Getting a Mortgage in Texas: 2026 Guide

DFW (Dallas, Tarrant, Collin, Denton, Rockwall, Ellis, Kaufman counties) anchors the largest Texas metro and one of the largest in the country, with a deep mix of move-up, first-time buyer, and luxury activity. Houston (Harris, Fort Bend, Montgomery, Brazoria, Galveston counties) is the second-largest, with significant energy-corridor and Gulf Coast dynamics.

Austin (Travis, Williamson, Hays counties) has been one of the fastest-appreciating major US metros over the past several cycles, with a meaningful jumbo slice in west Austin. San Antonio (Bexar County) anchors south Texas with strong VA volume around JBSA. The Rio Grande Valley, El Paso, and west Texas each anchor smaller markets at much lower price points.

Texas property taxes are among the highest in the country (no state income tax in part because the state relies on property and sales taxes). The qualifying payment is heavily tax-driven, and homestead exemption filings are essential to lock in the lower owner-occupied rate.

For 2026, the conforming one-unit loan limit in every Texas county is $806,500 and the statewide FHA one-unit floor is $524,225. There are no federal high-cost designations anywhere in Texas, so the floor figures apply uniformly.

Higher-end Austin, Dallas, and Houston contracts push into jumbo territory above the conforming cap. Across the rest of the state, the floor figures apply.

Texas's effective property tax rate runs around 1.68% of market value statewide, on the high side of the national range. Local rates vary meaningfully by county, school district, MUD (Municipal Utility District), and PID (Public Improvement District). Newer master-planned communities often layer in MUD and PID assessments that can add hundreds of dollars per month to the qualifying payment.

Always pull the actual county tax line for the specific parcel and confirm any MUD or PID assessments. The Texas homestead exemption (mandatory for school districts and optional for most local jurisdictions) reduces the assessed value used for property tax calculation on an owner-occupied principal residence and caps year-over-year assessed-value growth at 10%.

Two state-level programs run the dominant first-time buyer first mortgage product family in Texas. The Texas State Affordable Housing Corporation (TSAHC) runs the Home Sweet Texas Home Loan and Homes for Texas Heroes (for educators, first responders, veterans, and corrections officers). The Texas Department of Housing and Community Affairs (TDHCA) runs the My First Texas Home and My Choice Texas Home programs.

Both program families pair a discounted-rate first mortgage with optional layered down-payment assistance (typically 3% to 5% as a forgivable second-lien loan or grant). Some metros (Dallas, Austin, Houston) layer in their own city-level DPA on top. Funding and parameters are reviewed periodically.

Texas has the largest eligible-veteran population in the country, with concentration around JBSA (Joint Base San Antonio, Bexar County), Fort Cavazos (formerly Fort Hood, Bell County), Fort Bliss (El Paso), JRB Fort Worth, NAS Corpus Christi, and Sheppard AFB (Wichita Falls). The 2026 VA county loan limit in every Texas county matches the conforming baseline of $806,500.

VA funding fee on a no-down-payment first-time use is 2.15% of the loan amount; subsequent use without a down payment is 3.3%. Borrowers receiving VA disability compensation are exempt. The Texas Veterans Land Board (VLB) runs separate state-level VA-style programs (Housing Assistance Program loans for purchase or improvement, and the Land Loan Program) available to qualifying Texas veterans alongside the federal VA loan.

Plan for buyer-side closing costs of roughly 2 to 3% of the purchase price in Texas, plus prepaid escrows. Texas has no state real estate transfer tax, which keeps base closing costs lower than in many other large-population states. The first-year escrow for property taxes is often the largest line item on a Texas closing disclosure.

Standard purchase closings run 25 to 30 days under the deed-of-trust framework with non-judicial foreclosure. Texas allows expedited foreclosure under the home-equity loan rules in the Texas Constitution.