No. Texas is one of nine states with no personal income tax. Lenders calculate your debt-to-income ratio using gross pay, but your take-home pay is higher than in income-tax states at the same salary, which can help with household budgeting for your mortgage payment.

The Texas homestead exemption removes $100,000 from the taxable value of your primary residence for school district taxes (raised from $40,000 in 2023 under Proposition 4). Homeowners 65 or older and those with disabilities get an additional $10,000 exemption. You must own the home on January 1 of the tax year and designate it as your primary residence to qualify. Apply through your county appraisal district.

Texas homeowners insurance averages $2,800 to $3,500 per year, well above the national average of $1,700. The primary drivers are hurricane exposure along the Gulf coast, frequent hail and tornado damage across the central plains, and the large lot sizes of suburban Texas homes which increase replacement costs. Urban areas like Austin and Dallas see lower rates than coastal zones like Houston and Corpus Christi.

The statewide average effective property tax rate is 1.68%, but rates vary significantly by county and school district. Harris County (Houston area) averages close to 2.1%, while counties in West Texas can be below 1.5%. Always check the specific district rate for any home you are considering, since property taxes often add $400 to $600 to the monthly mortgage payment.

Yes. The Texas State Affordable Housing Corporation (TSAHC) offers down payment assistance and mortgage credit certificates for eligible first-time buyers, typically those earning below the area median income. The Texas Department of Housing and Community Affairs (TDHCA) runs a similar program called My First Texas Home. Both can be combined with FHA or conventional loans; check current eligibility before starting your home search.