From the Panhandle to the Rio Grande Valley: The Best Home Loans in Texas

According to the United States Census Bureau, Texas gained over 9 million new residents from the years 2000 to 2022. During that time, the population grew 16%,  more than doubling the rest of the nation's average population growth of 7.4%. Clearly, the Lone Star State is a magnet for residents and businesses. As the population grows, so does the need for housing. Fortunately, for those looking to make the move to Texas, the state’s housing costs are still lower than the national average. According to A & M University’s Texas Real Estate Research Center, the median home price continues to hold steady at around $340,000 while the national median for existing homes in early 2024 was $384,500. Of course, as with any state, home prices will vary greatly depending on which part of Texas you want to settle in. For those who want to stretch their dollars a bit more, Lubbock, TX offers homes at a median price of $245,000. If you are looking to live in the Austin area, expect to pay significantly more as the median prices there hover around $545,000. Whether you are looking for a home in the Spanish-inspired mission or Mediterranean style, a sprawling Texas rambler, an adobe casa, or the Hill Country style that is unique to Texas, MiMutual Mortgage has a variety of financing options just as diverse as the Texas landscape!

Ready to go Rural?

If you prefer pastures over pavement, consider living in Texas! In terms of land mass, Texas is the second largest state (behind Alaska) with an area of 268,597 square miles or approximately 171,902,080 acres!

In 2020, the US Census Bureau redefined the criteria for what constitutes urban and rural. The updated standards created two areas in Texas that were previously classified as rural to now be considered urban – Heartland in the Dallas/Fort Worth area and Sonterra in Williamson County.

But four communities, Brazoria, Brookshire, Mont Belvieu and Needville changed from an urban to a rural designation. Even with the new classification, the US Census Bureau noted Texas as second only to Vermont as having the largest rural population in the United States!

If buying a home in the rolling plains, a quaint small town, or on a Texas ranch appeals to you, a USDA (RD) mortgage may be a great option.


What is a Rural Development loan?

USDA (RD) loans are only available in areas that have been designated as rural by the US Department of Agriculture Rural Development. The best way to know if a property falls within a USDA designated rural area is to check out the program’s eligibility map at: .

These mortgages are funded or originated by a lender (such as MiMutual Mortgage) but have a guarantee from the USDA (RD). Because of this guarantee, there is less risk to the lender, therefore allowing more favorable loan terms for the borrower.

One of these favorable terms is the absence of a down payment requirement. Nowadays, saving up for a down payment is cited as one of the biggest barriers to homeownership. With a USDA (RD) loan, that barrier is eliminated. Eligible borrowers can buy a home with 100% financing – meaning NO down payment!

Another favorable term is the flexibility in qualifying criteria. USDA RD loans have more lenient credit requirements and bankruptcy guidelines when compared to conventional loans. While the USDA itself doesn’t set a minimum credit score, lenders set their own minimums. Many lenders require a score of at least 640. MiMutual Mortgage, however, allows credit scores as low as 580, making this loan program a great option for borrowers with less-than-perfect credit histories.

RD loans are available to qualified borrowers who want to purchase or build a single-family home or refinance their existing RD loan.


Want to unlock your investment potential?

If you are looking to expand a real estate portfolio, Texas should be a state to consider! Rental properties are affordable and profitable, tourism and the population continue to grow, the laws favor property owners, and there is no state income tax.

Due to the explosion in population growth, traditional long-term rentals and fix and flip investments are needed to meet the housing demand while short-term vacation rentals present a golden opportunity for investors.

In 2023, the Texas apartment market had over 2.5 million units, or one apartment for every 11 residents in the state. The Texas housing markets known as the “Texas Triangle”- Dallas-Fort Worth, Houston, Austin, and San Antonio outranked every U.S. real estate market in 2023 and is home to 21 million of the 29 million Texas residents.

