Buying your first home in Texas is a big step and finding the right mortgage shouldn’t make it harder. That’s why so many first-time buyers trust our expert team. Known for delivering reliable service and competitive home loan options, we’ve earned a reputation as one of Texas’s most trusted mortgage lenders.
Types of Texas Home Loans
Texas Conventional Loans
Conventional loans are one of the most widely used mortgage options for homebuyers in Texas. These loans are not backed by the government and must meet the conforming loan limits set by the Federal Housing Finance Agency (currently $548,250 for most areas). Here’s why conventional loans are a top choice for Houston-area buyers:
Key Benefits of Conventional Loans in Texas:
-
Ideal for Buyers with Strong Credit: Best suited for borrowers with good to excellent credit histories.
-
Low Down Payment Options: Qualified buyers may put down as little as 3%.
-
Flexible Credit Requirements: More forgiving on credit scores if there are no recent major credit events (such as foreclosures or bankruptcies).
-
Greater Purchasing Power: Offers more flexibility and higher limits compared to FHA loans.
-
Competitive Debt-to-Income Ratio: Allows a DTI of up to 45%, giving you more room in your budget.
-
High Loan Limits: In areas like Montgomery County, loan amounts can go up to $548,250.
-
No Income Restrictions: Unlike some government-backed loans, there are no income caps with conventional financing.
Whether you’re buying a home in Houston, The Woodlands, or anywhere in Texas, a conventional loan can be a smart, flexible option- especially for financially prepared buyers.
Texas FHA Loans
FHA loans continue to be a popular option for homebuyers in Houston and throughout Texas. Backed by the Federal Housing Administration, this loan program is especially appealing to first-time buyers and those with lower credit scores.
Top Benefits of FHA Loans in Texas:
-
Lower Credit Score Requirement: Buyers may qualify with a credit score as low as 580
-
Low Down Payment: Only 3.5% down is required for most buyers
-
Great for Entry-Level Homes: A solid choice for homes priced at $331,200 or less
-
Higher Debt-to-Income Ratio Allowed: FHA loans accept DTI ratios up to 57%, offering more flexibility
Texas FHA loans provide an affordable path to homeownership for buyers who need flexible credit and income guidelines. This loan is a strong fit for those who may not qualify for conventional financing.
Texas VA Loans
For eligible veterans, active-duty service members, and qualifying military spouses, VA loans offer one of the best mortgage options available in Texas. With no down payment required and flexible credit guidelines, a VA loan can make homeownership in Houston more affordable and accessible.
Top Benefits of VA Loans in Texas:
-
Zero Down Payment: Qualified buyers can finance 100% of the home’s value
-
No Mortgage Insurance: Unlike other loan types, VA loans do not require monthly mortgage insurance
-
Government Backed: Backed by the U.S. Department of Veterans Affairs, even in cases of borrower default
-
Easier Qualification: Lower credit score requirements make approval more attainable
-
Lower Closing Costs: VA buyers often pay less at closing compared to other loan programs
Texas VA loans provide powerful advantages to those who have served, making it easier to achieve homeownership with fewer upfront costs and long-term savings.
Texas HELOC (Home Equity Line of Credit)
A Home Equity Line of Credit, or HELOC, allows Texas homeowners to tap into the equity they’ve built in their property. This revolving line of credit functions like a credit card, giving you access to funds as needed, whether you’re planning home improvements, covering unexpected expenses, or consolidating debt.
Key Benefits of a Texas HELOC:
-
Access to Cash When You Need It: Borrow only what you need, when you need it
-
Interest-Only Payments During Draw Period: Keep monthly payments low while you use the line
-
Revolving Credit Line: Reuse the available balance as you repay
-
Flexible Use of Funds: Ideal for renovations, medical bills, tuition, or emergencies
-
Competitive Interest Rates: Often lower than personal loans or credit cards
A Texas HELOC is a smart, flexible option for homeowners who want to leverage their home’s value without refinancing their current mortgage. It’s a popular financial tool for those looking to keep borrowing costs low while maintaining financial flexibility.
Want to Learn About More Texas Loan Products?
Whether you’re buying your first home, refinancing, or tapping into your equity, there are loan options tailored to fit your financial goals. In addition to Conventional, FHA, VA, and HELOC options, we offer a full range of mortgage solutions designed to serve homebuyers across Texas.
