Most first-time buyers in Texas benefit from FHA loans (3.5% down, 580+ credit score) or conventional loans with 3% down if their score is 620+. Texas also has TSAHC and TDHCA programs that provide down payment assistance grants up to 5% of the loan amount. VA loans are the best option for eligible veterans — zero down payment and no PMI required.

Lenders require your total monthly debt payments (including the mortgage) to stay below 43–50% of your gross monthly income (DTI ratio). For a $300,000 home with 10% down at today’s rates, you’d need roughly $75,000–$85,000 in annual income. Use our affordability calculator for a personalized estimate based on your actual debts and credit score.

Closing costs in Texas typically range from 2% to 5% of the loan amount. On a $350,000 purchase, expect $7,000–$17,500 at closing. Texas-specific costs include title insurance (required by lenders), a survey fee, and sometimes MUD district transfer fees. Your lender must provide a Loan Estimate within 3 business days showing projected costs. See the full Texas closing cost breakdown →

A DSCR (Debt Service Coverage Ratio) loan qualifies you based on rental income rather than personal income. Lenders divide the property’s monthly rent by the monthly mortgage payment (PITIA). A DSCR of 1.0 means break-even; 1.25+ is preferred by most lenders. DSCR loans are ideal for Texas investors with multiple properties or variable personal income. Read the complete DSCR guide →

The Texas homestead exemption reduces your taxable home value by up to $100,000 for school district taxes — saving most homeowners $1,000–$2,500/year in property taxes. For lenders, this affects PITI calculations since lower tax bills reduce your monthly escrow payment. It also triggers important limitations: under Section 50(a)(6), cash-out refinances on Texas homesteads are capped at 80% LTV with additional restrictions not found in other states.

A mortgage broker shops your loan across multiple lenders to find the best rate and product for your situation — they work for you, not a single institution. Banks only offer their own products. For most Texas borrowers, brokers provide access to more loan programs (including DSCR, construction, and jumbo loans) and often deliver lower rates because lenders compete for the business. The broker is typically paid by the lender, not the borrower. Find a Texas mortgage broker →