If it’s a conventional mortgage, the cap is $726,200 — the limit imposed by the Federal Housing Finance Agency in 2023.

If it’s backed by the FHA, your budget will need to be smaller. In most counties in Texas, FHA loans cannot exceed  $472,030 in 2023. Browse Bankrate’s county-by-county loan limits in Texas as you decide exactly 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 2023. 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

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.