Question 1

What types of mortgage loans are available in Houston?

Accepted Answer

Houston home buyers can choose from FHA loans (3.5% down, 580+ credit score), VA loans (0% down for veterans), USDA loans (0% down in qualifying rural areas), conventional loans (3-20% down, 620+ credit), jumbo loans (for homes above conforming limits), and DSCR loans for investors. Texas also offers TSAHC down payment assistance programs that can cover 3-5% of the purchase price.

Question 2

How much are monthly mortgage payments on a $350,000 home in Houston?

Accepted Answer

Monthly payments on a $350,000 Houston home vary by loan type and down payment. With a conventional loan at 20% down and a 6.5% rate, expect roughly $1,770 for principal and interest. Add Houston property taxes (1.8-3.5% depending on the area), homeowner's insurance (~$2,500-4,000/year), and possible PMI or HOA fees. Total monthly costs typically range from $2,500 to $3,500. Use our free mortgage analyzer to see exact numbers for your situation.

Question 3

What is TSAHC down payment assistance and do I qualify?

Accepted Answer

TSAHC (Texas State Affordable Housing Corporation) offers down payment assistance of up to 5% of the loan amount as a grant or forgivable second lien. To qualify, you must meet income limits (varies by county and household size), have a minimum 620 credit score, complete a homebuyer education course, and purchase a home within Texas. The program works with FHA, VA, and conventional loans. First-time buyers and veterans get priority, but repeat buyers may also qualify in certain areas.

Question 4

Should I choose FHA or conventional loan for my Houston home purchase?

Accepted Answer

FHA loans are better for buyers with lower credit scores (580+) or smaller down payments (3.5%). However, FHA requires mortgage insurance for the life of the loan. Conventional loans need 620+ credit and 3-20% down, but PMI can be removed once you reach 20% equity. In Houston's competitive market, some sellers prefer conventional offers. The best choice depends on your credit score, savings, and long-term plans. Our free analyzer compares both options side by side.

Question 5

How do Houston property taxes affect my mortgage payment?

Accepted Answer

Houston property taxes are among the highest in the nation, ranging from 1.8% to over 3.5% of assessed value depending on your school district, MUD taxes, and location. On a $400,000 home, that means $600 to $1,167 per month just for taxes. This is a significant portion of your total payment. Areas in Fort Bend County (Sugar Land, Missouri City) and Harris County (Katy, Cypress) can have very different tax rates even for similar-priced homes. Always factor in property taxes when determining your budget.

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