Buying or refinancing in Texas comes down to a few things: which loan fits you, what the 2026 limits allow, and how Texas property taxes and insurance shape your monthly cost. This guide covers all of it. We offers FHA, VA, USDA, conventional and jumbo loans in Texas, and a loan officer can walk you through your options in a short call.
Ready to see what you qualify for? Start your application online or call (262) 305-0680.
Texas Mortgage Quick Facts for 2026
Here are the numbers most Texas buyers ask about first. Limits are set per county, and most Texas counties sit at the baseline.
| Loan type | 2026 limit for a one-unit home in most Texas counties | Good to know |
|---|---|---|
| Conventional (conforming) | $832,750 | Loans above this are called jumbo loans |
| FHA | $541,287 | Higher in the Dallas-Fort Worth, San Antonio and Austin areas |
| VA | No limit with full entitlement | Entitlement is the VA’s backing of your loan |
| USDA | Income limits apply, no set loan cap | Home must be in an eligible area |
FHA limits are higher in some of the state’s fastest-growing counties. For example, the Dallas-Fort Worth counties run $563,500, the San Antonio area runs $557,750, and the Austin area runs $571,550. You can look up any county on the HUD single family lender page.
Which Texas Loan Program Fits You?
Think of loan programs like different keys for different doors. Each one opens a different kind of purchase, so the right one depends on your situation. Here is a plain-English look at each.
FHA Loans in Texas
FHA loans are backed by the Federal Housing Administration. They are built for buyers who want a lower down payment or have a credit history that is still a work in progress. Our Texas FHA loan page covers the details, including mortgage insurance.
VA Loans in Texas
Texas has a large military community, and VA loans are one of the best tools for those who served. Eligible veterans, service members and some surviving spouses can buy with no down payment and no monthly mortgage insurance. Our Texas VA loan page explains eligibility and the funding fee.
USDA Loans in Texas
USDA loans are not just for farms. Many small towns and areas outside the big metros qualify. They offer no down payment for eligible buyers within income limits. See our Texas USDA loan page to learn how property eligibility works.
Conventional and Jumbo Loans
Conventional loans are not backed by a government agency. They follow Fannie Mae and Freddie Mac guidelines and often fit buyers with stronger credit. If the home you want costs more than the $832,750 limit, a jumbo loan may be the answer. That matters in places like Austin’s hill country neighborhoods and parts of Dallas and Houston.
Other Options
Self-employed? Bank statement loans look at your deposits instead of tax returns. Buying a rental? A debt service coverage ratio loan looks at the property’s income. Buying with a family member? The Family Opportunity Mortgage may fit.
Texas Down Payment Help for Home Buyers
Down payment assistance is money that helps cover your down payment or closing costs. Texas has a state agency built around this: the Texas State Affordable Housing Corporation (TSAHC).
TSAHC runs two main home loan programs:
- Homes for Texas Heroes: For teachers, teacher’s aides, librarians, nurses, counselors, firefighters, EMS personnel, peace officers, corrections officers, veterans and active-duty military, among others.
- Home Sweet Texas Home Loan: For Texans of all professions who do not qualify under the Heroes program.
Both programs offer down payment assistance as either a grant you never repay or a forgivable second lien. A second lien is a small second loan, and “forgivable” means it can be forgiven after you stay in the home for a set time. TSAHC lists a three-year period for that option. Both programs have an income limit tied to your area’s median income, and both require a homebuyer education course before closing.
Funds are first come, first served, and the programs change with market conditions. Ask us which program is open now and whether you qualify. If you are buying your first home, our first-time home buyer page is a good place to start.
What Makes Texas Mortgages Different
Texas has its own rules and costs. Knowing them early keeps surprises off your closing table.
Property Taxes
Texas has no state income tax, so local governments lean on property taxes to fund schools, roads and services. Your bill depends on your county, your school district and any special districts in your neighborhood. Because of that, two homes at the same price can have very different tax bills.
Your lender adds your estimated property tax into your monthly payment through an escrow account. An escrow account is like a savings jar your lender fills each month, then uses to pay your tax and insurance bills when they come due.
The Homestead Exemption
If the home is your primary residence, Texas lets you apply for a homestead exemption. Voters approved an increase in November 2025, and the school district exemption is now $140,000. That amount comes off your home’s taxable value for school district taxes. You file with your county appraisal district, and it is not automatic, so ask about it after you close.
Homeowners Insurance and Flood Risk
Hail, wind and storms make homeowners insurance a real cost in Texas. Coastal areas may need separate wind coverage. Flood damage is not covered by a standard policy, and some homes in flood zones need flood insurance before a lender will close. Price these early, because they affect how much home you can comfortably afford. Our home affordability guide shows how to think it through.
