Finance Loan Options:
Residential Loan Options: Through Maven’s various relationships with different lenders and banks throughout Texas, our brokerage is able to provide our clients with a wide array of different loan options to help our clientele purchase a home for a primary residence, investment property, land, and more. The different loan options include:
$0 Down / 100% Finance Loan: A $0 down payment loan is a unique mortgage product that few banks in Houston offer. To qualify, a buyer must have at least a 640 credit score, and the home that the buyer is purchasing must be their primary residence and be located in a qualifying Zip Code located throughout the Houston area. You can contact one of our agents to determine what Zip Codes qualify
FHA Loan (3.5% Down Payment): An FHA loan is a more popular loan product in Houston due to the qualification requirements being more flexible. FHA allows lower credit scores, which is one reason first-time home buyers are often attracted to FHA loans. FHA loan allows borrowers with credit scores as low as 500 to be considered for home loans. However, if a buyer’s credit is below 500, a down payment of at least 10% will be required.
If a buyer has at least a 580 credit score, they will be able to qualify for a 3.5% down payment. The down payment can be higher if the buyer prefers. In Houston, the FHA loan requirements are dependent on what county you are looking to purchase in. In Harris County, the FHA loan limit is $420,000
Conventional Loan: The typical down payment for a conventional loan ranges from 5%-20%. This loan product can be used to purchase property for either primary use or investment. Conventional loan requirements in the Houston area are slightly harder to qualify for compared to FHA due to the minimum 620 credit score and the lower debt-to-income ratio requirements. The main benefit of a conventional loan is that the private mortgage insurnace is automatically removed on conventional loans after your equity reaches 22% of the purchase price. A buyer can avoid private mortgage insurance on a conventional loan if they put 20% down. With FHA, the mortgage insurance premium. When buying a home in the Houston area, FHA mortgage insurance premiums last for the life of the loan if you make a down payment of less than 10%. If you make a down payment of 10% or more on an FHA loan, you'll pay FHA mortgage insurance for 11 years. In Harris county, the conventional loan limit is $647,000
Jumbo Loan: A jumbo loan is a loan where the amount borrowed exceeds the loan limits for a conventional loan. When purchasing a home in the Houston Texas area that is priced $687,000 or greater, a Jumbo loan will be the primary loan product for buyers. Because of the larger purchase price, credit requirements for this loan are higher at a score of 680. For this loan, most lenders usually ask for 20% down, but you can still get a loan with as little as 10% down
Debt Service Coverage Ratio (DSCR) Loan: If an investor is looking to purchase investment property located throughout the Houston area and qualify for a mortgage based solely on the cash flow generated by the property rather than the financial credibility of the buyer, this is a great loan option. The DSCR is the measure of a property’s cash flow relative to the monthly payment or debt ratio.
The DSCR loan is a good choice for investors who do not want to provide employment information, tax returns, payslips, W2s, and self employed borrowers. Most lenders demand that their clients have a DSCR ratio of 1. The average minimum for most lenders is 1
Land Loan: Whether a buyer is looking to purchase land in the Houston area as an investment or to eventually build on, buyers are able to purchase land with bank financing. The down payment depends on various factors but ranges from 10%-50%