Buying a home in Texas could be a good idea. Prices for homes in Texas are relatively low in comparison to more expensive states, and a lot of people are moving from other states to purchase homes in Texas because of this. Additionally, with the housing market still slowly recovering from the economic meltdown, overall housing prices are at an all time low. Now is probably an excellent time to purchase a new home within the State of Texas. Within this article you will find information about some of the different Texas first time home buyer programs that are available.
FHA Loan Program
This is a federal loan program designed to help people who might be having a little trouble acquiring a new mortgage. The Federal Housing Agency offers a simple program that requires a 3% down payment, offers 1.5% interest rates, and is available even to home buyers without a very good credit score. FHA loans are somewhat easy to qualify for and many people on low or moderate incomes choose to use them.
There are hundreds of different banks and loan companies that offer FHA-insured loans and you can take advantage of these offers to get very low interest rates. However, it is important to recognize that there are certain requirements that must be met in order for you to qualify for an FHA loan and there are income restrictions/house price restrictions to keep in mind as well. If you receive more than a certain amount of money each year, you might not qualify for an FHA loan and if the house costs more than the limited amount defined in the FHA requirements then you will also not qualify for an FHA loan. It is important to study the requirements in advance so that you will know early on whether or not you can actually obtain an FHA loan.
Home Opportunities FTHBP
This program for first time home buyers is offered exclusively to people who have public service-related jobs like firemen, paramedics, nurses, etc. Some loan companies in Texas will provide low-interest loans specifically to these people, and good credit scores are not always required either. Someone with a credit score of around 600 or more could easily qualify for one of these loans.
Down Payment Assistance
The down payment is a percentage of the total sales price of a home that you need to pay in total at the moment of purchase. The down payment required will vary between different mortgage companies and according to the type of mortgage you purchase. If you do not have enough money to cover the required down payment, you can have your downpayment financed as well. The FHA provides a down payment assistance plan that helps to finance required down payments, although you will still have to put at least 1% of the total house sales price in on your own. A downpayment assistance program used in combination with an FHA loan can help Texas home buyers to save a lot of money in the long run.