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Key Takeaways for Texas Home Buyers:

Here's what you need to know to get started if you’re looking at buying in the Lone Star State.

Average Home Prices in Texas

As of May 2025, the median sale price for a single-family home in Texas is $306,581.

Average home price:

  • Houston: $295,790
  • Dallas: $325,980
  • Austin: $637,227
  • Fort Worth: $338,000
  • El Paso: $235,000 

Source: zillow.com/home-values

Average Home Size in Texas

The average size for a single-family home in Texas is approximately 1,950 square feet.

Average home size:

  • Houston: 2,228 square feet
  • Dallas: 1,900 square feet
  • Austin: 1,865 square feet 
  • Fort Worth: 2,166 square feet
  • El Paso: 2,089 square feet 

Source: https://fred.stlouisfed.org/

Texas State Taxes

  • Texas is one of the few states that does not collect personal income tax, making it appealing for many home buyers looking to maximize their take-home pay.
  •  The average effective property tax rate in Texas is about 1.60% of a home’s assessed value, though rates vary by county and school district.
  • The base sales tax rate in Texas is 6.25%, but local governments can tack on additional taxes, bringing the total up to 8.25% in some areas.

How Much Can You Afford in Texas?

Recommended
Monthly Payment:
$750.00

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$750.00
$1050
$1350

Affordable Home Prices With Your Recommended Payment

$107,844.08 house with $9,804.01 down. (10%)

$117,648.09 house with $19,608.02 down. (20%)

$127,452.10 house with $29,412.02 down. (30%)

These examples use the loan term provided and assume a fixed-rate mortgage with an interest rate of 6%.

Texas Down Payment Assistance Programs

Homes for Texas Heroes Program

The Texas State Affordable Housing Corporation (TSAHC) helps Texans in hero professions buy a home for themselves and their families. This program is designed specifically for those who serve their communities.

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More about this program

Eligible professions:

  • Teachers, aides, librarians, counselors, and nurses

  • Police officers and public security officers

  • Firefighters and EMS personnel

  • Veterans and active military

  • Correction and juvenile corrections officers

  • Nursing and allied health faculty

Program highlights:

    • 30-year fixed-rate mortgage with options

    • 3%–5% down payment assistance

    • DPA as a grant or forgivable loan

    • No first-time buyer requirement

    • 43% max DTI, 640+ FICO

    • No manual underwriting for manufactured homes

Home Sweet Texas Loan Program

TSAHC also offers the Home Sweet Texas Program to help low and moderate-income Texans purchase a home of their own.

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More about this program

Who it's for:

  • Texans who don’t qualify for the Heroes program but meet income limits

Program highlights:

  • 30-year fixed-rate mortgage with flexible options

  • 3%–5% down payment assistance

  • DPA as a grant or forgivable loan

  • No first-time buyer requirement

  • MCC tax credit available for first-time buyers

  • 43% max DTI, 640+ FICO

  • No manual underwriting for manufactured homes

Essex + National Homebuyers Fund FHA Program

This down payment assistance program helps buyers get into a home with little to no upfront cost, offering up to 101.5% financing through an FHA first mortgage and a second lien.

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More about this program
  • FHA loan covers 96.5% of the purchase price
  • Second lien covers 3.5% or 5% for down payment or closing costs
  • Minimum credit score: 600 (660 for manual underwriting)
  • No first-time buyer requirement
  • No max DTI with DU/LP approval
  • Homebuyer education required (Fannie Mae HomeView – free online)
  • Non-occupant co-borrowers allowed
  • Eligible properties: Single-family homes, duplexes (2 units), PUDs, condos (agency approved), townhomes, manufactured homes allowed (except single-wides)

Lakeview National Community Lending Program

The Lakeview National program supports low- to moderate-income buyers with down payment assistance and flexible financing to make homeownership more accessible.

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More about this program
  • 30-year fixed-rate conventional mortgage
  • Second lien offers up to 4% for down payment assistance
  • Max LTV/CLTV: 97% / 105%
  • Income limit: Up to 140% of area median income (AMI)
  • Minimum credit score: 660
  • DTI: Lesser of 50% or AUS approval
  • First lien acquired by Lakeview; second lien from an approved DPA provider
  • Eligible properties: Single-family detached or attached homes, single-family homes with accessory units (must be zoned single-family), PUDs and condominiums, rural properties (must be residential in nature)

Churchill Mortgage is an approved lender for these down payment assistance programs. Contact us today to see if you qualify!

