Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
9 best mortgage lenders in Texas
Looking to buy a home in Texas? Here are some of the best mortgage lenders in the Lone Star State.
Mortgage Guides
Compare mortgage rates in your area
How To:
Loan Types
Term Length
From Houston to El Paso and Amarillo to San Antonio, Texas is home to an enormous amount of real estate. If you’re thinking about setting down roots in the Panhandle, the Gulf Coast or anywhere in between, the best mortgage lenders in Texas can help.
Best Texas mortgage lenders in 2020
- Best rates: KS StateBank
- Best for first-time homebuyers: Guild Mortgage
- Best for refinancing: Randolph-Brooks Federal Credit Union
- Most popular lender: Cornerstone Home Lending
- Best for down-payment and closing cost assistance: LoanDepot
- Best for face-to-face service: Chase Bank
- Best for low income: Caliber Home Loans
- Best Texas-based lender: Mr. Cooper
- Best marketplace/broker: LendingTree
How we picked the best lenders
These nine lenders were selected based on several factors, including fees, loan amounts, interest rates and eligibility requirements. We also considered reviews from sites such as Trustpilot and the Better Business Bureau (BBB). Learn more about Finder’s rating methodology.
Best rates
KS StateBank
640
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Founded in 1969 as the Kansas State Bank of Manhattan, this financial institution rebranded itself as KS StateBank in 2015. In addition to its headquarters in Manhattan, Kansas, KS StateBank has five more branches across the Sunflower State as well as a branch in Phoenix, Arizona. Despite the fact that it doesn’t have a physical presence in Texas, KS StateBank offers some of the most competitive mortgage rates in the state — but you’ll have to speak with a loan officer to get a quote.
- Low rates. This lender offers some of the lowest mortgage rates in Texas.
- Hero Program. KS StateBank waives some fees for educators, police, firefighters and paramedics.
- Strong reviews. Based on 366 reviews on LendingTree, this bank is rated of 4.9 out of 5.
- No chat support. Support is only available over the phone or in-person at a branch.
- Not transparent. KS StateBank neither publishes its rates nor details its fees online.
- Origination fee. KS StateBank charges $795 for origination. Many lenders in Texas charge a lower fee or no fee at all, but may have higher average rates.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home equity, Refinance |
|---|---|
| Minimum credit score | Conventional: 640 |
| Minimum down payment | 3% |
| States available | Not available in: NY |
| Fees | $795 origination fee |
Best for first-time homebuyers
Guild Mortgage
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
If you’ve never bought a home before, the Texas Department of Housing and Community Affairs (TDHCA) operates an excellent program for first-time buyers. The My First Texas Home program provides down payment assistance and closing cost assistance for 30-year fixed-rate mortgages, and it includes a tax credit option for eligible buyers. And while the TDHCA has authorized several lenders to offer this program, Guild Mortgage stands out as the best.
-
Down-payment assistance. Guild offers forgivable loans or grants to qualifying first-time homebuyers.
- Customer satisfaction. According to J.D. Power, Guild Mortgage ranks among the top 10 mortgage lenders for customer satisfaction.
- Airbnb partnership. Guild accepts Airbnb income as qualifying income for refinancing applications.
- Limited locations. Though you can apply online statewide, Guild Mortgage only has one Texas branch west of San Antonio. If face-to-face support is important to you, your options are limited.
- No home-equity options. Guild doesn’t offer home equity loans or lines of credit.
- Not the most competitive lender. Other lenders offer lower rates and fees.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Reverse, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment | 3% |
| States available | Not available in: NJ, NY |
| Fees | Fees vary depending on the loan type |
Best for refinancing
Randolph-Brooks Federal Credit Union
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Founded in 1952 and headquartered in Live Oak, Texas, the Randolph-Brooks Federal Credit Union (RBFCU) is the largest credit union in the Lone Star State and the 11th largest in the country. RBFCU has strong ties to local Air Force bases, but you don’t need to be in the military — or even be a Texan — to join the credit union. Many homeowners choose to refinance with RBFCU to take advantage of lower rates, although this lender does charge closing costs on such loans.
- Numerous branches. RBFCU has more than 50 physical locations throughout Texas.
- Online application. Unlike some lenders on this list, RBFCU lets you apply online.
- Poor reviews. RBFCU is rated 1.17 out of 5 by the BBB and 2.7 out of 5 on WalletHub.
- Refinances aren’t a priority. RBFCU is currently prioritizing purchase applications ahead of those for refinancing, so the process could take longer than expected.