Additional Texas Loan Products Include:
-
Jumbo Loans for high-value homes above the conforming loan limits
-
Refinance Loans to lower your rate, reduce your term, or cash out equity
-
Construction Loans for building your dream home from the ground up
-
Investment Property Loans for buyers looking to grow their real estate portfolio
If you’re unsure which loan is right for you, our team is here to help you explore your options and find the best fit. Reach out today to speak with a local Texas mortgage expert.
How Do You Qualify to Get A Mortgage In Texas?
Qualifying for a Mortgage May Be Easier Than You Expect
Buying a home is one of the biggest financial decisions you’ll ever make. While the idea of borrowing $200,000 or more can seem overwhelming, the process doesn’t have to be complicated or stressful—especially with the right support.
Many first-time buyers feel nervous before meeting with a lender, but a good loan officer will walk you through every step and help you understand your options. If your finances are in good shape, qualifying for a mortgage is often more straightforward than you think.
At your initial meeting, your lender will review your financial profile and discuss your homebuying goals. As you move forward, you’ll need to provide documentation to verify your income, credit, employment, and assets.
If you’re planning to buy a home in Houston, here’s what you’ll typically need to qualify for a mortgage:
-
Proof of income (W-2s, pay stubs, or tax returns)
-
Employment history
-
Credit report
-
Bank statements and asset documentation
-
Debt and expense information
Getting pre-qualified is a smart first step that helps you understand your buying power and shows sellers you’re serious. With the right guidance, homeownership in Texas is well within reach.
Proof of Employment
To qualify for a mortgage in Texas, lenders need to see that you have a reliable and consistent income. Steady employment reassures lenders that you’re financially capable of repaying the loan over time.
Most lenders will ask for recent pay stubs and may contact your employer to verify your job status and salary.
If you’re self-employed, the process looks a bit different. Lenders will review several key factors, including:
-
The consistency of your income
-
The location and longevity of your business
-
The ongoing demand for your services or products
Self-employed applicants are typically required to provide personal and business tax returns for the past two years, along with additional documentation to verify income and business stability.
Whether you’re a salaried employee or a business owner, having clear proof of income is an essential part of securing a home loan in Texas.
Proof of Income
Lenders need to verify your income to determine how much you can afford to borrow. Along with confirming your employment, your lender will typically request recent pay stubs and W-2 forms from the past two years.
If you receive any additional income, such as bonuses, commissions, rental income, or side business revenue, you will need to provide documentation for those sources as well.
Your total income helps the lender decide the loan amount you qualify for when purchasing a home in Texas. Providing accurate and complete income records is an important step in the mortgage approval process.
Credit Verification
Before applying for a mortgage, it’s a good idea to pay down any outstanding credit card debt. A higher credit score can help you secure a better interest rate, which can save you thousands over the life of your loan.
When you apply, lenders will pull your credit report to review your FICO score and assess your current debt. They also look closely at your debt-to-income (DTI) ratio to determine your ability to manage monthly payments.
While it’s possible to qualify for some mortgage programs with a credit score as low as 620, improving your score before applying can increase your loan options and lower your overall borrowing costs.
Proof of Assets and Down Payment
Lenders will ask for documentation to confirm you have enough funds to cover your down payment and closing costs. This typically includes bank statements, investment account summaries, and proof of any cash reserves.
If you are not putting down at least 20 percent of the home’s purchase price, you may be required to pay for private mortgage insurance or a funding fee, depending on the loan type. These extra costs help protect the lender but can be reduced or avoided with a larger down payment.
Personal Identification and Authorization
When you meet with your mortgage lender, you’ll need to provide a few key items to get the process started. This includes a valid photo ID, your Social Security number, and written authorization to access your credit history.
These documents allow your lender to verify your identity and run a credit check, which is a required step in getting pre-approved for a home loan.
Being organized and ready to provide what’s needed will help speed things up and show lenders you’re serious about buying a home.
Ready to take the next step? Contact us today to receive a full list of documents to gather before applying for your mortgage.
VA Lending Locations
Texas VA Loans, Laredo TX, Wichita Falls TX, Garland TX, San Antonio TX, Corpus Christi TX, Houston TX, Fort Worth TX, Dallas TX, El Paso TX Colorado, Colorado Springs CO
VA Lending Resources
How to Get a VA Loan in Texas, VA Lending Guide Fort Worth, TX
