions
  • Down payment can come from cash on hand, gifts, or down payment assistant programs
  • Mortgage can’t exceed the local conforming loan limits ($726K in Texas)

An FHA loan is a government-backed mortgage with looser financial requirements. You may qualify for an FHA loan if you have debt or a lower credit score. You can often get an FHA loan with a bankruptcy or other financial issue on your record.

  • Down payment: 3.5% with a 580+ credit score. 10% down is required for scores from 500-579.
  • Debt-to-Income (DTI): Standard is 43% but can go as high as 56.9% with compensating factors.
  • An upfront mortgage insurance premium of 1.75% of the loan amount is required at closing but can be rolled into the loan principle.
  • An annual mortgage insurance premium is required for the life of the loan when the down payment is less than 10%. The premium ranges from .15-.75% of the loan amount and is paid monthly as part of your mortgage payment.
  • Primary residence only
  • Verifiable income and steady, two-year work
  • Mortgage can’t exceed the local conforming loan limits ($726K in Texas)

Home Ready and Home Possible are programs designed for credit-worthy, lower-income applicants. Freddie Mac backs home Possible, and HomeReady is backed by Fannie Mae. The main difference is the credit score requirement:

  • Down payment: 1-3%. 
  • 100% of your down payment and closing costs can come from gifted funds or down payment assistance (DPA)
  • Credit score: 620 for HomeReady, 660 for HomePossible.
  • Income from non-borrowing occupants living in the home can be counted if they have lived in the household for at least a year. 
  • Household income cannot exceed 80% of the area’s median income.
  • Debt-to-Income (DTI): 50% maximum
  • Private Mortgage Insurance: Required until you have 20% equity in the home
  • Primary residence only
  • Verifiable income and steady, two year work
  • Mortgage can’t exceed the local conforming loan limits ($726K in Texas)
  • A 4-6 hour online homeownership course may be required.

While first-time home buyer loans with zero down exist, they’re primarily intended for select groups such as veterans and rural home buyers with moderate or low incomes. Most buyers are more likely to qualify for a low-down-payment mortgage rather than a zero-down loan.

VA Loans

Created specifically to help veterans become homeowners, VA loans offer more lenient requirements than conventional loans, along with lower interest rates and closing costs. This makes them an excellent option for any veteran, especially for first-time buyers who may need extra help entering a competitive housing market. Features include:

  • No down payment
  • No mortgage insurance
  • Closing costs capped at 1%
  • VA Funding fee required. The fee can be added to the loan amount
  • Appraisals are more expensive
  • Property must meet “minimum property requirements.”

 

USDA

A USDA home loan is a zero-down-payment mortgage for homebuyers in eligible towns and rural areas. The USDA Rural Development Guaranteed Housing Loan Program, a part of the U.S. Department of Agriculture, guarantees USDA loans. The program requires:

  • The property must be located in an eligible, rural area with a population of less than 20,000 people
  • Income is capped at 115% of the area median income
  • Steady, verifiable two-year income
  • Credit scores of 640+
  • Debt-to-Income: 41% Maximum
  • Primary residence only

 

You ask, I answer

Here are some of the most common questions asked about mortgages. Feel free to contact me directly for answers to other questions you may have.

Closing costs include all the fees you must pay before you can take ownership of the house. This typically includes origination fees, title insurance fees, prepaid escrows, and more. The amount can vary, but it is usually between 2% and 3% of the home’s selling price. If you’re short on cash, I can structure your loan so that the lender covers most of your closing costs.

Points are money paid upfront in exchange for a lower interest rate. One point equals 1% of the loan amount, so on a $300,000 mortgage, one point will cost $3,000.

Paying points can be beneficial in most situations because they are tax-deductible, but you need to crunch the numbers to ensure they are worth it. For instance, you will only want to pay points if the interest savings you’ll get over the life of the loan will be greater than the points paid.

When buying a home, the lender will require you to deposit money into an escrow account. This account guarantees the lender that the ongoing expenses of owning the property, like the insurance and taxes, will be paid for. A lump sum is deposited into the escrow account at closing, and a certain amount will be automatically deposited into it every time you make your monthly mortgage payment.


Mortgage payments include the loan’s principal, the interest rate, taxes, and homeowner’s insurance premiums (PITI), assuming you’re setting up an escrow. If you put less than 20% down, your lender will require monthly mortgage insurance. This amount added to your monthly payment as well.

© 2023 HelpUBuy Mortgage All rights reserved. Loan approval is not guaranteed and is subject to lender review of information.  All loan approvals are conditional and all conditions must be met by the borrower(s).  A loan is only approved when the lender has issued approval in writing and is subject to all lender conditions.  Any specified rates and terms are contingent upon loan approval and are subject to change without notice due to unpredictable market conditions.  Innovative Mortgage Services, Inc. is a Texas licensed lender. 
Company NMLS #250769.  Originator NMLS # 2285601.