For buyers with solid credit and stable income, a Conventional Loan is often the most cost-effective path to homeownership in Texas. All 254 Texas counties follow the same $832,750 conforming limit for 2026 — uniform and predictable whether you’re buying in Dallas’s northern suburbs, Austin’s tech-adjacent communities, Houston’s Energy Corridor, San Antonio’s established neighborhoods, or a small city in the Texas Panhandle.
Texas is notable for being one of the most active real estate states in the country with zero high-cost county designations — despite Austin, Dallas, and Houston regularly ranking among the nation’s top metros for home price growth. Both TDHCA and TSAHC’s DPA programs are compatible with conventional financing, making it possible to combine conventional loans with meaningful down payment assistance for eligible buyers.
620; 700+ for the best rates
As low as 3% for first-time buyers; 5% for repeat buyers; 20% eliminates PMI
Generally up to 45%
$832,750 uniform across all 254 TX counties (2026)
Primary residences, second homes, and investment properties
Documented, verifiable income required
Texas’s uniform $832,750 conforming limit applies in every county. For the vast majority of Texas homebuyers, this is irrelevant — Texas’s median home price hovers around $340,000–$360,000 statewide, well within conventional limits. But in the premium tiers of the state’s most expensive markets, $832,750 can be reached more quickly than expected.
For purchases above $832,750 anywhere in Texas, a Jumbo Loan is required.
Texas has no state income tax, but compensates with high effective property tax rates — typically 1.5–2.8% of assessed value depending on the county and municipality. In practical terms, a $400,000 home in a high-tax suburban district can carry $600–$1,000/month in property taxes alone. Always model total monthly payments including property taxes when comparing loan options.
If you’re purchasing a home priced above the conforming limit, you’ll need a Jumbo Loan — a non-conforming mortgage with its own set of qualification requirements. The Bookspan Baker Team can help you understand how your purchase price maps to your financing options.
TDHCA’s My Choice Texas Home (MCTH) program is fully compatible with conventional financing:
Available to ALL buyers — no first-time buyer requirement
Up to 5% of loan amount in DPA as a 3-year deferred forgivable second lien (forgiven after 3 years)
No purchase price limits
Income limits apply by county
Minimum 620 credit score
This is one of the most accessible DPA programs in the country — a forgivable 5% DPA with no purchase price cap and no first-time buyer requirement, compatible with conventional loans.
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Minimum Credit Score |
620 |
500 (580 for 3.5% down) |
|
Minimum Down Payment |
3% (first-time buyers) |
3.5% (score 580+) |
|
Mortgage Insurance |
PMI; removable at 20% equity |
MIP; lifetime in most cases |
|
Upfront Insurance Fee |
None |
1.75% UFMIP |
|
Investment Properties |
Yes |
No (primary residence only) |
| Statewide TX Limit | $832,750 | Varies by county |
$832,750 in every one of Texas’s 254 counties. Texas has no high-cost county designations — this is truly uniform statewide.
Yes. TDHCA’s My Choice Texas Home provides up to 5% as a 3-year forgivable second lien with no purchase price limits, compatible with conventional HFA Preferred financing. No first-time buyer requirement.
Yes. Conventional Loans support second home and investment property purchases. For Texas Hill Country STR properties in Fredericksburg, Wimberley, and Kerrville, conventional (or Jumbo if above $832,750) are the primary financing vehicles.
Texas has no state income tax but high property taxes — typically 1.5–2.8% of assessed value annually. Always model total monthly housing costs including principal, interest, taxes, and insurance.
