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How to buy a home in Texas

Quick answer

To buy a home in Texas, most buyers use an FHA, conventional, VA or USDA loan, often combined with Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC down payment assistance. With a typical home around $260,400, a 3.5% FHA down payment is about $9,114 and the estimated monthly payment is roughly $2,258 at a 7.18% rate.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Home prices in Texas sit near the middle of the national range, so the loan program you choose — and whether you add down payment assistance — can swing your upfront cash by thousands. With a large, diverse market, prices vary widely between metro areas and smaller towns, so compare city-level options below. A household earning around $87,000 a year could comfortably afford a typical Texas home under the 31% housing guideline.

What does a home cost in Texas?

ItemTexas estimate
Typical home value$260,400
3% down (conventional)$7,812
3.5% down (FHA)$9,114
20% down$52,080
Est. monthly payment (FHA, 3.5% down)$2,258
Household income to afford (31%)$87,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

What first-time home buyer programs does Texas offer?

Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC is Texas's housing finance agency. Its programs are offered through approved lenders and usually require homebuyer education plus income and purchase-price limits.

  • My First Texas Home: A first mortgage with down payment assistance for first-time buyers and veterans.
  • My Choice Texas Home: Assistance for buyers who are not first-time buyers but meet income limits.
  • Homes for Texas Heroes (TSAHC): Assistance for teachers, first responders, nurses, corrections officers and veterans.

Check current terms at Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC. Many Texas cities and counties also run their own down payment assistance.

What are the Texas loan limits for 2026?

Texas has 254 counties; 0 are high-cost areas. Here are the official 2026 one-unit limits for its most populous counties (FHFA and HUD):

CountyConformingFHA
Harris County$832,750$541,287
Dallas County$832,750$563,500
Tarrant County$832,750$563,500
Bexar County$832,750$557,750
Travis County$832,750$571,550
Collin County$832,750$563,500
Denton County$832,750$563,500
Hidalgo County$832,750$541,287
El Paso County$832,750$541,287
Fort Bend County$832,750$541,287
Montgomery County$832,750$541,287
Williamson County$832,750$571,550

See all Texas county loan limits → VA loans have no limit for borrowers with full entitlement.

How much house can I afford in Texas?

Use Texas's own property tax rate and insurance average: $60k, $80k, $100k, $150k salaries, or see FHA requirements in Texas.

How do property taxes affect buying in Texas?

Homeowners in Texas pay a median of $4,111 a year in property taxes — an effective rate of about 1.58% of the median home value, among the highest in the country, so taxes are a major part of the monthly payment (Census ACS). Actual rates vary by county and municipality.

Which loan types are popular in Texas?

  • Conventional Loan — Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity.
  • FHA Loan — Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules.
  • VA Loan — For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance.
  • USDA Loan — 0% down for moderate-income buyers in eligible rural and suburban areas.
  • Jumbo Loan — For loan amounts above the conforming limit; usually 10–20% down and 700+ credit.
  • First-Time Home Buyer Loans — Low-down-payment loans plus state assistance programs designed for first-time buyers.

Buying a home in Texas cities

Browse every city page →

Texas home buying FAQs

On a typical Texas home of about $260,400, a 3.5% FHA down payment is roughly $9,114 and a 3% conventional down payment about $7,812, plus closing costs of 2%–5% of the loan.

Yes. Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC offers programs including My First Texas Home, My Choice Texas Home, Homes for Texas Heroes (TSAHC). Income, price and credit limits apply.

The 2026 baseline conforming limit for a one-unit home is $832,750 in most Texas counties; designated high-cost counties can be higher.

FHA limits are set by county. For 2026 they start at $541,287 for one-unit homes in lower-cost areas and rise in higher-cost counties.

Sources

Data last updated October 23, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.