Texas is the number one state for purchase mortgage volume in the United States. More homes are bought and financed in Texas every year than in any other state — and it is not close. Houston alone originates more purchase loans annually than many entire states. This massive volume means lenders compete aggressively for Texas business, which is good news for borrowers — if you know where to look.
The problem is that most Texas buyers still go to their local bank or credit union and accept whatever rate is offered. In a state where the median home price is $310,000 and property taxes average 1.68%, the difference between a retail bank rate and a wholesale broker rate compounds fast. This page shows what Texas borrowers are actually paying, which programs fit each market, and how to make sure you are getting the best deal available.
Current Texas Mortgage Rates — April 2026 Snapshot
Texas Rate Comparison by Loan Type
| Loan Type | Rate Range | Monthly P&I* | Key Qualification |
|---|---|---|---|
| 30-Year Fixed | 6.44% – 6.65% | $1,945 – $1,987 | 620+ FICO, 3–20% down |
| 15-Year Fixed | 5.75% – 6.10% | $2,562 – $2,638 | 680+ FICO, faster equity build |
| FHA | 6.25% – 6.50% | $1,908 – $1,958 | 580+ FICO, 3.5% down |
| VA | 6.00% – 6.35% | $1,858 – $1,929 | Eligible veterans, 0% down |
| Jumbo | 6.50% – 7.00% | Varies by amount | Loan amounts above $766,550 |
| DSCR (Investor) | 7.00% – 8.00% | Based on rental income | No personal income docs needed |
*Monthly P&I calculated on $310,000 loan amount (Texas median home price). Does not include taxes, insurance, or PMI/MIP.
What Makes the Texas Mortgage Market Unique
#1 Purchase Volume in the Country
Texas leads the nation in purchase mortgage originations. The Dallas-Fort Worth metroplex, Houston, San Antonio, and Austin collectively produce more home purchase loans than any other state. This volume creates intense lender competition, which should benefit borrowers — but only if they shop beyond their local bank. Texas is also the #1 market for corporate relocations, with companies like Tesla, Oracle, Caterpillar, HP Enterprise, and Charles Schwab bringing tens of thousands of new residents who need mortgages immediately. This relocation demand keeps the purchase market active even when rates are elevated.
No State Income Tax Advantage
Texas has no state income tax, which means borrowers take home more of their paycheck compared to states like Illinois (4.95%), New Jersey (up to 10.75%), or Michigan (4.25%). On a $80,000 salary, a Texas resident keeps roughly $3,000 to $6,000 more per year than an equivalent earner in those states. While lenders use gross income for qualification, the higher take-home pay gives Texas buyers more real cash flow to handle mortgage payments, property taxes, and maintenance.
Property Taxes Offset the Income Tax Savings
Texas compensates for zero income tax with above-average property taxes. The effective rate averages around 1.68%, but varies significantly by county. Harris County (Houston) and Travis County (Austin) often exceed 2.0% effective. On a $310,000 home, that is approximately $5,208 per year or $434 per month. Texas does offer a generous homestead exemption — $100,000 off the assessed value for your primary residence — which helps reduce the burden. Still, property taxes are a critical factor in your total monthly payment and how much home you can qualify for.
Texas is the largest and most competitive mortgage market in America. If you are not comparing wholesale broker rates against your bank’s offer, you are leaving money on the table in the exact market where comparison shopping pays off most.
Loan Programs Available in Texas
- Conventional (Fannie/Freddie): 3% to 20% down. The workhorse loan for Texas buyers. Best rates at 740+ credit. Texas’s moderate median home price means most purchases fall well within conforming limits.
- FHA: 3.5% down with 580+ credit. Extremely popular in San Antonio, El Paso, and suburban Houston for first-time buyers. Texas has one of the highest FHA volume shares of any state because of its large first-time buyer population.
- VA: Zero down, no PMI. Texas has the second-largest veteran population of any state and numerous military installations including Fort Cavazos (formerly Fort Hood), Joint Base San Antonio, Fort Bliss, and Naval Air Station Corpus Christi. VA loan volume in Texas is massive.
- DSCR (Investor): The investor loan of choice for Texas. Houston, Dallas, San Antonio, and Fort Worth are top-5 DSCR markets nationally. Qualify on rental income, no personal docs needed. See DSCR loans in Houston, Dallas, San Antonio, and Austin.
- Jumbo: For loan amounts above $766,550. Used primarily in Austin’s premium neighborhoods, Highland Park/University Park in Dallas, and River Oaks/Memorial in Houston.
- HELOC: Texas has unique home equity rules under its constitution — total mortgage debt plus HELOC cannot exceed 80% of your home’s appraised value. This is more restrictive than most states but still provides access to substantial equity for homeowners who bought before 2023.
Top Texas Cities for Homebuyers
Median ~$310K. #1 metro for purchase volume.
Median ~$380K. Corporate relocation hub.
Median ~$270K. Military & FHA market.
Median ~$450K. Tech & growth capital.
Median ~$300K. Fast-growing DFW west side.
View reverse mortgages in Houston, Dallas, Austin, or San Antonio for senior homeowner options.
How to Get the Best Mortgage Rate in Texas
- Shop wholesale. Texas is the #1 purchase market in America. Lenders want your business. A wholesale broker forces 100+ lenders to compete for your loan simultaneously. The rate advantage on a Texas purchase is typically 0.125% to 0.25% below retail — that is $40 to $70 per month on a $310,000 loan.
- Understand the homestead exemption. Texas offers a $100,000 homestead exemption that reduces your assessed property value for tax purposes. This applies automatically to your primary residence. Make sure your property tax estimate accounts for this exemption — it can reduce your monthly escrow payment by $100 to $200.
- Use TDHCA programs for first-time buyers. The Texas Department of Housing and Community Affairs offers the My First Texas Home program with below-market rates and up to 5% in DPA. The My Choice Texas Home program extends to non-first-time buyers as well. Both can be combined with FHA or conventional loans.
- Consider Texas-specific HELOC rules. Under the Texas Constitution, your total mortgage debt (first mortgage plus HELOC) cannot exceed 80% of your home’s appraised value. This is more conservative than most states. Plan accordingly if you are buying with equity access in mind.
- Lock early in volatile markets. Texas closings average 30 to 45 days. In a volatile rate environment, locking your rate at application protects you from rate increases during underwriting. Ask your broker about float-down options that let you benefit if rates improve after locking.
Second Opinion
Already Have a Loan Estimate? Upload It and See Where You Stand.
LEAH compares your Loan Estimate against current wholesale rates across 100+ lenders and shows you exactly where your rate and fees rank — in under 60 seconds.
Upload My Loan EstimateWhat are current mortgage rates in Texas?
As of April 2026, Texas mortgage rates range from approximately 6.44% to 6.65% for a 30-year fixed, 5.75% to 6.10% for a 15-year fixed, 6.25% to 6.50% for FHA loans, and 6.00% to 6.35% for VA loans. Texas is the #1 state for purchase mortgage volume in the country, which means lenders compete aggressively for Texas business. Wholesale broker rates are typically 0.125% to 0.25% lower than retail bank rates.
Does Texas have no state income tax and how does that help homebuyers?
Texas has no state income tax, which means your take-home pay is higher compared to states like Illinois, New Jersey, or Michigan. On a $75,000 salary, a Texas resident keeps roughly $2,500 to $4,000 more per year than someone earning the same amount in a state with income tax. Lenders use your gross income for qualification, so the no-income-tax advantage does not directly increase your loan amount, but it does improve your real cash flow — making it easier to afford the monthly payment, build savings, and handle maintenance costs.
Is Texas a good state for real estate investors in 2026?
Texas is one of the top investor markets in the country. Houston, Dallas-Fort Worth, and San Antonio consistently rank in the top 10 metros for rental property purchases. Strong population growth driven by corporate relocations, no state income tax, and a business-friendly regulatory environment support long-term rental demand. DSCR loans are available in every major Texas market, allowing investors to qualify based on property rental income without providing personal income documentation.
Are Texas property taxes high and how do they affect my mortgage?
Yes. Texas has no state income tax but makes up for it with above-average property taxes. The effective rate averages around 1.68%, which on a $310,000 home equals roughly $5,208 per year or $434 per month. Some counties like Harris (Houston), Travis (Austin), and Collin (North Dallas) have even higher effective rates. Lenders include the full property tax payment in your debt-to-income ratio, which reduces the loan amount you qualify for. The $100,000 homestead exemption for primary residences helps offset this burden.
Related Reading
- The Accidental Landlord — Investor Loan Options
- First-Time Buyer Guide
- VA Leverage Reset — What Veterans Need to Know in 2026
- The Seller Buydown Counter Strategy
- All Loan Resources
Rate ranges shown reflect approximate market conditions as of April 2026 and are subject to change without notice. Rates are based on typical borrower profiles and may vary based on credit score, down payment, loan amount, property type, and occupancy. Monthly payment examples are principal and interest only on a $310,000 loan and do not include property taxes, homeowners insurance, or mortgage insurance premiums. Texas home equity lending is subject to Section 50(a)(6) of the Texas Constitution, which limits total mortgage indebtedness to 80% of fair market value. All loan approvals are subject to underwriting review and borrower qualification. This is not a commitment to lend.
Jeff Shin NMLS #1041652 | Barrett Financial Group, Inc. NMLS #181106 | Equal Housing Lender | Licensed in IL, IN, MI, NJ, TX