Community discussions on Texas mortgages, home buying strategies, refinancing, and navigating the DFW, Austin, and Houston markets.
Posted by DFW_HomeOwner · 47 replies
The Texas homestead exemption reduces your home's appraised taxable value by $100,000 for school district taxes (as of 2023 legislation) and provides an additional $3,000 exemption for county taxes. Once you file for the exemption on your primary residence, it also caps annual appraisal increases at 10% per year, which provides significant long-term savings in high-appreciation markets. You must file the application with your county appraisal district by April 30th of the year you want the exemption to take effect. Seniors 65+ qualify for an additional $10,000 exemption.
Posted by MortgageShopper_TX · 39 replies
The 2025 conforming loan limit set by FHFA is $806,500 for a single-family home in most Texas counties (Austin, Dallas, Houston, San Antonio, Fort Worth). Texas does not have any high-cost counties that qualify for higher limits unlike California or New York. Loans above this threshold are jumbo loans and typically require a minimum 10–20% down payment, higher credit scores (720+), and carry slightly higher interest rates. The conforming limit has increased substantially from $647,200 in 2022, reflecting national home price appreciation.
Posted by NewBuyerTX · 33 replies
In Texas, property taxes are paid annually in arrears, with the January 31st deadline (delinquency starts February 1st). Most Texas mortgage lenders require an escrow account that collects 1/12 of your estimated annual property tax bill with each monthly mortgage payment. Texas property tax rates are among the highest in the nation, averaging 1.6–2.5% of assessed value depending on the county and school district. First-time buyers are often surprised by the escrow requirement—in Austin, a $450,000 home may have $9,000–$11,000/year in property taxes.
Posted by TXVet_Homebuyer · 52 replies
The Texas Veterans Land Board (VLB) offers below-market interest rate home loans exclusively to Texas veterans and military members. The VLB home loan program (up to $726,200 in most counties) pairs with VA loan benefits and provides an additional interest rate discount of 0.5–1% below conventional rates in many cases. You must be a Texas resident veteran, active duty, or surviving spouse to qualify. The VLB also offers land loans and home improvement loans, and the programs can be stacked with federal VA benefits for maximum savings.
Posted by FirstTimeBuyer_TX · 44 replies
Texas has multiple DPA programs: the Texas State Affordable Housing Corporation (TSAHC) offers 3–5% in down payment grants that do not need to be repaid for qualifying buyers below income limits. The My First Texas Home program from TDHCA provides 30-year fixed mortgages with up to 5% down payment assistance as a second lien at 0% interest. Income limits vary by county—in Travis County (Austin), a household of 1–2 people can earn up to $108,040 and still qualify. FHA loans remain popular in Texas because they allow 3.5% down with a 580 credit score.
Posted by ATX_RealEstate_Watch · 38 replies
Austin median home prices peaked around $550,000 in spring 2022, then corrected by roughly 15–20% through 2023 as interest rates rose sharply. By late 2024, median prices had stabilized around $480,000–$500,000, still elevated compared to 2019 ($300,000–$320,000). The tech sector layoffs of 2022–2023 cooled demand significantly, but Austin's population growth (still adding 100+ residents/day) provides a long-term floor. Suburban areas like Cedar Park, Pflugerville, and Kyle offer better value than central Austin neighborhoods.
Posted by MortgageBasics_TX · 29 replies
FHA loans are government-backed through the Federal Housing Administration and allow 3.5% down with a 580+ credit score, but require mortgage insurance premiums (MIP) for the life of the loan if you put less than 10% down. Conventional loans have stricter credit requirements (typically 620+ minimum, 740+ for best rates) but allow private mortgage insurance (PMI) to be cancelled once you reach 20% equity. In Texas's higher-priced markets, conventional loans are often better long-term because you can eliminate PMI, while FHA MIP can only be removed by refinancing.
Posted by ClosingDay_TX · 31 replies
Texas is a 'wet funding' state, meaning all loan funds must be disbursed on the same day the documents are signed—there is no disbursement delay allowed. This differs from 'dry funding' states where a 24–72 hour review period follows signing. Texas wet funding means your closing timeline is tighter and lenders must have all conditions cleared before closing day. Wire transfers for closing funds must arrive at the title company the morning of closing. This accelerates the process but leaves less room for last-minute document issues.
Posted by PropertyTaxFighter · 43 replies
Texas property owners have the right to protest their annual appraised value with their county appraisal district (CAD) each spring. The informal protest meeting is typically held April–May and involves presenting evidence of lower comparable sales or documenting property condition issues. If unsatisfied, you can escalate to an Appraisal Review Board (ARB) hearing. Protest success rates are high—studies show 60–70% of homeowners who protest receive some reduction. Third-party protest services charge 30–50% of first-year savings on contingency with no upfront cost.
Posted by HomeEquity_TX · 37 replies
Texas has unique constitutional protections for homeowners—Article XVI Section 50(a)(6) governs home equity loans and cash-out refinances. Texas limits total mortgage debt to 80% of the home's fair market value for equity loans, and you can only have one home equity loan at a time. There's a mandatory 12-day waiting period after application before you can close. These protections were designed to prevent predatory lending but also add procedural steps. Texas A6 loans (cash-out refinances) cannot be used to pay off non-purchase debt beyond a single mortgage.
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