Overview Of Loan Programs

Conventional "Conforming" Loans

A conforming loan is a type of mortgage loan that conforms to very specific lending terms, conditions, and guidelines established by government-sponsored enterprises:

Federal National Mortgage Association (Fannie Mae)
Federal Home Loan Mortgage Corporation (Freddie Mac)
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Conforming loan programs have loan limits that are set by the county in each state. Currently, a conforming loan maximum on a single-family home must fall under $548,250 unless the property is in a high-cost County as determined by FNMA and Freddie Mac.

In these high-cost counties, the loan amount can be as much as $647,200 for 1 unit properties and still be sold to FNMA or Freddie Mac. Loan limits for 2-4 unit properties can exceed $1M in some counties. Learn more about loan limits here.

Mortgage loans that exceed the county loan limit are considered non-conforming loans or jumbo loans and are not sold to FNMA or Freddie Mac. Typically, this financing is provided directly through banks and other financial institutions.

Luckily, Texas Trust Mortgage has many lender relationships that provide jumbo financing. We are able to provide financing.

Jumbo loans are not that much different to process than a normal loan. This text makes getting one sound terrible and it’s not accurate. The loans are a manual underwrite but the fees and documentation requirements are the same as a normal loan. Also, you cannot get mortgage insurance on a non-conforming/jumbo loan. Mortgage insurance only applies to conforming loans that are sold to FNMA or Freddie.

WHEN A CONFORMING LOAN MAKES SENSE TO YOU

People get a conventional conforming loan when they have good credit and at least 3% down.

Between FHA and a Conventional loan, the mortgage insurance is a lot less expensive on a conventional loan than if they choose FHA. The overall cost of your mortgage loan is generally dictated by the amount of money you put down toward the purchase price of your home and your credit score.

*All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines subject to change.

fHA Loans

An FHA loan is a mortgage loan insured by the Federal Housing Administration (FHA). Lenders like Texas Trust Mortgage work with FHA to help would-be first-time home-buyers buy a home with an affordable loan with a low down payment.

Would-be homeowners looking to enter the purchase game for the first time in their lives are perfect candidates for the FHA loan. You can buy your first home with a low down payment—as little as 3.5% of the purchase price. Most of your closing costs and fees can be included in the loan.

WHEN A FHA LOAN MAKES SENSE TO YOU

If you have been challenged by economic events that rattled your core and have begun to rebuild your creditworthiness, you may be ready for another shot at home ownership through an FHA loan. This is also possible if they get a conventional loan. You don’t need to be a 1st time home buyer.

  • If you are a first-time home buyer looking at financing your first step toward achieving the American dream, home ownership is possible with an FHA loan.
  • If buying a ‘fixer-upper’ is just your speed, the FHA has a home loan called the 203K Renovation Loan that allows you to buy your ‘diamond in the rough’, fix it up, and include all the costs in one loan.
  • If you own a home in need of remodeling or repair, you can refinance what you owe and build in the repair costs into one neat FHA $420,680 Renovation loan.
  • If you are interested in purchasing a manufactured or factory-built home, FHA offers two loan products structured to meet the land below.

*All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines subject to change.

VA Loans

A VA home loan is a mortgage insured by the Department of Veterans Affairs (“VA”). Those eligible for VA loans include:

  • Active-duty military personnel
  • U.S. Military Veterans
  • Surviving spouses of military service persons who die while on duty or as a result of military service
  • Some reservists and National Guardsmen
  • 100% LTV is subject to Veterans Full Eligibility

The typical VA loan offers 100% financing, meaning no down payment. Compared with a conventional, the VA loan has other benefits:

  • The interest rate on a VA loan is usually lower, keeping more money in your pocket.
  • Borrowers who take out VA loans only have to pay certain closing costs called ‘allowables.’ The other costs are paid either by the seller or by the lender making the loan.
WHEN A VA LOAN MAKES SENSE TO YOU

In Texas, U.S. Veterans are also eligible for a home loan under the Veterans Housing Assistance Program enacted by the Texas State Legislature. Under the VLB program, eligible Texas Veterans can obtain up to $484,350. in financing toward the purchase of a new home located anywhere within the State of Texas. Some of the many features include:

  • Purchase either a new construction or existing single-family home; primary residence only.
  • 15-20-25- or 30-year terms, with as little as $0 down payment.
  • A fixed-rate mortgage loan with a lower interest rate.
  • Veterans with a 30% or more disability may qualify for additional interest rate reduction.
  • Loans are originated in conjunction with FHA, VA, or conventional financing and by a participating lender.

*All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines subject to change.

USDA Loans

USDA loans are guaranteed by the Federal Government and are only available to individuals and families looking to settle in USDA eligible rural areas.

Loan applicants may have an income of up to 115% of the median income for the area in which they wish to settle.

Qualifying families must be without adequate housing, but able to afford the mortgage payments, including taxes and insurance.
 
Loan terms are 30-years, and the lender sets the promissory note interest rate. Repayment feasibility is determined by the lender using ratios of repayment (gross) income to Principal, Interest, Taxes, and Insurance (PITI) and to total family debt.

WHEN A USDA LOAN MAKES SENSE TO YOU

When you are ready for homesteading in the wide-open spaces of the country, turn to Texas Trust Mortgage for your USDA loan needs. The USDA offers a wide range of property eligibility classifications and loan programs. The advantages of a USDA loan can’t be beaten, and feature:
 

  • 100% financing
  • Lower, fixed-interest rates
     

With a USDA loan from Texas Trust Mortgage, you can afford to wrangle your dream ranch location and get plenty of room for your little casita or modest hacienda of reasonable size, and much more.
 
*All loans are subject to underwriting or investor approval. Other restrictions may apply. This is not an offer of credit or a commitment to lend. Guidelines subject to change.