Texas Home Loans - Conforming Loan Programs including zero down home loans

Conforming Loans are loans that meet the conforming loan limits and guidelines set by Fannie Mae and Freddie Mac. The maximum conforming loan amounts are adjusted at the end of each year. Conforming loans include 1 to 4 unit residences to be used for your primary residence, a second home or for investment(rental) properties. If you don't find the information you are looking for here, please email us with your questions.

Guidelines for Full Documentation Loans
Purpose	Occupancy	Units	Max. LTV/ CLTV	FICO (1)	DTI (2)
Purchase and Rate/Term Refinance	Primary	1	97%/97% (3)	AU	AU
		1-2	95%/95%
		3-4	80%/80%
	Second Home	1	95%/95%
	Investment	1-2	90%/90%
	Investment	3-4	75%/75%
Cash-Out Refinance	Primary	see Home Equity Loans
	Second Home	1	90%/90%
	Investment	1-2	85%/85%
	Investment	3-4	70%/70%
1) Allowable credit scores are determined by the automated underwriting (AU) system used to approve your loan. Credit scores below 740 require pricing adjustments to the rates. Scores below 680 require at least a 5% down payment. Scores below 620 may require additional down payment and may not be eligible for mortgage insurance, requiring at least 20% down. 2) DTI is your total debt to income ratio. AU will determine the allowable DTI on your loan. Manual underwriting limits the DTI to 36%. AU may go up to 65%, depending on your credit and reserves. 2nd homes and investment properties are limited to a maximum of 45 to 50%. 3) Conforming loans require a minimum of 5% down, but special loan programs are available for 3% down loans. See "97% Financing" under the "Guidelines Tab" for details.

Guidelines

Additional guidelines include:

Acreage - No limit provided an acceptable appraisal with comparable properties can be secured.
Assumable - No.
Bankruptcy or Foreclosure
Chapter 7 or Chapter 13
You must wait 2 years from the discharge date and have reestablished your credit.

Foreclosure
You must wait 3 years from the date of the foreclosure.

NOTE: After a bankruptcy be sure to check your credit report for errors and correct inaccurate information. This can make a big difference in your credit scores and loan approval.

If you need help repairing your credit, contact us and we will refer you to HTDI Financial, a credit repair agency we work with. This could raise your credit scores significantly, but you should start several months before you are ready to purchase or refinance.
Buy-downs - Allowed on purchase loans only. Not allowed on ARM loans.
Closing Costs - It's best to submit our Pre-Qualification form for a Good Faith Estimate.
The Owner's Title Insurance Policy, about 0.8% of the sales price, is also a fee normally paid by the seller when purchasing an existing home.
When purchasing a new home from a builder the veteran should discuss these items to be sure if the builder will pay these fees, part of these fees or none of these fees. If the builder is not paying these fees, notify us so we can structure your loan properly to pay these fees and still provide you with the lowest interest rate possible.

Many builders will encourage you to use their own mortgage company and may provide incentives to you if you do, i.e., pay points for you or pay for your Owner's Title Policy. We have found that most of the time we can still save you money and give you a better interest rate, even without the builder's incentives, so it's best to request a Good Faith Estimate from us to compare with the builder's offer. You may be pleasantly surprised.
Credit Scores - Our automated underwriting systems will determine if credit scores are sufficient for approval, however, credit scores below 740 now require a price adjustment to the rate.

The following adjustments are to the points. As a rule of thumb, 0.375% in points equals about 0.125% in the rate. So if you have to add 0.75% pt. your rate will go up about 0.25%, i.e., 7.0% to 7.25%..

Credit Score Adjustments to Points All Loans with terms > 15 years (1)
LTV's (Loan to Value)	Credit Scores (Lowest middle score of 3 or lower score of 2)
LTV's (Loan to Value)	<620	620 - 639	640 - 659	660 - 679	680 - 699	700 -719	720 - 739	>739
< 60%	1.0%	0.25%	0%	0%	0%	-0.25%	-0.25%	-0.25%
60.01 - 70	1.0%	0.75%	0.50%	0.50%	0.50%	0.50%	0%	0%
70.01 - 75	2.75%	2.50%	1.75%	1.25%	0.50%	0.50%	0%	0%
75.01 - 80	2.75%	2.75%	2.25%	1.75%	1.0%	0.75%	0.25%	0%
80.01 - 85	2.75%	2.75%	2.0%	1.50%	0.50%	0.50%	0%	0%
85.01 - 97	2.75%	2.25%	1.50%	1.0%	0.25%	0.25%	-0.25%	-0.25%
1) Loans with terms <= 15 years & LTV > 70% & CS <620 - add 1.0% pt.

