Mortgage Loan Programs in Texas: Compare Your Options
Liberty Home Mortgage offers conventional, FHA, VA, USDA, jumbo, and specialty loan programs for Texas borrowers. Each program has different down payment, credit, and income requirements. The right fit depends on your credit score, down payment savings, and property location, and the fastest way to compare is one call.
By Aslam Mansoor, Senior Loan Officer, NMLS #184238, Liberty Home Mortgage, NMLS #321164. Over 20 years guiding Texas families through purchase, refinance, and investment loan options.
Reviewed against current agency guidelines, September 28, 2026. Questions? Call 972-466-2551.
Mortgage loan programs (quick answer): The core Texas options are conventional loans (3% down first-time buyer programs), FHA (3.5% down at 580+), VA (0% down for eligible veterans), USDA (0% down in eligible rural areas), jumbo loans above $832,750, and specialty programs such as bank statement, DSCR, ITIN, foreign national, and Halal partnership financing. One program is used per transaction, and down payment assistance can pair with FHA or conventional.
What Mortgage Loan Programs Are Available in Texas?
Core programs
- Conventional: 3% down first-time buyer options through HomeReady and Home Possible; standard loans from 5% down. Private mortgage insurance cancels near 80% loan-to-value.
- FHA: 3.5% down at 580 or higher; flexible credit and debt-to-income rules; mortgage insurance lasts 11 years at 10% down, otherwise for the loan's life.
- VA: 0% down for eligible veterans and active duty; no monthly mortgage insurance; funding fee applies unless exempt.
- USDA: 0% down in eligible rural and suburban areas; income limits apply; guarantee fee instead of monthly mortgage insurance.
- Jumbo: loans above the $832,750 conforming limit, with higher reserve and credit expectations.
- Down payment assistance: Texas programs such as TSAHC offer 2% to 5% assistance, subject to program guidelines, income and purchase price limits, and funding availability.
Which Loan Program Is Best for First-Time Buyers in Texas?
First-time buyers in Texas have several strong options. The best mortgage loan depends on your credit score, down payment savings, and property location:
- FHA (3.5% down): best for credit scores between 580 and 679; more forgiving debt-to-income rules.
- Conventional 3% down (HomeReady / Home Possible): best for scores of 680 and above; lower insurance that cancels at 80% loan-to-value; income limits may apply.
- VA (0% down): best for eligible veterans and active duty; no monthly mortgage insurance.
- USDA (0% down): best for rural and suburban buyers; income limits apply.
What Specialty Programs Exist for Self-Employed and Unique Borrowers?
Beyond standard agency loans, we offer programs for borrowers with non-traditional profiles:
- Bank statement loans: for self-employed borrowers using 12 to 24 months of business or personal bank statements instead of tax returns.
- DSCR loans: for investment property buyers qualifying on rental income rather than personal income. Available in 38 confirmed states, not nationwide.
- ITIN loans: for borrowers using an Individual Taxpayer Identification Number.
- Foreign national loans: for non-U.S. citizens purchasing in Texas.
- Halal partnership financing: Sharia-compliant co-ownership financing for eligible clients.
How Do I Choose the Right Loan Program, Step by Step?
- List your credit score, savings, and monthly budget honestly.
- Match your profile to two or three candidate programs from the comparison above.
- Compare total monthly cost, including mortgage insurance, taxes, and insurance, not just the rate.
- Get pre-approved on the strongest candidate before you shop.
- Lock your program and rate once you are under contract.
Why Liberty Home Mortgage
We are a Dallas–Fort Worth mortgage broker. One loan officer handles your file, and we compare pricing across multiple wholesale investors on the same day, so you see real options instead of one bank's rate sheet. Same-day pre-approval review is available for qualified borrowers. Call 972-466-2551.
Texas Loan Program Cases
Illustrative example: Lewisville FHA first-timer
A Lewisville first-time buyer with a 640 credit score purchased a $295,000 home using FHA with 3.5% down. The monthly payment including MIP, taxes, and insurance came to about $2,340.
Illustrative example: Plano HomeReady buyer
A Plano first-time buyer with a 710 credit score used HomeReady with 3% down on a $380,000 home. The private mortgage insurance auto-canceled after the balance reached 78% loan-to-value.
Both examples are illustrative only. Your figures depend on credit, pricing, and property. Call 972-466-2551 for numbers based on your situation.
Where Liberty Home Mortgage lends
Frequently Asked Questions About Mortgage Loan Programs
Which loan program is best for first-time buyers?
FHA and conventional low-down-payment programs are the most popular for first-time buyers, while VA and USDA offer zero down for eligible borrowers. The best choice depends on your credit, income, and property type, so compare total monthly cost across two or three programs before you commit.
What is the minimum down payment for a conventional loan?
Conventional loans may be available with as little as 3% down for first-time buyers through Fannie Mae HomeReady and Freddie Mac Home Possible, subject to qualification and income limits. Standard conventional loans generally start at 5% down.
Can I get a mortgage with no down payment?
VA and USDA loans offer zero down payment for eligible veterans and rural buyers. Some down payment assistance programs may also cover the full down payment when paired with FHA or conventional financing, subject to program guidelines and funding availability.
What is a Non-QM loan?
Non-QM loans fall outside standard agency guidelines. They serve self-employed borrowers, investors, and those with unique income documentation, such as bank statement or asset depletion programs. Terms vary by investor and are subject to program requirements.
Are jumbo loans harder to qualify for?
Jumbo loans typically require higher credit scores, larger cash reserves, and lower debt-to-income ratios because they exceed the conforming loan limit of $832,750 for 2026. Strong files still price well, and we shop multiple investors for jumbo pricing.
Can I use multiple loan programs together?
No. Each transaction uses one primary loan program. However, down payment assistance programs can pair with FHA or conventional loans, and some buyers layer seller concessions on top of their primary program within agency limits.
Helpful Resources
Not sure which loan program fits you? Call 972-466-2551 and we will compare your options across multiple wholesale investors. You can also apply online or contact us.
Liberty Home Mortgage is licensed by the Texas Department of Savings and Mortgage Lending, NMLS #321164. Equal Housing Lender. All loans are subject to credit and property approval; rates, terms, and program availability are subject to change without notice. This page is not a commitment to lend and is provided for general information only. This is not legal or tax advice.