How to Buy Your First Home in Texas

Texas is one of the best states in the country to buy your first home. No state income tax, strong job markets, and home prices that are still affordable compared to the coasts.

But the market is competitive — especially in Dallas, Houston, Austin, and San Antonio. If you're not prepared, you lose houses.

Here's what you need to know.

Step 1: Know your numbers

Texas has no state income tax, which helps your monthly budget. But property taxes are high — some of the highest in the country. Depending on the county, you're looking at 1.8–2.5% of the home's value per year.

On a $350,000 home, that's $6,300–$8,750/year in property taxes — or $525–$729/month on top of your mortgage.

Know that number before you fall in love with a house.

Step 2: Get pre-approved before you look

Texas sellers move fast. In competitive markets like Dallas-Fort Worth, homes go under contract in days. You need a real pre-approval — not an estimate — before you start touring.

When we have a complete file, we aim to issue a pre-approval within one business day. You'll have a letter that holds up.

Step 3: Pick the right loan

Conventional — 3% down

Best for buyers with 620+ credit. Clean and straightforward.

FHA — 3.5% down

More flexible on credit and debt-to-income. Popular for first-time buyers across Texas. Plan to refinance out of mortgage insurance once you've built equity.

USDA — 0% down

Large portions of Texas qualify — rural areas, smaller towns, suburban counties outside major metros. Zero down payment, income limits apply. Massively underused.

VA — 0% down

Texas has one of the largest veteran populations in the country. VA loans can offer no down payment and no monthly mortgage insurance for eligible borrowers. A funding fee may apply, and the best option depends on the full file.

Bank Statement Loans

Self-employed and can't show W-2 income? We qualify you on 12–24 months of bank statements.

DSCR Loans

Buying investment property in Texas? We lend on rental income — not your personal tax returns.

Step 4: Budget for closing costs

Texas closing costs are moderate — roughly 2–3% of the loan amount. Here's what to expect:

Title insurance: Required in Texas — typically $1,500–$3,000 depending on purchase price

Lender fees: $1,000–$2,500

Home inspection: $300–$500

Property taxes: Prepaid at closing — often 2–3 months upfront

Homeowner's insurance: First year paid at closing

On a $350,000 home with 3.5% down, plan for $12,250 down plus $8,000–$12,000 in closing costs. Total cash needed: roughly $20,000–$25,000.

Step 5: Move fast — and have a lender who can keep up

In Texas markets, speed wins. A 45-day close gets your offer passed over. A faster close gets it accepted.

We average 21 days from application to closing. Fully digital process — you don't need to be in the same room as us.

Ready to buy in Texas?

Tell us where you want to buy and we'll tell you what you qualify for.