When you’re shopping for a home deep in the heart of Texas, choosing the right lender is just as important as finding the right property. The best lender can simplify the homebuying process and answer your burning questions, plus it can help you save money with a competitive interest rate and low fees.
We’ve narrowed the list of the best mortgage lenders in Texas to our top eight picks based on important factors like mortgage rates, loan types, eligibility and customer service options. We’ll also explore homebuyer programs for Texans and state-specific loan limits and closing costs.
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Featured Offer
Rocket Mortgage
Minimum Credit Score
580 for FHA and VA loans, 620 for conventional mortgages and 680 for jumbo loans
Days to close
Average closing time is 36 days for a conventional mortgage; 21 days for a refinance
Methodology
Everything’s bigger in Texas — but when it comes to mortgages, you want the lowest rate possible. We reviewed 27 lenders, including local banks and nationwide companies across criteria that matter to Texans, such as loan cost, physical branches in the state and reputation for providing high-quality service.
- 27 companies reviewed
- 621 data points analyzed
- 23 features we considered
- 30 primary data sources used
Show summary
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Frost Bank
: Best mortgage lender in Texas
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Guaranteed Rate
: Best digital mortgage process
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Randolph-Brooks Federal Credit Union
: Best Texas credit union
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Bank of America
: Best for customer satisfaction
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Tomo Mortgage
: Best for low loan costs
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New American Funding
: Best for a variety of loan types
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Pennymac
: Best for personalized rate quotes
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PenFed Credit Union
: Best for military borrowers
Frost Bank
Best mortgage lender in Texas
APR
Below the national average*
Number of Texas locations
More than 185
Minimum credit score
620
Why we picked it
Frost Bank has been serving the financial needs of Texans for over 150 years, but it only started offering mortgages again in late 2023 after a 20-year hiatus. Frost provides both conforming and jumbo mortgages, plus its signature Frost Progress Mortgage, which is available to low-income borrowers and doesn’t require a down payment or private mortgage insurance (PMI). This program also comes with a $4,000 credit toward closing costs.
As Frost scales up its mortgage program, it’s focusing on providing the basics: 15- or 30-year fixed-rate loans and adjustable-rate mortgages with starting fixed periods of seven or 10 years. You may qualify with a down payment as small as 5% (or 10% for jumbo loans), and Frost Bank offers a 60-day rate lock with a one-time float-down option (a float-down option honors your locked-in rate or the current rate, whichever is lower).
Texans may appreciate Frost Bank’s personalized customer service and long history of banking satisfaction — it has ranked highest among Texas banks on J.D. Power’s retail banking satisfaction study for the past 15 years. Although you can complete an application online (after speaking with a loan officer over the phone), you can also visit one of Frost’s nearly 200 branch locations across the Lone Star State to apply.
Unfortunately, because this is Frost Bank’s first go-round with mortgages in the digital age it has a limited track record and it’s hard to find reviews from current mortgage customers. It also doesn’t offer government-backed mortgages — so you can’t get a VA, FHA or USDA loan from Frost. (But a lender representative told CNN Underscored Money that it plans to expand the types of mortgages it offers.)
Editor’s take: In 2022, we borrowed a Frost HELOC to serve as bridge financing while we tried to sell our old home. We were under a time crunch — we needed the loan to fund before closing on our new home since some of the funds were serving as a down payment. Closing was fast (just 27 days), and we were able to provide all documents electronically, easily meeting the deadline. Frost handled the wire transfer of our down payment funds, and we closed on our new home as expected. The biggest downside was the high minimum withdrawal amount of $4,000, which was often more than we needed and meant we had to pay interest on money we hadn’t spent. — CNN Underscored Money editor and seventh-generation Texan, Katie Lowery
Pros
- No down payment required for low-income borrowers
- Nearly 200 Texas locations
- Highly ranked for customer satisfaction
Cons
- Few loan types available
- Limited mortgage track record
- No branches in the El Paso or Amarillo areas
Who should use it
Borrowers who want to work with a local lender, especially those with a low income who qualify for the Frost Progress Mortgage
* Rates as of June 3, 2024
Guaranteed Rate
Best digital mortgage process
APR
Below the national average*
Number of Texas locations
20
Minimum credit score
620
Why we picked it
Guaranteed Rate is one of the best online mortgage lenders and offers an impressive line-up of loan options, including FHA, VA, jumbo, interest-only and non-qualified mortgages. In many states, including Texas, you can complete the entire mortgage process online, from application to closing. But, if you prefer in-person service, this lender has a handful of physical locations across Texas (in the Austin, Corpus Christi, Dallas, Houston and San Antonio areas).
Guaranteed Rate offers same-day mortgage approval for many borrowers. And once your loan is approved, you can close in as few as 10 days. The company also provides some of the most flexible rate lock options. You can lock in your rate for 60, 75 or 90 days, with the option to renegotiate if rates go down.
But there are a few downsides to working with Guaranteed Rate. First, the company ranked below average in J.D. Power’s 2023 mortgage origination satisfaction study. And despite its wide array of loan types, Guaranteed Rate doesn’t offer USDA loans.
Pros
- Many loan types available
- Fully digital mortgage process
- Same-day approval available
- Up to 90-day rate lock with float-down option
Cons
- Poor mortgage origination satisfaction
- No USDA loans
Who should use it
Borrowers who want a streamlined digital mortgage experience with a variety of loan types to choose from
* Rates as of June 3, 2024
Randolph-Brooks Federal Credit Union
Best Texas credit union
APR
Below the national average*
Number of Texas locations
62
Minimum credit score
Undisclosed
Why we picked it
Randolph-Brooks Federal Credit Union (RBFCU) is a Texas credit union with branches in several of the state’s major metro areas — Austin, Corpus Christi, Dallas-Fort Worth and San Antonio. RBFCU offers a variety of loan types, including conventional, FHA and VA mortgages, plus non-traditional loans like physician and land loans. As a bonus, RBFCU offers free financial coaching to help you get your credit and cash flow ready to buy a home.
Unlike most mortgage companies, which require a down payment of at least 3%, you can get 100% financing on your home purchase from RBFCU with no PMI required. However, you’ll pay higher rates, which will cost you more over the life of the loan — rates on RBFCU’s no-down-payment loan are about 0.5 percentage points higher than its conventional mortgage rate.
Credit unions tend to come with many member benefits, including lower-than-average loan rates, discounts and special offers from partner organizations and higher savings yields — but you must become a member to qualify for a loan (though you can typically apply before joining). RBFCU isn’t very transparent about what it takes to qualify for membership, though you may be eligible through your employer, place of worship, neighborhood, school or community organization.
Pros
- Many loan types available
- No down payment required for qualified borrowers
- Free financial coaching
Cons
- Doesn’t disclose credit requirements
- No USDA loans
- Credit union membership required
Who should use it
Current RBFCU members or borrowers who want the benefits of working with a credit union instead of a traditional bank
* Rates as of June 3, 2024
Bank of America
Best for customer satisfaction
APR
Higher than the national average*
Number of Texas locations
551
Minimum credit score
Undisclosed
Why we picked it
Bank of America offers all the benefits of a large national lender, including many local branches and accessible customer service. Bank of America ranks near the top of J.D. Power’s 2023 studies for both loan servicing and mortgage origination, performing well above average. And with more than 550 branches in Texas alone, customers can easily access the help they need.
Eligible borrowers can take advantage of two grant programs from Bank of America:
- America’s Home Grant program: $7,500 in lender credits for closing costs or discount points
- Down Payment Grant program: 3% of the purchase price (up to $10,000) for a down payment
There’s also the Affordable Loan Solution, which requires a down payment of just 3% for modest-income borrowers, though PMI is required. As a result of these programs, Bank of America ranked among the best mortgage lenders for first-time homebuyers.
However, Bank of America is the only lender on our list with starting mortgage rates above the national average. And if you’re in a hurry, this lender may not be the right fit — its preapproval process can take up to 10 business days, which is far longer than many other lenders.
