Every Texas Mortgage Program Explained (FHA, VA, Conventional, USDA, Non-QM)

There's a loan built for almost exactly your situation. Most people never find it because nobody explains the menu.

Walking into the mortgage world feels like being handed a menu in a language you don't speak. FHA, conventional, VA, USDA, non-QM — they all blur together. So let me do something most lenders won't: read you the whole menu, in plain English, so you can see which one has your name on it.

The 5 Main Loan Families

• FHA: government-backed, low down payment, forgiving on credit. The classic first-time buyer loan.

• Conventional: the most common loan, great for solid credit, with removable mortgage insurance.

• VA: for veterans and active duty — zero down, no mortgage insurance. A genuine benefit you've earned.

• USDA: zero down for eligible rural and suburban areas, including parts of DFW's growing edges.

• Non-QM / bank statement: for the self-employed, business owners, and anyone the traditional system misjudges.

Who Each One Is Actually For

FHA fits buyers with lower credit or smaller savings. Conventional rewards stronger credit with better long-term costs. VA is almost always the best deal for those who qualify. USDA is a hidden gem if you're open to the right location. And non-QM loans are the answer for entrepreneurs whose tax returns don't tell the whole story of what they earn.

Down Payment and Credit Minimums, Side by Side

• FHA: ~3.5% down, credit often from ~580.

• Conventional: as low as 3% down, credit typically from ~620.

• VA / USDA: 0% down for eligible buyers.

• Bank statement: varies, often 10%+ down, qualified on cash flow instead of tax returns.

The Loans Banks Don't Advertise

Big banks love simple, cookie-cutter borrowers. If you're self-employed, commission-based, or rebuilding, they often quietly pass you along. Non-QM and bank statement loans exist precisely for the people the bank overlooks — and knowing they exist can be the difference between renting and owning.

How We Match You to the Right One

This is where my dual role matters. I don't just hand you a loan and disappear — I see the whole journey, from the program to the property. We look at your credit, income, savings, goals, and the kind of home you want, then match you to the program that costs you the least and stresses you the least. One person, whole picture.

Frequently Asked Questions

What types of mortgage loans are available in Texas?

Texas buyers can choose from five main loan families: FHA loans (low down payment, flexible credit), conventional loans (the most common, with removable mortgage insurance), VA loans (zero down for veterans and active duty), USDA loans (zero down in eligible areas), and non-QM or bank statement loans (built for self-employed borrowers). The right program depends on your credit, income, down payment, and goals.

What is a non-QM or bank statement loan?

A non-QM (non-qualified mortgage) loan, including bank statement loans, qualifies borrowers using alternative documentation like 12 to 24 months of bank deposits instead of tax returns. These loans are designed for self-employed people, business owners, and others whose tax returns understate their true income due to write-offs, giving them a path to homeownership that traditional loans often deny.

What mortgage programs are available in Texas? Texas homebuyers typically choose from five main loan types: FHA loans, Conventional loans, VA loans, USDA loans, and Non-QM (bank statement) loans. Each program has different requirements for credit score, down payment, income verification, and property eligibility, making some options better suited for first-time buyers, veterans, self-employed borrowers, or buyers with limited savings.

Your Next Step

Stop guessing which loan is 'right.' Let's match you to your exact program in one honest conversation.

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M&I TX Home Team — Realtor® & Mortgage Loan Originator NMLS #2500935. Serving Dallas-Fort Worth, Mesquite, Garland, Forney, Rockwall, Dallas, Texas.