Texas · State guide
How to buy a house in Texas
A big, no-income-tax state that’s now a buyer’s market — with two state agencies, huge city grants, and one of the lowest transfer costs anywhere, set against very high property taxes and insurance. Here is the playbook for buying in the Lone Star State.
Last updated June 2026
Why Texas is different
Buying a house in Texas, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Texas has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Texas is moderately affordable and now a buyer’s market (a statewide median around $340,000, with rising inventory and price cuts, and no state income tax; Austin is correcting while Houston and San Antonio stay cheap). Two state agencies — TDHCA and TSAHC — plus huge city grants offer down payment help up to $60,000.
The big trade-off: property taxes are among the highest in the country (though the homestead exemption just jumped to $140,000). On the plus side, closings run through a title company and there’s no transfer tax. The catch: insurance is very high — hurricanes, hail, and more. Use the 50-state hub to compare other states.
The market
What homes cost in Texas
Now a buyer’s market, with rising inventory and price cuts.
The statewide median sale price was about $332,000–$342,000 in spring 2026 (down ~1–2% year over year), with inventory near 5 months of supply, homes sitting ~90+ days, and widespread price cuts — Texas has shifted to a buyer’s market. It’s a normalization, not a crash; people keep moving in. Prices vary by metro:
Median prices by area
Austin (Travis, correcting hardest) ~$520K · Dallas ~$435K · Fort Worth ~$338K · Houston (Harris, the most affordable big metro) ~$335K · San Antonio (Bexar) ~$261K–$265K · El Paso ~$250K–$265K. New-build prices have fallen close to existing homes, so builders are competitive.
Down payment & rate help
Texas programs
Two state agencies plus big city grants — all through participating lenders. A 620 credit score and a homebuyer course are the main requirements.
-
01
TDHCA (My First / My Choice)
The state agency’s Texas Homebuyer Program offers a 30-year fixed mortgage with up to 5% down payment help. My First Texas Home is for first-time buyers; My Choice Texas Home is open to repeat buyers with no price cap. Both can add a Mortgage Credit Certificate tax credit.
-
02
TSAHC (Heroes & Home Sweet Texas)
The other agency gives 2–5% as a grant you never repay (or a second forgiven after 3 years). Homes for Texas Heroes is for teachers, police, firefighters, EMS, nurses, and veterans; Home Sweet Texas is for everyone else under the income limit. Open to first-time and repeat buyers.
-
03
Big city grants (up to $60K)
Texas cities have some of the largest programs anywhere, layered on top: Dallas up to $60,000, Houston up to $50,000, El Paso and Denton up to $45,000–$50,000, Austin up to $40,000, San Antonio up to $30,000. These can cover the whole down payment.
-
04
Federal help
The big federal loans work well here — and VA is huge given Texas’s military bases. VA (0% down), USDA (0% down — much of rural TX qualifies), and FHA (3.5% down), which pairs directly with the state and city programs above.
The Texas program rules in brief
You’ll generally need a 620 credit score (640 for some conventional loans), completion of a homebuyer education course, and household income and price under limits. The limits are generous — income caps run roughly $101,000–$228,000 depending on the county, agency, and program (highest in Austin), with price limits around $544,000–$598,000. TSAHC’s help can be a true grant that’s never repaid; TDHCA’s is a deferred second. Confirm current county limits with your lender, as they update yearly.
★ Free expert help
Buying in Texas? Get matched with a local expert.
From stacking a state grant with a big city program to getting a realistic insurance quote in hail-and-hurricane country, a local pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Texas: high (but no income tax)
Here’s the classic Texas trade-off: no state income tax, but very high property taxes — an effective rate around 1.58%, among the highest in the country, with a typical bill near $4,100. Combined county, city, and school rates often run 1.8%–2.5%, and can top 3% in new suburbs with MUD (utility district) taxes. County appraisal districts value homes at full market value every year — and you can protest.
The homestead exemption just jumped — file for it
Big news for 2026: Texas voters approved raising the school homestead exemption to $140,000 (up from $100,000), and to a combined $200,000 for homeowners 65+ or disabled — effective January 2026. That’s real money off every primary-home tax bill. So file your homestead exemption (Form 50-114) as soon as you own the home — it also caps your appraised value increases at 10% a year. And 100% disabled veterans pay zero property tax on their home. Note: there’s no transfer tax in Texas, which keeps closing costs low.
