Lubbock House Hunt Blog: We are Here to Help!

This blog is a helpful starting place when you embark on your Lubbock House Hunt. Whether you've bought and sold a home before, or this is your first time, we hope this blog will be a wealth of information for you. Discover helpful tips, tricks, and information right here on our website. 

See ya soon,

the Lubbock House Hunt team

Dec. 30, 2017

The Difference Between FHA and Conventional Home Loans

What's the Difference Between FHA and Conventional Home Loans?

Not that it's this way everywhere, but the Lubbock real estate market is expanding and more people are buying homes than ever it seems. If you’re a first time homebuyer, or just not particularly savvy when it comes to buying a home it’s easy to become intimidated, so you need a good real estate team to shoot you straight. Well, we are here to shoot you straight, and we are only going to cover the basics. I’m going to talk about two categories of loan options that many people consider when buying a home: FHA vs Conventional. Let’s get started with our home loan introduction.

The FHA loan is authorized by the Federal Housing Administration, and has been in place since the 1930’s helping Americans eat a piece of the American Dream pie. The purpose of this loan is to stimulate growth in the housing market by making loans more accessible and affordable. Did you hear that? That word? Accessible. This is a great option for first time homebuyers wanting to get into a home sooner rather than later.

Unlike an FHA loan, conventional home loans are not backed by a government agency, and are not insured by the government. A conventional loan is essentially a broader category for different types of home loans, such as: conforming, non-conforming, jumbo, portfolio, and sub-prime. Each of these loans are all considered “conventional.” Here’s the difference between an FHA and conventional home loan (in a nutshell):

FHA loans

  • Easier to get approved
  • Require a 3.5% down-payment
  • Lower credit scores are acceptable (as low as 580)
  • Loans are government-insured
  • Allow for monetary gifts for down-payments
  • Requires mortgage insurance

Conventional loans

  • Stricter guidelines (set by the lender)
  • Can require 20% down-payment
  • Requires above average credit scores
  • Down-payments should be earned and saved by the borrower
  • No mortgage insurance is required

Whichever loan you choose is right for you, don't forget that if you're going to be buying a home to always get pre-qualified before you begin your search. It is extremely difficult to begin searching for homes if you do not know how much you can afford, nor if you can make an offer that will seal the deal with the seller.

Hopefully, with that short and basic home loan introduction, you have a general idea of what your needs are regarding home loans. If you have any questions regarding your Lubbock House Hunt don’t hesitate to contact us to see how we can serve you in your Lubbock real estate needs.


Posted in For Buyers
July 31, 2017

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates