Texas Mortgage Rates 2026: Best Lenders + State Programs Ranked
Texas's average 30-year mortgage rate is 6.71% in June 2026. The right lender saves you up to $22,000 on a $350K TX home — and the TSAHC program adds 3–5% in grants with no repayment required. But TX has unique rules (80% LTV cash-out cap, high property taxes) that every buyer must understand. Here's the complete 2026 Texas mortgage guide.
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⚡ Texas Mortgage Quick Answer
- • Best overall TX rate: Better.com (6.68%, closes in 16 days)
- • Best TX local lender: Supreme Lending (6.72%, TX-based expertise)
- • Best for FHA in TX: Carrington Mortgage (accepts 500 score)
- • Best DPA program: TSAHC — up to 5% grant, no repayment ever
- • TX-specific rule: Cash-out refis capped at 80% LTV (constitutional law)
Texas Mortgage Rates by Lender (June 2026)
Rates for a $350K TX home, 740 credit score, 20% down. Updated weekly.
| Lender | 30-yr | 15-yr | FHA | VA | Lender Fee | Close |
|---|---|---|---|---|---|---|
Rocket Mortgage Best overall + TX experience | 6.69% | 6.02% | 6.26% | 6.07% | $0 | 21 days |
Better.com Fastest close in TX | 6.68% | 5.98% | 6.28% | 6.09% | $0 | 16 days |
AmeriSave Lowest lender fees | 6.71% | 6.01% | 6.29% | 6.11% | $0 | 25 days |
Supreme Lending Best TX local lender | 6.72% | 6.04% | 6.27% | 6.10% | $750 | 28 days |
Gateway Mortgage Best for TX rural areas | 6.74% | 6.06% | 6.30% | 6.12% | $495 | 30 days |
New American Funding Best for Spanish speakers | 6.73% | 6.05% | 6.28% | 6.11% | $0 | 26 days |
Carrington Mortgage Best 500 credit score TX | 6.80% | 6.12% | 6.22% | N/A | $0 | 35 days |
Rates indicative. Request a Loan Estimate to compare APR. Get your personalized Texas rate →
Texas FHA Loan Limits 2026 by Metro
| Metro Area / County | 1-Unit FHA Limit | Conventional Limit | Median Home Price |
|---|---|---|---|
| Austin (Travis, Williamson, Hays) | $524,225 | $766,550 | $485K |
| Dallas / Fort Worth (Collin, Denton, Tarrant, Dallas) | $498,257 | $766,550 | $365K |
| Houston (Harris, Fort Bend, Montgomery) | $498,257 | $766,550 | $320K |
| San Antonio (Bexar) | $498,257 | $766,550 | $295K |
| El Paso | $498,257 | $766,550 | $210K |
| Most other TX counties | $498,257 | $766,550 | $275K |
Austin's $524K FHA limit vs other TX metros' $498K reflects its higher home prices. If you're buying in Austin's suburbs, check FHA eligibility now before home prices push you into jumbo territory.
Texas Down Payment Assistance Programs 2026
My First Texas Home (TDHCA)
Up to 5% DPATSAHC Home Sweet Texas
3–5% of loan amountTSAHC Homes for Texas Heroes
3–5% grant or 2nd loanDallas Homebuyer Assistance
Up to $60,000SETH 5 Star Program
Up to 5% grant💡 Stack TSAHC with VA loans
Texas veterans can combine the TSAHC Homes for Texas Heroes grant (3-5%) with a VA loan (0% down, no PMI). This creates one of the most powerful zero-out-of-pocket home purchase options in the country. Get your VA pre-approval now →
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5 Texas Mortgage Rules You Must Know
1. Texas's 80% LTV cash-out cap is unique in the US
2. Texas property taxes are among the highest in the US
3. TX homestead exemption protects your home from creditors
4. TX VA loans have extra benefits for the 1.7M Texas veterans
5. Texas "due on sale" clauses affect assumable mortgage strategies
Texas Mortgage FAQ 2026
What is the average mortgage rate in Texas in 2026?
Texas's average 30-year fixed mortgage rate in 2026 is approximately 6.71%, slightly below the national average of 6.72%. Texas property tax rates are higher (1.6-2.5% vs national 1.1% avg), so lenders may adjust slightly for this. The best TX borrowers (760+ credit, 20% down) can access rates as low as 6.48% from digital lenders like Better.com.
→ Compare TX lender rates nowWhat is Texas's 80% LTV cash-out refinance rule?
Texas has a unique constitutional restriction (Article XVI, Section 50(a)(6)) that caps home equity cash-out loans at 80% LTV — meaning you must keep 20% equity after the cash-out. You can only do one cash-out refi every 12 months. This is more restrictive than other states (which allow up to 90% LTV). It applies to cash-out refis and HELOCs equally.
What are the FHA loan limits in Texas for 2026?
Texas FHA loan limits vary by county: Travis (Austin), Collin, Denton, Williamson: $524,225. Most other major TX metros (DFW, Houston, San Antonio): $498,257 standard. El Paso: $498,257. Texas has no "super high-cost" counties like CA or NY, so limits are relatively uniform. Check your specific county at HUD's FHA loan limit lookup tool.
→ Get FHA pre-approved for Texas todayWhat is the TSAHC mortgage program in Texas 2026?
The Texas State Affordable Housing Corporation (TSAHC) offers two flagship programs: Home Sweet Texas (for all buyers earning ≤$128K) and Homes for Texas Heroes (for teachers, nurses, police, firefighters, and veterans). Both offer 3-5% in grants or 0% second mortgages for down payment. You must use a TSAHC-approved lender, and the property must be your primary residence. Credit score: 620+.
Does Texas have state income tax advantages for homebuyers?
Yes — Texas has NO state income tax, which effectively increases your buying power. A household earning $100K in Texas keeps ~$5,000-$8,000 more per year vs a similar income in California or New York. This extra cash flow can support a higher mortgage payment. However, TX property taxes average 1.8-2.5%, which is among the highest in the US, partially offsetting the income tax advantage.
People Also Ask: Texas Mortgage Questions
More common TX homebuyer questions for 2026.
Is Texas a good state to buy a home in 2026?
Can I get a USDA loan in Texas?
What is the minimum down payment in Texas?
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