MUDs and Special Districts
Many newer Texas neighborhoods sit inside a Municipal Utility District, or MUD. A MUD is a local district that funds water, sewer and drainage, and it adds its own tax to your bill. Ask for the full tax breakdown on any home before you make an offer.
Cash-Out Refinancing in Texas
Texas law limits how much equity you can pull out of a primary home. A cash-out refinance, where you replace your loan with a larger one and take the difference in cash, is capped at 80% of your home’s value. There is also a waiting period before closing. If you already have a VA loan, our VA cash-out refinance page walks through your options.
Texas Regions and Housing Markets
Texas is huge, and the housing market changes a lot from one region to the next. Here is a short tour.
North Texas
Dallas, Fort Worth and the suburbs around them make up one of the largest job centers in the country. Expect a wide range, from downtown condos to big suburban neighborhoods in places like Plano, Frisco and McKinney.
Houston and the Gulf Coast
Houston is the state’s biggest city, with energy, health care and port jobs. Neighborhoods range from older inner-loop areas to master-planned communities in the suburbs. Moving there? Our guide to moving to Houston covers neighborhoods and what to know before you buy.
Central Texas
Austin and its surrounding counties are known for technology, the university and a fast-moving market. Limits here run higher than the state baseline, which can help in the more expensive neighborhoods.
San Antonio and South Texas
San Antonio blends deep history, a large military presence and a wide mix of price points. Many military buyers here use VA loans.
East and West Texas
Smaller towns across East and West Texas often qualify for USDA financing. If you want more land and a slower pace, this is where USDA loans can shine.
How Buying a Home in Texas Works
Here is the path from first call to keys in hand.
- Talk with a loan officer. A short call covers your income, credit and goals.
- Get preapproved. A preapproval is a written estimate of what you can borrow. Sellers take offers with one more seriously.
- Shop for a home. Your preapproval sets your budget, so you can look with confidence.
- Make an offer and go under contract. Texas contracts have set timelines, so move quickly on inspections and your loan.
- Appraisal, underwriting and closing. The lender confirms the home’s value and verifies your documents, then you sign.
Curious about timing? Our loan process page walks through each stage.
Have questions about your Texas purchase or refinance? Call (262) 305-0680 or contact us here.
Refinancing a Texas Home
Already own? A refinance replaces your current loan with a new one. People refinance to lower a payment, shorten their loan, or tap equity. VA and FHA homeowners may qualify for streamlined options with less paperwork, such as a VA streamline refinance or an FHA streamline refinance. Our refinance page compares your choices.
Frequently Asked Questions About Texas Mortgages
What is the FHA loan limit in Texas for 2026?
The FHA limit for a one-unit home is $541,287 in most Texas counties. Higher-cost areas have higher limits, including the Dallas-Fort Worth, San Antonio and Austin areas. Check your county on HUD’s site or ask us.
What is the conforming loan limit in Texas for 2026?
It is $832,750 for a one-unit home in most Texas counties. A loan above that is a jumbo loan.
Does Texas have down payment assistance?
Yes. TSAHC runs the Homes for Texas Heroes and Home Sweet Texas Home Loan programs, which can pair a mortgage with down payment help. Cities and counties also run their own programs. Availability and income limits change, so ask us what is open now.
Do I need to live in a rural area for a USDA loan in Texas?
You need a home in a USDA-eligible area. Many small towns and areas outside major metros qualify. Your income also has to be within the program’s limits for your household size.
How does the Texas homestead exemption work?
If the home is your primary residence, you can apply with your county appraisal district for a $140,000 exemption from school district taxable value. It lowers your property tax bill, but you have to apply for it.
Can I get a cash-out refinance in Texas?
Yes, on a primary home, but Texas caps the loan at 80% of the home’s value. There is also a waiting period before closing.
Are you licensed to lend in Texas?
Yes. We are licensed in Texas, and our team can help you buy or refinance anywhere in the state.
Take the next step. Apply online using the form on this page or call (262) 305-0680. A loan officer can tell you what you qualify for in a short call.
The information provided here is for informational purposes. When interest rates and loan program information are included, it is for illustration purposes only and not a solicitation or quote for services. This is not an advertisement or loan estimate. Current interest rates, loan programs and qualification criteria can change at any time. If you have questions or need assistance, we can be reached using the contact information above.
Union Home Mortgage Corp. does not provide tax, legal, credit repair, or accounting services. The information provided is generally true but may not apply to you or your situation. For tax or legal advice please consult an appropriate professional in one of these fields.