Additional Credit Score Adjustments to Points Cash-out Loans for Investment Properties & Second Homes (Primary Residence cash-out - see Home Equity Loans below)
LTV's (Loan to Value)	Credit Scores (Lowest middle score of 3 or lower score of 2)
LTV's (Loan to Value)	<620	620-639	640-659	660-679	680-699	700-739	>739
< 60%	1%	0%	0%	0%	0%	0%	0%
60.01 - 75	1.750%	0.75%	0.75%	0.25%	0.25%	0.125%	0%
75.01 - 80	2.75%	2.25%	1.75%	1.00%	0.875%	0.50%	0.25%
80.01 -85	3%	2.50%	2.50%	2.0%	2.0%	1.0%	0.375%
85.01 -90	3%	2%	d%	1.50%	1.50%	0.50%	0.375%

Eligible Borrowers - US Citizens, Permanent Resident Aliens and Non-Permanent Resident Aliens(Restrictions Apply)
Interest Rates - Conforming loans with 5% or more down will have the lowest rates. Zero down loans have slightly higher rates.
Loan Terms - 10, 15, 20, 25, 30 & 40 year fixed rate loans and 1 yr, 3/1, 5/1, 7/1 & 10/1 ARM loans are available. The 3/1 & 5/1 ARM loans are most popular.
Manufactured(Mobile) Homes - No programs available.
Mortgage Insurance - Required on all loans with a loan to value greater than 80%. MI is not required on 80/15/5 or 80/10 loans.
Number of Properties Owned/Financed - No limit for Primary Residence. Maximum of 10 financed properties, including primary residence, for second home or investment properties.
Occupancy - Primary residences must be occupied within 60 days of closing.

Parents who want to provide housing for their physically handicapped or developmentally disabled adult children or for their elderly parents (who are unable to work or who have income that is not sufficient for them to qualify) will be able to purchase or refinance a single-family property for such children or parents and have it be considered a Primary Residence, even though the parent borrower will not be the occupant of the property.

Required Documentation

A letter of intent from all parties detailing the purpose of the purchase.
Evidence the elderly parent or disabled adult child has insufficient income to qualify.

Property Types - 1-4 unit homes, townhouse, approved Condos and PUDs.
Maximum Loan Amount - See Conforming Loan Limits in right-hand column.
Seller Concessions
90.01-95% LTV - 3% of the sales price.
75.01-90% LTV - 6% of the sales price. (Including 80-15-5 or 80-10-10 loan programs)
75% or less - 9% of the sales price.
97% Financing - 3% down payment loans are special loan programs. They require a minimum credit score of 680 with 3% down. These loans have slightly higher interest rates than regular conforming loans. The only zero down loans now available are VA and Texas Vet loans.
Fannie Mae's Flex 97 loan does not have income limits. Available for 1unit primary residence loans only. Requires 35% mortgage insurance. Optional 18% mortgage insurance coverage is available at additional costs. See our rates sheets for details.
Fannie Mae's MyCommunity Mortgage loan programs limit your qualifying income to 100% of the HUD Family Median Income for the county your property is located in. Properties in an area listed in Fannie Mae Property GeoCoder are not subject to income limits. Available for 1-4 unit primary residence loans. Homebuyer education required for first time homebuyers purchasing 2-4 unit properties. Requires 18% mortgage insurance.
Freddie Mac's Home Possible program limits income to 100% of the HUD Family Median Income limits for the county the property is located in. Public Employees are not subject to income limits. Available for 1-4 unit primary residence loans. Homebuyer education required for first time homebuyers purchasing 2-4 unit properties. Requires 18% mortgage insurance.
Look up HUD Family Median Income Limits Here

For more details, please submit a pre-qualification form or loan application.

NOTICE: Mortgage insurance companies and financial institutions will no longer allow zero-down conventional loan programs after 04/04/2008.

Note:
Guidelines subject to change without notice. Additional guidelines and restrictions may apply. Submit your loan application for approval.

30 Year Fixed Loans 30 day lock.			15 Year Fixed Loans 30 day lock.
Conforming Purchase Loan Rates Rates based on $150,000 Loans
Rate	Points	APR	Rate	Points	APR
6.125%	0.967%	6.319%	5.750%	1.186%	6.100%
6.250%	0.616%	6.410%	5.875%	0.726%	6.154%
6.375%	-0.007%	6.476%	6.000%	0.253%	6.205%

Notes:
Investment Properties - Additional Fees apply.
Regular and interest only loans available.
40 year Fixed Rates available. Adjustments:
See Credit Score Adjustments below.
2 unit = add 0.50% pt.
3 - 4 units = add 1.0 pt.

