How Much House Can I Afford in Texas on $85K?
Based on Texas's 1.8% property tax rate and $3,800/yr homeowners insurance.
Can You Afford the Median Home in Texas?
The median home in Texas ($310K) exceeds your $232K budget by $78K. But many areas in Texas have homes well below the median. Check the affordable cities below for areas within your budget.
Affordable Cities in Texas on $85K
These Texas cities have median home prices within your $232K budget.
Up to 5% DPA grant. First-time buyers in Texas should explore this program to reduce upfront costs. Combined with your $232K budget, state assistance can significantly lower the cash you need to close.
Buying a Home in Texas on $85K
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 $232K — that is $46K less than the $278K 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 $232K home costs $4,173/yr in property taxes alone — that is $348/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 $23,185 down payment, you will need approximately $28K 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.