- Closing costs. Not all lenders charge closing costs on refinances, but RBFCU does.
| Loan types | Conventional, Jumbo, FHA, VA, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 |
| Minimum down payment | 3% |
| States available | Only available in: TX |
| Fees | RBFCU charges undisclosed closing costs and origination fees on some loan types — including refinances |
Most popular lender
Cornerstone Home Lending
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Cornerstone Home Lending was established in 1988 and is headquartered in San Antonio, Texas. This lender is licensed to operate in 41 states and has offices in 22 states on both coasts.
Cornerstone doesn’t provide home equity loans or lines of credit, nor does it have a special program for first-time homebuyers. But it does offer construction-to-permanent loans, which many other lenders don’t.
- Everything’s in-house. Cornerstone issues its own preapprovals and processes, underwrites and funds its own mortgages, which can speed up the home-buying process.
- Not transparent. This lender doesn’t clearly disclose all of its fees online.
- Lackluster website. Cornerstone’s website isn’t as polished or intuitive as some other lenders.
- Bad reviews. Cornerstone has a rating of 1.38 out of 5 on the BBB’s website. Many of the complaints mention poor customer service and dishonest loan officers.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 Jumbo: 680 |
| Minimum down payment | 3% |
| States available | Not available in: GA, HI, IL, ME, MT, NV, NY, OH, VT |
| Fees | Cornerstone Home Lending charges origination fees and closings costs |
Best for down-payment and closing cost assistance
LoanDepot
620
Min. credit score
Min. credit score
3.5%
Min. down payment
Min. down payment
In addition to the My First Texas Home program, the TDHCA also offers the My Choice Texas Home program for experienced homebuyers. This program includes the same assistance for down-payments and closing costs, but it lacks the tax credit option. Many Texas mortgage lenders are authorized to offer the My Choice Texas Home program, but LoanDepot has a few advantages compared to the competition.
- No pressure. LoanDepot’s no-steering policy ensures loan officers offer impartial guidance.
- No prepayment fee. You won’t be penalized if you pay off your loan early.
- No appraisal fee. LoanDepot’s loan officers may be able to identify the best loan for you without requiring an appraisal.
- Steep origination fee. LoanDepot may charge as much as 5% for origination.
- Mortgage rates aren’t online. You have to contact a loan officer to determine your mortgage rate.
- Negative reviews. As of October 2020, LoanDepot has some recent negative reviews on Trustpilot, mostly related to lackluster customer service, long processing times and unresponsive representatives.
| Loan types | Conventional, Jumbo, FHA, VA, Home Equity, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 VA: 620 |
| Minimum down payment | 3.5% |
| States available | Available in all states |
| Fees | LoanDepot doesn’t disclose this information on its website, so speak to your loan officer about additional home loan fees you might pay. Borrowers should expect an origination fee of 1% to 5% |
Best for face-to-face service
Chase Bank
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Although online mortgage lenders have a lot to offer, you may prefer to sit down with a loan officer face-to-face to sort out the details of your mortgage. Chase Bank has a whopping 533 branches in Texas, making it the second-largest bank in the state. So if you want to discuss the terms of your mortgage with a loan officer who’s knowledgeable about your community, Chase could be the right fit.
- Hundreds of branches in Texas. Chase has more branches in Texas than almost any other bank.
- Discounts for members. If you already bank with Chase, you may be eligible for extra savings.
- All-in-one banking. Unlike lenders that only offer mortgages, Chase can handle all of your banking needs.
- Limited self-service. Complete your mortgage application only by speaking to an advisor.
- Substantial fees. You’ll have to pay a fee for your application, underwriting and origination and to lock in your rate.
- Not great for bad credit. Applicants with below-average credit scores will face an uphill battle with Chase, and only applicants with high scores will qualify for the best rates.
| Loan types | Conventional, Jumbo, FHA, VA, HELOC, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 |
| Minimum down payment | 3% |
| States available | Available in all states |
| Fees | $395 application fee plus fees for origination, underwriting and rate lock |
Best for low income
Caliber Home Loans
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Many Americans aren’t earning as much as they did prior to the pandemic. If your income level isn’t where it used to be, Caliber Home Loans can still help you secure a home. Caliber offers a Home Possible program that allows low-to-moderate-income Texans to buy a home even if they have bad credit. Caliber also participates in the TDHCA’s Texas Mortgage Credit Certificate Program, which can save you money if you’re a veteran, first-time homebuyer or if you haven’t owned a home in the past three years.
- Exclusive savings. Caliber can help you save on your down payment through the Texas Mortgage Credit Certificate Program.
- Support for service members. Caliber offers support for members of the military and first-time homebuyers though the TDHCA.
- Bad credit accepted. Caliber accepts credit scores as low as 580 for some loan types.
- No home equity options. This lender doesn’t offer home equity loans or lines of credit.
