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; the Dallas-Fort Worth, Austin and San Antonio metros and Glasscock County have higher limits. 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-San Marcos MSA (Bastrop, Caldwell, Hays, Travis, Williamson) | $832,750 | $571,550 | $731,700 |
| Glasscock County | $832,750 | $813,050 | $1,040,850 |
FHA limits: HUD CY2026 FHA mortgage limits. Conforming limits: FHFA 2026 conforming loan limits.
Houston is at the standard floor. The Houston-Pasadena-The Woodlands 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 (government loans) / 640 (conventional) | Teachers, first responders, veterans |
| Texas Veterans Land Board (VLB) | Little or no down payment | Subject to credit approval | Texas veterans and military members — low-interest loans |
*With down payment assistance layered on a first mortgage through a participating lender.
Texas Property Taxes
Texas has no state income tax (the Texas Constitution, Article VIII, §24-a bars a tax on the net incomes of individuals). Dividing Texas’s median annual real estate tax bill of $4,232 by the median owner-occupied home value of $283,800 gives an estimated effective property tax rate of 1.49%. Sources: Census ACS 2020–2024 5-year table B25103 and table B25077. This directly affects your qualifying payment and monthly budget.
That 1.49% is an estimated effective rate derived from two separate medians. It is not the median of individual households’ effective rates, and no single Texas household necessarily pays it. Your actual bill depends on your property’s appraised value and the local tax rates where it sits.
| Home Value | Est. Annual Tax (1.49%) | Monthly Escrow |
|---|---|---|
| $300,000 | ~$4,470 | ~$373/mo |
| $400,000 | ~$5,960 | ~$497/mo |
| $500,000 | ~$7,450 | ~$621/mo |
| $650,000 | ~$9,685 | ~$807/mo |
Texas Homestead Exemption: School districts must exempt $140,000 of a residence homestead’s value, plus an additional $60,000 for homeowners 65 or older or disabled (Texas Comptroller). File with your county appraisal district; the general deadline is before May 1. Additional exemptions exist for disabled veterans. Once homesteaded, the appraised value can rise no more than 10% a year, plus new improvements (Tax Code §23.23).
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. 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, and the Texas Constitution (Article VIII, §29) bars new transfer taxes on sales of real property. However, property tax prorations at closing can be substantial.
| 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 | Rates set by the Texas Department of Insurance |
| Title insurance (lender’s) | State-promulgated rate | Required by lender; less than owner’s |
| Survey | Varies | Shows boundaries, improvements and easements |
| 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 |
Surveys in Texas. A survey shows property boundaries, improvements, and easements. Ask whether the seller can provide a recent survey acceptable to your title company.
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.
| Area | Market Notes |
|---|---|
| Dallas-Fort Worth | Strong job market; large conventional/FHA mix |
| Austin | Post-boom adjustment; still above FHA floor |
| Houston | At FHA floor; large FHA and VA market |
| San Antonio | Strong military buyer market (JBSA) |
| El Paso | Fort Bliss; strong VA and FHA market |
| Corpus Christi | NAS Corpus Christi; VA loans prominent |
