How to buy a house in Texas with no down payment

After renting out a small apartment in College Station, Texas, you may be ready to own your first spacious property in Brazos County. Maybe you have a few listings bookmarked after an initial search, or maybe you are already on the way to closing on your dream home. Either way, when buying a house in Texas – where the inventory of available properties is low – you will need to move fast to get that house. Your savings should be ready even before you buy. If you are a few dollars short of owning your dream home, there are still ways to get the financing you need with little to no down payment. Read on to find out how.

USDA Loans

Also known as the Rural Housing Loan, the United States Department of Agriculture Loan helps homebuyers with low to moderate incomes secure a home in rural or suburban areas with no down payment. It is a fixed-rate loan that charges a monthly mortgage insurance premium of 0.35% to 1% lower than most insurance programs. The loan may even cover repairs. If you apply for a USDA Loan, you will need to buy a single-family house and use it as your primary home and not as a vacation home or investment property. Your income should also be within or below Brazos County’s median income of $49,181. If you have a steady job and a FICO credit score of at least 620, and if you only use 41% of your monthly income to pay debt, then you may qualify for a USDA Loan.

VA Home Loans

Another way to get a house with no down payment is to apply for a loan with the US Department of Veteran Affairs. VA Home Loans cover the following military personnel:

• Veterans
• Active-duty personnel
• Veterans’ surviving spouses
• Reservists
• Members of the National Guard
• Military, Air Force, and Coast Guard cadets
• US Naval Academy midshipmen
• Oceanic and Atmospheric Administration officers

With a VA Home Loan, you can buy or repair a house, condo, or duplex and not have to pay mortgage insurance premiums. The VA also makes sure your closing costs go only up to 4% of your purchase price. When you are ready to move on to another house, you can transfer your loan to a buyer who is also covered by the program.

FHA, HomeReady, and Home Possible Loans

If you have a bit saved for a down payment, you may want to consider getting a loan insured by the Federal Housing Administration or an FHA Loan. There are also programs under the federal mortgage agencies Fannie Mae and Freddie Mac called the HomeReady and Home Possible mortgages, respectively. Check our table below to see which program suits you:

	FHA Loan	HomeReady	Home Possible
Required minimum down payment	3.5%	3%	3%
Minimum FICO credit score	580	620	660
Income limit	None	Up to 80% of your area’s median  income	Up to 80% of your area’s median income

HFA Loan

If you choose to work with Fannie Mae and Freddie Mac, you can get a Housing Finance Agency or Authority (HFA) Loan. With an HFA Preferred Mortgage with Fannie Mae, you can get a 2- to 4-unit home, while an HFA Advantage Mortgage with Freddie Mac lets you buy a single-family home. Though an HFA Loan is similar to FHA’s program with its 3% minimum down payment, an HFA eventually lets you stop paying insurance premiums after your home’s value is about 20% more than your remaining balance.

Good Neighbor Next Door

This program is for teachers, first responders, and government employees. When you pair this with an FHA Loan, you can pay only a $100 down payment on a home. Good Neighbor Next Door also allows you to pay half price for a home foreclosed by the Department of Housing and Urban Development. All you will need to do is live in the property for at least three years. You have to admit: that’s a lot of information right there. And that is only the surface. To skip the stress and save on time, talk to a real estate professional at the Berkshire Hathaway HomeServices Caliber Realty. With over 40 years’ experience, they know the home buying and home loan process inside out and can help you find the best mortgage option for a home in the southeast central Texas cities of Bryan, College Station, Millican, Kurten, and Wixon Valley in Brazos County. Schedule a consultation with Berkshire Hathaway HomeServices Caliber Realty. Call 979.694.8844 or send an email to sales(at)bhhscaliber(dotted)com today.

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