Chapter 1
Property Rights and Interests
Course: Texas Real Estate Exam Prep
Subject: Texas State Salesperson Exam Prep
Chapter: Financing Real Estate Of Texas Real Estate Salesperson Exam Prep
- Conventional Types of Loans in TexasLoans
Definition: Loans not insured or guaranteed by government
Characteristics:
- Conforming: Meet Fannie Mae/Freddie Mac guidelines
- Non-conforming: Jumbo loans (exceed conforming limits)
- Minimum credit score: 620-640
- Down payment: 3-20%
- PMI required if less than 20% down
Texas Conforming Loan Limits (2024):
- Most counties: $766,550
- High-cost areas: Higher limits
- FHA Loans
Features:
- Minimum down payment: 3.5% (credit score 580+)
- More lenient credit requirements
- Upfront MIP: 1.75% of loan amount
- Annual MIP: Required for life of loan (if less than 10% down)
- Maximum loan-to-value: 96.5%
Texas Application: Popular for first-time buyers in Texas cities
- VA Loans
Eligibility: Veterans, active military, qualifying spouses