Pros
- Highly rated for customer satisfaction
- Hundreds of Texas locations
- Offers down payment and closing cost assistance
Cons
- Doesn’t disclose credit requirements
- Above-average mortgage rates
- No USDA loans
- Preapproval takes up to 10 business days
Who should use it
Borrowers who want to work with a large national bank with leading customer satisfaction scores
* Rates as of June 3, 2024
Tomo Mortgage
Best for low loan costs
APR
Below the national average*
Number of Texas locations
None
Minimum credit score
580
Why we picked it
Tomo is another relatively new lender, but it’s already made a name in the online mortgage space, standing out for its affordable home loans. Unlike most lenders, Tomo doesn’t charge any lender fees, such as origination or processing fees. It also offers price matching, so if you get a better deal elsewhere, you can show Tomo your Loan Estimate and they’ll match it.
Tomo also offers one of the longest rate locks on the market: up to 120 days with a one-time float-down. If market rates rise, your rate will stay the same, but you can renegotiate your rate if rates fall.
A downside of working with Tomo is its limited loan options. Tomo doesn’t offer USDA loans or mortgage refinancing. And since Tomo is a digital lender, it doesn’t have any physical branches in Texas, which is a drawback for borrowers who want to meet with a loan officer in person.
Pros
- No lender fees
- Price matching guarantee
- Long rate lock with float-down option
Cons
- No physical locations in Texas
- No USDA loans
- No loan refinancing
Who should use it
Borrowers who want a streamlined digital loan process with low fees
* Rates as of June 3, 2024
New American Funding
Best for a variety of loan types
APR
Below the national average*
Number of Texas locations
33
Minimum credit score
620
Why we picked it
New American Funding is a popular online mortgage lender with more loan options than nearly any other lender. It offers conventional mortgages and all major types of government-backed loans — FHA, VA and USDA — plus jumbo, interest-only and non-qualified mortgages. Additionally, its I CAN mortgage allows you to customize your repayment by choosing any loan term between eight and 30 years.
New American Funding also guarantees it can close most loans in 14 business days. If you don’t close on time and it’s the lender’s fault, you’ll get a lender credit of $250 toward your closing costs.
Unfortunately, New American Funding has some mixed customer satisfaction ratings. In recent J.D. Power studies, it ranked well in mortgage servicing but was below average in mortgage originations. This could be because it has a frustrating preapproval process — you can start the preapproval process online but have to wait to hear from a loan officer to complete it. It also doesn’t disclose its fees, so you’ll have to wait until you’ve already applied to learn how much you’ll pay in added fees.
Pros
- Many mortgage types to choose from, including USDA loans
- Flexible repayment options
- 14-day closing guarantee
Cons
- Mixed customer satisfaction ratings
- Preapproval can’t be completed entirely online
Who should use it
Borrowers who want the best variety of loan options to choose from, including flexible loan terms
* Rates as of June 3, 2024
Pennymac
Best for personalized rate quotes
APR
Below the national average*
Number of Texas locations
None
Minimum credit score
620
Why we picked it
Pennymac is a popular online lender that offers a variety of loan types. Unlike many lenders on our list, Pennymac offers personalized rate quotes. With some basic information, you can see interest rates specific to your situation without impacting your credit. Pennymac also ranked highly on our list of the best mortgage lenders.
Pennymac has a flexible rate lock, allowing you to lock in your rate for 60, 75 or 90 days, though this program requires a nonrefundable fee of $595. You can float down your rate once, but it won’t decrease by more than 0.50 percentage points. The lender also offers a variety of ways for borrowers to save on their interest rate and fees, including lender-paid buydowns, $1,000 closing cost credits and $2,000 in bonus cash if you refinance within three years.
But Pennymac has below-average rankings for both mortgage origination and servicing, according to J.D. Power studies. Additionally, Pennymac has no physical branches in Texas, which could turn some borrowers away.
