Types of Mortgage Lenders

Local and Community Banks

Grayson County has a strong community banking presence with local and regional banks offering mortgage products with the advantage of local underwriting decisions, relationship-based flexibility for non-standard income situations, and portfolio loan products for farm and rural properties.

Best for: Self-employed borrowers, farm and ranch property purchases, non-traditional income documentation.

Notable local options: First United Bank, Guaranty Bank & Trust, and Texoma Community Credit Union all have mortgage lending operations in the county.

Credit Unions

Credit unions often offer competitive mortgage rates and lower fees than banks or mortgage companies. Texoma Community Credit Union is a locally based credit union serving the Grayson County area with conventional, FHA, and VA loan products.

Mortgage Brokers

Mortgage brokers work with multiple wholesale lenders and can shop your loan scenario across those lenders. Particularly valuable for borrowers with complex financial profiles or those who want competitive rate shopping without contacting multiple lenders independently.

Loan Programs Available in Grayson County

USDA Rural Development Loans

A significant portion of Grayson County qualifies for USDA rural development loan eligibility — including many residential properties outside Sherman and Denison's core city limits. USDA loans offer zero down payment for eligible properties and borrowers.

Down payment: Zero down payment for eligible properties and borrowers.

Eligibility check: Verify property and income eligibility at eligibility.sc.egov.usda.gov before assuming qualification.

VA Loans

VA loans are available to eligible veterans, active-duty service members, and surviving spouses — with zero down payment required and no PMI. Grayson County has a significant veteran population and meaningful demand for VA loan products.

FHA Loans

FHA loans offer lower down payment requirements and more flexible credit qualification than conventional loans. Down payment of 3.5% with credit score 580+. A strong option for first-time homebuyers and those rebuilding credit.

Conventional Loans

Conventional loans are the most common mortgage product for qualified buyers. In 2026, the conforming loan limit is $806,500 for a single-family home in most Texas counties.

How to Compare Mortgage Lenders Effectively

Compare APR, not just rate: APR includes lender fees and gives a more accurate picture of total loan cost.

Request a Loan Estimate: Lenders must provide a standardized Loan Estimate within 3 business days of application. Compare these side by side across multiple lenders.

Ask about processing timelines: A lender who can close in 21 days may be more valuable than one offering a slightly lower rate with a 45-day timeline. In competitive offers, closing speed matters.

Frequently Asked Questions

Does Grayson County qualify for USDA loans?

Much of Grayson County qualifies for USDA rural development loan eligibility — particularly properties outside Sherman and Denison's city limits and in smaller communities like Pottsboro, Howe, and Whitesboro. Eligibility is property-specific — use the USDA eligibility map at eligibility.sc.egov.usda.gov to verify before applying.

Should I get pre-approved or pre-qualified?

Pre-approval is significantly stronger than pre-qualification and is what sellers and listing agents in Grayson County expect. Pre-approval involves verified income, asset, and credit documentation reviewed by an underwriter. In a competitive market, submit offers with a pre-approval letter — not a pre-qualification.

Resources

1. USDA Loan Eligibility Map

2. VA Home Loans — U.S. Department of Veterans Affairs

3. Texas TDHCA — Homebuyer Programs

4. https://www.northtexasweekly.com/categories/financial-and-legal