Updated · Mike Certo, NMLS #260555
Texas Mortgage Programs
Cornerstone First Mortgage originates Texas mortgages through Mike Certo and his team of seasoned Texas-licensed loan officers. Below is the full menu of programs we run for Texas buyers — each one explained briefly with the key facts. For program-specific eligibility, income limits, FICO requirements, or to talk through your scenario, request more information below or call (480) 296-6513.
Texas Down Payment Assistance
Cornerstone is approved for both Texas state-level DPA programs and the major national DPA options. We run the full menu — Texas State Affordable Housing Corporation (TSAHC) and Texas Department of Housing and Community Affairs (TDHCA) programs plus national programs that work in Texas (Chenoa Fund, Arrive Home, Essex/NHF).
Texas state DPA programs
- TSAHC Homes for Texas Heroes: Down payment grant for eligible front-line workers (teachers, law enforcement, firefighters, EMS, military, healthcare, corrections officers). Grant — no repayment required.
- TSAHC Home Sweet Texas: Statewide down payment grant for any qualifying buyer (not profession-restricted). Grant — no repayment required.
- TDHCA My First Texas Home: First-time buyer below-market first mortgage + DPA second mortgage. Income and purchase-price limits.
- TDHCA My Choice Texas Home: Repeat-buyer option with similar DPA structure to My First.
- Texas MCC: Mortgage Credit Certificate — federal tax credit on mortgage interest, may layer with another DPA program.
- SETH (Southeast Texas Housing FC): Southeast Texas-specific DPA programs.
- City of Irving DPA + Dallas DHAP: Local city DPA programs for Irving and Dallas residents.
National DPA programs (also available for Texas buyers)
- Chenoa Fund — FHA-paired DPA with both repayable and forgivable structures depending on income/credit profile.
- Arrive Home — national DPA for low-to-moderate income buyers, includes ITIN borrower path.
- Essex Mortgage / NHF — multi-tier DPA pairing for FHA, VA, USDA, and conventional buyers.
One DPA program per transaction. Specific eligibility (income limits, purchase-price caps, FICO thresholds, occupancy, FTHB status) varies — request more information for your specific scenario.
Buy Before You Sell (BBYS)
Bridge financing for the move-up Texas buyer who needs to buy their next home before their current home sells. Removes the contingency from the offer — listing agents call this the deal-saver. Cornerstone's BBYS program lets the buyer write a clean offer; we underwrite the bridge based on equity in the existing home plus the new purchase.
- Common scenario: Contract Contingent on Buyer Sale (CCBS) deals where the seller doesn't want a contingent offer; BBYS removes the contingency.
- Process: We underwrite the bridge alongside the new purchase mortgage; close concurrently or near-concurrently.
- Audience: Consumer move-up buyers AND industry listing agents who want their CCBS deal to actually close.
Self-Employed Loans
Tax returns underrepresent self-employed income because of legal deductions. Standard mortgage underwriting punishes that. We run the alternative paths for Texas self-employed buyers: bank-statement loans (12 or 24 months), 1099 loans, and asset-qualifier loans (qualify on liquid assets without showing income).
- Bank statement loans: Qualify on 12 or 24 months of business bank deposits with expense-factor adjustments — not deposit gross.
- 1099 loans: For contractors, gig workers, real estate agents, and other 1099-only earners — qualify on documented 1099 income.
- Asset-qualifier loans: Qualify on liquid assets (cash, brokerage, retirement) divided over an asset-utilization period.
Jumbo & Medical Professionals
Loan amounts above conforming limits — full doc, alt doc, super jumbo (above $2M), plus the standout Medical Professionals program. Up to 100% LTV with NO PMI for physicians, dentists, and a specific list of credentialed medical roles. Texas has multiple jumbo-territory markets (Austin, Dallas, Houston, San Antonio) and Medical Professionals is a frequent Texas path for doctors at MD Anderson, Houston Methodist, UT Southwestern, and across the state.
- Medical Professionals eligible: MD, DO, DDS, DMD, DPM, DVM, PharmD, Ophthalmology MD/DO, Psychiatry MD/DO, CRNA with DNAP/DNP.
- Up to 100% LTV at $1.5M with FICO 680; 100% at $2M with FICO 720; 95% at $2M with FICO 680.
- Student loan exclusion: Deferred and IBR student loans excluded from DTI for residents and fellows on resident/fellow income.
Investor & DSCR Loans
For real estate investors buying Texas rental property. DSCR loans qualify on the rental income of the property — not your personal income. We finance below a 1.0 DSCR ratio — sub-1.0 programs are part of our investor menu. Short-term rental specific products available for Texas Airbnb / VRBO markets.
- DSCR loans: Qualify on the rental income vs the property's debt service — not personal income.
- Below 1.0 DSCR: Sub-1.0 DSCR and complex scenarios are on our investor menu — bring us the specific deal.
- Short-term rental specific: Airbnb / VRBO-targeted DSCR products with experienced underwriting for STR income.
First-Time Home Buyer Loans
FHA, USDA, conventional with low down payment, and Texas DPA-paired structures. Designed for the Texas buyer with real-life income and credit — not a perfect-paper applicant.
- FHA: 3.5% down, 580+ FICO published (620+ practical overlay).
- USDA: Zero down for USDA-eligible Texas areas.
- Conventional 97: 3% down, 620+ FICO.
Not sure which program fits?
Call (480) 296-6513 for a free consult, or send your scenario through the form below. Mike and his team review every Texas scenario and respond within one business day — no commitment, no salesy follow-up, just an honest read on what’s possible.
FAQ
What loan programs are available in Texas?
We originate conventional, FHA, VA, USDA, jumbo, DSCR (investor), and down-payment-assistance-paired loans across Texas.
How much down payment do I need in Texas?
3% on conventional, 3.5% on FHA, and $0 down on VA or USDA for eligible buyers; Texas down payment assistance can cover much of the rest.
What down payment assistance is available in Texas?
Texas DPA includes TDHCA (My First Texas Home, My Choice Texas Home) and TSAHC (Homes for Texas Heroes, Home Sweet Texas), plus national programs like Chenoa Fund. One DPA program per transaction.
What is the Texas Veterans Land Board home loan program?
A state benefit on top of your federal VA eligibility: fixed-rate financing up to $832,750 through participating lenders, for bona fide Texas residents with 90+ days of active duty (Guard/Reserve criteria apply). You occupy within 60 days and keep it as your primary residence for at least 3 years; the VLB doesn't offer refinancing. Veterans with a 30%+ VA service-connected disability rating qualify for a discounted VLB rate tier — pricing is set by the state and quoted at lock.
What's the difference between a Texas Vet loan and a VA loan?
They're not competitors — they stack. The VA loan is the federal guarantee (0% down, no PMI); the Texas Veterans Land Board program is a state benefit that layers state-set pricing on top of a VA (or other) first mortgage for Texas residents. Eligible Veterans can also hold a separate VLB land loan (5% down, up to $150,000, 1+ acre) and home-improvement loan (up to $50,000) at the same time.
What first-time buyer programs does Texas have in 2026?
The stack: TDHCA My First Texas Home (first mortgage + up to 5% assistance), TSAHC's Home Sweet Texas or Homes for Texas Heroes DPA (grant or 3-year forgivable second), and the Texas Mortgage Credit Certificate — a dollar-for-dollar federal tax credit TDHCA still offers stand-alone (TSAHC's version now comes only bundled with its DPA, free for Heroes buyers). At the ~$340,000 Texas median, 3% down is about $10,200 before any assistance.