What are the different types of mortgage loans?

In Texas, there are a variety of mortgage loans available to borrowers. The most common types of mortgage loans include Conventional Loans, FHA Loans, VA Loans, and USDA Loans. Conventional Loans are loans backed by private lenders and usually require a minimum credit score and down payment of 20%. These loans often have the lowest interest rate and are best for borrowers with excellent credit. FHA Loans are loans backed by the Federal Housing Administration and can be obtained with a minimum credit score of 580 and a down payment of 3.5%. They are best for borrowers with lower credit scores and are more flexible than Conventional Loans. VA Loans are loans backed by the Department of Veterans Affairs and are available to qualified veterans, service members, and their spouses. These loans have the lowest required down payment of 0%, and no mortgage insurance is required. USDA Loans are loans backed by the United States Department of Agriculture and are available to borrowers in rural areas. They have the lowest required credit score of 640 and the lowest down payment of 0%. These are the most common types of mortgage loans available to borrowers in Texas. Each mortgage loan has its own requirements and advantages, so borrowers should do their research and speak to a mortgage professional for advice before committing to a loan.

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What are the different types of mortgage loans?

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