2026 loan limits in Texas
Conforming (Fannie / Freddie)
$806,500 (baseline, all Texas counties)
FHA loan limit
$524,225 (statewide baseline)
up to $571,550 (Austin-Round Rock high-cost area) in high-cost counties
What homes actually cost
Median home price: ≈ $335,000 statewide
Roughly 34% of Texas households can afford the state median home. High property taxes materially reduce buying power — always run PITI, not just P&I.
Property taxes & insurance
Average effective property tax rate: ≈ 1.68% — one of the highest in the U.S.
There's no state income tax, but Texas funds schools through property taxes — so budgeting for a 2.0–3.0% total tax bill (including school + MUD + PID) is realistic in growth areas.
Average homeowners insurance: ≈ $2,850/year for a $400K home (higher on the coast)
Coastal counties require windstorm coverage from TWIA; inland Texas is exposed to hail, so replacement-cost roof coverage is a must. Get a quote before removing the option period.
Down-payment assistance in Texas
TSAHC Homes for Texas Heroes
Who: Teachers, first responders, veterans, and corrections officers
What: Down-payment assistance grant of up to 5% + competitive 30-yr fixed rates.
TSAHC Home Sweet Texas
Who: First-time and repeat buyers under income limits
What: DPA grant up to 5% of loan amount.
TDHCA My First Texas Home
Who: First-time buyers statewide
What: Up to 5% DPA as a second lien plus optional Mortgage Credit Certificate.
Is buying in Texas right for you?
Closing customs in Texas
Title companies (not attorneys) close most Texas transactions. Buyers typically pay their own closing costs; sellers often pay for the owner's title policy per TREC promulgated forms.
Frequently asked questions
Why are Texas property taxes so high?
Texas has no state income tax, so schools and local services are funded largely through property taxes. Rates of 2.0–3.0% (including MUD / PID) are common in newer master-planned communities.
What down-payment help is available in Texas?
TSAHC and TDHCA both offer up to 5% DPA statewide, and Texas Heroes adds bonus assistance for teachers, first responders, veterans, and corrections officers.
Do I need a lawyer to close on a home in Texas?
No — Texas closings are handled by title companies using TREC-promulgated contracts.
Related tools & guides
- The Complete First-Time Homebuyer's Readiness Guide
- FHA vs Conventional: Real cost comparison
- How much home you can actually afford
Run your numbers
Take what you just learned and apply it to your file.