Texas Mortgage Rates 2025: Home Loans & First-Time Buyer Programs
Texas offers affordable home prices and no state income tax, making it attractive for homebuyers. This guide reveals current mortgage rates, state-specific programs, and strategies to get the best deal in Texas.
⚡ Quick Facts - Texas 2025:
- Average 30-year rate: 6.68% (vs 6.72% national)
- Median home price: $425,000
- State income tax: 0% (major advantage!)
- Property tax: ~1.6% (offset by no income tax)
- Down payment assistance: 10+ programs available
Current Mortgage Rates in Texas
Texas mortgage rates are competitive and slightly below national average. Compare current rates from Texas lenders. For first-time buyers, check out our complete first-time buyer guide.
| Loan Type | Rate Range | Down Payment | Best For |
|---|---|---|---|
| Conventional | 6.5%-7.2% | 5-20% | Good credit (620+) |
| FHA | 6.2%-6.8% | 3.5% | First-time buyers |
| VA | 6.0%-6.5% | 0% | Veterans |
| USDA | 6.1%-6.7% | 0% | Rural areas |
Texas First-Time Buyer Programs
Texas offers excellent programs for first-time buyers. Learn more in our guide to asking the right lender questions to maximize your benefits.
TDHCA FirstTime Homebuyer Program
Down payment assistance up to 5% with favorable terms. Income limits apply based on area median income.
Texas State Affordable Housing Program
Provides down payment and closing cost assistance for low-to-moderate income buyers.
County & City Programs
Austin, Dallas, Houston, and San Antonio offer additional local programs. Check your county for specific options.
County-by-County Analysis
| County | Median Price | Avg Rate | Market |
|---|---|---|---|
| Travis (Austin) | $650,000 | 6.65% | Competitive |
| Dallas | $480,000 | 6.68% | Moderate |
| Harris (Houston) | $380,000 | 6.70% | Favorable |
| Bexar (San Antonio) | $320,000 | 6.72% | Very Favorable |
Why Texas is Great for Homebuyers
- No state income tax: Increases your purchasing power by 5-10%
- Affordable prices: Median $425K vs $500K+ in other states
- Strong job market: Austin, Dallas, Houston are tech hubs
- First-time buyer programs: 10+ state and local programs
- Diverse markets: Urban, suburban, and rural options
Related Articles & Resources
Learn about closing costs and timelines to understand your total costs.
Avoid common first-time buyer mistakes that could cost you thousands.
Compare Texas rates with California to see your advantage.
Ready to Get a Texas Mortgage?
Compare rates from multiple Texas lenders and find the best program for your situation.
Compare Texas Lenders →FAQ: Texas Mortgages
Why are Texas property taxes higher than other states?
Texas has no state income tax, so it relies on property taxes for revenue. However, no income tax more than offsets higher property taxes.
Is Austin or Dallas a better market for first-time buyers?
Austin has higher prices ($650K) but strong job market. Dallas is more affordable ($480K) with moderate growth. Choose based on your career and lifestyle.
Can I get a mortgage with a lower credit score in Texas?
Yes. FHA loans accept scores as low as 580. Texas lenders are competitive and offer programs for lower credit scores.
The Bottom Line
Texas offers affordable home prices, no state income tax, and excellent first-time buyer programs. With rates averaging 6.68%, now is a good time to buy. Compare lenders, explore state programs, and get pre-approved today.