Government Loans

FHA- This program is government-backed, which protects lenders against defaults, making it possible to for them to offer prospective borrowers more competitive interest rates. This program is managed by the Federal Housing Administration.

VA- This program is reserved for military service members and their families. It can be used to finance 100% of a home purchase; this eliminates the need for a down payment. This program is managed by the Department of Veteran Affairs.

USDA- This program is designed to assist in the rural borrowers. They are sometimes referred to as “farmer loans,” due to the geographical and demographic nature of the program. This program is managed by the United States Department of Agriculture.

Conventional Loans

Freddie Mac- Federal Home Loan Mortgage Corp (FHLMC):A stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle income Americans. The FHLMC purchases, guarantees and securitizes mortgages to form mortgage-backed securities. The mortgage-backed securities that it issues tend to be very liquid and carry a credit rating close to that of U.S. Treasuries.

Fannie Mae-  Federal National Mortgage Association (FNMA): A government-sponsored enterprise (GSE) that was created in 1938 to expand the flow of mortgage money by creating a secondary mortgage market. Fannie Mae is a publicly traded company which operates under a congressional charter that directs Fannie Mae to channel its efforts into increasing the availability and affordability of homeownership for low-, moderate- and middle-income Americans.

Specialty Loans

FHA 203k- This program is designated for houses that are damaged or sorely in need of rehabilitation. The loan covers not only the cost of the property but also the cost of necessary home repairs. The down payment requirement is low, and eligibility criteria are loose. Homeowners whose homes need improvement can also refinance with these loans. A vast range of repairs, including room additions, bathroom remodeling, roofing, flooring, and air conditioning systems can be funded with these loans.

Reverse Mortgages- This program allows seniors to convert equity in their homes to cash; you don’t have to pay back the loan and interest as long as you live in the house.

Jumbo Loans- This program is defined as a loan whose loan amount exceeds the Fannie Mae conforming loan limit. In Texas, the conforming loan limit is $453,100.