State Buyer Guide

First-Time Home Buyer Guide
for Texas

Down payment assistance, Texas housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

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$345,000
Avg Home Price
1.74%
Property Tax Rate
~$6,900
Est. Closing Costs
None
Transfer Tax

Texas Housing Finance Agency Programs

The Texas Department of Housing and Community Affairs (TDHCA) is your primary source for below-market mortgage rates and down payment assistance in Texas. Programs are available through approved lenders — not directly through the HFA.

My First Texas Home
Up to 5% of loan amount as a 0%, 30-year deferred second mortgage

30-year FHA/VA/conventional mortgage with down payment assistance for first-time buyers.

Income limit: $77,000–$105,000 (varies by county)
Learn more at Texas Department of Housing and Community Affairs (TDHCA)
Texas Mortgage Credit Certificate (MCC)
Annual federal tax credit of 20–30% of mortgage interest paid, up to $2,000/year

Federal tax credit for first-time buyers purchasing through TDHCA.

Income limit: $77,000–$105,000 (varies by county)
Learn more at Texas Department of Housing and Community Affairs (TDHCA)
High Value — $240/funded loan

Credible

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Closing Costs in Texas

Typical Closing Cost Range
2% of purchase price

On a $345,000 home: approximately $6,900

Transfer Tax
None

Texas has no state real estate transfer tax. You'll pay title insurance, recording fees, and a survey instead.

Attorney at Closing?
No — title company state

Texas is a title-company closing state. An attorney is not required, but you can hire one independently if you want document review.

Key Tips for Buying in Texas

  • Apply for the Homestead Exemption immediately after closing — saves $1,000+/year by exempting $100,000 of assessed value from school taxes.
  • Texas has no state income tax, but property taxes are among the highest in the nation — $6,000–$15,000/year is common in the suburbs.
  • Foundation repairs are common due to expansive clay soils — inspect carefully and ask the seller for any repair history.
  • Get a survey — Texas lenders typically require one, and it protects you from boundary disputes.
Home Inspection

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Legal Help for Texas Buyers

While Texas doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in Texas?

Texas first-time buyers can access programs through the Texas Department of Housing and Community Affairs (TDHCA) (https://www.tdhca.state.tx.us/), including the My First Texas Home (Up to 5% of loan amount as a 0%, 30-year deferred second mortgage) and the Texas Mortgage Credit Certificate (MCC) (Annual federal tax credit of 20–30% of mortgage interest paid, up to $2,000/year). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Texas?

Closing costs in Texas typically run 2% of the purchase price. Transfer tax: None. Texas has no state real estate transfer tax. You'll pay title insurance, recording fees, and a survey instead.

Do I need an attorney to buy a home in Texas?

Texas is a title-company closing state. An attorney is not required, but you can hire one independently if you want document review.

What is the average home price in Texas?

The median home price in Texas is approximately $345,000. Property taxes average 1.74% of assessed value annually.

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