Education Hub/Loan Programs You Should Know
💰

Loan Programs You Should Know

From 0% down to Texas-specific grants — most buyers qualify for more than they think.

VA Home Loan

The most powerful loan program in existence, and most veterans don't fully use it. Backed by the Department of Veterans Affairs, VA loans require no down payment, no private mortgage insurance (PMI), and offer the best rates available for eligible borrowers.

  • 0% down payment
  • No private mortgage insurance (PMI)
  • Competitive interest rates
  • Available to veterans, active duty, National Guard, reserves, and surviving spouses
  • Can be used multiple times
  • No prepayment penalty

Key point: If you've served, this is almost always your best option. The VA funding fee (1.25%–3.3% depending on usage) is typically lower than years of PMI.

FHA Loan

Federal Housing Administration loans are backed by the government and are the most common choice for first-time buyers. Lower credit requirements and down payments make them accessible when conventional financing isn't.

  • 3.5% down with 580+ credit score
  • 10% down with 500–579 credit score
  • Mortgage Insurance Premium (MIP) is required — 1.75% upfront + annual premium
  • Higher debt-to-income ratios allowed compared to conventional
  • Can be used for primary residences only

Key point: MIP doesn't automatically drop off FHA loans made after 2013 with less than 10% down — you may need to refinance to conventional to remove it once you hit 20% equity.

Conventional Loan

Loans that conform to Fannie Mae or Freddie Mac standards. Stronger credit requirements but no upfront mortgage insurance premium, and PMI can be removed automatically at 20% equity.

  • 3% down (Conventional 97 — primary residence, first-time buyers)
  • 5–20%+ down for move-up buyers and second homes
  • PMI required if down payment is under 20%, but it drops off at 20% equity
  • Best rates available with 740+ credit score
  • Available for primary residences, second homes, and investment properties

USDA Loan

United States Department of Agriculture loans are for rural and suburban properties in eligible areas. Often overlooked — many Texas suburbs and smaller cities qualify.

  • 0% down payment
  • Must meet income limits (typically 115% of area median income)
  • Property must be in an eligible USDA area
  • Primary residence only
  • Annual guarantee fee (similar to MIP)

Key point: Check the USDA eligibility map — many areas outside of major metros qualify, including parts of the Houston, DFW, and San Antonio metro areas.

My First Texas Home (TDHCA)

Texas Department of Housing and Community Affairs program offering below-market 30-year fixed rates plus up to 5% in down payment and closing cost assistance.

  • Available to first-time homebuyers (or those who haven't owned in 3 years)
  • Income and purchase price limits apply (varies by county and family size)
  • 620+ credit score required
  • Must complete homebuyer education course
  • Assistance is a second lien — forgiven after 3 years if you stay in the home

TSAHC Homebuyer Programs

Texas State Affordable Housing Corporation offers two programs: one for any buyer, one specifically for 'Texas Heroes' (teachers, nurses, police, firefighters, correctional officers, veterans).

  • Down payment assistance of 2%–5% of the loan amount
  • Grant option (does not have to be repaid) or deferred forgivable loan
  • Heroes program has additional benefits for qualifying professions
  • Available with FHA, VA, USDA, and conventional loans
  • No first-time buyer requirement for Heroes program

Key point: TSAHC grants are one of the best-kept secrets in Texas real estate. Many buyers who could qualify never use them because their agent didn't know to ask.

Find out which programs fit your situation

This is what I do — help you understand exactly where you stand before you commit to anything.

Talk to Me About This →