Best mortgage lenders in Texas in 2022

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Editor’s note: The Bankrate Score considers a mortgage lender’s products and services only; it is not a reflection of a lender’s internal operations or practices. We continuously evaluate each lender we review to ensure the Bankrate Score is consistent with this methodology. If you’d like to consider other lenders, visit Bankrate’s lender review hub.

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. Whether you’re looking to wear your cowboy boots in Amarillo, cheer for the Cowboys in Dallas or say howdy to the Energy Capital of the World, how much mortgage you’ll need depends on where you want to call home. Get started with our list of best mortgage lenders in Texas.


Methodology

To determine the best mortgage lenders by state, Bankrate evaluated lenders based on several criteria, including affordability (APR, discounts and/or incentives); availability (approval/closing timelines, loan products); and experience (application process, customer service). We also evaluated lenders through the lens of different types of borrowers in Texas using Bankrate’s comparison tool.


Best mortgage lenders in Texas

Lower

Lower mortgage review

Loans offered Credit requirements Highlights Good if
Purchase and refinance; conventional, jumbo, FHA, VA, USDA, investment property 620-640 for conventional loans Offers e-signature for loan documents and a convenient mobile app; matches down payment savings up to $500; waives lender fees if you ever want to refinance You want to make a small down payment

Pros

  • Fast closings (average of 21 days)
  • Offers a down payment saving matching program that can help you score up to $500
  • Will issue a lender credit for the $995 origination fee in some cases

Cons

  • Doesn’t appear to work with borrowers who have less-than-perfect credit
  • Does not accept alternative credit data such as rent history when processing loan applications

Better.com

Better.com mortgage review

Loans offered Credit requirements Highlights Good if
Purchase and refinance; conventional, jumbo, FHA, bridge loan 620 for conventional loans Preapprovals in as little as three minutes; 24/7 online and phone customer support; doesn’t charge lender fees You’re looking to save on upfront fees

Pros

  • Digital experience makes applying painless
  • Doesn’t ever charge lender fees
  • Automated system can issue a preapproval in as little as three minutes

Cons

  • No VA or USDA loans
  • No home equity lines of credit (HELOCs) or home equity loans

Ally Bank

Ally Bank mortgage review

Loans offered Credit requirements Highlights Good if
Purchase and refinance; conventional, jumbo 620 for conventional loans; 700 for jumbo loans No lender fees; as little as 10 percent down for jumbo loans You’re looking for a jumbo loan

Pros

  • No lender fees
  • Closings faster than the industry average
  • Lower down payment requirement for jumbo loans than many lenders

Cons

  • No branch locations
  • No government-backed loans offered

Interfirst Mortgage Company

Interfirst Mortgage Company review

Loans offered Credit requirements Highlights Good if
Purchase and refinance; conventional, jumbo, investment property 620 for conventional loans No lender fees; preapprovals in one day; easy online application You want to refinance

Pros

  • No lender fees
  • Closings between 30 and 45 days

Cons

  • Doesn’t offer FHA, VA or USDA loans
  • Website doesn’t offer much information

Veterans United Home Loans

Veterans United Home Loans review

Loans offered Credit requirements Highlights Good if
Purchase and refinance; conventional, jumbo, FHA, VA, USDA 620 for conventional loans and VA loans Three branches in Austin, Killeen and San Antonio; considers non-traditional credit data; 24/7 customer support; free credit counseling services and comprehensive website with everything you need to know about VA loans You’re looking for a VA loan

Pros

  • Will consider non-traditional credit data in your application
  • Specializes in VA loans but also offers other options
  • Three Texas branches

Cons

  • No HELOCs or home equity loans
  • Might charge lender fees
  • 620 credit score required

Texas conforming loan limits

As you work toward securing a mortgage, know that your mortgage lender isn’t the only one with requirements in place for approval. The amount you borrow might need to fall under conforming limits depending on your loan.

If it’s a conventional mortgage, the cap is $647,200 — the limit imposed by the Federal Housing Finance Agency in 2022.

If it’s backed by the FHA, your budget will need to be smaller. In most counties in Texas, FHA loans cannot exceed $420,680 in 2022. Browse Bankrate’s county-by-county loan limits in Texas as you decide where to start looking for a home.

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.

Why it pays to shop for a mortgage lender

When finding the best mortgage lender, think through what would make for the best deal for your situation. Are you hoping to get into a new home in Texas by rolling your closing costs into the loan, so you avoid paying any out-of-pocket money right now? Do you want to borrow a much bigger pile of cash for a more expensive property? What’s the property going to be used for — your primary residence, or potentially a vacation home that can also earn some rental income when you aren’t there? In addition, think about the overall market. While record-low rates made headlines last year, all signs point to rising interest rates throughout 2022. Once you find an attractive rate, ask your lender to lock the rate to eliminate the potential of paying more if rates increase.

Summary: Best mortgage lenders in Texas

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Written by
David McMillin
Contributing writer
David McMillin writes about credit cards, mortgages, banking, taxes and travel. David's goal is to help readers figure out how to save more and stress less.
Edited by
Mortgage editor
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