Mortgage escrow waivers in Texas
Prefer to pay property taxes and homeowners insurance yourself? Eligible borrowers can explore mortgage escrow waivers with Guarantee Mortgage—even with a low down payment.
Keep control of the payment schedule. Keep a plan for the bills.
Talk it through: (979) 977-3900What is a mortgage escrow waiver?
An escrow waiver lets an eligible homeowner pay property taxes and homeowners insurance directly instead of sending money each month to a lender-managed escrow account. You still make your required mortgage payment.
The taxes and insurance do not go away. You take responsibility for setting money aside and paying each bill on time. This is separate from the escrow or title company that handles your closing.
Mortgage escrow waiver eligibility
Guarantee Mortgage can review VA escrow waivers up to 100% loan-to-value (LTV) and conventional escrow waivers up to 97% LTV through eligible lender programs. LTV compares the loan amount with the property's lending value. The maximum for your transaction may be lower.
Conventional loans: up to 97% LTV
You may not need 20% equity to request a waiver. Review the checklist below, then have a loan officer confirm the current requirements for your scenario.
Review the conventional checklist
- Minimum FICO score of 620.
- Maximum LTV of 97%, subject to product and property limits.
- Automated underwriting system (AUS) findings showing Acceptable/Approve status, as required by the lender.
- At least two reported credit scores for every borrower.
- Debt-to-income (DTI) ratio of 50% or less; AUS or product rules may require a lower ratio.
- No more than one mortgage late payment in the last 12 months.
- For investment properties and second homes, reserves as required by AUS.
These are lender-program criteria, not a promise of loan or waiver approval. Occupancy, transaction type and property requirements still apply; 97% LTV is not available for every conventional loan.
First-time buyer? There is an extra rule.
For the Texas conventional option described here, first-time homebuyers with an LTV above 80% must have a FICO score over 680. A score of exactly 680 does not meet that rule. No conventional escrow waiver is available above 97% LTV under this option.
Your loan officer will confirm how first-time-buyer status and the qualifying credit score apply to your file.
VA loans: up to 100% LTV
Eligible VA borrowers may be able to finance up to 100% LTV and pay taxes and homeowners insurance directly. A low- or zero-down-payment structure does not automatically rule out an escrow waiver.
What the VA review includes
- VA eligibility, entitlement and the lender's loan requirements.
- The transaction's LTV, loan purpose and property eligibility.
- Any required escrow treatment, including the HPML exclusion below.
- A practical plan to pay taxes and insurance when due.
The conventional FICO and DTI checklist is not a VA approval checklist. VA waiver availability must be confirmed for the specific loan, including the treatment of any financed funding fee.
Not available for FHA, USDA or HPML
The escrow-waiver options described on this page are not available for FHA loans, USDA loans or higher-priced mortgage loans (HPML). Your loan officer must determine HPML status; it is not based on credit score alone. Other legal, lender or property restrictions may also require escrow, including separate flood-insurance rules.
Have an existing mortgage? A request to remove its escrow account follows your current servicer's rules. These new-loan options do not guarantee removal of an existing account.
Compare escrow vs. paying taxes and insurance yourself
Use example amounts to see the difference. This is a budgeting illustration, not a rate quote, loan estimate or eligibility decision.
With escrow
Illustrative monthly payment to the servicer
$2,700.00
- Loan payment
- $2,000.00
- Tax & insurance portion
- $700.00
With an escrow waiver
Illustrative monthly payment to the servicer
$2,000.00
- Set aside separately each month
- $700.00
- Tax & insurance bills each year
- $8,400.00
Same illustrated monthly budget: $2,700.00. The amount you reserve for taxes and insurance is not savings from waiving escrow.
Amounts changed. Select “Update comparison” to see the revised figures.
Annual taxes plus insurance ÷ 12 = monthly amount to set aside. Actual escrow payments can include cushions, shortages and adjustments. This illustration excludes HOA dues, separate flood insurance, special assessments, maintenance and any costs not entered. Bills and due dates can change. This calculator does not send or store your entries.