Short-term rentals (STRs) are properties rented out for typically fewer than 30 days and are a great alternate to hotels. The STR market in Texas has seen substantial growth due to business travelers and tourists. Whether visitors come for a conference in Dallas, or for the vibrant music scene of the Hill Country, or lip-smacking BBQ in Lockhart, or to enjoy the many beautiful parks and botanical gardens, Texas enjoys a steady influx of people year-round, fueling the need for short-term rentals.

Another profitable segment for rental property owners is housing for college students. Texas has ten four-year universities. The largest university in the country- Texas A & M has a staggering number of students at just over  77,000 and two community colleges – Dallas College in Dallas and Lone Star College in The Woodlands, have over 60,000 students! Because of the high demand for student housing, property owners can charge accordingly. For example, in Fort Worth, which surrounds Texas Christian University, the average rent is around $2,874 a month.

Whether you already have multiple investment properties or are just starting your real estate journey, MiMutual Mortgage offers loan programs to meet the unique needs of real estate investors. If you are looking to buy a rental property in Texas, the DSCR and Asset Qualifier loan programs are great options to get you the funds you need.

DSCR, or Debt Service Coverage Ratio, is a metric used to measure the actual or potential rental income against the mortgage payments. This ratio evaluates the ability of a property to produce enough income to cover the debt obligation.

To qualify for this mortgage, the ratio is used instead of the borrower’s personal income. There is no Debt-to-Income Ratio calculation, and no personal income verification.

Asset Qualifier loans work well for business owners and investors who may have a challenging time qualifying for a traditional mortgage due to a lack of employment. With an Asset Qualifier loan, no income is needed!

Under this loan program, borrowers qualify based on eligible assets like savings, retirement funds and investment accounts. Like the DSCR loan, there is no personal income verification. This loan can be used to purchase or refinance second homes and investment properties.


Looking for a housing solution in a tight market?

With such a boom in population growth and an increased need for housing, Accessory Dwelling Units (ADUs) have become increasingly popular in Texas and can offer an innovative solution to housing challenges.


What is an Accessory Dwelling Unit?

An ADU is a small, secondary housing unit that is on the same property as the main single-family residence and has its own kitchen, bathroom, sleeping area and separate entrance. These self-contained units can serve a variety of purposes and are referred to as granny-flats, casitas, mother-in-law suites and guest houses. ADUs offer property owners a wide range of benefits such as creating more space, an opportunity to earn extra income, a way to accommodate family needs and increase the value of their property.

In Texas, ADU regulations vary by city and local ordinances, so it is important to understand what is required or allowed in your community. For example, in Houston, the city has outlined a code of ordinances that state ADUs must not exceed a maximum size of 900 Square feet and should include a kitchen and bathroom.

In Round Rock, the fastest growing city in the United States, currently only downtown neighborhoods or neighborhoods built in the past few years are allowed to have ADUs. In older neighborhoods, it is still illegal.

The city of Austin recently eased restrictions on ADUs to make it easier to adhere to Texas backyard cottage laws. In Austin, the maximum square footage varies, but the ADU must be habitable, include a full bathroom and an additional sink or dishwasher and the lot size must be at least 5,750 square feet or greater. It must also meet all zoning, meter, access, and address requirements. To see the full requirements in Austin, visit the Code Interpretation Library webpage .

If having a dedicated space to work from home, or to give aging parents a way to live close but still be independent, or if bringing in additional income is a goal for you, it is now easier than ever to buy a home with an ADU or to add one on your existing property!

In fact, last year, the Federal Housing Administration (FHA) changed its policy on ADUs due to the rising demand for them. For the first time ever, the new policy allowed rental income from Accessory Dwelling Units (ADUs) to be considered as a valid source of income when qualifying for an FHA-backed mortgage. Borrowers can now qualify based on actual or future rent. If you have been dreaming of homeownership but were held back by financial constraints, this policy change could be the game-changer you’ve been waiting for. By unlocking the income potential of ADUs, FHA’s updated policy opens new doors for you to secure the home you desire.

