Best mortgage lenders in Texas in 2024

If you’re looking to buy a home in Texas but aren’t sitting on a Texas-sized pile of cash, you’ll need to find a mortgage lender to help. Although you’re buying a home in The Lone Star State, your lender doesn’t necessarily have to be based there — in fact, many of the lenders that offer the most affordable deals don’t have much of a physical presence in the state. Get started with our list of best mortgage lenders in Texas.

Best mortgage lenders in Texas

How to find the best mortgage lender in Texas

While the best mortgage lender ultimately depends on individual circumstances and what feels “right” to you, it’s helpful to narrow down your options. Here are some tips:

• Set your priorities. Do you want to talk to a loan officer in person? Do you need a faster closing? Want to apply for and track your mortgage status through an app? Consider these and other questions as you come up with your short list of lenders.
• Get prequalified or preapproved. If you haven’t determined a homebuying budget, get prequalified for a mortgage first. This can help you understand how much a lender might allow you to borrow based on some preliminary financial information. If you’re ready to shop for homes, skip the prequalification and ask for a preapproval, which involves a credit check.
• Ask about first-time buyer and down payment assistance. Many mortgage lenders in Texas work with the state’s housing finance agency to connect eligible borrowers with more affordable mortgages and down payment help. Some programs are available to both first-time and repeat buyers, too. Compare what different lenders offer and how that might impact your budget.

Texas conforming loan limits

Depending on the type of loan you use to purchase your home, it might be subject to conforming loan limits:

• Conventional loan: $766,550 in most counties
• FHA loan: $498,257 in most counties

Check out Bankrate’s county-by-county listing of conforming loan limits in Texas to see what applies to you.

Texas first-time homebuyer programs

If you’re a first-time homebuyer in Texas, you might be able to qualify for assistance through the Texas Department of Housing and Community Affairs. The programs through this organization can help you get some of the lowest interest rates and up to 5 percent down payment assistance.

Eligibility is based on a few key factors, including your credit score and income and purchase price limits. In some cases, you could be limited in the lender you can work with, so start your search for a mortgage with the Texas Department of Housing and Community Affairs’ list of approved lenders.

Don’t limit your search for assistance to the state level, though. Depending on the city where you’re looking to buy, you might be able to find some additional help. For example, the city of El Paso has a down payment and closing cost assistance program that can help you borrow up to $5,000. If you live there for 10 years and meet certain conditions, the loan will be forgiven.

• Methodology

  To determine the best mortgage lenders by state, Bankrate evaluated lenders based on affordability, availability and borrower experience. The best lenders generally have a Bankrate Score of 4.8 or higher. Learn more about our methodology.