Texas Home Loan Options for Every Buyer
FHA, VA, USDA, Conventional, DSCR, Reverse Mortgages, and Texas down payment assistance — compare every home loan program available in Texas and find the path that fits your credit, budget, and property goals.
Compare Texas Mortgage Options
A side-by-side look at current 2026 down payment rules, credit guidelines, Texas loan limits, and down payment assistance compatibility.
| Loan Type | Min. Down Payment | Min. Credit Score | 2026 Texas 1-Unit Limit | MI / Fee | DPA Compatible? |
|---|---|---|---|---|---|
| FHA | 3.5% (580+) / 10% (500–579) | 580 (3.5% down) / 500 (10% down) | $541,287 floor; $571,550 Austin MSA, $563,500 DFW, $557,750 San Antonio ($813,050 Glasscock County per HUD lookup) | 1.75% upfront + annual MIP | Yes (TDHCA & TSAHC) |
| Conventional (Conforming) | Set by program | 620 for TDHCA MCTH | $832,750 in all 254 Texas counties | Private MI set by lender | Yes (TDHCA MCTH & TSAHC) |
| VA | No down payment* | No VA minimum* | No VA limit with full entitlement ($832,750 max for Texas VLB VHAP) | No PMI/MIP; VA funding fee applies unless exempt | Yes |
| USDA (502 Guaranteed) | No down payment (100% financing) | No handbook minimum* | No fixed dollar cap (area & income limits apply) | 1.00% upfront + 0.35% annual fee | Yes |
| FHA 203(k) Rehab | 3.5% (580+) | 580 (3.5% down) / 500 (10% down) | County FHA limit (repairs up to $75,000 on Limited; $5,000+ min on Standard) | FHA UFMIP & annual MIP | Not allowed in TDHCA programs |
| Texas Home Equity / HELOC | 20%+ equity required (80% max CLTV) | Set by lender | Up to 80% of homestead fair market value | 2% fee cap (with statutory exclusions) | No |
| Reverse Mortgage (HECM) | N/A (uses home equity) | N/A | $1,249,125 HECM maximum claim amount | Per FHA HECM rules; non-recourse | No |
| DSCR & Foreign National | Set by non-QM lender | Set by non-QM lender | Varies by lender | Varies | No |
*VA and USDA handbooks set no fixed minimum credit score, though individual lenders may apply their own credit overlays; TDHCA down payment assistance programs require a 620 minimum middle credit score. Confirm current limits and daily rates with a participating lender.
Best Texas Loan by Buyer Profile
Match your situation to the Texas mortgage or assistance program built for it.
| Buyer Profile | Recommended Path | Why It Works in Texas |
|---|---|---|
| First-time buyer needing down payment help | FHA + TDHCA or TSAHC DPA | 3.5% down with a 580+ score; TDHCA My First Texas Home and My Choice Texas Home offer 2% to 5% assistance (620+ score required for TDHCA) |
| Repeat buyer or higher-balance purchase | Conventional (Conforming) | $832,750 baseline limit across all 254 Texas counties; pairs with TDHCA My Choice Texas Home (no first-time buyer or price limit) |
| Veteran, active-duty military, or surviving spouse | VA Loan or Texas VLB VHAP | No down payment and no PMI/MIP on VA loans; Texas VLB offers up to $832,750 and a rate discount for veterans with a 30%+ disability rating |
| Buyer in an eligible rural or small-town area | USDA Section 502 Guaranteed | 100% financing with a 1.00% upfront fee and 0.35% annual fee for households at or below the moderate-income limit ($122,800 base for 1–4 persons in most counties) |
| Teacher, first responder, or veteran | Homes for Texas Heroes (TSAHC) | Down payment assistance and Mortgage Credit Certificate options tailored for Texas public servants and veterans through participating lenders |
| Buyer purchasing a fixer-upper | FHA 203(k) Rehabilitation | Finance purchase and repairs in one loan: up to $75,000 for nonstructural work (Limited) or larger structural projects (Standard) |
| Texas homeowner tapping equity | Section 50(a)(6) Home Equity / HELOC | Borrow up to 80% combined LTV under Texas constitutional rules, with a 2% fee cap, 12-day waiting period, and $4,000 minimum HELOC draws |
