# Texas mortgages: payments, property taxes and buyer programs

> Texas mortgage numbers: 1.31% effective property tax, $140,000 homestead exemption, no transfer tax, insurance costs and TDHCA down-payment help.

URL: https://mail.mortgage-math-us.com/location/texas/  
Last reviewed: 2026-10-28 · By the MortgageMath US Editorial team

## Quick answer

A median-value Texas home ($313,200) costs about **$2,695 a month** with 10% down at the 7.24% national average rate — property tax and insurance make up $633 of that. Texas has no state property tax and no real estate transfer tax, but local property taxes average 1.31% of value, and first-time buyers can get 2%–5% of the loan in down-payment help from TDHCA.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value in Texas | $313,200 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US48) | 2024 ACS 1-year |
| Median property tax paid | $4,108/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US48) | 2024 ACS 1-year |
| Effective property tax rate | 1.31% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US48) | 2024 ACS 1-year |
| Median household income | $79,721/yr | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US48) | 2024 ACS 1-year |
| School homestead exemption | $140,000 | [Texas Comptroller](https://comptroller.texas.gov/taxes/property-tax/exemptions/) | Dec 11, 2025 |
| Average homeowners premium | $3,489/yr | [Texas Department of Insurance](https://www.tdi.texas.gov/general/texas-homeowners-insurance-market-overview.html) | 2025 (preliminary) |
| TDHCA down-payment help, up to | 5% | [Texas Department of Housing and Community Affairs](https://welcomehome.tdhca.texas.gov/uploads/My-First-Texas-Home-Program-Matrix-TMS.pdf) | Program matrix Aug 17, 2026 |
| 2026 conforming loan limit | $832,750 | [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) | 2026 limit |

## What a mortgage payment looks like in Texas

Texas homes are cheaper than the country as a whole — the Census Bureau puts the median owner-occupied home at $313,200 against $360,600 nationally — but two costs that ride along with the mortgage are higher than average. Property tax takes 1.31% of value a year (the US ratio is 0.89%), and the average homeowners premium reached $3,489/yr according to the Texas Department of Insurance.

> **Worked example: Median Texas home, 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Texas | Same home at the US tax ratio |
> |---|---:|---:|
> | Principal and interest on $281,880 | $1,921 | $1,921 |
> | Property tax | $342 | $232 |
> | Homeowners insurance (TDI state average) | $291 | $291 |
> | PMI (midpoint of Freddie Mac’s range) | $141 | $141 |
> | **Total** | **$2,695** | **$2,585** |
> 
> The Texas property tax alone adds $110 a month compared with the national ratio on the same price.

On the state’s median household income of $79,721/yr, keeping housing under Freddie Mac’s 30% guideline gives a budget of $1,993 a month — enough for a home of roughly $232,000 with 10% down at today’s average rate once Texas taxes and insurance are counted. Try your own numbers in the [mortgage payment calculator](https://mail.mortgage-math-us.com/tools/mortgage-payment-calculator/?state=TX); choosing Texas loads the state tax ratio.

## Property tax in Texas

There is no state property tax in Texas; every bill comes from local units — school districts, counties, cities and special districts — and each sets its own rate on the value set by the county appraisal district. That is why two homes at the same price in neighboring suburbs can carry very different tax bills, and why the listing’s past tax amount is a better guide than any statewide figure.

The biggest lever you control is the **residence homestead exemption**. School districts must exempt $140,000 of a homestead’s value from school taxes, and owners who are 65 or older or disabled get an additional $60,000. The exemption applies to school district taxes, so its value depends on your district’s rate: every $1.00 of school tax rate per $100 of value is worth $1,400 a year on the basic $140,000 exemption.

> **Tip: File for the homestead exemption early**
>
> Apply with your county appraisal district once the home is your principal residence. The Comptroller lists the general filing deadline as before May 1, and the exemption is not automatic — it has to be claimed.

If your lender collects taxes through an escrow account, a rate change or a reappraisal shows up as an escrow adjustment at the annual review rather than as a separate bill.

## Homeowners insurance in Texas

Insurance has become one of the fastest-rising parts of a Texas housing budget. TDI’s statistical data show the average annual homeowners premium climbing from $1,791/yr in 2016 to $3,291/yr in 2024 and $3,489/yr in 2025 — an increase of $1,698 a year, or $142 a month, over nine years.

On the coast, wind and hail coverage can be harder to buy. The Texas Windstorm Insurance Association covers properties in the 14 first-tier coastal counties and parts of Harris County east of Highway 146, but only after a private insurer has declined the risk. If you are buying near the Gulf, get insurance quotes before you sign the contract, because lenders require coverage at closing.

## Closing costs in Texas

Texas stands out for what it doesn’t charge. The Texas Constitution bars any law imposing a transfer tax on a sale of real property, so no deed or transfer tax is added at closing; county recording fees still apply. The CFPB’s national rule of thumb of $2–$5 per $100 of price therefore tends to land toward the lower end, depending on your lender’s fees and prepaid items.

Title insurance is unusual too: the state sets the premium. Under rates effective March 1, 2026, the basic premium is $780 for a $100,000 policy plus $4.94 per $1,000 for each $1,000 above that.

> **Worked example: Owner’s title policy on the median Texas home**
>
> $313,200 − $100,000 = $213,200 above the first $100,000 → $213 thousands × $4.94 + $780 = **about $1,833**, the same at every title company in the state because the rate is promulgated.