Whatever your reason for wanting to add an ADU to your property, a renovation loan such as an FHA 203(k) or FNMA HomeStyle could be right for you. These loans allow you to combine the purchase or refinance loan and renovation costs into one which means you will have just one monthly mortgage payment.

As a Renovation Loan specialist, MiMutual Mortgage knows the process, closes a high number of these types of loans and has a dedicated Renovation Lending department to follow through from application to after closing. To learn more about the Mutual Mortgage Renovation loan process, check out our segment on  “Designing Spaces” airing on Lifetime Network. WATCH NOW

Whether you are a homeowner looking to maximize your property’s potential or an investor seeking to diversify your real estate portfolio, ADUs are a smart and adaptable solution to any property.


Are you looking for affordability or luxury?

Fortunately, Texas has both! One of the many reasons people are moving to Texas is the booming economy, which is one of the strongest in the country. The state has diverse industries such as oil and gas, technology, healthcare, and education which creates a wide range of job opportunities. This translates to a need for varied housing options.

For those looking for affordability, Texas offers a low cost of living. There is no state income tax and property taxes in Texas are reasonable. Furthermore, the state offers exemptions that reduce the property tax rates for homeowners who reside in their homes, are over age 65 or disabled, are a surviving spouse of a first responder killed in the line of duty and more. See the full list of Texas homestead exemptions.

According to a 2024 special report by 24/7 Wall Street, some of the cheapest cities to buy homes in Texas are Pharr, Brownsville, Mission, and Beaumont. All four cities have median home prices around $150,000 – much lower than the national average!

And in El Paso, the median sale price was $229,900 as of early 2024. The National Association of Realtors (NAR) stated “With a population exceeding 800,000 residents, this region offers urban condominiums to suburban single-family homes, catering to varied lifestyle preferences and budgetary considerations.”

For buyers in these markets, a Conventional or FHA loan may work well. Conventional loans are applicable to just about any property type and offer flexibility in loan terms, programs, and limits. Although most people think you need 20% to obtain a conventional mortgage, that is not the case!

While a 20% down payment will allow you to avoid paying Private Mortgage Insurance (PMI), conventional loans only require 3% down! Also, once your property reaches 20% equity, PMI can be canceled. Conventional loans are a great option for borrowers with a good credit score as it can be more affordable than other loan programs.


FHA loans are backed by Federal Housing Administration and offer a great option for buyers who have little saved for a down payment, less than perfect credit and low-to-moderate income. Typically, a minimum credit score of 580 and 3.5% down payment is required. The down payment, however, can be 100% gifted!

Although home prices in Texas tend to be lower than the national average, there are some cities that command a higher price tag than others. According to Houston Agent Magazine, some of the most expensive listings are in Westlake, Austin, Rollingwood and Highland Park. Homes in these communities can easily average over $2 Million.

For buyers looking for luxury living, Jumbo loans may be the right mortgage option.


Jumbo loans can be used to purchase or refinance a primary residence, second home or investment property. MiMutual Mortgage offers loans up to $4 million and has Jumbo options with as little as 10% down. And unlike conventional loans, there is no private mortgage insurance (PMI) for having less than 20% equity!


In pursuit of the American dream?

According to the American Immigration Council, one in six Texas residents is a person with no U.S. citizenship at birth.This population includes naturalized citizens, lawful permanent residents, refugees and asylees, people on certain temporary visas, and unauthorized immigrants.

For those who are ready to own a home in the United States don’t have a social security number, MiMutual Mortgage offers the ITIN and Foreign National home loans.

ITIN loans allow non-citizens and asylum seekers to apply for a mortgage in the United States. Instead of using a Social Security number, borrowers provide an Individual Taxpayer Identification Number (ITIN). ITINs are issued regardless of immigration status as both resident and nonresident aliens may have a reporting requirement under the Internal Revenue Code.