Pros
- Offers personalized rate quotes with no credit impact
- Flexible rate lock options
- Offers rate and fee discounts
Cons
- Poor customer satisfaction ratings
- No physical branches in Texas
- No USDA loans
Who should use it
Borrowers who want personalized rate quotes before applying
* Rates as of June 3, 2024
PenFed Credit Union
Best for military borrowers
APR
Below the national average*
Number of Texas locations
8
Minimum credit score
650
Why we picked it
PenFed Credit Union has particularly favorable terms for military borrowers: In addition to offering no-down-payment VA loans with competitive interest rates, it also provides VA loan refinancing with no closing costs.
Although PenFed began as a military-only institution, membership is now open to all with just a $5 savings deposit. But credit union branch locations are still limited to areas near Texas military bases, like Copperas Cove (near Fort Hood) or San Antonio (near Joint Base San Antonio).
PenFed offers a flexible rate lock of up to 60 days with the option to extend it for an additional 30 days when you receive PenFed’s Power Buyer Certification. And if you use PenFed’s real estate services, you’ll get a broker-paid closing credit of up to $1,500 to help pay for your closing costs.
Unfortunately, PenFed doesn’t offer USDA loans and has limited interest rate information for its other loan programs. Additionally, because PenFed is a credit union, you must become a member to proceed with your loan application.
Pros
- Favorable terms on VA loans
- Flexible rate lock options
- Broker-paid closing credit up to $1,500
Cons
- No USDA loans
- Credit union membership required
- Limited rate information available
Who should use it
Current PenFed Credit Union members (or those who want to become members) and VA borrowers
* Rates as of June 3, 2024
Our picks at a glance
| Rating | APR compared to national average* | Texas branches | Minimum credit score on conventional loans | |
|---|---|---|---|---|
Frost Bank | 5 | Lower | 185-plus | 620 |
Guaranteed Rate | 5 | Lower | 20 | 620 |
RBFCU | 4.8 | Lower | 62 | Undisclosed |
Bank of America | 4.7 | Higher | 551 | Undisclosed |
Tomo Mortgage | 4.7 | Lower | None | 580 |
New American Funding | 4.7 | Lower | 33 | 620 |
Pennymac | 4.7 | Lower | None | 620 |
PenFed Credit Union | 4.6 | Lower | 8 | 650 |
* Rates as of May 31, 2024
How to find the best mortgage lender in Texas
The key to choosing a mortgage lender in Texas is the same as any other state: Optimize your credit, understand your borrowing needs and compare several lending options. Here are a few tips for finding the right mortgage company for you:
- Get your finances and credit in order. Before you even start shopping for a mortgage, set yourself up for success by ensuring your credit scores are in good shape. If your scores are too low (say, below 620), work to improve your credit scores before applying by paying down debt and making all payments on time. Examine your budget to determine how much you can afford to spend on a home.
- Determine which type of mortgage is right for you. There are several loan types to choose from, including conventional, FHA, VA, USDA and jumbo mortgages. The best loan type for you depends on your credit scores, income, veteran status, location, down payment savings and budget. Knowing which type of mortgage you want to apply for can help you weed out lenders that don’t offer those loans.
- Think about what’s important to you. Consider lender characteristics like in-person versus online service, closing times, lender fees and industry reputation. If you value in-person service, for example, you may choose to exclude digital-only mortgage companies. Or if your credit scores aren’t as high as they could be, you might prioritize lenders that consider alternative credit data or have programs for fair-credit borrowers.
- Consider several types of lenders. Traditional banks, credit unions and online mortgage companies originate home loans, and each type of lender has distinct advantages and disadvantages. If you want personalized service from a loan officer who knows your specific market, a local credit union or community bank might be best. But an online lender might fit the bill if you want to close your loan virtually and value the latest technology.
- Talk to family and friends. If you have friends and family whose opinions you trust, they may have worked with a lender they’d highly recommend (or recommend avoiding). Word-of-mouth recommendations are one of the best ways to find a lender since you can hear first-hand accounts of their customer service.