## First-time home buyer programs in Texas

Two state-level agencies run purchase programs through participating lenders:

| Program | Who it is for | Help available | Key rules |
|---|---|---|---|
| TDHCA My First Texas Home | First-time buyers (no owned-and-occupied home in the last 3 years), veterans | 2%–5% of the loan as a 0% second lien | FHA, VA or USDA 30-year fixed; minimum score 620; homebuyer education; income and price limits |
| TSAHC Homes for Texas Heroes | Teachers, police, firefighters, EMS, veterans and other listed professions | Up to 5% of the loan | First-time status not required for the loan; grant or second-lien options |
| TSAHC Home Sweet Texas | Buyers outside the hero professions | Up to 5% of the loan | Same lender network; program eligibility rules apply |

TDHCA’s assistance comes as a 30-year deferred repayable second lien (due when you sell, refinance or pay off the first mortgage) or a 3-year deferred forgivable second lien that disappears if you keep the home as your residence for 36 months. TSAHC’s forgivable option is forgiven after 3 years. Both agencies also offer a Mortgage Credit Certificate for qualifying first-time buyers. Funding is limited, so ask a participating lender which options are open the week you apply.

## Borrowing against a Texas home

The Texas Constitution puts firm limits on borrowing against a homestead. Home equity loans, HELOCs and cash-out refinances of a homestead are limited to 80% combined loan-to-value, fees are capped at 2% of the principal, you must wait at least 12 days after applying before closing, and only one such loan may close per year. On the median-value home, the 80% cap means a home equity loan only works while total mortgage debt, including the new loan, stays at or below $250,560.

## Loan limits in Texas

The 2026 conforming limit for a one-unit home is $832,750 in standard-cost counties. FHA limits are set county by county between the national floor of $541,287 and ceiling of $1,249,125. Look up your county on HUD’s [FHA mortgage limits page](https://entp.hud.gov/idapp/html/hicostlook.cfm) and FHFA’s [conforming loan limit map](https://www.fhfa.gov/data/dashboard/conforming-loan-limits).

## Frequently asked questions

### How much is property tax on a house in Texas?

Census data put the median Texas homeowner’s bill at $4,108 a year, about 1.31% of median home value. Your bill depends on the school district, county, city and special districts where the home sits, minus any exemptions.

### Does Texas have a real estate transfer tax?

No. The Texas Constitution prohibits a transfer tax on the sale of real property, so buyers and sellers pay no deed or transfer tax at closing.

### What first-time home buyer programs does Texas offer?

TDHCA’s My First Texas Home pairs an FHA, VA or USDA loan with 2%–5% of the loan in down-payment help for buyers who haven’t owned a home in 3 years. TSAHC’s Homes for Texas Heroes and Home Sweet Texas offer up to 5% and don’t require first-time status for the loan itself.

### What credit score do I need for TDHCA down-payment assistance?

TDHCA’s program matrix sets a minimum middle score of 620, and every borrower must finish a HUD-certified homebuyer education course before buying.

### How much is homeowners insurance in Texas?

The Texas Department of Insurance reports an average annual premium of $3,489/yr for 2025 (preliminary), up from $1,791/yr in 2016. Coastal homes may also need windstorm coverage through TWIA.

### How much can I borrow against my home in Texas?

With a home equity loan, HELOC or cash-out refinance on a Texas homestead, total mortgage debt after the new loan can’t exceed 80% of the home’s value. Fees are capped at 2% of the principal and you must wait 12 days after applying before closing.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US48) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US48) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US48) — Median household income (2024 ACS 1-year)
- [Texas Department of Insurance](https://www.tdi.texas.gov/general/texas-homeowners-insurance-market-overview.html) — Average Texas homeowners insurance premium; Average Texas homeowners insurance premium, 2016; Average Texas homeowners insurance premium, 2024 (2025 (preliminary))
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Texas Department of Insurance](https://www.tdi.texas.gov/title/titlerates2026.html) — Texas basic title premium for a $100,000 policy; Texas basic title premium per $1,000 above $100,000 (Rates effective Mar 1, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [Texas Comptroller](https://comptroller.texas.gov/taxes/property-tax/exemptions/) — School district residence homestead exemption; Additional school homestead exemption, age 65+ or disabled (Dec 11, 2025)
- [Texas Constitution, Art. XVI §50(a)(6)](https://capitol.texas.gov/tlodocs/85R/billtext/pdf/SJ00060E.pdf) — Maximum combined loan-to-value for Texas home equity loans; Texas home equity fee cap (share of original principal); Minimum wait after application before a Texas home equity loan can close (Nov 7, 2017)
- [Texas Department of Housing and Community Affairs](https://welcomehome.tdhca.texas.gov/uploads/My-First-Texas-Home-Program-Matrix-TMS.pdf) — TDHCA My First Texas Home assistance, low end (share of loan); TDHCA My First Texas Home assistance, high end (share of loan); TDHCA first-time buyer test: no owned and occupied home in the last (Program matrix Aug 17, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [Texas Windstorm Insurance Association](https://www.twia.org/coverage-eligibility/) — First-tier coastal counties in the TWIA windstorm area (Oct 28, 2026)
- [Texas State Affordable Housing Corporation](https://www.tsahc.org/landing/home-down-payment-assistance) — TSAHC down payment assistance, up to (share of loan); TSAHC forgivable second lien is forgiven after (Oct 28, 2026)
- [FHFA](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) — 2026 baseline conforming loan limit (one-unit) (2026 limit)
- [HUD](https://www.hud.gov/news/hud-no-25-145) — 2026 FHA loan limit floor (one-unit, low-cost areas); 2026 FHA loan limit ceiling (one-unit, high-cost areas) (2026 limit)
- [HUD FHA mortgage limits lookup](https://entp.hud.gov/idapp/html/hicostlook.cfm)
- [FHFA conforming loan limit values map](https://www.fhfa.gov/data/dashboard/conforming-loan-limits)

_General information, not financial advice._