| Texas homeowner age 62+ | Reverse Mortgage (HECM) | Convert homestead equity to cash with no required monthly principal or interest payment and a $1,249,125 2026 HECM claim limit |
| Real estate investor (long-term or STR) | Texas DSCR Loan | Qualify on rental cash flow; Texas has no state personal income tax (though rentals do not receive homestead property tax exemptions and STRs owe state and local hotel occupancy tax) |
| Condo or non-U.S. resident buyer | Texas Condo or Foreign National Loan | FHA Single-Unit Approval or Fannie Mae project review for condos (with a $375 max resale certificate fee under Property Code Ch. 82); non-QM options for eligible foreign buyers subject to Texas SB 17 rules |
FHA Loans in Texas
Backed by the Federal Housing Administration under HUD Handbook 4000.1, FHA loans allow a 3.5% minimum down payment with a 580+ credit score (or 10% down with a 500–579 score). For 2026, the Texas 1-unit FHA loan limit is $541,287 in most counties, rising to $557,750 in the San Antonio metro, $563,500 in Dallas-Fort Worth, and $571,550 in the Austin-Round Rock-San Marcos metro (HUD's lookup also lists $813,050 for Glasscock County; confirm with a lender). FHA loans carry a 1.75% upfront MIP and an annual MIP (0.55% for the life of the loan on a 30-year purchase with 3.5% down and a base loan of $726,200 or less) and allow interested-party contributions up to 6% of the sales price.
VA Loans in Texas
VA purchase loans offer no down payment (as long as the sales price does not exceed appraised value), no private mortgage insurance, and no VA loan limit for borrowers with full entitlement. The VA funding fee is 2.15% on a first-use purchase with less than 5% down and is waived for veterans receiving VA disability compensation. Eligible Texas veterans can also explore the Texas Veterans Land Board (VLB) Veterans Housing Assistance Program (up to $832,750, with a rate discount for a 30%+ service-connected disability rating) and Texas property tax exemptions, including a 100% residence homestead exemption for 100% disabled veterans under Tax Code §11.131.
Texas Down Payment Assistance Programs
Texas buyers can pair FHA, VA, USDA, or conventional loans with state and local down payment assistance through a participating lender. TDHCA offers My First Texas Home (FHA, VA, and USDA loans for first-time buyers, veterans, or targeted-tract buyers, with 2% to 5% assistance as a 0% second lien and a 15% Mortgage Credit Certificate option) and My Choice Texas Home (open to repeat buyers, includes conventional HFA loans, and has no purchase price limit). TSAHC runs the Homes for Texas Heroes and Home Sweet Texas Home Loan programs. TDHCA requires a 620 minimum credit score and a HUD-certified homebuyer education course; our team helps you compare options and get connected.
Conventional & Conforming Loans
Conforming loans follow Fannie Mae and Freddie Mac standards. For 2026, FHFA set the baseline 1-unit conforming loan limit at $832,750 (with 2-unit at $1,066,250, 3-unit at $1,288,800, and 4-unit at $1,601,750). Because no Texas county is designated as a high-cost area, all 254 Texas counties share the $832,750 1-unit limit. Buyers using TDHCA My Choice Texas Home can pair Fannie Mae HFA Preferred or Freddie Mac HFA Advantage 30-year fixed loans with 2% to 5% down payment assistance through a participating lender.
USDA Loans in Texas
USDA Section 502 Guaranteed loans provide 100% financing (no down payment) for primary residences in USDA-designated rural areas. For FY2027, the upfront guarantee fee is 1.00% and the annual fee is 0.35%. Total adjusted household income cannot exceed the area moderate-income limit—effective July 13, 2026, that limit is $122,800 for a 1–4 person household ($162,100 for 5–8 persons) in most Texas counties, and higher in certain metros such as Austin ($153,550 for 1–4 persons) and Dallas ($139,300). Every property address must be checked on the USDA eligibility map.
