How to Buy a House in Texas
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$308,212
Closing Costs
$16,012
5.2% of price
Property Tax Rate
1.36%
$4,438/yr median
Days on Market
42
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Non-Judicial
Transfer Tax
None
None
Texas has been the nation's top destination for domestic migration for much of the past decade, drawing corporations and individuals from California and the Northeast with its combination of no state income tax, business-friendly regulations, and relatively affordable housing. The state's major metros — Houston, Dallas-Fort Worth, Austin, and San Antonio — each have populations exceeding 2 million and offer distinct economic identities. However, Texas compensates for its lack of income tax with property tax rates that are among the highest in the nation, creating a different calculus for homeownership costs than many relocators initially expect. Texas uses a deed of trust model with non-judicial foreclosure and does not require an attorney at closing. The state's homestead protections are among the strongest in the country, protecting your primary residence from most creditors regardless of value.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in Texas
- ✓No state income tax but high property taxes (1.80%)
- ✓No transfer tax
- ✓Strongest homestead exemption in the US (unlimited value)
- ✓Non-judicial foreclosure state
The Home Buying Process in Texas
Buying a home in Texas follows a 10-step process. Texas does not require an attorney at closing, though you may choose to hire one.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in Texas
TDHCA My First Texas Home
30-year fixed rate mortgage with DPA
TDHCA My Choice Texas Home
Available to first-time and repeat buyers
Cost of Buying a Home in Texas
| Down Payment (3.5% FHA) | $10,787 |
| Down Payment (20% Conventional) | $61,642 |
| Average Closing Costs | $16,012 |
| Transfer Tax | None |
| Annual Property Tax (est.) | $4,192/yr |
Legal & Regulatory Details in Texas
Homestead Exemption
Available
Unlimited value, up to 10 acres in city
Licensing Authority
Texas Real Estate Commission
Texas Real Estate Law Overview
| Conveyance Document | General-warranty or special-warranty deed |
| Security Instrument | Deed of trust or vendor's lien retained in the deed |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Yes |
| Redemption After Sale | No |
| Reinstatement Available | Yes |
| Seller Disclosures | Sellers must give buyers a disclosure statement on or before the effective date of the purchase agreement; otherwise buyers can cancel within seven days after receiving the disclosure. Required disclosures cover structural damage, environmental hazards, pest infestations and the condition of features like swimming pools; psychologically impactful events need not be disclosed. |
