Texas has no state income tax and some of the highest property taxes in the country, which makes tax escrow the number that most often decides whether a payment fits. The homestead exemption rose to $140,000 for 2026 with an additional $60,000 for homeowners 65 or older or disabled; the 10% homestead appraisal cap limits year-over-year taxable value increases; and 100% service-connected disabled veterans pay no property tax on their homestead. Cash-out refinances follow Texas's own 50(a)(6) rules. Statewide service is subject to current licensing, which you can confirm on NMLS Consumer Access.
Primary market
Texas rules that move your payment
- Homestead exemption. $140,000 off the school-district taxable value for 2026 after Proposition 13, plus $60,000 more at 65 or disabled. You file it with the county appraisal district after closing; I put the form in your packet.
- 10% appraisal cap. Under Tax Code §23.23 a homestead's taxable value can't rise more than 10% a year, which matters most on a new build whose first bill was assessed on the lot alone.
- MUDs and PIDs. Municipal utility districts and public improvement districts add their own tax rate in newer subdivisions. The disclosure is in the contract; the rate goes in the payment.
- Cash-out refinance, 50(a)(6). Texas caps home-equity cash-out at 80% loan-to-value, limits fees to 2% of the loan, requires a 12-day cooling-off period, and allows only one such loan per 12 months. Different from every other state.
- Disabled veterans. A 100% service-connected rating exempts the entire homestead from property tax under §11.131; partial ratings get partial exemptions.
- Texas Vet. The Veterans Land Board posts its own home-loan rate program with a discount for veterans rated 30% or higher, worth pricing against straight VA on every eligible file.
- Assistance. TSAHC Homes for Texas Heroes and Home Sweet Texas, TDHCA My First Texas Home, and city programs. Texas programs.
Where I lend in Texas
| Corridor | Counties | Communities |
|---|---|---|
| San Antonio–Austin | Bexar, Comal, Guadalupe, Kendall, Hays, Travis, Williamson | San Antonio, New Braunfels, Boerne, Schertz, Cibolo, San Marcos, Austin, Round Rock, Georgetown. JBSA-Randolph, Lackland and Fort Sam Houston. |
| Military Texas | Bell, El Paso, Taylor, Wichita, Val Verde | Killeen, Harker Heights and Copperas Cove (Fort Cavazos), El Paso (Fort Bliss), Abilene (Dyess AFB), Wichita Falls (Sheppard AFB), Del Rio (Laughlin AFB), Corpus Christi (NAS). |
| Metro Texas | Harris, Dallas, Tarrant, Collin, Denton, Fort Bend | Houston, Dallas, Fort Worth, Plano, Frisco, McKinney, Sugar Land, The Woodlands, and the surrounding growth counties. |
Sources: Texas Comptroller, property tax exemptions · Tax Code §23.23 · Texas Constitution Art. XVI §50 · Texas Veterans Land Board · TSAHC · TDHCA. Verified September 2026.
