secondary home, or investment property. • FHA—An FHA mortgage is a great program for buyers. Its advantages are a low down payment without private
mortgage insurance. The lender process can be streamlined, with no appraisal and reduced loan documentation to qualified applicants.
• VA—A VA Mortgage offers many benefits, including no down payment and lower interest rates. See chapter 9. • Texas VLB—Another veteran loan program specifically for Texas veterans, see chapter 9. • USDA—These are only available in certain areas deemed “rural” by the United States Department of Agriculture. Surprisingly, many properties on the outskirts of a metro area will qualify for these loan programs. The advantages of a USDA Mortgage are lower interest rates and zero down payment. Additionally, many of these homes are outside city limits, which potentially means lower property taxes. • HUD Good Neighbor Next Door Program —These are for law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence. Knowing which program to choose can be daunting. Because they are familiar with all of these different programs, they can explain your options and help you pick the best one for your needs.
After that, they can issue you a pre-approval letter that will make
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