Texas Mortgage Loan Types

Fixed Rate Loans

• 30-, 25-, 20-, 15- and 10-year terms are all available with fixed rate.

• Buy a home with as little as 5% down (primary home).

• Refinance up to 95% of your primary home's value.

• Monthly payments remain the same for the entire loan term.

Adjustable Rate Loans

• 3/1, 5/1, and 7/1 ARM's. Monthly payments based on a 30 year repayment schedule.

• The rate stays fixed for the first 3, 5, or 7 years (depending on chosen term), and then adjusting annually thereafter.

FHA Loans

• 3.50% minimum down payment required on purchase.

• Minimum credit score usually 620.

• Post-bankruptcy qualifying - 2 years after.

• Post-foreclosure qualifying - 3 years after.

VA Loans

• Competitive interest rates that are routinely lower than conventional rates.

• Sellers can pay up to 6 percent of closing costs and concessions.

• Higher allowable debt-to-income ratios than for many other loans.

• Down payment as low as 0%.

Which Texas Mortgage Is Right for You?

The best loan depends on your down payment, credit, military service, and how long you plan to stay in the home. Here is how the main Texas options compare:

• Fixed-rate: a stable payment for the life of the loan, best for long-term owners.
• Adjustable-rate (ARM): a lower starting rate for buyers with a shorter time horizon.
• FHA: 3.5% down and flexible credit, popular with first-time Texas buyers.
• VA: $0 down and no PMI for veterans and service members.
• Conventional and jumbo: for stronger credit profiles and loan amounts up to and above the 2026 Texas conforming limit of $832,750.

Not sure where you fit? Start the live-rate tool and we will match your scenario to the loan that costs you the least.