Texas Government Loan Programs

Texas FHA Loans

A Texas FHA loan is insured by the Federal Housing Administration, a federal agency within the U.S. Department of Housing and Urban Development (HUD). The FHA does not loan money to borrowers, rather, it provides lenders protection through mortgage insurance (MIP) in case the borrower defaults on his or her loan obligations. Available to all buyers, Texas FHA loan programs are designed to help creditworthy low-income and moderate-income families who do not meet requirements for Texas conventional loans.

Texas FHA loan programs are particularly beneficial to those buyers with less available cash. The rates on Texas FHA loans are generally market rates, while down payment requirements are lower than for Texas conventional loans.

Some of the other benefits of Texas FHA loan financing:

• Only a 3.5 percent down payment is required.
• Closing costs in Texas can be financed.
• Lower monthly mortgage insurance premiums and, under certain conditions, automatic cancellation of the premium.
• More flexible underwriting criteria than Texas conventional loans
• Better rates available to 'less-than-perfect' credit borrowers 

Texas VA Loans

Texas VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a Texas VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a Texas VA loan include:

• Negotiable interest rates.
• Closing costs in Texas are comparable and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties
• The Texas Mortgage can be taken over by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A Texas VA loan can be used to buy a Texas home, build a Texas home and even improve a Texas home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a Texas VA loan with Supreme Lending Inc, because we participate in the Texas VA home loan program. A Certificate of Eligibility from the VA must be presented to Supreme Lending Inc to qualify for the Texas home loan.