Closing & costs
Closing on a home in Texas
Texas is a title-company state — a title/escrow company handles the closing and recording, and an attorney isn’t required. A nice quirk: title insurance rates are set by the state, so the premium is identical at every company (you can still shop the other escrow fees). And Texas has no transfer tax and no mortgage tax — one of the cheapest states to close in. On financing, the 2026 conforming limit is $832,750 and the FHA floor is $541,287, rising in the Austin ($571,550), DFW ($563,500), and San Antonio ($557,750) metros.
Texas requires a seller disclosure — with strong flood questions
Texas requires the seller of most homes to give you a written Seller’s Disclosure Notice — listing known problems — on or before you sign the contract (if it’s late, you can back out within 7 days). After Hurricane Harvey, the flood questions were strengthened: sellers must disclose floodplain location, past flooding, and prior flood claims. The federal lead-paint disclosure applies to pre-1978 homes, and buyers in a MUD get a special notice. Always get your own home inspection too — and independently check FEMA flood maps.
Insurance & risks
Insuring a Texas home
This is the other big cost: Texas home insurance is among the highest in the nation — averaging roughly $4,100–$4,900 a year, and rising. The reason is multiple severe-weather risks at once: hurricanes on the Gulf Coast (Harvey in 2017, Beryl in 2024), the nation’s worst hail (DFW and Central Texas), tornadoes in the north, flooding (the deadly 2025 Hill Country floods), and the 2021 winter storm (Uri) that burst pipes statewide.
Watch the wind/hail deductible — plus flood and coastal windstorm
A few Texas-specific things. Your policy almost certainly has a separate wind/hail deductible that’s a percentage of your home’s value (1–5%), not a flat amount — a 2% deductible on a $350,000 home is $7,000 out of pocket. Flood is never covered by a standard policy, so add an NFIP policy anywhere near water or in flood-prone Houston. And on the coast (14 counties + part of Harris), standard policies often exclude wind — you buy it through TWIA, the state windstorm pool. If a home is hard to insure anywhere, Texas has a FAIR Plan as a last resort. Get quotes before you make an offer.
Wherever you buy
The steps that work the same in Texas
Texas sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Texas: common questions
How much money do you need to buy a house in Texas?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$340,000 home that’s roughly $10,200–$11,900 down plus closing costs. Texas has no transfer tax, and state/city help — up to $60,000 — can cover the down payment. See how much you really need →
Does Texas have down payment assistance?
Yes, a lot. Two state agencies (TDHCA and TSAHC) each give up to 5% — TSAHC’s can be a grant you never repay. And big city programs stack on top: Dallas up to $60,000, Houston up to $50,000, Austin up to $40,000, San Antonio up to $30,000. See assistance programs →
Why are Texas property taxes so high?
Because Texas has no state income tax, so local government leans heavily on property tax — an effective rate around 1.58%, among the highest in the country, and higher still in new suburbs with MUD taxes. The recently raised $140,000 homestead exemption helps offset it.
What is the Texas homestead exemption for 2026?
Voters raised the school homestead exemption to $140,000 off your primary home’s value (and a combined $200,000 for homeowners 65+ or disabled), effective January 2026. File Form 50-114 after you buy — it also caps your appraised value increases at 10% a year.
What credit score do you need in Texas?
The state programs generally require a 620 (640 for some conventional loans). For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need an attorney to buy a house in Texas?
No. Texas is a title-company state — a title/escrow company handles the closing. And because title insurance rates are set by the state, the premium is the same everywhere, though you can still shop the other escrow fees. Title insurance is standard.
Does Texas have a transfer tax?
No — Texas is one of the few states that prohibits real estate transfer taxes, and there’s no mortgage recording tax on the purchase either. That makes closing costs noticeably lower than in states that charge 1–2% at closing.
Why is home insurance so expensive in Texas?
Texas faces several severe-weather risks at once — hurricanes on the coast, some of the worst hail in the country, tornadoes, flooding, and winter storms. That pushes premiums to around $4,100–$4,900 a year. Get quotes before you make an offer, and check wind/hail deductibles and flood needs.
What’s the conforming loan limit in Texas?
$832,750 in every county for 2026, with the FHA floor at $541,287 in most of the state. It’s higher in the Austin ($571,550), Dallas-Fort Worth ($563,500), and San Antonio ($557,750) metros. Loans above the conforming limit are jumbo.
★ Ready for the next step?
Don’t navigate the Texas market alone.
Tell us where you are in the process and we’ll connect you with an expert who can help — whether that’s a TDHCA or TSAHC loan, a big city grant, a USDA or VA 0%-down approval, or fixing your credit. It’s free, with no obligation.
Compare states
Buying in a different state?
The programs, taxes, and closing rules change at the state line. Pick another state, or see all 50.