A wholesale lender is now participating in a program that will enable Texas mortgage brokers to offer loans that require less than 1 percent down.
The program, provided by the Southeast Texas Housing Finance Corp., is know as the 5 Star Texas Advantage Program.
It provides a 3 percent grant on loans insured by the Federal Housing Administration as well as mortgages guaranteed by the Department of Veteran’s Affairs or the U.S. Department of Agriculture.
On Monday, 360 Mortgage Group LLC announced that it has been designated as the exclusive provider of the SETH 5 Star Texas Advantage Program — Option 3 to lenders and has the capability to provide the product to its mortgage brokers.
As a result, brokers can offer down payments of just 0.50 percent on government mortgages. The 0.50 percent must come from the borrower’s own funds.
Properties in all areas of Texas except of El Paso, Grand Prairie and McKinney are eligible.
The maximum purchase price is $250,200, while the minimum FICO score is 600 and the maximum debt-to-income ratio is 45 percent.
Income limits are restricted by county, and only first-time homebuyers are eligible.
Brokers can access 360 Mortgage online at www.360mtg.com.
