How Much House Can I Afford in Texas on $130K?
Based on Texas's 1.8% property tax rate and $3,800/yr homeowners insurance.
Can You Afford the Median Home in Texas?
Yes — the median home in Texas is $310K, which is within your $378K budget. You have $68K of headroom, giving you flexibility to choose a better neighborhood, newer construction, or simply keep your payments comfortably below the maximum.
Affordable Cities in Texas on $130K
These Texas cities have median home prices within your $378K budget.
Up to 5% DPA grant. First-time buyers in Texas should explore this program to reduce upfront costs. Combined with your $378K budget, state assistance can significantly lower the cash you need to close.
Buying a Home in Texas on $130K
In Texas, higher-than-average costs reduce your purchasing power. With a 1.8% property tax rate above $3,800/yr insurance, your maximum affordable price is $378K — that is $59K less than the $437K you would get using national averages. Texas's high property taxes are the main factor eating into your budget.
Property taxes are the biggest wildcard in Texas. At 1.8%, a $378K home costs $6,802/yr in property taxes alone — that is $567/mo baked into your payment before you make a single mortgage payment. When shopping in Texas, pay close attention to the assessed value and actual tax bill, not just the listing price. Some municipalities within Texas have rates significantly higher or lower than the state average. A home in a lower-tax district could save you hundreds per month.
Budget $5K for closing costs in Texas (roughly 1.7% of the purchase price). Combined with your $37,791 down payment, you will need approximately $43K in cash to close. TDHCA My First Texas Home may help offset these costs — especially since their assistance does not need to be repaid in full. Get pre-approved with a Texas-based lender who understands local programs and can close efficiently.