Mortgages in Texas
Texas has diverse metro markets: Austin and Dallas–Fort Worth have seen major price appreciation; Houston is a large, competitive market; San Antonio offers more accessible pricing. Texas has no state income tax but property taxes are among the highest nationally — a material ongoing cost.
Texas at a glance
Population
30.5M
U.S. Census Bureau, July 1, 2025 estimate
Editorial note — Texas
Texas property taxes are high — often $400–$800+/month even on modestly priced homes — and should be included in all affordability calculations. TDHCA's 0% deferred DPA is a strong program; My Choice Texas Home extends access to repeat buyers. Austin buyers should verify current program price caps against elevated local prices.
Texas Housing Finance Agency
The state HFA, first-time buyer programs, and down-payment assistance available in Texas.
Primary regulator
Texas Department of Housing and Community Affairs (TDHCA)
TDHCA administers My First Texas Home (first-time buyer) and My Choice Texas Home (repeat buyer) programs, offering 30-year fixed mortgages with DPA and optional Mortgage Credit Certificates.
Verify HFA programs ↗First-time buyer & DPA programs
TDHCA's My First Texas Home provides a 30-year fixed mortgage plus DPA (a second loan at 0% interest, deferred until sale or refinance) for first-time Texas buyers. My Choice Texas Home serves repeat buyers meeting income requirements. Mortgage Credit Certificates (MCC) from TDHCA provide federal income tax credits. Visit tdhca.state.tx.us for income limits and approved lenders.
Federal resources: HUD (U.S. Department of Housing and Urban Development) publishes state-by-state homebuyer resources and lists approved nonprofit housing counselors. Visit hud.gov for CFPB mortgage tools and the FHFA for conforming loan limits. hud.gov
What to compare when shopping a mortgage in Texas
Mortgage rates and fees for the same borrower vary meaningfully across lenders. Shopping at least 3–4 lenders within a 14-day window counts as a single credit inquiry.
Interest rate vs. APR
APR includes lender fees (origination, points) and reflects the true annual cost. A lower rate with high fees can cost more than a slightly higher rate with no fees, depending on how long you keep the loan.
Loan type (conventional, FHA, VA, USDA)
Loan type determines down-payment requirements, mortgage insurance rules, and eligibility criteria. FHA loans allow lower credit scores and down payments; VA and USDA offer zero-down options for qualifying borrowers.
Down payment and PMI
Conventional loans require PMI (private mortgage insurance) below 20% down — typically 0.5–1.5% of the loan annually. FHA has its own mortgage insurance premium (MIP) regardless of down payment.
State HFA programs
Check the Texas Department of Housing and Community Affairs (TDHCA) for first-time buyer mortgage programs and DPA before choosing a lender. HFA programs can reduce cash-to-close significantly.
Loan term
30-year fixed is the standard. 15-year fixed reduces total interest paid dramatically but raises monthly payments. ARMs carry rate-reset risk and are appropriate only for buyers with a defined short-term horizon.
Lender responsiveness and lock policy
In competitive markets, lender responsiveness and willingness to issue a fully underwritten pre-approval (not just a pre-qualification) can make the difference between winning and losing an offer.
Compare top mortgage lender picks for Texas buyers
Ranked by rates, fees, and loan-type availability. Ranked by our published methodology.
Mortgages in Texas — common questions
What is TDHCA? +
TDHCA (Texas Department of Housing and Community Affairs) at tdhca.state.tx.us provides My First Texas Home and My Choice Texas Home mortgage programs with 0% deferred DPA for qualifying TX buyers.
What is My First Texas Home? +
My First Texas Home provides a 30-year fixed first mortgage plus a 0% deferred DPA second loan for first-time Texas buyers. No monthly DPA payment until you sell or refinance.
Can repeat buyers use Texas HFA programs? +
Yes — My Choice Texas Home is available to repeat buyers meeting TDHCA income requirements.
How do Texas property taxes affect mortgage affordability? +
Texas has no state income tax but high property taxes — often among the highest nationally. Property taxes increase your effective monthly housing cost significantly. Use PITI (including taxes) for all affordability estimates.
Where can I find a HUD counselor in Texas? +
HUD lists approved housing counselors at hud.gov/states/texas.
Ready to compare mortgage lenders in Texas?
We rank, against our published methodology, top mortgage lenders by rates, fees, and loan-type availability. Shopping 3–4 lenders within a 14-day window counts as a single inquiry for credit-scoring purposes.
Compare mortgage options →ClearValue Lending is an independent editorial platform and is not a mortgage broker, lender, or loan originator — we do not originate loans or provide mortgage advice. Some links are affiliate links — see disclosure below. Rankings are based on editorial criteria, not compensation. ClearValue Lending does not guarantee loan approval, specific rates, or program availability.
Sources
- Texas Department of Housing and Community Affairs (TDHCA) — Official Website ↗
- U.S. Department of Housing and Urban Development (HUD) ↗ — HUD-approved housing counselors and homebuyer resources by state
- U.S. Census Bureau ↗ — July 1, 2025 population estimates
Editorial disclaimer: This page provides general educational information about mortgages and housing finance programs in Texas. It is not legal, tax, or financial advice and does not guarantee loan approval, rates, or program availability. HFA program details and conforming loan limits were accurate as of May 22, 2026. Verify current program terms directly with Texas Department of Housing and Community Affairs (TDHCA), HUD at hud.gov, and FHFA at fhfa.gov before applying. Scored against ClearValue's published methodology. Updated May 2026.
Some links on this page are affiliate links. ClearValue Lending may earn a commission at no cost to you. Rankings are based on editorial criteria, not compensation. See our full advertiser disclosure for details.