Frequently Asked Questions

Check our FAQs for responses to our most popular questions from Texas Home Buyers.

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How Much Should I Budget for Closing Costs in Texas?

Home buyers in Texas should plan to budget around 2% to 6% of the home’s purchase price for closing costs. These costs typically include lender fees, title insurance, appraisal, escrow fees, and prepaid taxes and insurance.

For a $300,000 home, expect to pay between $6,000 and $18,000 in closing costs.

You will receive your closing costs from your Home Loan Specialist in a Loan Estimate that you will receive after you apply for your home loan and in the Closing Disclosure document that is provided before your official closing day.

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What Are the Most Popular Home Loan Types in Texas?

Texas home buyers have access to a variety of mortgage options, each with its own benefits depending on income, credit, and down payment ability:

  • Conventional Loans – A popular choice for buyers with solid credit and at least 3% down. Offers competitive rates and fewer restrictions.

  • FHA Loans – Backed by the government and ideal for first-time buyers with lower credit scores or limited down payment (as low as 3.5%).

  • VA Loans – Available to eligible veterans, active-duty service members, and some surviving spouses. No down payment or mortgage insurance required.

  • USDA Loans – Designed for buyers in rural areas. Offers zero down payment and low interest rates for qualifying properties.

  • TSAHC Loans – Offered by the Texas State Affordable Housing Corporation, these loans include down payment assistance and tax credits for eligible low-to-moderate income buyers and public service professionals.

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How Can I Find a Trusted Local Texas Realtor to Work With?

Churchill Mortgage's experienced Home Loan Specialists work closing with a network of trusted, local real estate agents across the state of Texas. Just ask for a referral and we'll provide you with a professional who is committed to finding the right home for you.

 
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How Do Schools Rank in Texas?

Texas has a wide range of public and private schools, with rankings that vary by district and city. Many areas are home to top-rated schools that attract families looking for strong academics, extracurriculars, and college readiness.

  • School districts like Eanes ISD (Austin area), Highland Park ISD (Dallas), and Carroll ISD (Southlake) are consistently ranked among the best in the state.

  • Texas Education Agency (TEA) publishes annual accountability ratings based on academic performance, graduation rates, and other key metrics.

For detailed ratings and comparisons, check GreatSchools.org and the Texas Academic Performance Reports (TAPR) from the TEA.

Reviews from Texas Home Buyers

★ ★ ★ ★ ★

"It was easy, quick and professional through the entire process!!! We will highly recommend to all friends and relatives"

Thomas R.
Georgetown, TX
★ ★ ★ ★ ★

"Sawyer made the loan process unexpectedly easy. He listened, stayed patient through every question, and adjusted the loan to fit my situation perfectly—even changing loan types to make it work. He was flexible, fast, and made what could’ve been stressful feel simple and well-supported from start to finish. I’m really grateful for all the support."

Claire R.
McGregor, TX
★ ★ ★ ★ ★

"The loan process was easier than expected. The communication was great. Shane was great to work with and always available to answer any questions that I had."

Brittany M.
Seguin, TX

4.9 / 5

gold star gold star gold star gold star gold star

Top Rated Mortgage Lender

Served over 100,000+ happy homeowners!

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Texas Branch Locations

Waco, TX

254-366-9415

Visit the Branch Website

215 Mary Avenue, Suite 306 Waco, Texas 76701

Odessa, TX

432-349-7675

Visit the Branch Website

5000 East University Blvd, Suite 3

Georgetown, TX

714-606-1124

Visit the Branch Website

Georgetown, TX

Flower Mound, TX

214-564-0957

Visit the Branch Website

Flower Mound, TX

Dallas, TX

214-540-4966

Visit the Branch Website

12222 Merit Dr., Ste. 1850 Dallas, TX

Boerne, TX

210-718-7500

Visit the Branch Website

Boerne, TX

Allen, TX

214-540-4966

Visit the Branch Website

950 W. Bethany Drive, Suite 550 Allen, TX 7501

Churchill Loan Officers in Texas

Conforming and high balance allowed. Cooperative housing not eligible. Not all applicants will qualify. Not a commitment to lend. Other restriction or limitations to any program may apply.

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information.

These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

As a responsible lender, Churchill Mortgage is committed to the principles outlined in federal and state lending laws ensuring all potential borrowers have access to the same information, services, and opportunities throughout the home loan process.