Updated · Mike Certo, NMLS #260555
Texas Mortgage Programs
Cornerstone First Mortgage originates Texas mortgages through Mike Certo and his Texas-licensed loan officers. Below is the full menu we run for buyers from Houston to El Paso, each explained with the key facts and the 2026 numbers behind it. For county 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 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, a common fit for Houston and Dallas buyers depending on income and credit profile.
- Arrive Home: national DPA for low-to-moderate income buyers, and it includes an ITIN borrower path used often along the border in El Paso and the Rio Grande Valley.
- Essex Mortgage / NHF: multi-tier DPA pairing for FHA, VA, USDA, and conventional buyers across Texas.
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 Plano, Frisco, or Katy move-up buyer who needs to close on the next home before the current one sells. It clears the contingency from your offer, which Dallas-Fort Worth listing agents call the deal-saver. Cornerstone's BBYS program lets you write a clean offer, and we underwrite the bridge on the equity in your existing home plus the new purchase.
- Common scenario: Contract Contingent on Buyer Sale (CCBS) deals where a Houston or Austin seller won't take a contingent offer, so BBYS removes the contingency.
- Process: We underwrite the bridge alongside the new purchase mortgage and close concurrently or near-concurrently.
- Audience: Move-up buyers across the major Texas metros plus the listing agents who want their CCBS deal to actually close.
Self-Employed Loans
Tax returns underrepresent self-employed income because of legal deductions, and standard underwriting punishes that. We run the alternative paths for self-employed buyers, from Austin founders to Houston contractors: bank-statement loans (12 or 24 months), 1099 loans, and asset-qualifier loans that qualify on liquid assets without showing income.
- Bank statement loans: Qualify on 12 or 24 months of business bank deposits with an expense-factor adjustment, not the deposit gross.
- 1099 loans: For Texas contractors, gig workers, and real estate agents who earn 1099-only income, qualified on the documented 1099 total.
- Asset-qualifier loans: Qualify on liquid assets (cash, brokerage, retirement) divided over an asset-utilization period, common for retired Hill Country buyers.
Jumbo & Medical Professionals
Loan amounts above the $832,750 Texas conforming limit: full-doc, alt-doc, super jumbo over $2M, plus the standout Medical Professionals program. It reaches up to 100% LTV with no PMI for physicians, dentists, and a specific list of credentialed roles. Austin, Dallas, Houston, and San Antonio all have jumbo-territory neighborhoods, and Medical Professionals is a frequent path for doctors at MD Anderson, Houston Methodist, and UT Southwestern.
- Medical Professionals eligible: MD, DO, DDS, DMD, DPM, DVM, PharmD, plus Ophthalmology and Psychiatry MD/DO and CRNAs with a DNAP or DNP, common among residents at Houston Methodist and UT Southwestern.
- For a Dallas or Austin physician: up to 100% LTV at $1.5M with FICO 680, 100% at $2M with FICO 720, and 95% at $2M with FICO 680.
- Student loan exclusion: Deferred and income-based-repayment student loans come out of DTI for residents and fellows at institutions like UT Southwestern and Baylor, on resident or fellow income.
Investor & DSCR Loans
For investors buying Texas rental property, from San Antonio duplexes to Hill Country cabins. DSCR loans qualify on the property's rental income rather than your personal income. We finance below a 1.0 DSCR ratio, so sub-1.0 deals in Bexar or Tarrant County still have a path. Short-term-rental products are available for the San Antonio River Walk and Fredericksburg STR markets.
- DSCR loans: Qualify on the rental income against the property's debt service, not your personal tax returns.
- Below 1.0 DSCR: Sub-1.0 ratios and complex Harris County scenarios stay on our investor menu, so bring us the specific deal.
- Short-term rental specific: Airbnb and VRBO DSCR products with underwriting built for Texas STR income.
First-Time Home Buyer Loans
FHA, USDA, low-down-payment conventional, and DPA-paired structures for Texas first-timers. Built for the El Paso or Corpus Christi buyer with real-life income and credit, not a perfect-paper applicant. Our Texas first-time home buyer guide lays out which loan pairs with TSAHC or TDHCA and the 2026 income and credit numbers behind each one.
- FHA: 3.5% down at 580+ FICO published (620+ practical overlay), pairs with TSAHC in Houston and TDHCA statewide.
- USDA: Zero down across USDA-eligible Texas areas, common in East Texas and the Panhandle outside the metros.
- Conventional 97: 3% down at 620+ FICO, which pairs with TDHCA My First Texas Home.
Not sure which program fits?
Call (480) 296-6513 for a free consult, or send your Texas scenario through the form below. Mike and his team review every Texas file, from a first-time buyer in San Antonio to an investor in Tarrant County, and our team calls you back shortly. 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.