Houston Mortgage Loan Officer
Texas Real Estate Sales Agent #454749, AXEN Realty LLC · Senior Loan Officer, Individual NMLS 877741, NEXA Lending
I am Patrick Kevin Fagan, a mortgage loan officer with NEXA Mortgage, LLC dba NEXA Lending and a Texas real estate sales agent with AXEN Realty LLC. I originate home financing across the state of Texas, so Houston buyers get the same loan officer care as my San Antonio clients: a clear pre-approval, an honest walkthrough of the numbers, and financing structured to minimize your cash to close.
First-time homebuyers are my focus. Houston is mostly in Harris County, with pieces in Fort Bend and Montgomery, and many "Houston" addresses are in unincorporated Harris County rather than the city, so the address, not the ZIP, decides which local programs, tax rates, and school districts apply. I explain every stage from credit to keys and match you to the loan program that fits your situation, whether that is conventional, FHA, VA, or USDA.
Down Payment Help
Down Payment and Closing-Cost Assistance in Houston
As of this research, both of Houston's big local programs are effectively closed to a typical new applicant, so the working options are the state programs TDHCA, TSAHC, and SETH. Each has its own income limits, purchase price caps, and loan-type restrictions, and the address, not the ZIP code, decides which city and county programs apply.
City of Houston HAP
The City of Houston Homebuyer Assistance Program is closed to new applications. The city says that due to exhaustion of program funds it is no longer accepting or processing applications, and future applications will be first-come, first-served once funding resumes.
When funded, it offers up to $75,000 based on household need, requires income at or below 80% AMI, and requires the home to pay City of Houston taxes. There is no maximum price, but the home must appraise at or above the sales price. Any licensed lender may participate, and a homebuyer education certificate from a HUD-approved agency is required.
Draft guidelines (Version 8.0, file dated June 10, 2026, not yet approved by City Council) would allow TIRZ-funded assistance up to 120% AMI and set these terms: a 0% interest forgivable second lien, up to $50,000 forgiven over 5 years and $50,000.01 to $75,000 forgiven over 8 years, a minimum $350 buyer contribution, liquid assets capped at $50,000, fixed-rate first mortgages only (ARMs and seller financing prohibited), DTI caps of 33% front-end (38% with compensating factors) and 45% back-end, and 8-hour homebuyer education. The research could not confirm whether or when these draft terms take effect.
City HAP pageHarris County DPA
The Harris County Down Payment Assistance Program (unincorporated county only) is only accepting participants affected by Hurricane Beryl or the derecho; the county says the program has reached maximum capacity for everyone else. The award range is $23,800 to $40,000, with price limits of $285,000 for an existing home and $296,000 for new construction. The home must be in unincorporated Harris County (outside Houston city limits) and in a qualified census tract, and it is limited to first-time buyers (no ownership in the prior three years). It is a silent second mortgage with a 5-year affordability period under $25,000 and 10 years for $25,000 to $40,000.
The research could not confirm the income limits, which are not stated on the page.
Harris County DPATDHCA My First Texas Home
The state's first-time buyer program. For the Houston-The Woodlands-Sugar Land HMFA (Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller), limits effective July 13, 2026: income of $104,000 for 1 or 2 persons and $119,600 for 3 or more in non-targeted areas, or $124,800 and $145,600 in targeted census tracts. The purchase price limit is $566,354 non-targeted and $692,211 targeted.
Rates posted September 29, 2026: bond-funded FHA, USDA, or VA at 6.625% with no DPA, 7.000% with 3% DPA, and 7.125% with 4% DPA. The MFTH DPA is a 30-year deferred repayable second lien. Harris County HFC partners with TDHCA to offer free gift funds that do not need to be repaid, on top of TDHCA DPA in certain counties (the research could not confirm the gift amount or eligible counties). First-time buyer applicants must reside in Texas at the time of application.
TDHCA My Choice Texas Home
The state's no-first-time-requirement program. Houston HMFA income limits effective July 13, 2026: $84,080 for conventional at or below 80% AMFI, $178,670 for conventional over 80%, and $176,800 for FHA, VA, and USDA. There are no purchase price limits.
Income limitsTSAHC Home Sweet Texas
TSAHC's Home Sweet Texas and Homes for Texas Heroes offer up to 5% of the loan amount as a grant, a 3-year deferred forgivable second lien, or a deferred repayable second lien, open to first-time and repeat buyers. Houston metro income limits (TSAHC, July 10, 2026): Home Sweet Texas $156,000 and Homes for Texas Heroes $176,800.
SETH 5 Star
SETH 5 Star (Southeast Texas Housing Finance Corp) offers up to 5% of the final loan amount on FHA, VA, and USDA loans, with conventional (Freddie HFA Advantage, Fannie HFA Preferred) also offered. It is a forgivable 3-year second lien, forgiven in full on the third anniversary, or a 30-year repayable option. There is no first-time buyer requirement, the minimum credit score is 640, and maximum DTI is 45% (50% with 680 or higher).
It is available statewide except Travis County and the cities of El Paso, McKinney, and Grand Prairie, so it works in Houston. Highlights effective March 10, 2026. The research could not confirm the Harris County income limit.
