Texas's housing market shows a median home price near $$340,000 in 2026, with 30-year fixed rates running 6.4–6.7% from NMLS-licensed lenders. Texas offers buyer assistance through My First Texas Home (5% DPA) · Homes for Texas Heroes. Property taxes in Texas average 2.0–2.2%% of
Texas Mortgage Cost Data 2026
| Metro / Area | Median Price | 30Y Rate (est.) | Notes |
|---|---|---|---|
| Texas statewide | $$340,000 | 6.4–6.7% | 2026 NMLS average |
| Entry-level market | $255,000 | 6.4–6.7% | Townhomes, condos, starter homes |
| Move-up market | $476,000 | 6.4–6.7% | Single-family, established neighborhoods |
| Property tax (avg) | 2.0–2.2%% of value | — | Annual, added to escrow payment |
| Down payment assistance | My First Texas Home (5% DPA) | — | Income/purchase limits apply |
Top Mortgage Providers in Texas
| Provider | Notes | Link |
|---|---|---|
| Rocket Mortgage | Largest online lender; fast digital pre-approval in Texas | Visit Site → |
| Bank of America | Down payment grant programs available in select Texas metros | Visit Site → |
| Chase | DreaMaker 3% down; strong presence in Texas markets | Visit Site → |
| USAA | Military focus; competitive VA rates in Texas | Visit Site → |
| Caliber | Strong VA focus; well-distributed in Texas | Visit Site → |
| Freedom Mortgage | Top FHA/VA lender nationally by volume; active in Texas | Visit Site → |
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Texas Law and Requirements
Texas mortgage transactions are governed by Texas statutes. Property taxes average 2.0–2.2%% annually — escrowed with your monthly payment. Down payment assistance available through My First Texas Home (5% DPA) · Homes for Texas Heroes. Verify lender licensing at NMLS Consumer Access.
Key Terms
- APRAnnual Percentage Rate — includes interest plus fees, making it a truer cost comparison than the rate alone.
- DTIDebt-to-Income ratio — monthly debt ÷ gross income. Most lenders require below 43%.
- LTVLoan-to-Value ratio — loan ÷ appraised value. Below 80% avoids PMI on conventional loans.
- PMIPrivate Mortgage Insurance — required with <20% down on conventional loans; cancels at 78% LTV.
- Pre-ApprovalA lender's conditional commitment to lend; stronger than pre-qualification in competitive markets.
- Closing CostsFees paid at settlement — typically 2–5% of loan. Includes title insurance, origination, and taxes.
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How to Get Mortgage in Texas — Step by Step
Check credit score and pull free report
Most Texas lenders require 620+ for conventional, 580+ for FHA (3.5% down), or 500–579 for FHA (10% down). Pull free reports at annualcreditreport.com. Dispute any errors 90+ days before applying — each point above 720 can lower your rate.
Calculate true housing cost in Texas
Beyond P&I: add property taxes (avg 2.0–2.2%% of value/year), homeowners insurance, HOA if applicable, and PMI if <20% down. In Texas, total housing cost is often 30–40% higher than the loan payment alone.
Explore Texas DPA programs
My First Texas Home (5% DPA) · Homes for Texas Heroes. Income and purchase price limits apply. Contact the Texas Housing Finance Agency or HUD-approved housing counselor for current eligibility details.
Get pre-approved before making offers
In Texas's competitive markets, a full pre-approval (verified income/assets) is standard — stronger than pre-qualification. Submit to 2–3 lenders simultaneously; multiple hard inquiries within 45 days count as one on your credit report.
Budget for Texas closing costs
Texas closing costs typically run 1.5–3.5% of loan amount. Include title insurance (usually required), state transfer taxes if applicable, and settlement fees.
Lock your rate at the right time
Once under contract, lock your rate promptly. Rate lock periods of 30–60 days are standard. Confirm your lock expiration covers the expected closing date — extensions cost money if the closing is delayed.
Frequently Asked Questions — Texas Mortgage
What is the average mortgage rate in Texas in 2026?
As of May 2026, 30-year fixed mortgage rates in Texas range from 6.4–6.7% from NMLS-licensed lenders, depending on credit score, down payment, loan type, and lender. The 15-year fixed runs approximately 0.5–0.75% lower. Compare multiple lenders — rate differences of 0.25% on a $400K loan save ~$60/month.
What down payment assistance is available in Texas?
Texas offers: My First Texas Home (5% DPA) · Homes for Texas Heroes. Contact the Texas Housing Finance Agency for current income limits and availability. Local SHIP/HOME programs through city and county governments also offer additional assistance.
What are typical closing costs in Texas?
Texas closing costs average 1.5–3% of the loan amount. Key costs: lender origination fees (0.5–1%), title insurance (required by most lenders), appraisal ($400–$700), and state-specific transfer or recording fees. Negotiate seller concessions in buyer-friendly markets to offset these.
What credit score do I need for a mortgage in Texas?
Conventional loans: 620+ minimum (better rates above 740). FHA: 580+ for 3.5% down, 500–579 for 10% down. VA: No minimum per guidelines but lenders typically require 620+. Individual lenders often impose overlays above program minimums — shop multiple lenders if your score is in the 580–660 range.
What is the median home price in Texas in 2026?
The median home price in Texas is approximately $$340,000 in 2026, with significant variation by metro area. Entry-level markets run 20–30% below median; move-up and luxury properties run 30–100%+ above.
How long does mortgage approval take in Texas?
Purchase mortgage approval in Texas typically takes 30–45 days from complete application to closing. FHA loans may take slightly longer if the appraisal requires repairs. Streamline refinances can close in 20–30 days. Have all documents ready: 2 years W-2s/tax returns, 30 days pay stubs, 2 months bank statements.
Does Texas have a property tax exemption for homeowners?
Texas offers a homestead exemption that reduces assessed value for primary residences — file with your county appraisal district. File an application with your county assessor by the annual deadline.
Can I buy a home in Texas with no money down?
VA loans (military/veterans) allow 0% down in Texas with no PMI. USDA loans allow 0% down for eligible rural properties in Texas. Down payment assistance programs (My First Texas Home (5% DPA)) can effectively reduce out-of-pocket costs to near zero for eligible buyers. Confirm current program availability — funding is limited and programs open/close.
Sources
FREE RESEARCH · 2026
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