Texas Mortgage Broker

Loan options in Texas

Duane compares programs for your scenario and explains the tradeoffs before you commit.

• Conventional. Purchase and refinance loans with as little as 3% down for qualifying buyers. Mortgage insurance can come off as your equity grows.
• FHA. As little as 3.5% down with qualifying credit, and more flexible credit guidelines. FHA carries an upfront and an annual mortgage insurance premium.
• VA. Texas has one of the largest veteran and military populations in the country, with installations across the state. VA loans can be $0 down for eligible borrowers, with no monthly mortgage insurance. A funding fee usually applies unless exempt.
• Jumbo. For loan amounts above the conforming limit in your county. Expect closer review of down payment, reserves and documentation.
• Refinance. Lower the rate, shorten the term or take cash out. Compare the break-even point against how long you plan to stay. Cash-out on a Texas homestead follows its own rules.

Buying in Texas: what to know

• Property tax is the big line. Texas has no state income tax, and local property tax rates, including school, county and special districts, often run higher than in most states. Run the payment with the real rate for the address.
• MUDs and PIDs. Newer subdivisions can sit in a municipal utility district or public improvement district that adds a separate tax bill. Ask for the total tax rate, not just the county rate.
• Cash-out refinance rules. Texas limits cash-out refinancing on a homestead to 80 percent of the home's value, and other rules apply. Ask Duane how they apply to you.
• Homestead and insurance. A homestead exemption lowers school taxes on a primary home. Wind and hail coverage can add a lot to the monthly cost, especially along the Gulf and in North Texas.
• Title company closings. Texas closings run through a title company and escrow officer, and title policy rates are set by the state.