Corpus Christi Family

Conventional Loans

Conventional loans are mortgage loans offered by non-government sponsored lenders. These loan types include:

- Fixed Rate Loans
- Balloon Mortgages and Pledge Asset Loans
- Jumbo / Construction Loans
- Reverse Mortgage
 
Conventional home loans are the most popular type of home loan; however it is smart to work with a lender who is experienced in conventional loans to give you the best possible rate with low fees. Pretty much any lender can do a conventional loan, but only an experienced lender has the relationships with multiple lenders to get you the best possible terms on a conventional loan program. I’m John the Mortgage Man and I have 22 years of conventional loan lending experience, so you can be assured you won’t find many lenders in Corpus Christi, Austin, San Antonio or anywhere else in Texas that has more experience then me.

Conventional loans are home loan programs that are backed by Fannie Mae and Freddie Mac, to give lenders more confidence in lending out money. They set the terms that all lenders have to follow. One of the main terms that conventional loans have are they require a 20% down payment. While this tends to be one of the higher down payments that you will find, the interest rates tend to be lowest.

Conventional loan programs are perfect for potential home owners that have saved enough money for that larger down payment. This way if you have the ability to pay that larger down payment you then will more then likely get the lowest possible interest rate. That means you will pay the least amount of money for that home, first because you’ve paid off such a large part of the home’s price with the higher down payment, so the loan will be less and then the interest rate on it will be so low your monthly payments will very low as well.

There are lending limits that you will find with conventional loans, it is $417,000 any where in Texas. That is a high loan limit when you look at the average home price in Texas is $185,400, there will be plenty of homes to choose from in Corpus Christi, San Antonio, Austin and through out Texas.

If you are wondering if a conventional loan is the right home for your situation I can help you see how much you could qualify for. Put my expertise to work, I’ll find you the most competitive conventional loan rates and terms you’ll find anywhere in Texas.

Call Us Today: (361) 510-1420

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FHA Loans

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners:

- Generally easier to qualify for than conventional loans.
- Lower down payment requirements.
- Cannot exceed statutory loan limits.
 
When purchasing a home in Corpus Christi, San Antonio, Austin or anywhere else in Texas there are many hurdles that can get in your way. One of the biggest hurdles that I’ve seen is a potential home owner’s ability to generate enough money for a down payment. If a high down payment has stopped you from owning a home in the past, I have a solution that has worked for many home buyers.

The solution is an FHA loan. An FHA loan is a government sponsored home loan program created by the Federal Housing Administration with the idea of making a home ownership a reality for more people. Conventional home loan programs typically have down payments of 20%, however with an FHA loan that down payment is just 3.5%. When you compare the difference of what you would have to generate for a down payment for an average priced home in Corpus Christi, San Antonio, Austin you can clearly see what a difference it can be:


City | Average Home Price May 2013Down Payment Of 20%Down Payment Of 3.5%
Corpus Christi | $108,300 | $21,660 | $3,790.50
San Antonio    | $159,900 | $31,980 | $5,596.50
Austin             | $285,000 | $57,000 | $9,975

As you can see the amounts the down payment for the FHA Loan is several thousand of dollars less.

Another huge advantage of an FHA loan is that financial requirements are not as strict as what you’d have with conventional loan. You will still need to have decent credit, but are not required to have perfect credit to qualify.

The rates with FHA loan tend to be a bit higher compared to conventional loans; however in many cases the mortgage payments that you’d pay with a FHA are lower then what you’d pay in rent for a similar home using a different loan program. This is a great program for anyone, but FHA Loans are especially popular with first time home buyers who may not have had the time to save enough for a 20% down payment and are still building their credit.

If you are wondering if a FHA is the right option for you to purchase a home let me help. Just give me a call and let me know a little about your situation, and I’ll get back to you with a free rate quote so you can see how much of a home you can purchase with a FHA loan.

Call Us Today: (361) 510-1420

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VA Loans

Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.

Here’s how it works:

- 100% financing without private mortgage insurance or 20% second mortgage.
- A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA.
- When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
- When refinancing a home, veterans may borrow up to 90% of reasonable value in order to refinance where state law allows.

Apply for a VA Loan with a VA Qualified Lender:

One of my favorite groups of people I like to help in purchasing a home is active duty military and veterans. I take pride in helping them live the dream of home ownership, and helping them take advantage of one of the best home loan program you can find; the VA loan. Here in Texas the military has a huge presence in Corpus Christi there is Naval Air Station Corpus Christi, in Austin there is Camp Mabry and in San Antonio there is Joint Base San Antonio the largest military base in the US, just to name a few. With that there are many veterans who could use the VA loan to purchase a home.

So what makes a VA loan so special? The biggest advantage is that it lets you purchase a home for no money down. You won’t find too many home loan programs that offer that kind of advantage. The VA loan was created by the Veterans Administration to let more veteran purchase a home, and with the advantage of not having to worry about generating a down payment, it doesn’t get much easier then that. In my many years of lending, I’ve seen generating down payments being one of the biggest roadblocks that have stopped people from own home. If you qualify for a VA loan that is no longer a worry.

Beyond the huge advantage of not having a down payment, the financial requirements are some of the most favorable that you will find with any other home loan program. In fact majority of people, who would qualify for a VA loan, would not qualify for a conventional loan program. There is a lot less paperwork and fees that are normal with conventional loan programs which will save you tons of money. Then on top of that VA loan rates tend be on par with the lowest conventional loan rates. When you add this all up you can see that a VA loan can get you in a home easier and for less money then pretty much any other home loan program.

There are of course limitations, the VA set up minimum eligibility requirements of military service that you would have to meet. You can contact me to see if you would qualify for those minimum eligibility requirements. There is also a lending limit with a VA loan; through out Texas that loan limit is $417,000. When you look at average home prices through out Texas like in Corpus Christi $108,300, San Antonio $159,900 and Austin $285,000 there will be plenty of homes that would qualify for the VA loan.

So if you are currently serving or have served in the military and are thinking about purchasing a home, then you need to take a look at VA loan. It could be the answer for your home loan needs. To see how much you can qualify for simply give us a call for a free rate quote.

Call Us Today: (361) 510-1420

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Fixed Rate Mortgage

With a fixed rate mortgage, the interest rate does not change for the term of the loan; the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.

Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.

Benefits:

- Lower monthly payments than a 15 year fixed rate mortgage
- Interest rate does not go up
- Payment does not go up, it stays the same for 30 years

Drawbacks:

- Higher interest rate than a 15 year fixed rate mortgage
- Interest rate stays the same even if interest rates go down
- A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.

Benefits:

- Lower interest rate
- Build equity faster
- If interest rates go up, yours is fixed

Drawbacks:

- Higher monthly payment stays the same if interest rates go down
- Interest rate stays the same even if interest rates go down


Call Us Today: (361) 510-1420

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