Mortgage Process &
Loan Types
Think all home loans are the same? Think again. Discover which loan fits you best — and what the journey looks like from start to keys-in-hand.
Step by Step
How to Get a Mortgage Loan
Six straightforward steps from "thinking about it" to holding your keys.
Step 01
Choose Your Real Estate Team
Finding the right real estate agent is important — work with a professional who listens, communicates, and knows your community. But first, connect with a mortgage lender to run the numbers. Otherwise your home budget is just a guess.
Pro tip: Get pre-approved before you start house hunting. It makes your offer stronger.
Texas Mortgage Calculator
Estimate your monthly payment in seconds — including Texas property taxes, homeowner's insurance, and PMI if applicable. Adjust the sliders to match your scenario.
Texas Mortgage Calculator
Estimate your monthly payment — including Texas property taxes & insurance
Estimated Monthly Payment
Principal, interest, taxes & insurance
Payment Breakdown
P&I Only
$1,703
Total Interest
$351,886
Find Your Fit
Understanding Different Types of Home Loans
Not all home loans are the same. Knowing a bit about each helps you have smarter conversations and find the best fit for your situation.
Fixed-Rate Mortgage
The "Predictable is Beautiful" Loan
Your rate and monthly payment stay the same, year after year. No surprises, no drama. The most popular loan type for a reason — stability and peace of mind.
Min. Down
As low as 3%
Min. Credit
620+
Adjustable-Rate Mortgage (ARM)
The "Low Upfront, Ride the Rate Later" Loan
Start with a lower interest rate (and lower payments) but be ready for it to adjust over time. Best for buyers who plan to sell or refinance within 5–7 years.
Min. Down
As low as 5%
Min. Credit
620+
Jumbo Mortgage
The "Big Dreams, Big Cities, Big Loans" Loan
Need a pricier place? Jumbo loans cover homes above standard conforming limits ($766,550 in most Texas counties), often with stricter credit requirements.
Min. Down
10–20%
Min. Credit
700+
FHA Loan
The "Still Building My Credit" Loan
Easier credit qualifications and smaller down payments — perfect if you're not rocking a perfect score yet. Backed by the Federal Housing Administration.
Min. Down
3.5%
Min. Credit
580+
VA Loan
The "Thank You for Your Service" Loan
Zero down payment required, no mortgage insurance necessary, and great rates — for eligible veterans, active-duty service members, and surviving spouses.
Min. Down
$0
Min. Credit
620+
USDA Loan
The "Country Roads, Take Me Home" Loan
Low-to-no down payment loans for homes in eligible rural and suburban Texas areas. Many Texas communities outside major metros qualify.
Min. Down
$0
Min. Credit
640+
Bank Statement Loan
The "Self-Employed Superstar" Loan
No traditional W-2s? No problem. Use your bank statements to show you're good for it. Perfect for freelancers, business owners, and the self-employed.
Min. Down
10–20%
Min. Credit
660+
DSCR Loan
The "Let the Property Pay for Itself" Loan
All about the property's income, not yours. Perfect for real estate investors who want the rental's cash flow to do the talking.
Min. Down
20–25%
Min. Credit
660+
Renovation Loan
The "Fixer-Upper Glow-Up" Loan
Love the location but not the layout? This loan helps you renovate a home you're buying (or currently own). Roll purchase price and renovation costs into one loan.
Min. Down
3.5–5%
Min. Credit
580+
My First Texas Home (TDHCA)
The "Homegrown Help" Program
Texas Department of Housing and Community Affairs offers below-market interest rates plus up to 5% in down payment and closing cost assistance for first-time buyers.
Min. Down
As low as 0%
Min. Credit
620+
Home Sweet Texas (TSAHC)
The "Free Grant" Program
Texas State Affordable Housing Corporation offers grants — not loans — of up to 5% for down payment and closing costs. You never have to repay it.
Min. Down
As low as 0%
Min. Credit
620+
Mortgage Credit Certificate (MCC)
The "Annual Tax Savings" Program
Reduce your federal tax liability by up to $2,000 every year you live in your home. Stacks with other programs for maximum savings.
Min. Down
Varies
Min. Credit
620+
Only in Texas
Texas Home Buying Programs Explained
Texas has some of the most generous first-time buyer programs in the country — and most buyers never hear about them. Here's exactly what each one does and how to use them.
My First Texas Home — TDHCA
Texas Department of Housing & Community Affairs
The My First Texas Home program is run by the Texas Department of Housing and Community Affairs (TDHCA). It offers first-time buyers a 30-year fixed-rate mortgage at a below-market interest rate, plus up to 5% of the loan amount in down payment and closing cost assistance — structured as a no-interest, deferred second lien that doesn't require monthly payments.
The assistance only becomes due if you sell, refinance, or pay off the home before the end of the loan term — making it essentially free money for buyers who stay in their home long-term.
Home Sweet Texas — TSAHC
Texas State Affordable Housing Corporation
The Home Sweet Texas program from TSAHC is unique because the down payment assistance comes as a grant — not a loan. That means you receive up to 5% of the loan amount toward your down payment or closing costs and you never have to pay it back, regardless of how long you stay in the home.
TSAHC also offers a second option: a deferred forgivable second lien (similar to TDHCA). Both options are available statewide and don't require you to be a first-time buyer — making it accessible to a wider range of Texans.
Mortgage Credit Certificate — MCC
Federal Tax Credit for Texas Homeowners
The Mortgage Credit Certificate (MCC) is a federal tax credit — not a deduction — that lets you reduce your federal income tax bill by up to $2,000 every single year you live in your home. It's calculated as 20–40% of the mortgage interest you pay annually.
Unlike a deduction that only reduces taxable income, a tax credit reduces your actual tax bill dollar-for-dollar. Over a 30-year mortgage, that can add up to $60,000 in total tax savings. Best of all, it stacks with TDHCA and TSAHC programs.
Not sure which program you qualify for? Our network of Texas mortgage professionals will walk you through every option — free.
Find a Texas Mortgage ProThere's More to a Mortgage Than the Rate
Interest rates get a lot of attention, but they're only part of the story. Your credit score, down payment, loan type, and Texas assistance programs all play a major role in your total cost.
Credit Score
Higher scores unlock better rates and more loan options.
Down Payment
More down = lower monthly payment and no PMI on conventional loans.
Loan Product
The right program can save you thousands in Texas assistance.
Have Questions? Our Pros Have Answers.
Our network of Texas mortgage professionals love to deep-dive into loan types, rates, and programs. Connect with one — it's free and there's no obligation.