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Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · iQRATE Mortgages · Last updated: October 13, 2026
Quick answer
A Waco mortgage broker compares many lenders for the FHA, conventional, VA, renovation and investor loans used in McLennan County. iQRATE Mortgages (NMLS 1862492) is licensed in Texas and shops more than 100 lenders on complex files. McLennan County's 2026 limits are $832,750 conforming and $541,287 FHA. For 2025, the City of Waco rate is $0.755, Waco ISD $1.0266 and McLennan County $0.334805 per $100, about $2.12 combined before exemptions.
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5.0 stars from 87 reviews on Experience.com (October 2026) · Read David's reviews on Experience.com
Waco buyers include Baylor University faculty and staff, Baylor Scott & White and Ascension Providence health workers, parents buying a home for a Baylor student, and investors renovating older homes. Waco is also about 40 minutes from Fort Hood, so some military families buy here.
Part of our Texas mortgage broker coverage. We're licensed in Texas under company NMLS 1862492 and work Waco files from our Las Vegas office, closing with local escrow and title.
Areas and ZIPs we lend in: Baylor and downtown (76706, 76701), Sanger Heights and Castle Heights (76707, 76710), Lake Waco (76708), Woodway (76712), Hewitt (76643), China Spring (76633), Robinson (76706) and Lorena (76655).
Waco has many older homes that need updates. FHA 203(k) and Fannie Mae HomeStyle loans can finance the purchase and repairs together. You'll need a contractor's bid before closing, and larger FHA projects need a HUD consultant.
Waco ISD's 2025 rate is $1.0266 per $100. Woodway, Hewitt, China Spring and parts of Waco are in other districts (such as Midway, China Spring and La Vega ISD), each with its own rate on the McLennan County list. We price escrow for your actual address.
Parents can buy as a second home or investment property and rent extra rooms to other students. DSCR lenders vary on per-bedroom leases.
Illustrative only, not a quote or offer. On a $280,000 home inside the City of Waco and Waco ISD, the 2025 city rate of $0.755 per $100 is about $2,114 a year before any city homestead exemption. Waco ISD's $1.0266 rate after the $140,000 school homestead exemption is about $1,437, and the McLennan County rate of $0.334805 adds about $937 before exemptions. College and other districts are extra.
Downtown Waco's growth around Magnolia Market and the riverfront brought new restaurants, short-term rentals and remodels of older homes in Castle Heights, Sanger Heights and Brook Oaks. Many of those houses were built before 1960. Pier-and-beam foundations, old wiring and roofs show up on inspections, and some lenders want repairs finished before closing.
Homes near Lake Waco, the Brazos and the Bosque can be in flood zones. Check FEMA maps for the exact lot.
Baylor University, Baylor Scott & White Hillcrest, Ascension Providence, L3Harris and the Veterans Affairs medical center are among Waco's large employers. New faculty arriving on a contract can often close before starting work with a signed contract. Residents and new physicians may qualify for physician loans. A buyer who will rent a home to Baylor students needs to check lease terms, parking and the city's rental rules.
These suburbs south and west of Waco have newer homes, different school districts and their own city tax rates. Compare the full tax bill for each address, because a few hundred dollars a year in taxes changes how much home you qualify for.
Prices in some Waco neighborhoods rose quickly after the downtown revival, and appraisers need recent comparable sales on similar streets. When a remodeled house sits next to unremodeled ones, an appraisal can come in below the contract price. Keep an appraisal contingency, and ask your agent for recent sales on the block before you offer.
Texas basics that apply here: Texas has no transfer tax and no state income tax, and title insurance premiums are set by the Texas Department of Insurance. Property taxes are high and billed each October and paid in arrears, so lenders usually collect about 2–6 months of taxes into escrow at closing, depending on the closing month; the seller's prorated tax credit for the months they owned the home offsets part of that. Owner-occupants get the homestead exemption and a 10% cap on yearly appraisal increases after the first year. A cash-out loan on a homestead is limited to 80% of value under Section 50(a)(6). Statewide down payment help includes TSAHC (Homes for Texas Heroes, Home Sweet Texas) and TDHCA (My First Texas Home).
Closing costs are what it costs you to get the loan: origination, discount points, appraisal, and escrow and title. Cash to close also includes your prepaids (first-year homeowners insurance, daily interest to month-end, and an escrow deposit for your own future property taxes and insurance) plus your down payment. Prepaids aren't a cost of the loan; they're your own bills paid ahead. In Waco, property-tax escrow (often 2–6 months, partly offset by the seller's prorated tax credit) and the first year of homeowners insurance are the main prepaids. Your actual closing costs depend on county, price and loan type, so we don't quote a one-size range: every line is itemized on your Loan Estimate, and our Bare Bones guarantee means we add no fees of our own. Compare states on our closing costs by state page.
McLennan County: conforming $832,750 and FHA $541,287 for a one-unit home (FHFA and HUD).
Conventional (as little as 3% down for eligible first-time buyers), FHA (3.5% down, 580+ score), VA (no down payment for eligible veterans with full entitlement), jumbo above the conforming limit, DSCR loans that qualify on rent, bank statement loans for self-employed borrowers, asset-based and 1099 loans, and rate-and-term or cash-out refinances. As a broker we compare wholesale lenders, more than 100 on complex files, instead of one bank's menu.
Terms for each are on its own page; see all iQRATE guarantees.
For 2025, the city is $0.755, Waco ISD $1.0266 and McLennan County $0.334805 per $100.
$541,287 for a one-unit home. The conforming limit is $832,750.
Yes, with an FHA 203(k) or HomeStyle renovation loan.
No. Woodway, Hewitt and China Spring addresses are in other districts with their own rates.
Yes, as a second home or investment property.
Yes, with no down payment for eligible borrowers.
Closing costs depend on the price, loan type and county, so yours are itemized on your Loan Estimate rather than quoted as a range. Closing costs are what it costs to get the loan (origination, points, appraisal, escrow and title). Cash to close also includes prepaids and your down payment; in Waco, property-tax escrow (often 2–6 months, partly offset by the seller's prorated tax credit) and the first year of homeowners insurance are the main prepaids.
Most of our loans close in under 30 days. For eligible full-documentation conventional, FHA and VA purchases, our goal is 17 calendar days from signing initial disclosures.
Get My Custom Rate Now · or call (702) 766-3744
iQRATE Mortgages · NMLS 1862492 · 6360 S Rainbow Blvd Ste 101, Las Vegas, NV 89118 · Licensed in Nevada, California, Texas and Florida. David Ghazaryan, Mortgage Broker, NMLS 1486726. Verify us on NMLS Consumer Access. Equal Housing Opportunity. Programs, rates and terms change and are subject to credit, property and underwriting approval; local facts on this page come from the public sources below and are not legal or tax advice.
More: Texas mortgage broker · DSCR loans · Bank statement loans · Our guarantees · Closing costs by state