Example: A $2,000 monthly loan payment, $6,000 annual tax bill and $2,400 annual insurance premium create a $2,700 monthly budget either way. With a waiver, pay the $2,000 loan payment and reserve the other $700 yourself.
The interactive comparison loads when JavaScript is available. This example excludes escrow cushions, shortages, HOA dues and other costs.
Is an escrow waiver a good fit?
The best choice depends on how you manage recurring expenses and larger bills.
You may value a waiver if…
- You prefer to manage the tax and insurance payment schedule yourself.
- You already reserve money consistently for annual expenses.
- You want to compare cash to close with and without initial escrow funding.
You may prefer escrow if…
- You want the servicer to handle covered tax and insurance bills.
- You find it easier to budget through one monthly payment.
- You would rather avoid tracking separate bills and due dates.
A waiver may reduce initial escrow funding at closing, but it does not eliminate prepaid insurance, taxes due at closing or other closing costs. Ask for a side-by-side comparison of cash to close and ongoing obligations.
Mortgage escrow waiver FAQs
Can I waive escrow with less than 20% down?
Potentially. Eligible conventional loans can allow escrow waivers up to 97% LTV, and eligible VA loans up to 100% LTV through the lender options described here. Credit, first-time-buyer, property and other requirements still apply. Explore our low-down-payment mortgage options for related loan structures.
Does an escrow waiver lower my housing costs?
It changes how you pay taxes and insurance. Your payment to the servicer may be smaller, but you still owe the separate bills. Compare the full budget, not just the payment shown on your mortgage statement.
Is an escrow waiver the same as removing PMI?
No. Private mortgage insurance (PMI) is separate from the tax and homeowners-insurance escrow account. A conventional loan may still require PMI even if its tax and insurance escrows are waived.
Can a first-time homebuyer get a conventional escrow waiver?
Potentially. For the Texas option described here, a first-time buyer above 80% LTV needs a FICO score over 680, in addition to the other criteria. Exactly 680 is not over 680. The conventional waiver limit is 97% LTV.
Is there an escrow waiver fee?
UWM currently describes its eligible escrow waiver options as no cost to the borrower. Ask your loan officer to confirm the lender, current pricing and any loan-specific charges. This is not a statement that the mortgage has no closing costs.
Can I remove escrow from my existing mortgage?
Ask your current servicer about its escrow-cancellation requirements. They can differ from the requirements for a new loan. This page does not promise that an existing account can be removed.
What happens if I miss a tax or insurance payment?
Missed bills can lead to penalties, a tax lien or a lapse in coverage. A lender may establish escrow or obtain lender-placed insurance when permitted. Keep a separate reserve and reminders for every due date.
Are FHA, USDA or higher-priced mortgage loans eligible?
No. FHA, USDA and HPML loans are excluded from the escrow-waiver options described here. A loan officer must review the actual loan to determine its classification and escrow requirements.
Ask us to compare your escrow options.
Start with your purchase or refinance goal. Tell your loan officer you are interested in an escrow waiver, and we can review the available lender options, cash to close and monthly budget.
Ready for the full application? Use our secure application.
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Sources and program notes
Prepared October 20, 2026. Public references: UWM escrow-waiver limits and first-time-buyer notes; CFPB explanation of escrow accounts; and CFPB higher-priced mortgage loan escrow rules.
The detailed conventional checklist reflects program criteria provided by Guarantee Mortgage and requires confirmation against current lender guidance. This page describes Texas scenarios; state-specific restrictions differ elsewhere. The HPML exclusion is the policy for the options described here, not a summary of every legal exemption.
Guarantee Mortgage, LLC · Company NMLS #279696 · Equal Housing Opportunity. All loans and escrow waivers are subject to credit approval, underwriting requirements, applicable law and program eligibility. Rates, terms and program availability may change. This page and its comparison are educational and are not a commitment to lend.
