Affordability Calculator

Yes! The most widely used is the Texas State Affordable Housing Corporation (TSAHC), with Home Sweet Texas for income-qualified buyers and Homes for Texas Heroes for teachers, first responders and veterans. TDHCA's My First Texas Home is the other statewide option, and some cities add their own, like the Dallas Homebuyer Assistance Program. Most require a 620 credit score, income and price limits, a homebuyer education class and an approved lender.

If you still have questions on homebuyer programs, reach out and I'll send you my recommended lender, or you can visit the homebuyer assistance resources below:

Texas Department of Housing and Community Affairs (TDHCA)

Texas State Affordable Housing Corporation (TSAHC)

The biggest one is the homestead exemption. File it with your appraisal district after you move in, and it removes $140,000 of your home's value from school taxes and limits how much your taxable value can rise each year to 10%. It's one exemption per home, so a married couple gets $140,000 together, not each, and owners 65 or older get an extra $60,000. On your federal return, if you itemize, you can deduct mortgage interest and property taxes, and starting in 2026 mortgage insurance counts as deductible interest too. Property taxes fall under the state and local tax (SALT) deduction, capped at $40,400 in 2026 for both single and married-joint filers, which most Texas homeowners won't reach. Many people still come out ahead with the standard deduction, so check with a tax professional.

Lenders compare your monthly debts to your gross monthly income, which is called your debt-to-income ratio. They add the new house payment to car loans, student loans and minimum card payments, then divide by your pre-tax income. Many loans look for about 43% or less, and some programs allow up to 50% with strong credit or savings.

Yes. Lenders count the monthly payments on your student loans, car loan and cards in your debt-to-income ratio, not the balances. If your student loans are deferred or on an income-driven plan, each loan type has its own rule for what payment gets counted, so bring a statement from your servicer and ask your lender which rule applies. Paying off a small card or car loan before you apply can raise what you qualify for more than you'd expect.

Important!: Once you've started looking, and especially after you've gone under contract on a home, it is incredibly important that you avoid large purchases and do not open or apply for ANY new lines of credit, including car loans and credit cards. This is one of the most common ways to lose a potential approval and will, at the very least, delay the financing process.

Yes. Most loan types allow gift money from family for your down payment and closing costs. The lender will want a signed gift letter saying it doesn't have to be repaid, plus a paper trail showing the money moving from their account to yours, so move it early and skip cash deposits. In 2026 a person can give up to $19,000 per recipient without filing a gift tax return, and larger gifts usually just mean a form for the giver, not a tax bill.

Yes, but lenders generally want cash at closing, so investments are usually sold and the money moved into your account, with statements showing where it came from. Selling can trigger capital gains tax, so check timing with your tax advisor. Retirement accounts can also be used through a 401(k) loan or a withdrawal, but withdrawals can bring taxes and penalties, so treat that as a last resort.

A grant is money you never repay. TSAHC, for example, lets you take its help as a grant or as a second loan that's forgiven after three years, while other programs, like one of My First Texas Home's options, have to be repaid when you sell or refinance. Compare the interest rate that comes with each option too, since the structure you pick can change it. Always ask whether the help is a grant or a loan, and what would trigger repayment.

While a lower purchase price can help lower your monthly payment, the difference is typically minimal, while seller-paid closing costs frees up additional cash that can be used for the home like new furniture or fresh paint. The better choice will depend on where you could use it most. For context, if you make an offer $10,000 below asking, you're only looking at a monthly savings of maybe $60-70 on average. However, with $10,000 back in your pocket after saving on closing, you now have plenty for new furniture or updates that could potentially add equity right out the gate. If you have some left over after getting settled, throw it towards your principal to save on interest. Seller credits can't exceed your actual closing costs and loan programs cap them, so I run both options side by side before we write the offer.

Keep enough to cover a few months of your full house payment, plus a cushion for repairs, since no inspection catches everything. Some loans require a set amount in reserves, and your lender will tell you if yours does. Draining your savings to close leaves you exposed the first time the AC goes out in July.

Usually not. An approval measures what a lender thinks you can repay, not what leaves room for savings, repairs and the rest of your life. You want to see a payment that sits comfortably below your max, especially in the first year, when the surprise costs show up. Once you have a price in mind, run the full monthly payment on my mortgage calculator.