Texas

How does Texas's 50(a)(6) home equity law work?

Texas limits home equity borrowing more tightly than most states. Under Article XVI, Section 50 of the Texas Constitution, a 50(a)(6) loan (most cash-out refinances on a homestead) is capped at 80% of the home's value, limits the fees a lender can charge, and requires a 12-day cooling-off period before closing.

Texas also follows an "once a 50(a)(6), always a 50(a)(6)" doctrine: once you take cash out against your homestead, later refinances are generally treated as home equity loans too, unless you use a Section 50(f)(2) rate-and-term conversion (no new cash out, at least a year since the prior loan, and staying within the 80% limit).

Source: Texas Constitution, Art. XVI §50; TX Dept. of Savings and Mortgage Lending Refinance options →

How do high property taxes and no state income tax affect affordability?

Texas has no state personal income tax but funds local services largely through property taxes, which rank among the nation's highest. For a mortgage, a bigger share of your monthly payment goes to escrowed taxes, which affects your debt-to-income math even when the home price itself looks affordable.

Lenders qualify you on total housing cost, not just principal and interest, so the Texas tax structure can change how much home you comfortably support. I build real tax and insurance figures into your budget up front.

Source: U.S. Census ACS; Texas Comptroller Affordability calculator →

Does Texas have a real estate transfer tax?

No. Texas is one of a small number of states with no state real-estate transfer tax, so you won't owe the state a percentage of the sale price at closing. That can make Texas closing costs lower than in many states, though title, recording, lender, and prepaid escrow costs still apply.

Source: Texas state statute Closing costs calculator →

What are MUD and PID taxes in Texas new construction?

Many new master-planned communities in Texas sit inside a Municipal Utility District (MUD) or Public Improvement District (PID) that adds an assessment to your annual property-tax bill to repay infrastructure. That extra line raises your total monthly payment, so two similar homes can cost different amounts to own.

MUD and PID rates vary by community and decline over time as the debt is repaid. I check the current rate for a specific address before you write an offer so the payment estimate is honest.

Source: County tax offices; Texas Local Government Code Conventional loans →

How does the Texas homestead exemption affect my mortgage payment?

Texas homeowners can claim a residence homestead exemption that lowers the taxable value of a primary home, which reduces the property taxes escrowed into your monthly payment. The school-district residence homestead exemption is $100,000 (Texas Comptroller). Lower escrow can meaningfully lower your monthly cost.

You apply for the exemption through your county appraisal district, and additional exemptions exist for those who are 65+ or disabled. The exact dollar amount is set by the state and can change, so confirm the current figure with the Comptroller.

Source: Texas Comptroller Payment calculator →

When do I need a jumbo loan in Texas?

It depends on the price and your county's conforming limit. Most of Texas uses the baseline limit, but higher-priced markets like Austin and the pricier Dallas and Houston suburbs more often push buyers toward jumbo financing. If your loan amount tops the local conforming ceiling, a jumbo loan comes into play.

Source: Federal Housing Finance Agency (FHFA) Jumbo loans →

How is the Texas VLB loan different from a VA loan?

Texas is one of only a few states with its own veteran home loan, run by the Texas Veterans Land Board (VLB). It is separate from a federal VA loan, with its own funding, eligibility, and features, and the VLB also offers land and home-improvement loans. Eligible Texas veterans may benefit from comparing both.

Source: Texas Veterans Land Board (VLB) VA loans →

Which are the most affordable Texas markets to buy a home in?

Affordability is best measured by price-to-income, not sticker price alone. Texas metros vary widely, and statewide down-payment assistance applies everywhere, so local price-to-income is the real differentiator. I publish sourced, per-metro affordability as each market guide ships; the Dallas-Fort Worth guide is live now.

Source: U.S. Census ACS; metro data file

What does it actually cost to own a home in Texas?

