Quick answer: Houston buyers can choose conventional, FHA, VA, jumbo, bank statement, or DSCR loans. Conventional loans offer down payments as low as 3%, while FHA loans require at least 3.5%. Eligible veterans and service members can use VA loans with no down payment or PMI. Bank statement loans serve self-employed buyers, and DSCR loans qualify investors using rental income rather than personal income.

The right mortgage can save you tens of thousands over the life of your loan. Here is what you need to know about each option available in Houston.

Conventional Loans

  • Down payment: As low as 3%
  • Credit score: 620 minimum, best rates at 740+
  • PMI: Required below 20% down, removable at 20% equity
  • Best for: W-2 employees with good credit

FHA Loans

  • Down payment: 3.5% minimum
  • Credit score: 580 minimum
  • MIP: Required for life of loan
  • Best for: First-time buyers, lower credit scores

VA Loans

VA loan advantage: No down payment, no PMI, competitive rates. If you are eligible, this should almost always be your first choice.

  • Down payment: 0% required
  • PMI: None
  • Best for: Any eligible veteran or service member

Jumbo Loans

  • For homes over: $832,750 in Houston
  • Down payment: Typically 10-20%
  • Credit score: Usually 700+
  • Best for: Higher-priced Houston properties

Bank Statement Loans

  • Documentation: 12-24 months of bank statements instead of tax returns
  • Down payment: Typically 10-20%
  • Best for: Self-employed buyers, business owners, freelancers

DSCR Loans (Investor Loans)

  • Qualification: Based on property rental income, not personal income
  • Down payment: Typically 20-25%
  • Best for: Investors purchasing rental properties

Which Loan Is Right for You?

We start every client relationship with a detailed analysis of all options, not just the obvious one. Understanding your real buying power starts with choosing the right loan type.

Frequently asked questions

How do conventional and FHA loan requirements compare in Houston?

Conventional loans allow down payments as low as 3% and require a minimum credit score of 620. FHA loans require at least 3.5% down and a minimum score of 580. Conventional PMI is required below 20% down and removable at 20% equity. FHA mortgage insurance is required for the life of the loan.

Do eligible veterans need a down payment for a Houston VA loan?

VA loans require no down payment and no PMI for eligible veterans or service members. That differs from conventional loans, which require PMI below 20% down, and FHA loans, which require at least 3.5% down and mortgage insurance for the life of the loan.

When would I need a jumbo loan in Houston?

Jumbo loans are for Houston homes priced over $832,750. The typical down payment is 10% to 20%, and credit scores are usually 700 or higher. These loans are an option for buyers purchasing higher-priced Houston properties.

Can self-employed Houston buyers use bank statements instead of tax returns?

Bank statement loans use 12 to 24 months of bank statements instead of tax returns. They are an option for self-employed buyers, business owners, and freelancers. Down payments are typically 10% to 20%, compared with as low as 3% for conventional loans.

How do DSCR loans qualify Houston rental property investors?

DSCR loans qualify investors based on the property's rental income rather than personal income. They are intended for investors purchasing rental properties, with typical down payments of 20% to 25%. Bank statement loans, by comparison, use 12 to 24 months of bank statements instead of tax returns.

Reviewed by Ben Helstein, Texas real estate broker (TREC 727703-B) and mortgage loan originator (NMLS 1577314), InSync Loans NMLS 1829321. Last reviewed September 2026.

Equal Housing Opportunity. Program details, eligibility and terms depend on the lender and current guidelines.