Explore El Paso Mortgage Options
We offer a number of home purchase programs to meet your specific El Paso mortgage needs, including government-backed loans and refinances.
Our Simple & Transparent El Paso Mortgage Process
Whether you want to purchase a new home or refinance your existing El Paso mortgage, we provide a streamlined process.
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Understanding El Paso Mortgage Requirements
Your borrower profile, which includes your credit score, down payment size, and debt-to-income ratio, will determine what El Paso mortgage programs you can access.
For a conventional loan, you must have a credit score of 620 or better. Government-backed loans, such as FHA, VA, and USDA loans, often accept lower scores. For example, you can secure an FHA loan with a credit score as low as 500, though you must provide a higher down payment. Before you begin searching for properties, check your credit history, dispute any incorrect information, and pay down your debts.
Your debt-to-income ratio affects your interest rate, as it proves whether you’re a trustworthy borrower. Generally, you will need a 43% DTI or less for a conventional loan, while there is a little more flexibility for government-backed loans. Some FHA lenders may accept a DTI of up to 57%.
The higher your down payment, the lower your monthly payments are, and the more favorable rates you can secure. While providing a 20% down payment on a conventional mortgage will help you avoid PMI, some lenders will accept a down payment as low as 3%. VA loans and USDA loans require no down payment, while FHA loans allow a 3.5% down payment for those with a credit score of 580 or higher.
El Paso Down Payment Assistance Programs and Grants
When you start your search for a mortgage in the great state of Texas, you may feel disheartened by the high barriers to homeownership, including down payments. However, there are various assistance programs in El Paso that can help you meet your goals.
The El Paso HFC FTHB Program offers a grant of up to 5% of the home’s purchase price for those who meet the income and purchase price qualifications. You will need to complete a homebuyer education course to qualify.
The Texas State Affordable Housing Corporation (TSAHC) offers down payment assistance for those who secure one of their two loan options, the “Homes for Texas Heroes” program and the “Home Sweet Texas” program. You can receive either a grant or a forgivable second mortgage that only must be repaid if you sell the home. You need to have a 620 credit score to qualify.
Finally, you can secure up to 5% of the loan amount from the El Paso County Turnkey Plus Downpayment Assistance (DPA) program. This is a soft second mortgage with a 0% interest rate that is fully forgiven after 30 years. This program is open to any borrower, even those who are already homeowners.
Why Choose Arnaiz Mortgage for Your El Paso Home Loan?
Our team is committed to assisting our customers in finding loan options that fit their lifestyle, whether that is a conventional loan or a government-backed loan. We believe that trust is paramount in any transaction, so we’ll send the entire process to you, including fees, credit score requirements, and down payment stipulations. With Arnaiz Mortgage as your guide, you can feel confident in your decision, knowing you’re in the hands of brokers who understand your needs.