Owning in Texas means budgeting for high property taxes and rising homeowner's insurance, offset by no state income tax. The honest monthly picture is principal and interest plus escrowed taxes and insurance, and in Texas that mix skews toward taxes. The calculators below show your real number, not just the sticker price.

Source: U.S. Census ACS; Texas Comptroller Run your affordability number →

Which Texas markets are best for first-time buyers?

The best first-time markets combine lower price-to-income, strong down-payment-assistance availability, and FHA limits that fit local prices. Because TDHCA and TSAHC assistance applies across Texas, the differentiator is local price-to-income. Dallas-Fort Worth is live now, with more metro guides following.

Source: TDHCA; TSAHC; U.S. Census ACS First-time buyer loans →

What is a Texas 50(a)(6) home equity loan?

A Texas 50(a)(6) loan is a home equity or cash-out loan on your homestead, governed by Article XVI, Section 50 of the Texas Constitution. It is capped at 80% of the home's value, limits the fees a lender can charge, and requires a 12-day notice before closing. Most Texas cash-out refinances fall under these rules.

Can I do a cash-out refinance in Texas?

Yes, but Texas regulates it tightly. On a primary residence, a cash-out refinance is usually a 50(a)(6) home equity loan, capped at 80% of the home's value with a 12-day cooling-off period. A later Section 50(f)(2) conversion can refinance it without new cash out. I'll walk you through which path fits.

Why are property taxes so high in Texas?

Texas has no state income tax, so local governments and school districts rely heavily on property taxes to fund services. That pushes effective property-tax rates among the highest in the country. For buyers, it means a larger escrow portion in your monthly payment, which I factor into your budget from the start.

Is there a state income tax in Texas? How does that affect my mortgage?

No. Texas has no state personal income tax, protected by the state constitution. For your mortgage, no income tax can leave more monthly cash flow, but it pairs with higher property taxes that raise your escrow. Lenders weigh your full debt-to-income picture, so both sides matter.

What is the Texas Veterans Land Board (VLB) home loan?

The Texas Veterans Land Board runs a state home-loan program for eligible Texas veterans and military members, separate from the federal VA loan and sometimes combinable with it. Eligibility and terms are set by the VLB, so I help confirm what you qualify for before you shop.

What down payment assistance programs are available in Texas?

Texas offers statewide down-payment assistance through TDHCA (My First Texas Home, My Choice Texas Home, and the Texas Mortgage Credit Certificate) and TSAHC (Homes for Texas Heroes, Home Sweet Texas). They pair with FHA, VA, USDA, or conventional loans, subject to income and purchase-price limits.

What credit score do I need to buy a house in Texas?

It depends on the loan program, not the state. Conventional loans generally look for around 620, FHA can work with lower credit alongside a larger down payment, and VA sets no minimum though lenders often want about 620. These are general guidelines, not an offer. Your full financial picture decides your options.

What are the conforming and FHA loan limits in Texas?

For 2026, the baseline conforming loan limit in Texas is $832,750 for a one-unit home (FHFA); loans above that are jumbo. The FHA floor for most Texas counties is $541,287 (HUD), with higher limits in costlier metros. These statewide figures update annually.

What are MUD and PID taxes and how do they affect my payment?

MUD (Municipal Utility District) and PID (Public Improvement District) assessments fund infrastructure in many new Texas communities and are added to your annual property-tax bill. They raise the escrow portion of your monthly payment, so two similar homes can cost different amounts to own. I check the rate before you commit.

What are the most affordable cities to buy a home in Texas?

Affordability depends on price-to-income, not just price. Texas metros vary widely, and statewide down-payment assistance applies everywhere, so local price-to-income is the differentiator. I publish sourced, per-metro affordability as each market guide ships; the Dallas-Fort Worth guide is live now.

When do I need a jumbo loan in Texas?

It depends on the price and your county's conforming limit. Most of Texas stays within the baseline, but higher-priced markets like Austin and the pricier Dallas and Houston suburbs more often require jumbo financing. If your loan amount exceeds the local conforming ceiling, a jumbo loan applies.