Credit Score Adjustments to Points All Loans with terms > 15 years (1)
LTV's (Loan to Value)	Credit Scores (Lowest middle score of 3 or lower score of 2)
LTV's (Loan to Value)	<620	620 - 639	640 - 659	660 - 679	680 - 699	700 -719	720 - 739	>739
< 60%	1%	0.25%	0%	0%	0%	-0.25%	-0.25%	-0.25%
60.01 - 70	1.0%	0.75%	0.50%	0.50%	0.50%	0.50%	0%	0%
70.01 - 75	2.75%	2.50%	1.75%	1.25%	0.50%	0.50%	0%	0%
75.01 - 80	2.75%	2.75%	2.25%	1.75%	1.0%	0.75%	0.25%	0%
80.01 - 85	2.75%	2.75%	2.0%	1.50%	0.50%	0.50%	0%	0%
85.01 - 97	2.75%	2.25%	1.50%	1.0%	0.25%	0.25%	-0.25%	-0.25%
1) Loans with terms <= 15 years & LTV > 70% & CS <620 - add 1.0% pt.

Additional Credit Score Adjustments to Points Cash-out Loans for Investment Properties & Second Homes (Primary Residence cash-out - see Home Equity Loans below)
LTV's (Loan to Value)	Credit Scores (Lowest middle score of 3 or lower score of 2)
LTV's (Loan to Value)	<620	620-639	640-659	660-679	680-699	700-739	>739
< 60%	1%	0%	0%	0%	0%	0%	0%
60.01 - 75	1.750%	0.75%	0.75%	0.25%	0.25%	0.125%	0%
75.01 - 80	2.75%	2.25%	1.75%	1.00%	0.875%	0.50%	0.25%
80.01 -85	3%	2.50%	2.50%	2.0%	2.0%	1.0%	0.375%
85.01 -90	3%	2%	d%	1.50%	1.50%	0.50%	0.375%

Additional adjustments & restrictions may apply <> Contact us for a Good Faith Estimate

Lock your rate at 888-623-7083 or in Austin call 259-7788...
Rates are subject to change without notice until locked in.
Rates on this Page Last Updated:
08/28/2008 5:01 PM

Pre-Approval - Loan Application

Purchase Loan Application - This is a complete loan application and purchase questionnaire. It should take from 15 to 30 minutes to complete.

Click here for a general list of information needed to complete your application.
After reviewing your application and credit report, your loan will be submitted for Automated Underwriting prior to calling you to discuss your application unless additional information is needed from you.
The results will be emailed to you with a GFE for your review. Rates are subject to change until locked in. Please call our office to lock your rate.
Your complete loan application and disclosure forms will be overnighted to you for your review and signatures, along with copies for your records. A written list of the required documents needed and a return overnight envelope will also be included for you to return the documents to us.
The only upfront costs to you are the credit report/AUS fee($39) & the appraisal fee($350). These fees are listed on your Good Faith Estimate. Click here for more details on the loan process.

Note: If for some reason your loan cannot be approved through our Automated Underwriting Systems and traditional underwriting is required, some additional costs may be required and you will be advised in advance. More details on "Traditional Underwriting" can be found here Icon - Opens in New Window

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Pre-Qualify

This is a short form that only takes a few minutes to complete.
It will give us the info we need to pre-qualify you according to your income, debts and funds available for down payment and closing costs.
The results will be emailed to you with a GFE for your review.
The Pre-Qualify form is primarily designed for borrowers with good credit since NO credit report will be pulled with this prequalification.

Email or call us if you need additional information.

FAQs

These are computerized online systems used to approve loans. It is much faster, generally approves loans at higher loan to values and can reduce your mortgage insurance. Both Fannie Mae and Freddie Mac have AU systems and many large lender have their own AU systems.

Yes. All title companies require a survey to insure the property. You can use the seller's existing survey if they will sign an affidavit that no changes have been made that would affect the survey and the survey is acceptable to the title company. For Refinancing, you can use your existing survey provided it meets the same requirements.

This is your homeowners insurance. It insures your property for damage, theft and liability. You should shop around with several companies to see who has the best rates and terms. You will need a one year policy. Month to month policies are not acceptable. If Refinancing, your current policy must have at least 60 days remaining at the time of closing or it must be renew to close the loan.

This will depend on why your credit scores are low. Submit your loan application to us so we can pull your credit and see if we can get your loan approved through AU. If not, it may be best to use a Credit repair agency that can correct and/or remove errors and problems on your credit report that are causing the low scores. This repair process can take several months, usually 2 to 6 months.
If you need help repairing your credit, contact us and we will refer you to HTDI Financial, a credit repair agency we work with. This could raise your credit scores significantly, but you should start several months before you are ready to purchase or refinance.

Purchase Loans
Most loans can be closed in 2 to 4 weeks, but we have closed in as little as 5 days.
Refinance Loans
Usually 3 weeks. Refinancing your primary residence requires a 3-day Right of Recession, so the loan must be closed 5 days before the loan will actually fund.