- Mortgage rates aren’t online. Unlike many other lenders, Caliber doesn’t publish its rates.
- Limited customer service. Caliber doesn’t offer online chat and support reps are only available during business hours.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 |
| Minimum down payment | 3% |
| States available | Available in all states |
| Fees | Expect fees to include appraisal fees, title charges, closing fees and state taxes.
Ask your loan consultant for the specific fees associated with your pending loan, and keep an eye out for additional fees in your loan documentation. |
Best Texas-based lender
Mr. Cooper
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
There are hundreds of mortgage lenders in Texas, but many of them are headquartered in other states. If working with a local lender is important to you, Mr. Cooper is a solid choice. This lender is based in Dallas, but offers mortgages from coast to coast. It’s also rated 4.5 out of 5 on Trustpilot and has a couple of other standout features.
- Real Estate Rewards. Mr. Cooper matches qualified applicants with top-performing real estate agents to help them potentially save thousands of dollars.
- Close on-time guarantee. Mr. Cooper will cover your first month’s payment if it’s responsible for a delay in your closing date.
- No online rate calculator. You must contact a loan officer for personalized rates.
- No online application. Unlike most lenders, Mr. Cooper doesn’t allow you to apply for a mortgage online.
| Loan types | Conventional, Jumbo, FHA, VA, Home Equity, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment | 3% |
| States available | Available in all states |
| Fees | $995 origination fee |
Best marketplace/broker
LendingTree
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Marketplace lenders can save you time when shopping for a mortgage by quickly displaying which lenders in your area offer the most competitive rates. And with access to terms from more than 500 lenders, LendingTree is among the largest marketplaces in all of Texas.
If you want a bird’s-eye view of all the lenders in your neck of the woods, LendingTree can instantly show you the state’s most attractive rates. But be ready to receive unsolicited calls from third-party lenders if you use this service.
- Massive selection of lenders. LendingTree displays rates and terms from more than 500 lenders.
- No fees. LendingTree is free to use, and any lender you select will never ask for upfront fees.
- Custom alerts. Create custom alerts to get notified when better rates are available.
- Solicitors will contact you. When you work with a lending marketplace, your contact information gets shared with many lenders, some of which may contact you via phone or mail.
- Hard inquiry. Unlike some lenders, LendingTree performs hard credit checks, which will negatively affect your credit score for a temporary period of time.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 500 VA: 620 USDA: 640 Jumbo: 800 |
| Minimum down payment | 3% |
| States available | Available in all states |
| Fees | While LendingTree’s service is free to use, there will likely be fees associated with your home loan. These fees vary by lender but often include an origination fee and prepayment fees. A good rule of thumb is to budget at least 0.5% to 1% of the amount you borrow for the loan origination fee. |
Compare more mortgage lenders
Which lender is best for me?
There are hundreds of Texas mortgage lenders to choose from, making it tricky to find the right one. When researching the best lender for your needs, abide by these best practices:
- Read reviews. If you’re unsure about a lender, check popular review sites to see if previous borrowers have had positive experiences.
- Collect a few preapprovals. If you have several estimates, you’ll have more leverage with lenders.
- Be ready to bargain. Don’t accept an offer without trying to negotiate a lower rate and better terms.
- Read the fine print. Pay careful attention to the details of any agreement to ensure there aren’t any hidden surprises.
Average rates and fees in Texas
The average mortgage rate in the US is 3.21% as of September 2020, but it’s significantly lower in Texas. According to the Consumer Financial Protection Bureau (CFPB), the mortgage rate on 30-year fixed-rate mortgages in Texas average 2.875%. And while closing costs in the US typically range between 2% and 5%, closing costs in Texas averaged 1.37% of the sales price according to 2019 data from ClosingCorp. Continue researching mortgage rates in Texas or compare closing costs in Texas for more information.
Should I use a broker?
This list only includes direct lenders in Texas because only they can approve and finance mortgage loans. If you’re too busy to shop around for the best deal — or if you’d rather have someone do the legwork for you — you might consider working with a broker.
While most brokers can be trusted, some have their own agendas and may charge fees you could have otherwise avoided. To find the best broker for you, compare competing rates and read recent reviews to ensure they offer exceptional support.
Bottom line
The best mortgage lenders in Texas each have their own advantages and drawbacks. Depending on your specific situation, one of them might be right for you. Carefully compare what they each have to offer or continue exploring your options.
Frequently asked questions
More guides on Finder
-
Compare short-term loans in Arlington, Texas
Find fast cash near you and learn about the regulations in Arlington.
-
Compare short-term loans in Houston, Texas
If you live in Houston and need extra cash, read this guide to payday loans in your area.