How much do I need to buy my first home in Texas?
A plain-English answer for Texas first-time buyers.
By Grant Martin, NMLS 2849522. Updated November 2026.
It depends on the price, loan type and any assistance you qualify for. Plan for four things: your down payment, closing costs, prepaid items such as insurance and taxes, and a cash cushion for after you move in.
The cash you'll need
- Earnest money and option fee: paid when you go under contract. Earnest money is usually credited at closing, while the Texas option fee is negotiated with the seller.
- Inspection and appraisal: due before closing, in most cases.
- Down payment: depends on the loan program. Some programs are built for smaller down payments.
- Closing costs: lender, title and government fees. Your Loan Estimate lists them.
- Prepaid items: homeowners insurance, property taxes and interest set aside at closing.
- A cushion: moving costs and the first repair. Don't empty your savings to close.
The monthly cost in Texas
Texas has no state income tax, and property taxes are a big part of many monthly payments. Rates change by county, city, school district and special districts, so similar homes can have different bills. Include taxes and insurance when you set your budget, not just principal and interest. Try the mortgage calculator.
Where help can come from
Texas state programs can help eligible buyers with down payment and closing costs, and some cities run their own programs. Income, price and credit rules apply. See the Texas down payment assistance guide.
Common follow-up questions
Can I get help with my down payment in Texas?
Possibly. TDHCA and TSAHC offer statewide programs, and some cities have local programs. Income, price and credit rules apply, and funds can change.
Do I need to include property taxes in my budget?
Yes. Property taxes can be a major part of a Texas monthly payment, and they vary by address.
Want this applied to your situation?
Grant can walk through your numbers and options with you.
Sources
General information only. Rules, programs and funding can change. All loans are subject to credit approval and underwriting, and not every program is available through every lender.