What is the Difference Between FHA and VA Loans in Texas?

Are you one of those people who has your dream home completely planned, all the way down to the white picket fence, but finances are holding you back from finding it? In the state of Texas, there are a variety of loans that individuals can apply for, so even those without large savings can buy a home. Horizon FHA Loans offers both FHA and VA loans in Texas. For individuals who lack a good credit score, the FHA loan may be the best option. For veterans, a great option is the VA loan. Assistance is available for those who need it, so shop around for the ideal loan for you.

What is a VA Loan?

The VA loan is one of the many benefits a service member receives by protecting our country. It is there to help service members and their families who are required to move frequently because it offers a quicker process and strict guidelines. The homes for purchase cannot have any serious issues, and depending on the shape of the home, the inspector can deny a home purchase for extremely worn carpets. This can keep veterans safe, but may ruin any fixer-upper plans they might have.

Choosing a VA loan can help an individual save a large amount and provide a safe place to live. The VA loan gives you the option of having absolutely no down payment. When choosing the VA loan, the service member’s family will have lower monthly payments versus using private mortgage insurances. This loan also offers competitive lower interest rates. The homeowner has two ways to refinance his already low-interest rates. Streamline refinancing is the most popular choice; it will allow the owner to refinance his mortgage for even lower interest rates and more savings. The second option is cash-out refinancing, in which the homeowner can take advantage of the equity of his home and use the extra cash for whatever he needs.

What is an FHA Loan?

The FHA Loan is a wonderful option for those who are coming out a rough place financially. It is also very easy to qualify for but is truly worth more for those between a FICO number of 580 and 700. Once your credit becomes higher, it will have more costly disadvantages than savings. Through the FHA loan, your down payment is 3.5% and can be paid by gift fund sources. The seller is required to pay 6% of the closing cost, making it easier to purchase your dream home.

The loan is designed with more flexible underwritings because most of its customers are building their credit. The downfall of the loan’s guidelines is that it has a cap-off on the mortgage loans it will give. In 2017 for a single-family home, a buyer has a maximum of $417,000 available. Depending on where you are looking is what they base the amount granted. The FHA loan does allow for the purchase of a fixer-upper, but only for primary homes.

If you are either a veteran or someone needing assistance, Horizon FHA Loans offers both FHA and VA loans in Texas. The VA loan has many advantages for all those who have served our country. The FHA loan is a great opportunity for families who are working forward to a brighter future. If you are looking for a home in Texas, check out these loans if you fit the criteria.