Renovation FHA 203(k) Loans
An FHA 203(k) rehabilitation mortgage lets Texas buyers finance both the purchase of a home and the cost of repairs into a single loan, capped at the county FHA loan limit ($541,287 in most counties; $571,550 in the Austin metro). The Limited 203(k) covers minor remodeling and nonstructural repairs up to $75,000 in total rehabilitation costs with a 9-month completion limit. The Standard 203(k) covers structural work and major remodeling with a $5,000 minimum repair budget, a required 203(k) Consultant from FHA's Consultant Roster, and up to 12 months to complete work. Note that FHA 203(k) loans cannot be used with TDHCA programs.
HELOCs Texas Home Equity Loans &
Texas protects homesteads under Article XVI, Section 50 of the Texas Constitution. Any cash-out refinance, home equity loan under Section 50(a)(6), or HELOC under Section 50(t) is capped at 80% combined loan-to-value of the home's fair market value. Lender fees are capped at 2% of the original principal (excluding bona fide discount points, third-party appraisal, survey, and base title policy premium or title exam). Texas law also requires a 12-calendar-day waiting period after application and constitutional notice, a final itemized disclosure at least one business day before closing, closing only at a lender, attorney, or title company office, spousal consent, a limit of one equity loan on the homestead at a time (and no more than one every 12 months), and a $4,000 minimum per HELOC advance with no credit or debit card access.
Reverse Texas Mortgages
Governed by Texas Constitution Section 50(a)(7) and Section 50(k) alongside federal HUD rules, a Home Equity Conversion Mortgage (HECM) lets homeowners age 62 and older convert home equity into loan advances—or purchase a new Texas homestead—without required monthly principal or interest payments. For 2026, the nationwide FHA HECM maximum claim amount is $1,249,125. Borrowers must remain current on property taxes, insurance, and maintenance. Texas requires HUD-approved counseling between 180 and 5 days before closing, a signed 12-day borrower notice, and consent from each owner and spouse.
DSCR Texas Investor Loans
Debt Service Coverage Ratio (DSCR) loans let real estate investors finance Texas long-term rentals, short-term rentals, and cash-out refinances based on property cash flow rather than personal tax returns. Texas prohibits a state personal income tax under Article VIII, Section 24-a of the Texas Constitution, though investors should account for two state realities: rental properties do not qualify for residence homestead property tax exemptions (such as the $140,000 school district exemption), and short-term rentals of fewer than 30 consecutive days are subject to the 6% Texas state Hotel Occupancy Tax plus local city/county hotel taxes and city permit or zoning rules in markets like Austin, San Antonio, Dallas, Houston, Fort Worth, and Galveston.
Condo Texas Loans
Financing a condominium in Texas involves reviewing both the borrower and the condo association. Under Fannie Mae Full Review standards, no more than 15% of units may be 60+ days past due on assessments, and the HOA budget must allocate at least 10% to replacement reserves; projects with condo-hotel features, over 35% commercial space, or unfunded critical repairs over $10,000 per unit are ineligible for agency delivery. For FHA buyers, HUD offers full project approval (minimum 50% owner-occupancy for most projects) as well as Single-Unit Approval in unapproved projects of 5 or more units where FHA concentration does not exceed 10% (or 2 units in projects under 10 units). Under the Texas Uniform Condominium Act (Property Code §82.157), sellers must provide a resale certificate prepared within 3 months of delivery, and the HOA fee for the certificate is capped at $375.
Foreign National Loans in Texas
Lawful permanent and non-permanent resident non-citizens who are legally present in the U.S. can qualify for Fannie Mae conventional loans under the same terms as U.S. citizens, while lawful permanent residents (along with citizens of the FSM, Marshall Islands, and Palau) are eligible for FHA financing. Buyers living abroad who are not lawfully present in the U.S. typically use non-QM foreign national mortgage programs. Note that Texas SB 17 (Property Code Chapter 5, Subchapter H, effective September 1, 2025) restricts acquisitions of Texas real property by governments, companies, and individuals domiciled in or connected to designated countries identified as national-security risks in recent DNI Annual Threat Assessments (with a residence homestead exception for individuals lawfully present and residing in the U.S. at the time of purchase, and complete exemptions for U.S. citizens and lawful permanent residents).
Find Your Best Texas Home Loan
Check your eligibility, compare Texas loan and down payment assistance options, and get connected — free, with no obligation.