Mortgage home Loans

–Raw Land
–Builder Lots
–Construction Loans
–1-4 Unit Residential Homes
–Farm and Ranch Properties

This depends upon your specific qualifications and the property type as well. For example, raw land is usually the hardest to finance and typically requires a large 50% down payment. However Texas offers a special Land Loan program for Veterans who qualify that can allow them to purchase raw land with only a 5% down payment!

Similarly, single family homes can require down payments ranging from 0% on VA loans, 3.5% on FHA loans and up to 20% on conventional loans if no mortgage insurance is desired. In general, the more standard property types such as your basic Single Family
Home have better financing options whereas the more unique property types such as a huge acreage parcel with a trailer on it have more restrictive terms.

NO. You may obtain your financing from a national lender or one that is local in your state if they are also licensed in the state of Texas. That said local lenders have a few big advantages, namely that they are intimately familiar with state laws, state processes and
local customs and they are also aware of special state-sponsored loan programs.

For example, out-of-state lenders may be used to lending in states where an Attorney is required yet Texas requires no attorneys to be used. Or an out-of-state lender may not be aware of Texas Veterans Home Loan Board that can allow qualified Veterans to get a rate
of 1% lower than market rate on a conventional loan! Another example is that out-of-state lenders may only be used to cookie cutter type homes in their home state while local lenders here are familiar with the wide variety of property types found in Hill Country.

Please note that there’s a HUGE difference between a “pre-qualification” and a “pre-approval” letter! A Pre-Qualification Letter is merely based upon a lenders review of the information you STATE – it says you appear to be approvable for a loan based upon your credit report and the income, asset and employment info you provided verbally.

A Pre-Approval Letter, however, is based on a lender’s actual review of the Income, Asset and Employment documentation itself, not just information you stated verbally. As a result, it is a MUCH stronger document that truly connotes a prospective Buyer’s ability to
purchase as the lender has actually reviewed the qualification documents themselves.

NO. Multiple Credit Report inquiries made by the same TYPE of loan provider (in this case Home mortgage-related) count the same as one inquiry. If you apply for a home loan and then apply for a car loan and/or personal loan, THEN your credit score may be negatively impacted as it suggests you are shopping for credit of any/all type rather than just for a single purchase.

Absolutely! In fact many first-time homebuyers choose the Texas Hill Country as their first home as it represents a true American Dream – not just buying a cookie cutter home on a tiny lot in the city but a real homestead with endless space to expand and the freedom that comes along with owning larger parcels of land.

Mortgage lenders have special programs available for First-time Homebuyers with more flexible terms such as smaller down payment requirements. Inquire with your lender about FHA programs as well as even USDA loans in rural areas.

The Mortgage Rate determines the monthly payment amount yet the APR rate INCLUDES closing costs in
order to help consumers differentiate between 2 mortgages offered by 2 different providers.

Assuming both lenders are offering the same rate and same term, in this case let’s use a 30-year fixed-rate mortgage at 6.00%, you can use the APR to determine which deal is better.
Lender A = 6.00% Interest Rate, 6.25% APR
Lender B = 6.00% Interest Rate, 6.55% APR

While they both offer you the same home loan rate, so your monthly payment will be the same with either loan, Lender A offers the lowest COST to obtain that 6.00% interest rate by virtue of having a lower APR. Lender B is likely charging extra fees (probably Discount
points) in order to get that same low 6.00% rate and those extra fees are reflected in the APR, not the loan note rate!

Overall APR is a quick easy way to compare loan COSTS in proportion to the rate they offer. As a result, shopping based on Interest Rate alone is hazardous and inaccurate as you can theoretically pay for ANY rate you want – the real question is HOW MUCH DOES IT COST TO GET THE RATE THEY ARE QUOTING?

YES! Texas is extremely friendly to Veterans and therefore has established an entire Home Loan program just for Veterans. The Texas Veterans Home Loan Board offers 2 popular programs in particular for Veterans:

1. Rate Reduction Program – by going through the VHLB, Veterans can receive a special reduction in interest rate for ANY government or conventional loan they qualify for. That’s right, this is NOT just for VA Loans as it covers FHA and Conventional loans as well. So if
the conforming rate for 30-year fixed mortgages is say 6.0%, a qualifying Veteran (full entitlement, Veteran or spouse only) going through the VHLB can get the same exact loan but for around 5.0% instead!

2. Veteran Land Loan Program – buying raw land to hold or build on in the future is often the riskiest of loans for lenders, thereby typically requiring a 50% Down Payment. But for
qualifying Veterans in Texas, they can obtain raw land loans with as little as just 5% Down on parcels prices up to $150,000.

When contacting any mortgage lender, be sure to specify whether you are a Veteran and bring up the “Texas VHLB Special Veterans Programs” as many people are not even aware of these very unique and special programs that are only offered in Texas.