Texas Home Loans 2026 — Complete Guide
The number people miss: Texas has no state income tax, which shifts more of the funding burden onto local property tax. A lower purchase price does not always mean a lower monthly payment once property tax and insurance are added — budget the full PITI payment, not just principal and interest.
Texas Down Payment Assistance — TSAHC & TDHCA Programs
Two state agencies run down payment assistance in Texas: TSAHC (Texas State Affordable Housing Corporation) and TDHCA (Texas Department of Housing and Community Affairs). Both pair a 30-year fixed first mortgage with assistance for the down payment and closing costs.
General (Non-Hero) Down Payment Programs
TSAHC vs. TDHCA — how they differ: Home Sweet Texas (TSAHC) offers the assistance as a grant that never needs repayment, or a second lien forgiven after 3 years. My First Texas Home (TDHCA) is limited to first-time buyers and qualified veterans; My Choice Texas Home (TDHCA) is open to repeat buyers too. All four options can be paired with FHA, VA, USDA, or Conventional financing.
Are you a teacher, firefighter, police officer, EMS worker, or veteran? TSAHC also runs Homes for Texas Heroes, a separate hero-specific program that is typically more generous than Home Sweet Texas. Browse the Hero Home Loan Programs hub and select Texas before defaulting to the general program.
Income & Purchase Price Limits
Both TSAHC and TDHCA set income and purchase price limits by county and household size, with expanded limits in certain targeted areas. Because these limits change frequently and vary significantly by county, always confirm your exact figures before applying.
Run the free eligibility quiz and check current county limits at TSAHC.org or WelcomeHome.tdhca.texas.gov.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| TSAHC/TDHCA first mortgages | Below market | Set by participating lender — confirm current rate directly |
2026 Loan Limits
The Texas conforming (conventional) loan limit is flat statewide — no Texas county is designated high-cost by the FHFA in 2026. FHA limits are mostly flat too, with a small number of higher-cost counties in the Dallas-Fort Worth, Austin, and Houston metro areas set above the standard floor.
| Loan Type | Standard Counties | Higher-Cost Counties |
|---|---|---|
| FHA | $541,287 | Up to $813,050 |
| Conventional (Conforming) | $832,750 statewide — flat, no high-cost counties in 2026 | |
| VA | No county limit for buyers with full entitlement | |
Verify your exact county's FHA limit at HUD.gov before house-hunting — the higher FHA tier applies to only a handful of Texas counties.
Property Tax in Texas
What Buyers Should Budget For
Texas has no state income tax, so local property tax carries a heavier share of the load. Your total rate is a combination of county, city, school district, and sometimes special district (MUD) levies stacked together — the same home price can carry a meaningfully different tax bill depending on the school district. Filing a homestead exemption on your primary residence caps annual assessed value increases at 10%, similar in spirit to California's Prop 13 but with a higher cap. Always confirm the exact combined rate for your specific address with the county appraisal district before making an offer.
Pick Your Loan Type
Frequently Asked Questions
Bottom Line: Texas home prices are affordable relative to most large states, and TSAHC and TDHCA both run dependable, year-round down payment assistance for general buyers, not just heroes. The bigger long-term cost to plan around is property tax, which runs meaningfully above the national average and varies significantly by county and school district.
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