- Compare rates with multiple lenders. Rates and fees vary widely by lender, so getting preapproved with three to five lenders is an excellent way to get the best mortgage rate and save money. If you limit your preapproval requests to a 14-day window, the credit bureaus will only count the inquiries as a single hard credit pull, limiting the damage to your credit scores.
- Consider working with a mortgage broker. When you work with a mortgage broker (an intermediary between borrowers and lenders), they’ll shop around for mortgage offers and help you find the best and most affordable loan for your situation. You’ll pay a fee between 1% and 2% of the loan amount for the service, but it may be worth it if your broker can find a lower rate than you’d find on your own.
- Don’t be afraid to ask questions. Choosing a lender is a major financial decision, and it should be treated as such. When comparing multiple lenders, don’t be afraid to ask questions and raise any concerns that could help you make your decision.
Related >> Current mortgage rates
2024 loan limits in Texas
FHFA loan limits
Each year, the Federal Housing Finance Agency (FHFA) sets a conforming loan limit, which is the maximum amount government-sponsored enterprises Fannie Mae and Freddie Mac will insure. Most conventional mortgages conform to these standards.
In 2024, the baseline conforming loan limit, which applies to most areas of the country, is $766,550. For designated high-cost areas, the conforming loan limit is as high as $1,149,825. Texas has no high-cost areas, so the entire state is subject to the baseline loan limit.
Of course, you can get a loan for more than $766,550, but it would be considered a jumbo mortgage. It wouldn’t be eligible to be purchased by Fannie Mae or Freddie Mac, so you may be subject to different eligibility requirements, such as a higher credit score and stricter down payment criteria.
FHA loan limits
Like conforming loans, FHA loans are subject to baseline and high-cost loan limits. In 2024, the limit for single-family properties to be financed by an FHA loan in most areas is $498,257. Certain high-cost areas, typically around major urban centers, have larger loan limits, as high as $1,149,825 in some places.
In Texas, most communities are subject to the baseline limit of $498,257, but 24 counties deviate. You can get an FHA loan up to the following amounts if you live in one of these counties:
| Metro area | Loan limit for one-family home | Texas counties |
|---|---|---|
Austin | $571,550 | Bastrop, Caldwell, Hays, Travis and Williamson |
Dallas-Fort Worth | $563,500 | Collin, Dallas, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise |
San Antonio | $557,750 | Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Medina and Wilson |
5 Texas homebuyer programs to consider
Texans can apply for various programs to make ownership more accessible and affordable, including several from the state’s Housing Finance Agency. Here are some of the top programs in Texas to consider when you’re buying a house:
1. My First Texas Home
Who qualifies? First-time homebuyers and veterans
This program offers first-time homebuyers and military veterans 30-year, low-interest loans. You can also receive an additional piggyback loan with no interest to cover down payment and closing costs, worth up to 5% of the mortgage amount. Borrowers must meet the following requirements:
- Not owned a home within the past three years
- Credit scores of at least 620
- Meet income and property value limits, which vary by county and family size
- Qualify for a mortgage with an approved lender
2. My Choice Texas Home
Who qualifies? Repeat homebuyers and veterans
This program mirrors My First Texas Home: a below-market primary mortgage and a no-interest secondary loan to cover down payment and closing costs up to 5% of the loan amount. The biggest difference is that this program is designed for repeat homebuyers, and income limits are higher. Borrowers must meet the following requirements:
- Credit scores of at least 620
- Meet income and property value limits
- Be approved for a mortgage with an approved lender
3. Home Sweet Texas Home loan program
Who qualifies? Low and moderate-income borrowers
This program provides low- and moderate-income borrowers in Texas with a mortgage and down payment assistance, which you can choose to receive as a grant or a deferred, forgivable loan. Borrowers must meet the following requirements:
- Credit scores of at least 620
- Meet income limits based on your county
- Qualify for a mortgage with an approved lender
4. Homes for Texas Heroes program
Who qualifies? Homebuyers in eligible professions
This program offers mortgages and down payment assistance (in the form of a grant or forgivable loan) to Texans working in eligible professions. Borrowers must work in one of the following professions to be eligible:
- Public school educators (including teachers, teaching aides, school librarians, school counselors and school nurses)
- First responders (including police officers, firefighters and EMS personnel)
- Public security officers
- Military veterans or service members
- Corrections officers, including juvenile corrections officers
- Nursing and allied health faculty
5. Texas Mortgage Credit Certificate program
Who qualifies? First-time homebuyers
This program offers first-time homebuyers a tax credit worth up to 15% of their annual mortgage interest. The standalone version of this program has been discontinued, but you can still qualify if you receive down payment assistance through the Home Sweet Texas or Homes for Texas Heroes programs.
