Houston, Texas (PRWEB) October 16, 2013
Hope Tree Home Loans, the Houston home loan leader, is making it possible for would-be homebuyers to purchase property with less than the traditional 20 percent down payment required by most financial institutions in today’s market. Hope Tree Home Loans’ Texas mortgage loan experts quickly point out to potential buyers that they can offer a number of programs that can qualify them for much lower down payments and low interest rates on home loans in Texas.
One of the most appealing but often under utilized sources for home loans Houston buyers can turn to is the Federal Housing Administration, which has programs that Texas mortgage lenders such as Hope Tree Home Loans can arrange for as low as 3.5 percent down. Hope Tree routinely points its home buying clients to options such as FHA programs and other programs that provide the most advantageous mortgage loans Texas buyers can find by logging on to http://www.hopetreehomeloans.com.
Another strategy Hope Tree Home Loans suggests to lower down payment rates is to secure private mortgage insurance (PMI), which is basically an insurance premium paid monthly to guarantee that mortgage obligations will be fulfilled in situations when the buyers are unable to post the full 20 percent down payment. The cost of PMI will depend on the loan to value ratio (LTV) and on the borrower's credit score," according to Joe Parsons, senior loan officer with PFS Funding in Dublin, California, and the author of Growing Equity: A Guide for the Hopeful Investor. "The LTV is the ratio between the amount you want to borrow and your home's value. The larger that ratio is, and the worse your credit score is, the more you might have to pay for PMI. That means that if you put 10 percent down and you have a credit score of 760, you could be paying $99 a month for PMI. But if you put down three percent and had a credit score of 760, you could be paying $279 for the same loan."
The key to lowering down payment costs and PMI premiums is to maintain a strong credit rating. A credit score of 700, for example, could raise the PMI premium to $330 a month. According to Hope Tree’s mortgage experts, the PMI premiums are sometimes eliminated completely over time once the buyer has established equity equal to 20 percent of the mortgage total.
Another strategy Hope Tree Home Loans mortgage experts sometimes recommend is for the applicant to utilize a "piggyback loan," a situation where the homebuyer obtains a loan for 80 percent of the value of the home being purchased and a line of credit that would cover the additional 20 percent of the value. This strategy often allows buyers to obtain a home with no actual down payment at all. This financial arrangement, however, should be entered cautiously since many people who have opted for such credit programs have not been able to afford the monthly payments, and have consequently ended up in financial straits, such as happened rampantly during the recent financial crisis and subsequent meltdown. As in all mortgage loans Texas buyers secure, it is important that monthly payment rates are realistic for the budgets of home loans Houston buyers can maintain.
Hope Tree Home Loans advises that the Texas housing market is on the rise and that this is time for potential buyers to seriously consider making their moves while there is still time to take advantage of excellent mortgage loan rates. The cutting edge Texas mortgage lender reports that home sales were up nearly 18 percent in Texas during the second quarter over the same period a year ago, a significant indicator that the state’s housing market is headed for a major recovery.
Hope Tree Home Loans’ priorities are focused on providing the best rates for its customers and service that takes the hassle out of applying for home loans in Texas. One of the lender’s most popular services is its online application system that allows loan seekers to easily and conveniently acquire quotes for the best rates and terms for home loans at http://www.hopetreehomeloans.com. Potential home buyers can complete a quick two-minute, simple online application to get a quote on the lowest mortgage loans Texas has to offer, with no Social Security number required and no credit check conducted. All information is kept confidential and there is zero cost or obligation for inquiring about a pre-approved home loan.
Hope Tree Home Loans also provides refinancing and debt consolidation services. Hope Tree Home Loans’ representatives are available at their offices or by telephone to provide essential information on how loan applicants can take advantage of the best mortgage loans Texas buyers will find anywhere.
Texas home buyers interested in taking advantage of the current housing market before prices rise any further are urged to call Hope Tree Home Loans immediately at (888) 227-8686 to discuss home loans in Houston and all other Texas home loan options. Complete details about Hope Tree Home Loans’ mortgage options and current Texas mortgage rates can be inspected at http://www.hopetreehomeloans.com.