What mortgage programs are available in Texas?
Texas buyers can choose from VA loans (0% down for military/veterans), FHA loans (3.5% down, 580+ FICO), USDA rural loans (0% down in eligible areas), conventional loans (3–20% down), and jumbo loans for homes above $766,550. Texas also has no state income tax, which increases effective buying power compared to other states.
What is the Texas First Time Homebuyer Program?
The Texas First Time Homebuyer Program (My First Texas Home) through TDHCA offers down payment and closing cost assistance up to 5% of the loan amount, combined with below-market fixed interest rates. Income limits apply (typically 80–115% of area median income) and buyers must complete an 8-hour homebuyer education course. Available for conventional, FHA, VA, and USDA loans.
How does Texas property tax affect my mortgage payment?
Texas has no state income tax but relatively high property taxes averaging 1.6–2.5% of assessed home value annually. On a $350,000 home, taxes add $466–$729/month to your payment through escrow. This is a significant addition compared to states with lower property taxes. The homestead exemption saves $40,000 in taxable value for owner-occupied primary residences.
What is the conforming loan limit in Texas for 2024?
The 2024 FHFA conforming loan limit for all Texas counties is $766,550 for a single-family home. Mortgages above this amount are jumbo loans requiring different qualification standards. Texas does not have any high-cost areas (unlike coastal California or New York) so the limit is the same statewide. VA loan limits follow the same $766,550 threshold for 0% down.
Is it better to use a VA, FHA, or conventional loan in Texas?
For eligible veterans and military, VA loans are almost always the best option in Texas: no down payment, no PMI, competitive rates, and strong lender competition in military-heavy cities like San Antonio, Fort Worth, and Corpus Christi. For non-veterans with limited savings, FHA provides the most flexible path (3.5% down). Conventional loans make more sense for buyers with 10–20% down and 700+ credit scores who want to avoid FHA's mortgage insurance premium.
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