Closing costs in Texas
All homebuyers are subject to upfront expenses called closing costs. These costs apply no matter where you’re buying a home and commonly include origination, appraisal and credit report fees, prepaid escrow expenses and title insurance.
Closing costs vary by state. For example, Texas buyers don’t pay transfer taxes, which are required in many other states. Additionally, though lenders generally require title insurance when you buy a home, the state of Texas doesn’t require owners to purchase their own policies.
Texas homebuyers pay higher closing costs than the national average, according to the latest data from CoreLogic. However, when you include taxes in the national average, Texas’s closing costs are actually lower. Texas buyers pay an average of $4,548 in closing costs (or 1.5% of the mortgage amount), compared to the national average of $3,860 (without transfer taxes) and $6,905 (with transfer taxes).
Regardless of whether you include taxes, average closing costs in Texas are higher than those in at least half of the states. To reduce the amount you pay upfront, shop around for third-party services (like the property survey and inspection), negotiate lender fees and consider a no-closing-cost mortgage.
Methodology
After exhaustive research and thorough analysis, eight of the 27 financial institutions under consideration cracked the list of our best mortgage lenders in Texas. Their out-of-5 star ratings were informed by our objective rubric, which included the following three categories:
Affordability (40%)
Home values are elevated across the Lone Star State, so saving money on your mortgage is crucial. In this category, we measured the cost of each lender’s loan, including the interest rate, down payment requirements and opportunities for rate discounts. We also considered whether each lender allowed you to lock in your rate to combat rising market rates.
Availability (30%)
In our estimation, the best mortgage in Texas is available to the widest range of Texans. We considered credit requirements and whether each lender restricts borrowing to a certain group of borrowers. We also looked at the availability of various loan types, like government-backed mortgages, and the repayment terms offered.
Customer experience (30%)
Not all lenders offer the same level of support. We test-drove their public-facing websites, tallied their customer service availability and reviewed past borrowers’ experiences via independent organizations like the Better Business Bureau and the Consumer Financial Protection Bureau. For borrowers who value in-person customer service, we awarded bonus points to lenders with a physical presence across the state of Texas, especially those that aren’t just limited to the major metro areas.
What didn’t make the cut
Texans value honesty and transparency, and not every lender under review measured up. In fact, 19 popular lenders fell short, often for failing to disclose critical information like interest rates and credit criteria. Here’s a look at a few popular lenders that didn’t make our list:
- AmeriSave Mortgage, NBKC Bank and Guild Mortgage don’t display current rates.
- Rally Credit Union membership is only open to borrowers in South Texas.
- Wells Fargo has a poor customer service track record.
- Veterans United Home Loans and USAA require military affiliation.
Frequently asked questions (FAQs)
Consider the loan types and terms available, starting interest rates, lender reputation and eligibility requirements. It’s important to get rate and fee quotes from several lenders so you can compare costs across lenders.
The conforming loan limit for conventional loan borrowers in Texas is $766,550. Since the state doesn’t have any high-cost areas, all borrowers are subject to the baseline limit. Any mortgages exceeding this cap are considered jumbo loans.
Yes, many areas of Texas qualify for a USDA loan. Use the USDA’s eligibility database to determine whether your new home is in an eligible area.
