Compare Current Mortgage Rates in Texas

If you want the best mortgage rates in Texas, shopping around for a lender is helpful, but the biggest influences on your rate will likely be your personal credit history, down payment, loan type, and the property you’re buying.

Mortgage rates in Texas, as in the rest of the country, depend on what is going on in the economy. Market and economic conditions affect interest rates you can get in Texas, but so do your qualifications. 

When lenders set mortgage rates, they’re usually looking at several factors:

• Federal funds rate: Most lenders price their loans according to the interest rate set by the Federal Reserve. Mortgage rates are affected by economic and market conditions. 
• Buyer demand: If the lender is overwhelmed by demand for loans, it can raise its prices. 

When you get your mortgage rate, the lender will be looking at the following criteria before approving you for a specific rate. 

1. Credit score: If you have a good credit score and history with sufficient income to cover your debts, your lender may determine you’re a low-risk borrower and may offer you a lower rate. 
2. Home location: The location of your home could affect your interest rate. If your home is in a rural area, for example, a lender may be able to offer you a USDA loan. 
3. Home price and amount: You may pay a higher interest rate on a larger home purchase. You may also pay a higher interest rate if the loan-to-value ratio (LTV) is high. 
4. Down payment: A larger down payment often results in a smaller LTV, which represents less risk to the lender and might mean a lower interest rate. 
5. Loan term: Longer loans, such as a 30-year mortgage, usually come with higher interest rates. 
6. Loan type: Some loan types have lower interest rates than others. For example, VA loans often have lower interest rates than conventional loans. 
7. Interest rate types: Whether you get an adjustable-rate mortgage or a fixed-rate mortgage affects your interest. For example, adjustable-rate mortgages often start lower but can increase over time. 

Texas has several first-time homebuyer programs that may be able to help lower your interest rate. For example, if you qualify for down payment assistance and can lower the loan-to-value ratio, you may be able to get a lower mortgage rate. 

Home Sweet Texas

Texas State Affordable Housing Corporation (TSAHC) is a nonprofit that helps first-time homebuyers with mortgages and down payment assistance. The down payment assistance comes as a grant or as a second mortgage that doesn’t have to be paid back unless you sell your home. The down payment amount varies, but it may be able to help lower the rate on your mortgage. 

Homes for Texas Heroes

Mortgages and down payment assistance are available for individuals serving in “hero professions.” These include nurses, firefighters, EMTs, police officers, veterans or active military, correctional officers, educators, and all education-related support staff. Borrowers must be first-time homebuyers, have a credit score above 620, meet income requirements, and use an approved lender. 

My First Texas Home program

The My First Texas Home program is available to first-time homebuyers and veterans and offers up to 5% in down payment assistance (DPA). The down payment assistance is either financed at 0% for 30 years or forgivable after three years. 

To qualify, borrowers must be first-time homebuyers, meet income limits, have a credit score of at least 620, and work with an approved lender. The property also must meet value limits.

My Choice Texas Home program

The My Choice Texas Home Program is for repeat homebuyers and veterans. It’s a 30-year mortgage with flexible down payment options between 2% and 5%. Down payment assistance is available and may be financed at 0% for 30 years or a 3-year forgivable second mortgage. 

To qualify, borrowers must have a credit score above 620, meet income limits, work with an approved lender, and meet property value limits.

City-specific programs

You may also see assistance for homebuyers depending on the city where you hope to buy. Some examples include:

• Texas City up to $7,500
• Houston up to $50,000
• Corpus Christi up to $25,000
• Dallas up to $60,000
• Austin up to $40,000

A comprehensive list of cities in Texas with first-time homebuyer programs can be found on hud.gov. 

Getting the best mortgage rate in Texas comes down to what a lender is willing to offer you. If you have a high debt-to-income ratio (DTI), it’s going to be tough to qualify. You can also try following these tips:

• Work on your credit score and report: Before you start shopping for a home, work on your credit score. You can check your credit report for free once each week. You can request access through annualcreditreport.com. 
• Get pre-approved: See what interest rate the lender is willing to offer based on your credit profile, down payment, home purchase price, and location. The pre-approval process allows you to see exactly what you qualify for based on your credit history. 
• Shop around: Different lenders offer different rates, and it’ll pay to shop around for a lender with the most competitive loan. 
• Put down a large down payment: Your LTV, or how much you borrow relative to how much the home is worth, affects the interest rate the lender is willing to give you. (If you have more skin in the game, the lender is taking on less risk.) If you have a larger down payment, you may get a lower interest rate.  
• Opt for a shorter loan term: If you select a shorter loan term than the standard 30-year loan, you’ll typically see a lower interest rate.
• Change your loan type: If you are in an area that is eligible for USDA loans, for example, you could save a lot on your interest rate. This is because USDA loans come with benefits like 0% down payment options, subsidized interest rates, and fewer closing fees, which result in a lower annual percentage rate than an FHA loan for a borrower with a smaller down payment. 

When it comes to selecting a mortgage in Texas, you'll see different features and benefits to meet your individual needs. 

Conventional

• Best for: Borrowers with good credit scores and at least 3% down payment
• Max loan amount for single-family home: $766,550 for most areas, $1,149,825 for high-cost areas
• Down payment: At least 3%
• Minimum credit score: 620

FHA

• Best for: Borrowers with low credit scores
• Max loan amount for single-family home: $498,257 for most areas, $1,149,825 for high-cost areas
• Down payment: At least 3.5%
• Minimum credit score: 500

USDA

• Best for: Rural areas, no down payment required
• Max loan amount for single-family home: $766,550 for most areas, $1,149,825 for high-cost areas
• Down payment: 0%
• Minimum credit score: Typically 640

VA

• Best for: Veterans
• Max loan amount for single-family home: $766,550 for most areas, $1,149,825 for high-cost areas
• Down payment: 0%
• Minimum credit score: None specified

Jumbo

• Best for: Higher loan limits
• Max loan amount for single-family home: Depends on the lender
• Down payment: 10%
• Minimum credit score: Usually over 680