Real estate education for buyers, sellers, investors, and homeowners

Texas · Colorado · National Education

For financing

Understand Your Real Estate Financing Options

Mortgages, down payment assistance, creative financing — explained in plain English. No lender bias, no commission pressure, no jargon designed to confuse you.

Educational only · No-pressure guidance · Texas, Colorado, and national education.

05Free downloads

Two starter guides for buyers.

Federal, state, and local programs that may put thousands toward your down payment.

Plain-English intro to seller financing, subject-to, lease options, and when each fits.

06Beginner-friendly FAQ

The most common financing questions.

What's the difference between conventional, FHA, and VA loans?

Conventional: standard mortgages from private lenders, typically 5-20% down, requires solid credit (620+). FHA: federally-insured, allows 3.5% down and lower credit scores (580+), but requires mortgage insurance for the life of the loan. VA: zero-down loans for veterans and active military, no PMI, very competitive rates. USDA: zero-down loans for rural/suburban properties for low-to-moderate income buyers. Choose based on your credit, down payment savings, military status, and property location.

Minimums vary by loan type: FHA 580, VA 620, Conventional 620 (often 640+). Your rate improves significantly above 740. Below 580 you may still qualify for an FHA loan with 10% down, or you’ll need to focus on credit repair first. Lenders use the middle score from the three credit bureaus — if your scores are 620/640/660, they use 640.

DPA programs are grants or low-interest loans from federal, state, county, or city governments that help cover your down payment and sometimes closing costs. Texas and Colorado both have several active programs. Most require you to be a first-time buyer (defined as not having owned a home in the past 3 years) and meet income limits. Some are forgivable after living in the home for a set period; others must be repaid when you sell.

The seller acts as the lender — you make payments directly to them instead of to a bank. Useful when traditional financing isn’t an option (bad credit, self-employed, recently changed jobs) or when the seller wants steady monthly income. Terms (rate, amortization, balloon payment) are negotiable between you and the seller. Higher rates and shorter terms are typical, but you skip the bank entirely. Document the deal carefully with an attorney.

You take over the seller’s existing mortgage payments without formally assuming the loan. The mortgage stays in the seller’s name, but you make the payments and own the property. Useful when assuming a low-rate mortgage from a few years ago. Risk: the loan has a “due on sale” clause that the lender could enforce. Common in creative finance circles but requires legal documentation and a clear understanding of the risks.

Refinance when the savings exceed the costs. Rule of thumb: refinance if you can drop your rate by at least 1% AND you’ll stay in the home long enough to recover closing costs (typically 2-3 years). Also consider refinancing to remove PMI once you have 20% equity, switch from adjustable to fixed-rate, or take cash out for major expenses (renovation, debt consolidation). Don’t refinance just because rates dropped if you’re moving in a year.

Educational Disclaimer

This page is educational only. Buying decisions, loan options, market conditions, costs, and eligibility vary by location and individual situation. Speak with qualified professionals before making decisions.

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Have Questions About Financing?

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