Unlike traditional loans that require a social security number, ITIN loans allow borrowers to secure the dream of homeownership regardless of immigration status. This loan can be used to purchase single-family, multi-family or investment properties.

Foreign National mortgage loans are for non-citizens that live outside the country but are seeking to purchase a home in the United States. As an alternate to a traditional home loan, it carries a higher down payment requirement and borrowers must have at least 12 months of reserves. However, for borrowers without a social security number and living abroad, this loan is a good option.


Considering a manufactured home?

Considering the fast-growing population of Texas, it is no surprise that manufactured housing plays a significant role in the affordable housing market. The state consistently ranks among the top nationwide for total manufactured home shipments.

Manufactured homes are units that are prefabricated in a factory and then shipped and placed on their ultimate destination. These types of homes tend to be efficient to produce and cost much less than traditional stick-built homes. A 2023 report from the Manufactured Housing Institute noted that the average cost per square footage was $85, half of the average per square foot cost of traditional building costs.

Currently, approximately 21.2 million Americans live in manufactured homes. In Texas, around 7.4% of the state population has embraced this type of home, with the highest concentration in the counties of Harris, Montgomery, and Liberty.

Manufactured homes serve to address housing shortages, are built to the 1978 HUD code, and continue to expand options in size, design layouts, and energy efficiency. If you are considering a manufactured home, MiMutual Mortgage offers financing through Conventional, FHA and VA loans.


Are you a self-employed small business owner?

Major corporations like Tesla, AT&T, Caterpillar, and Toyota have relocated their operations to Texas, and according to, so did a total of 164 other businesses between 2020-2023. Small business owners and entrepreneurs can also find the Lone Star state to be a great place to operate.

Recently, two different studies, one by Fit Small Business and the other by LLC Geek both ranked Texas as the top state in the US to start a business in 2024. Texas is good for small business due to its economic growth, a zero-percent income or corporate income tax rate, few regulations, and proactive support of business owners. So, if you are an entrepreneur establishing roots in Texas, a Bank Statement Home Loan from MiMutual Mortgage may be right for you!

Owning your own business has it perks, but obtaining a traditional home loan may be challenging. A Bank Statement loan allows you to qualify for a mortgage using your bank statements instead of paychecks or tax returns to verify your income.

This can be helpful for borrowers who have inconsistent income like realtors, independent contractors, or gig workers or for those who claim significant tax deductions like small business owners and investors. For those who have enough income to afford a home, but lack W-2s, Bank Statement loans can make homeownership possible.


Are you a US Veteran?

With slightly over 1.4 million military Veterans living in the Lone Star State – the largest population in the nation, Texas offers numerous benefits to those who have served.

These benefits include – no state income tax, tax exemptions for disabled Veterans, free

in-state college tuition for Vets and their dependents (through the Hazelwood Act) and access to a large network of VA hospitals and clinics.

Additionally, Texas is home to 15 active-duty military installations, which represent all branches of the Armed Forces, such as the Dyess Air Force Base in Taylor County, the Naval Air Station Corpus Christi, the Marine Corps Detachment in Fort Bliss, Fort Cavazos Army base near Killeen, as well as several joint reserve bases. These bases  various services such as shopping at commissaries and exchanges, and fitness and recreational facilities.

MiMutual Mortgage understands the unique needs of Veterans. With our VA loan program, Veterans, Active Duty, and qualifying spouses can obtain a home loan with 100% financing. This means no down payment is needed! Our VA loans offer flexible qualify guidelines, lower credit score requirements and we do not charge an underwriting fee.


Ready to make a move?

With a warm climate, robust economy, lower taxes, and diverse job opportunities, there are so many reasons Texas is a great place to own a home! At MiMutual Mortgage, our goal is to make homeownership accessible to everyone, regardless of their financial background or unique needs. Connect with one of Loan Officers to see what loan option is right for you!