Texas Mortgage Guide 2026
Everything you need to know about getting a mortgage in Texas — loan limits by metro area, available programs, property taxes, title insurance, and how the Texas housing market affects your financing options.
Texas Loan Limits by Metro Area (2026)
Texas uses a tiered FHA loan limit structure based on local median home prices. Most of the state sits at the national standard floor, but the three major metros — Dallas-Fort Worth, Austin, and San Antonio — have elevated limits reflecting higher local values. Conforming limits are uniform statewide.
| Metro Area / County Group | Conforming Limit | FHA 1-Unit | FHA 2-Unit |
|---|---|---|---|
| Most Texas counties | $832,750 | $541,287 | $693,050 |
| San Antonio-New Braunfels MSA (Bexar, Atascosa, Bandera, Comal, Guadalupe, Kendall, Medina, Wilson) | $832,750 | $557,750 | $714,000 |
| Dallas-Fort Worth-Arlington MSA (Collin, Dallas, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant, Wise) | $832,750 | $563,500 | $721,400 |
| Austin-Round Rock MSA (Travis, Hays, Williamson, Caldwell, Bastrop) | $832,750 | $571,550 | $731,700 |
Houston is at the standard floor. Despite being the largest Texas city by population, the Houston-The Woodlands-Sugar Land MSA falls at the $541,287 standard FHA limit. Buyers in Houston seeking loans above that amount should look at conventional financing, which carries the $832,750 conforming limit statewide.
Loan Programs Available in Texas
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty — large military presence in TX |
| USDA | 0% | 640 | Rural/suburban buyers meeting income limits |
| Conventional | 3–20% | 620 | Strong credit, wants PMI cancellation |
| TDHCA My First Texas Home | As low as 0%* | 620 | First-time buyers + veterans, up to 5% DPA |
| TSAHC Homes for Texas Heroes | As low as 0%* | 620 | Teachers, first responders, veterans |
| Texas Veterans Land Board (VLB) | 0% | 620 | Texas veterans — state-funded below-market rate loans |
*With down payment assistance layered on a first mortgage through a participating lender.
Texas Property Taxes
Texas has no state income tax — but it makes up for it with some of the highest property tax rates in the country. The effective rate averages approximately 1.60–1.80% of appraised value, significantly above the national average of ~0.99%. This directly affects your qualifying payment and monthly budget.
| Home Value | Est. Annual Tax (1.7%) | Monthly Escrow |
|---|---|---|
| $300,000 | ~$5,100 | ~$425/mo |
| $400,000 | ~$6,800 | ~$567/mo |
| $500,000 | ~$8,500 | ~$708/mo |
| $650,000 | ~$11,050 | ~$921/mo |
Texas Homestead Exemption: Texas offers a $100,000 homestead exemption for school district taxes on a primary residence — the largest in the country. File with your county appraisal district after closing. Additional exemptions exist for seniors (65+), disabled individuals, and veterans. The 10% appraisal cap limits how much your taxable value can increase per year once homesteaded.
MUD taxes. Many suburban Texas communities — especially in Houston’s suburbs — sit within Municipal Utility Districts (MUDs) that levy additional property taxes on top of city/county rates. In some MUD districts, the combined effective rate can exceed 2.5%. Always ask about MUD tax exposure before making an offer in suburban Texas.
Closing Costs in Texas
Texas buyer closing costs typically run 2%–4% of the purchase price. Texas has no state transfer tax or documentary stamp tax on deeds — a significant advantage over states like Florida. However, property tax prorations at closing can be substantial given Texas’s high tax rates.
| Fee | Typical Range | Notes |
|---|---|---|
| Loan origination | 0.5%–1.2% of loan | Varies by lender; shop and compare |
| Appraisal | $500–$800 | Required by lender |
| Title insurance (owner’s) | State-promulgated rate | TX sets rates; ~$1,400–2,000 on $300K |
| Title insurance (lender’s) | State-promulgated rate | Required by lender; less than owner’s |
| Survey | $400–$700 | Required by most TX lenders — unique to Texas |
| Property tax proration | Varies | Seller pays their share; large at TX tax rates |
| Homeowner’s insurance (prepaid) | $1,500–$4,000+ | First year upfront; Texas rates above national avg |
| Recording fees | $50–$150 | County clerk recording |
| Escrow reserves | 2–6 months | Initial escrow funding for taxes + insurance |
Survey is expected in Texas. Unlike most states, Texas lenders and title companies typically require a current survey showing property boundaries, improvements, and easements. Budget $400–$700 unless the seller can provide a recent survey acceptable to your title company. This is often a negotiating point — ask the seller to provide one.
Texas Housing Market Overview (2026)
Texas remains one of the most active housing markets in the country, driven by continued in-migration, business relocation, and a large military population. After significant appreciation in 2021–2023, the market has moderated — with Austin seeing notable price corrections and Dallas-Fort Worth stabilizing.
| Metro Area | Median Price (Est.) | Market Trend | Key Notes |
|---|---|---|---|
| Dallas-Fort Worth | $380,000–$480,000 | Stabilizing | Strong job market; large conventional/FHA mix |
| Austin | $430,000–$580,000 | Correcting/stabilizing | Post-boom adjustment; still above FHA floor |
| Houston | $300,000–$400,000 | Stable | At FHA floor; large FHA and VA market |
| San Antonio | $270,000–$360,000 | Stable | Strong military buyer market (JBSA); affordable |
| El Paso | $210,000–$280,000 | Stable | Fort Bliss; strong VA and FHA market |
| Corpus Christi | $220,000–$300,000 | Stable | NAS Corpus Christi; VA loans prominent |
