What are current mortgage rates in Texas?

As of May 2026, Texas 30-year fixed mortgage rates are approximately 6.85%–7.15% for borrowers with a 740+ credit score and 20% down payment. Texas rates closely track the national average — typically within 0.10%–0.15% — because mortgages are primarily driven by the secondary market (Fannie Mae and Freddie Mac), not state-specific factors. However, Texas property tax rates (among the highest in the US at 1.5%–2.5% of assessed value) significantly affect total housing costs.

Does Texas have any special mortgage programs?

Yes. The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program with below-market rate mortgages and down payment assistance for first-time buyers and qualifying veterans. Income limits apply (generally $85,000–$115,000 depending on household size and county). The Texas State Affordable Housing Corporation (TSAHC) also offers down payment assistance grants of 2%–5% of the loan amount for eligible borrowers.

What is the conforming loan limit in Texas for 2026?

The 2026 conforming loan limit in Texas is $806,500 for most counties — the standard national baseline set by the Federal Housing Finance Agency. Texas does not have any high-cost counties that qualify for higher limits (unlike California or New York metro areas). Loans above $806,500 are jumbo loans and carry different qualification requirements and typically higher rates by 0.25%–0.5%.

How do Texas property taxes affect mortgage affordability?

Texas has no state income tax but some of the highest property taxes in the nation. The statewide average effective property tax rate is approximately 1.60%–1.80% of assessed value, vs. the national average of around 1.10%. On a $350,000 home, Texas property taxes might run $5,600–$6,300/year ($467–$525/month) vs. $3,850/year nationally. This significantly increases your total monthly housing payment — factor it into your affordability calculations.

Texas Mortgage Rates 2026 — Current Rates and Best Lenders

Texas mortgage rates in May 2026 are running in line with the national average — 30-year fixed rates at 6.85%–7.15% for well-qualified borrowers (740+ credit score, 20% down). Texas is a high-volume mortgage market with strong competition among lenders, which helps keep rates competitive. What makes Texas home buying distinctly different is the property tax burden — no state income tax, but effective property tax rates of 1.6%–1.8% add meaningfully to monthly housing costs.

Current Texas Mortgage Rates (May 2026)

Loan Type	Rate Range	APR Range
30-year fixed	6.85%–7.15%	6.95%–7.30%
20-year fixed	6.60%–6.90%	6.70%–7.05%
15-year fixed	6.15%–6.45%	6.25%–6.60%
5/1 ARM	6.20%–6.65%	6.85%–7.25%
FHA (30-year)	6.40%–6.75%	7.20%–7.60%
VA (30-year)	6.10%–6.50%	6.35%–6.80%
Jumbo (30-year)	7.00%–7.50%	7.10%–7.65%

Monthly Payment in Texas by Loan Amount

30-Year Fixed at 7.00%

Home Price	Down (20%)	Loan Amount	Monthly P&I	Est. Property Tax/mo	Total Pmt
$250,000	$50,000	$200,000	$1,331	$325	~$1,800
$350,000	$70,000	$280,000	$1,863	$467	~$2,500
$450,000	$90,000	$360,000	$2,395	$600	~$3,200
$550,000	$110,000	$440,000	$2,928	$733	~$3,900

Total payment estimate includes P&I, property tax, and homeowners insurance. Does not include PMI (not required with 20% down).

Texas vs. National Mortgage Rate Comparison

Texas rates track the national average closely because lenders nationwide sell loans on the same secondary market (Fannie Mae, Freddie Mac). In May 2026:

National 30-year fixed average: ~6.90%–7.10%
Texas 30-year fixed: ~6.85%–7.15%

The small variance exists because of state-level factors: Texas has no deed transfer taxes (reducing lender risk slightly) but has some of the highest property insurance costs in the nation due to hurricane and hail risk, particularly in Houston, the Gulf Coast, and North Texas.

Texas Property Taxes — The Hidden Affordability Factor

Texas ranks among the top 5 states for property tax rates. With no state income tax, local governments rely heavily on property taxes to fund schools and services.

Metro Area	Effective Property Tax Rate	Annual Tax on $350K Home
Dallas-Fort Worth	1.70%–2.10%	$5,950–$7,350
Houston	1.60%–2.00%	$5,600–$7,000
Austin	1.50%–1.90%	$5,250–$6,650
San Antonio	1.75%–2.20%	$6,125–$7,700
El Paso	1.80%–2.30%	$6,300–$8,050

Homestead exemption: Texas homeowners who use the property as their primary residence qualify for a homestead exemption that reduces the assessed taxable value. The state provides a $100,000 exemption from school district taxes for most homeowners (expanded in 2023 and maintained in 2026). Seniors 65+ qualify for additional exemptions and a property tax freeze on school district taxes.

First-Time Buyer Programs in Texas

My First Texas Home (TDHCA)

Below-market interest rate (typically 0.25%–0.75% below market)
Down payment assistance: 2%–5% of loan amount as a 0% interest deferred loan
Eligibility: First-time buyers or those who haven’t owned in 3 years; income limits apply by county
Credit score minimum: 620

TSAHC Home Sweet Texas

Down payment assistance: 3%–5% as a grant (no repayment required)
Available to all buyers (not just first-timers) who meet income limits
Works with FHA, VA, USDA, and conventional loans

Texas Veterans Land Board (VLB)

State-specific mortgage program for Texas veterans with rates sometimes below VA rates
Down payment as low as 0%
Land purchase loans also available

How to Get the Best Texas Mortgage Rate

Compare at least 3–5 lenders — Texas is a highly competitive market. Large national lenders (Chase, Bank of America, Wells Fargo) compete with Texas-based lenders (Texas Capital Bank, Frost Bank, BBVA USA) and online lenders (Better.com, LoanDepot)
Get pre-approved, not just pre-qualified — a full pre-approval pulls credit and verifies income, giving you a rate commitment
Consider a mortgage broker — brokers shop 20+ lenders simultaneously; their fee is often offset by finding a better rate
Lock your rate — once under contract, lock immediately; Texas markets can be competitive with quick closings
Boost your credit before applying — each 20-point credit score improvement can reduce your rate by 0.10%–0.25%

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy