Houston is one of the biggest Texas cities, rich in culture and human and natural resources. It may be the most populous city in the Lone Star State, but the real estate industry in Houston is very much alive.
People come to live in Houston because of its relatively comfortable climate, plenty of job opportunities, access to high-quality education and healthcare, wide-open spaces, and much more. Not to mention lower costs of living compared to other big cities in the same state.
If you are one of these people right now, you are looking for ways to finance a new home in this beautiful city.
Most Popular Home Loan Programs in Houston
Whatever you do for a living, the Houston real estate industry has almost everything to suit your housing needs.
Here are four of the most popular home loan programs in Houston:
- Home Loans for First-time Home Buyers
First-time home buyers have unique needs, and when it comes to home loan programs for this specific group, nothing beats FHA 203(b) home loans. Like in any other home loan, FHA-approved mortgage lenders will still evaluate the applicant’s credit, assets, and income and verify his capacity to pay monthly payments. However, unlike most home loans, the FHA credit requirements and closing costs are within easy reach of individuals in the low- to moderate-income brackets. Moreover, the applicant need not have wads of cash for closing costs and other out-of-pocket expenses because he is allowed to receive a cash gift from family and other qualified individuals as determined by the Federal Housing Administration.
- Home Loans for Vets
VA loans are considered one of the most coveted home loans in the market. Specially created for servicemen and women and their eligible spouses, VA home loans are guaranteed by the US Veterans Affairs and issued by VA-approved lenders. Like the USDA, VA loans require absolutely 0% down payment and offer competitive rates and terms to make homeownership accessible to America’s heroes and their families.
- Home Loans For Purchase and Renovation
The federal government is committed to developing communities and ensuring that every property in a neighborhood is both comely and comfortable and a valuable part of the community.
To make this happen, the FHA, through FHA-approved lenders, offers the FHA 203(k), most commonly known as a rehab home loan. People may find a home in a perfect location, but it may need significant repairs. Instead of getting two loans for the purchase and another for repairs, the FHA 203k loan allows for both the purchase of the home and rehabilitation projects. The borrower receives one loan for both instead of two separate loans.
Finding Your Ideal Home in Houston
Be clear about what you want. Both you and your mortgage lender want to avoid regretting your decision. It’s a business; it’s nothing like getting a cat or buying shoes. Allow your lender to educate you on the various mortgage loans in Houston to ensure you only make informed choices.
If you like the conveniences of life in the city, where you have easy access to shopping centers, you might want to get a property inside what locals call “the inner loop. ” This artificial roadway draws a line between the buzzing city and the quiet suburbs. Figuring out which of these two suits your lifestyle and personality will increase your chances of finding your ideal home.