Everyone owning a home is aware of the challenges involved on the journey. They can confirm that one can miss a chance to own the home of their dream due to a loan denial. The process of shopping a mortgage can be tricky particularly when you are a first time. You may end up choosing the wrong product that will leave you with regrets.
It is important to have ideas on the mortgage products available in the financial market. Also, you need to know which products mortgage lender Houston can offer to you. Such information can save you from post-mortgage stress when the repayment budget becomes heavy on your shoulders. Here are some of the mortgage products offered by Rock Mortgage and other Houston lenders:
Conventional loans
Many lenders have a standard loan available for anyone seeking a mortgage. The facility seeks to help you buy your home as long as you qualify for it. Any lender you approach will have this loan offer. For this reason, it is known as conventional loan.
Though the loans are almost similar across the board, each lender has their terms and conditions for qualifying applicants. Also, they have varying credit worthiness requirements. So, you need to understand these aspects. It can help if you shop around before deciding to work on with a particular lender.
VA loans
VA loans are a special mortgage facility targeting veterans, military, service men and their spouses. The facility is unique to meet the needs of these heroes. It attracts the lowest rates you can ever find in the mortgage industry. The option ensures that veterans have a chance to invest and enjoy their lives for making their country proud.
If you are a veteran or spouse of one, you can check out lenders offering this facility. The option can help you invest for the future. You will enjoy low interest rates and harness your saving. As such, it a good option for building your wealth.
FHA loans
FHA or Federal Housing Administration loans is another suitable mortgage product offered by Rock Mortgage in Houston. The loan help you to own a home without requiring hefty down payment. You can get a 96.5% financing if your scores are 580 and above meaning you will need 3.5% as down payment.
Also, low credit scores do not limit you from enjoying the facility. You will easily qualify for the facility when you have at 500 scored and can afford a 10% down payment. However, it requires dual mortgage insurance premiums. This aspect can make the mortgage costly.
Cash-out loans
Do you have some cash shortages? Maybe you want to buy a new car or furniture but your budget is not working out. When this is the case, you opt for Texas Cash Out Loan. The loan allows you to get a refinances that much you’re the current value of your property minus the remaining loan value.
In other words, it is an opportunity to withdraw equity in form of cash from your home. You can get up to 80% of your home equity. This credit becomes your new mortgage loan and covers your remaining balance. If you have good credit scores – 660+ you can enjoy this option once per year. However, you need a proof of income before qualifying for it.
Jumbo loans
Sometimes, you desire to own a large home that meets the size of your family. Owning such a home can be a challenge as many conventional and government-backed mortgages cannot finance it. Also, some areas in Houston are expensive to finance mortgages. But does that mean you cannot own a home there via a home loan?
The answer is no. Mortgage lenders in Houston introduced a new facility dubbed jumbo loans. This facility allows you to purchase your desired home regardless of how much it will cost. But you will need to pay a down payment of between 10-20% and have 700+ FICO scores.
Also, your savings account must be thick or own several assets in cash. Be ready for extra documentation before qualifying for this loan. Despite these requirements, jumbo loans is a good mortgage product to help you own your dream house with zero challenges.
Wrapping up
In a word, you should not postpone your homeownership dream due to missing one loan. Mortgage lenders in Houston offer different products to help you find your match. You can opt for the FHA loans or VA mortgages if you qualify for government backed loans.
Also, you can go for the conventional and jumbo mortgage when your scores allows it. Otherwise, the Texas Cash out loan will be a great idea when you run out of cash. All these mortgage products offered by Rock Mortgage will save you a day.