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*Estimates only. Actual rates and payments vary by lender, credit score, and market conditions. Serving Texas & 30+ States.

🏛️ Texas Property Taxes: Budget Higher Than You Think

Texas has no state income tax, but property taxes are among the highest in the country — averaging 1.8% to 2.5% of assessed value annually. On a $400,000 home in the Houston metro, you could pay $7,200 to $10,000 per year in property taxes alone. Our calculator defaults to $7,000 annually ($583/month), which is a reasonable starting estimate for most Texas markets. Always verify your specific county rate before finalizing your budget.

🏠 Texas Home Equity Laws: The 80% Rule

Texas has some of the strongest homeowner protections in the country when it comes to home equity. Texas law limits cash-out refinances and HELOCs to 80% of your home’s appraised value (LTV). On a $400,000 Texas home with no mortgage, you could access up to $320,000. This is different from most other states where 90–95% LTV cash-out is common. When using our refinance mode, keep the 80% LTV rule in mind.

🏡 Texas Homestead Exemption

Once you purchase a primary residence in Texas, you may qualify for a Homestead Exemption that reduces your taxable property value. This can lower your annual property tax bill by $1,000 or more depending on your county. Texas veterans may qualify for additional exemptions based on disability rating. File your exemption with your county appraisal district after closing — it does not happen automatically.

⚡ Texas Insurance: Wind, Flood & Wildfire

Standard homeowners insurance in Texas averages $2,000 to $4,000+ per year — one of the highest in the nation due to hurricane risk along the coast, hail storms in North Texas, and wildfire risk in West Texas. If you’re in a FEMA-designated flood zone, lenders require separate flood insurance through the NFIP or private carriers. Coastal properties may require additional windstorm coverage through the Texas FAIR Plan. Factor this into your payment estimate.

💰 Principal & Interest

The core of your payment. Principal pays down your loan balance, while interest is the cost of borrowing. In the early years of a 30-year Texas mortgage, roughly 75–80% of each payment goes to interest.

🏛️ Property Tax

Texas property taxes average 1.8–2.5% of assessed value per year and are typically escrowed into your monthly payment. This is one of the biggest differences in Texas mortgage payments compared to lower-tax states.

🛡️ Homeowners Insurance

Texas homeowners insurance runs $2,000–$4,000+ annually. Coastal buyers may need windstorm coverage; buyers in flood zones need separate flood insurance. Your lender requires proof before closing.

📊 PMI

Required on conventional loans with less than 20% down. Typically 0.5–1.5% of the loan amount per year. PMI is removed at 78% LTV. VA loans never require PMI — a major benefit for Texas veterans.

🏘️ HOA Fees

Many Texas master-planned communities in areas like The Woodlands, Sugar Land, or Frisco carry HOA fees of $50–$500+ per month. Enter your HOA fee in the calculator to get an accurate total payment.

🛒 We Shop For You

As a veteran-owned Texas mortgage broker, Adam Bartling & Team shops multiple lenders to find the most competitive rate for your situation — not just one bank’s offering. That difference in rate can mean thousands saved.

How are Texas property taxes calculated?

Texas property taxes are based on your home’s appraised value multiplied by your local tax rate. Most Texas counties range from 1.8% to 2.5% annually. On a $350,000 home, that’s $6,300 to $8,750 per year — or $525 to $729 added to your monthly mortgage payment. Apply for a Homestead Exemption after closing to reduce your taxable value.

What is included in a Texas mortgage payment?

A Texas mortgage payment typically includes PITI: Principal (pays down your balance), Interest (cost of borrowing), Property Taxes (escrowed monthly), and Homeowners Insurance. Conventional loans with less than 20% down also add PMI. HOA fees apply in many Texas master-planned communities. Enter all of these in the calculator above for an accurate total.

What credit score do I need for a home loan in Texas?

Minimum credit score requirements in Texas vary by loan type. Conventional loans typically require 620+. FHA can go as low as 580 (3.5% down) or 500 (10% down). VA loans have no official minimum, though most lenders want 580–620. DSCR investor loans often start at 640+. We shop multiple lenders to find the best fit for your specific credit profile.

How much down payment do I need to buy a home in Texas?

Down payment requirements depend on your loan type. VA loans offer 0% down for eligible Texas veterans and active-duty service members. FHA requires 3.5% with a 580+ score. Conventional starts at 3% for first-time buyers, 5% otherwise. DSCR investor loans typically require 20–25% down. Texas also has state-backed down payment assistance programs that can help cover part of your down payment.

What are current mortgage rates in Texas?

Texas mortgage rates change daily and vary by credit score, loan type, down payment, and lender. As a mortgage broker, Adam Bartling & Team shop multiple lenders to find the most competitive rate for your specific profile. Rates are not one-size-fits-all — the difference between lenders can mean tens of thousands of dollars over the life of your loan.

What is PMI and can I avoid it on a Texas home loan?

PMI (Private Mortgage Insurance) is required on conventional loans with less than 20% down, typically costing 0.5–1.5% of your loan annually. You can avoid PMI by putting 20% down, using a VA loan (no PMI ever), or requesting removal once you reach 20% equity. PMI is automatically canceled at 78% LTV on conventional loans — a major advantage over FHA’s lifetime MIP.

What is a DSCR loan and how does it work in Texas?

A DSCR (Debt Service Coverage Ratio) loan lets Texas real estate investors qualify based on a property’s rental income rather than personal income — no W-2s or tax returns needed. Texas has a strong rental market in cities like Houston, Dallas, San Antonio, and Austin, making DSCR loans popular for investors. Typical requirements: 640+ credit score, 20–25% down, and a DSCR of 1.0 or higher.

Why use a Texas mortgage broker instead of a bank?

A Texas mortgage broker like Adam Bartling & Team shops multiple lenders on your behalf, while a bank can only offer their own products. This means you get competitive rates from several lenders competing for your business — not just one bank’s menu. We provide an education-first approach with no upfront credit check, transparent guidance, and the same dedicated team from application through closing.

About the Author

Adam Bartling — Loan Officer & Retired U.S. Army Captain

Adam Bartling is a retired Army Captain who served his country before transitioning to mortgage lending. As a Texas-based loan officer (NMLS #2213358) with Movement Mortgage (NMLS #39179), Adam specializes in VA loans, FHA loans, conventional mortgages, DSCR investor loans, and construction financing across Texas and 30+ states. His veteran perspective and education-first approach help first-time buyers and seasoned investors navigate the mortgage process with confidence.