Saving for a house in New Braunfels can be hard with prices rising, but keep in mind, there are several loans with low down payments available that you may be able to qualify for. Depending on your situation, some of these loan programs actually require no down payment. We’ve complied a list of some of the most common ones to get you started.
FHA Loans– FHA stands for the Federal Housing Administration which is part of HUD- the US Department of Housing and Urban Development which insures these loans. FHA loans offer low down payments, low closing costs, and easier credit qualifying guidelines. A qualified home buyer can secure a loan that only requires a minimum of 3.5% down, which in comparison to the typical Conventional loan at 20% percent down these FHA loans can be great for the first time home buyer to get their foot in the real estate door.
USDA Loans– USDA stands for the United States Department of Agriculture and it strives to give individuals and families the opportunity to buy and build safe affordable homes located in rural areas of America. Eligibility is based on income and those income requirements vary by area. The home that is purchased must be located in an area deemed rural by the USDA and there are several areas that qualify in our community. The best part about these loan programs is that they don’t require a down payment at all. They are very popular and are based on funds availability.
TSAHC– The Texas State Affordable Housing Corporation helps provide access to fixed rate mortgage financing and down payment assistance grants through many programs. Most notable is the Homes for Texas Heroes and Home Sweet Texas Home loan programs. These are loan programs for teachers, firefighters and EMS personnel, police and correctional officers as well as veterans.
VA Loans and the Texas Veterans Land Board– Provides low-interest land, home and home improvement loans that require little or no down payment to our veterans. They also offer an interest rate reduction to qualifying veterans with a disability. This is a wonderful loan program and I am happy to have seen it used to purchase homes for my amazing clients that served our country.
As you can see there are a number of loan programs out there that don’t require a large down payment. Many are not known by the average home buyer so are never sought out in the home buying process. Working with the right mortgage expert to help find you the perfect loan for your situation is key. Call us at 512-922-5282 to start your home buying process.
Affordable Homes For Sale in New Braunfels: