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
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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.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
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First-Time Buyer Programs in Texas
TDHCA My First Texas Home
30-year fixed rate mortgage with DPA
Up to 5% of loan amount in DPAIncome: Up to $97,000
TDHCA My Choice Texas Home
Available to first-time and repeat buyers
Up to 5% of loan amountIncome: Up to $97,000
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 |
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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. |
