The Real Cost of Closing in Houston
Most first-time buyers learn what closing costs are about three weeks before closing, when the lender hands them a Loan Estimate and the number reads $9,400. That is a real number for a $350K Houston purchase. The standard range is 2% to 4% of the purchase price, split across lender fees, title and escrow, third-party reports, and prepaid escrows for taxes and insurance.
Here is how a typical $350,000 Houston purchase breaks down before any assistance:
| Cost Bucket | Typical Range | What It Covers |
|---|---|---|
| Lender fees | $1,500 to $3,500 | Origination, underwriting, processing, credit report |
| Title and escrow | $1,500 to $3,000 | Title insurance, settlement fee, recording, courier |
| Appraisal | $550 to $750 | Third-party home valuation report |
| Prepaids and escrow | $2,000 to $5,000 | Property tax reserves, homeowners insurance, prepaid interest |
| Total at closing | $5,550 to $12,250 | Before any credits or assistance |
Ranges reflect typical Houston purchases between $300K and $500K. Actual costs vary by lender, title company, and loan program. Your Loan Estimate is the binding figure.
Three stacks, one closing. TSAHC handles the down payment and some closing costs. The Bundle returns up to $7,500 as a combined lender credit and commission rebate. The free 1-0 buydown lowers your year-one payment without using a dollar of cash. Most InSync buyers walk to closing with under $2,000 out of pocket on a $350K purchase.
Stack #1: TSAHC Down Payment Assistance
TSAHC (Texas State Affordable Housing Corporation) gives qualified buyers up to 5% of the loan amount as either a true grant or a forgivable second lien. On a $300K loan that is $15,000. The money lands at the title company on closing day and goes toward down payment, closing costs, or both.
Eligibility is straightforward:
- Credit score: 620 minimum for FHA, VA, USDA. 640 for conventional HFA.
- Income limit: $122,100 for Houston-area counties in 2026, regardless of household size.
- Buyer status: First-time OR repeat buyer. Most people miss this.
- Education: 6 to 8 hour HUD-approved online homebuyer course. Free.
InSync is an approved TSAHC lender. We run eligibility in about two minutes during the first call. Full program details on the TSAHC loans page.
Stack #2: The InSync Bundle ($7,500 Back)
When the same person handles both your offer and your mortgage, we cut the double-handoff fees and pass the savings back. The Bundle is the combined output of two credits:
- Lender credit at closing applied directly against your closing costs.
- Commission rebate from the buyer-side agent commission, paid as a credit on the Closing Disclosure.
Combined, the credit is capped at $7,500 per transaction. The actual amount scales with purchase price. On a $400K purchase it typically maxes out the full $7,500. On a $250K purchase the math lands closer to $4,500. Either way, the buyer gets the money applied directly at closing, not as a rebate check months later.
How the Bundle stacks with TSAHC: TSAHC funds your down payment. The Bundle credit applies to remaining closing costs and prepaids. They do not compete. They cover different line items on the Closing Disclosure.
Stack #3: Free 1-0 Buydown
The 1-0 buydown drops your mortgage rate by 1 percentage point for the first 12 months of the loan. On a $400K loan at a 6.50% note rate, that saves about $244 per month for year one, roughly $3,000 in total payment relief.
Most lenders charge points for a buydown. InSync absorbs the cost as a lender-paid concession. The buyer pays zero points and zero out of pocket. Lock by June 30, 2026. Full details on the buydown page.
The buydown does not consume your TSAHC grant or your Bundle credit. They sit on different lines of the loan structure. You can run all three stacks on the same purchase.
A Combined Example
$350,000 purchase, 5% down with TSAHC, FHA loan at a 6.625% note rate:
| Line Item | Without InSync Stack | With InSync Stack |
|---|---|---|
| Down payment (5%) | $17,500 (cash) | $0 (TSAHC grant) |
| Closing costs | $8,500 (cash) | $1,000 (after Bundle credit) |
| Year 1 P&I payment | $2,130 | $1,920 (after buydown) |
| Cash to close | $26,000 | $1,000 |
Illustrative example. Actual stack depends on eligibility, loan program, and lender pricing on the day of lock. Run your specific numbers with a 15-minute call.
Frequently Asked Questions
Who can help with Houston closing cost assistance?
An approved TSAHC lender. InSync Homes & Loans (NMLS #1577314) is one. Most large banks and online lenders are not approved to originate TSAHC loans. If your current lender told you they cannot do down payment assistance, it means they are not approved, not that you do not qualify. Call (713) 548-7350 or book a call at calendar.app.google/J7348jRHXkyTkgsW8 to run eligibility.
How much are closing costs in Houston?
Typically 2% to 4% of the purchase price. On a $300K to $500K home that is $6,000 to $20,000 before any credits. The biggest variables are property tax prepaids (Texas has no state income tax so property taxes are higher) and title insurance, which is regulated and roughly the same across title companies in Houston.
Can the seller pay my closing costs in Texas?
Yes. Seller concessions are negotiated as part of the contract. Conventional loans allow up to 3% in concessions at 90% LTV or higher, up to 6% at 75% to 90% LTV. FHA allows up to 6%. VA allows up to 4%. Most Houston resale buyers ask for 2% to 3% in concessions when the seller has flexibility. Builder incentives on new construction often go higher.
Does TSAHC cover closing costs or only down payment?
Both. The TSAHC DPA (up to 5% of the loan amount) can be applied to down payment, closing costs, prepaid escrows, or any combination. On a $300K loan that is up to $15,000 available. Most first-time buyers route the full grant to down payment and use the InSync Bundle credit for closing costs.
What is the InSync Bundle $7,500 back?
A combined lender credit and buyer-agent commission rebate applied at closing when InSync handles both the real estate side (buyer's agent) and the mortgage side (loan originator). Capped at $7,500 per transaction. Shows up as a credit on the Closing Disclosure, not a rebate check after the fact. It stacks with TSAHC and the 1-0 buydown.
How do I get a free 1-0 buydown in Houston?
Lock your rate with InSync Loans on or before June 30, 2026. InSync absorbs the buydown cost as a lender-paid concession. The buyer pays zero points. The buydown reduces your effective rate by 1 percentage point for the first 12 months, then returns to the full note rate. Available on conventional, FHA, VA, and most jumbo programs.
Can I combine TSAHC, the Bundle, and a buydown?
Yes. All three stack on the same purchase because they apply to different parts of the deal. TSAHC funds your down payment as a grant or forgivable second. The Bundle credit goes to closing costs. The buydown adjusts your monthly payment in year one. None of them compete or cancel. The result on a $350K purchase is typically under $2,000 cash to close and a year-one payment that runs $200+ below the full note rate.