SETH highlightsThe honest rule: as of this research, both of Houston's big local programs are effectively closed to a typical new applicant. The working options are the state programs TDHCA, TSAHC, and SETH. The research found no current Houston Housing Authority homeownership or down payment program, so none is listed here.
Property Taxes
The Houston Property Tax Stack
Your property tax bill in Houston is a stack of separate taxing units, not one rate. The appraisal district is the Harris Central Appraisal District (HCAD), and bills are collected by the Harris County Tax Office. The worked example below uses a home in Houston city limits and Houston ISD.
Rates (Houston City Limits + Houston ISD)
Per $100 of taxable value.
- Houston ISD (2026-27)$0.8421
- City of Houston (tax year 2025)$0.519190
- Harris County (2026 adopted)$0.41750
- Flood Control District$0.05266
- Harris Health$0.19528
- Port of Houston$0.00603
- Houston City College (proposed 2026)$0.098802
- Combined, no exemptions$2.131562
Houston ISD's $0.8421 was approved June 25, 2026 for 2026-27 (the 2025 rate was $0.8783). The City of Houston rate is for tax year 2025, adopted October 15, 2025 (no-new-revenue rate $0.528223); the 2026 city rate may not be set yet, so the research used $0.519190. Harris County's 2026 adopted rates raise the county 9.6% from $0.38096, with an average taxpayer impact of about $120 more per year. The Harris County Department of Education rate is not included (unverified, small).
Typical Bill on a Median-Priced Home
Houston city limits, Houston ISD, on the $330,000 Greater Houston single-family median (August 2026).
- Houston ISD$1,044.20
- City of Houston$1,370.66
- Harris County$1,102.20
- Flood Control$139.02
- Harris Health$515.54
- Port of Houston$15.92
- Houston City College$270.62
- Estimated annual bill (homestead)$4,458.17
- That is about$371.51 / month
- With no homestead exemption$7,034.15 / year
Houston ISD applies the $140,000 state exemption plus 20% of appraised value; the City of Houston and Harris County each apply a 20% local homestead exemption; and Houston City College exempts the greater of $5,000 or 17% of appraised value. The research could not confirm Flood Control, Harris Health, and Port exemptions, so 20% was assumed for each. Value is assumed equal to price.
Why a Houston ISD Homestead Bill Can Run Low
HISD's extra 20% local exemption on top of the $140,000 is a big reason a Houston ISD homestead bill can come in well under a suburban district's. On $330,000, the HISD taxable value is $124,000. Outside city limits, many subdivisions sit in MUDs that add their own tax rate, so pull the HCAD account for the specific address.
The City of Houston's average homestead taxable value was $326,450 with a city tax of $1,694.89 (tax year 2025).
Verify the current adopted rates and exemptions for the exact property at hcad.org.
Homeowners Insurance
Insurance Costs and Local Risk in Houston
The Texas statewide average premium is $3,506 (2025, preliminary), with average rate changes of +21.1% in 2023, +18.7% in 2024, and +4.3% in 2025, and filed rate requests of -1.8% over the 90 days from June to August 2026. A third-party quote model estimates a Houston premium of $6,084 per year for $300,000 of dwelling coverage and a $1,000 deductible, more than double the $2,808 national average the same source cites; that page was updated September 30, 2026.
What Drives the Premium
- Hail and wind: wind and hail have averaged 62% of Texas homeowners losses since 2019.
- Windstorm: TWIA covers 14 coastal counties plus parts of Harris County east of Highway 146 inside the city limits of La Porte, Morgan's Point, Pasadena, Seabrook, and Shore Acres. Homes there may need a separate TWIA wind policy.
- Flood: after Harvey, Houston requires new homes, and existing homes expanded by 33% or more, to be built 2 feet above the floodplain. The rule covers the 500-year floodplain, not only the 100-year, and has been effective since September 1, 2018.
- Seller disclosure: Texas law requires the seller's disclosure to state whether the property is in a 100-year or 500-year floodplain, floodway, or reservoir, whether it has flood insurance, and whether water has entered the structure in a natural flood.
- Flood insurance timing: NFIP policies normally take 30 days to become effective, but when flood insurance is bought in connection with making a mortgage, there is no waiting period if the application and premium are paid at or before closing.
Recent storm: Harris County's DAP is currently limited to buyers affected by Hurricane Beryl or the derecho.
Sources
- TDI Texas homeowners insurance market overview
- Insurify Houston estimate
- TDI hail and wind losses
- Houston floodplain rules
- Texas Property Code 5.008 seller disclosure
- FEMA NFIP waiting period
- Harris County DAP status
The research could not confirm the Harris County average premium from the TDI county map.
Market Numbers
Median Price and Down Payment in Houston
These are the most recent dated figures, each tied to its source and reporting month. Market data changes monthly, so I always pull the freshest numbers for the exact area and price band you are shopping.
$330,000
Greater Houston single-family median, August 2026
HAR, down 1.5% year over year
$426,760
Average sale price, August 2026
HAR, up 1.2% year over year
$277,800
City of Houston median property value (2024)
Census owner-estimated, not sales
5.3 months
Inventory, August 2026
HAR; 54 days on market
HAR, August 2026 (released September 9, 2026), Greater Houston single-family: median $330,000 (down 1.5% year over year), average $426,760 (up 1.2%), 7,100 closed sales (down 11.5%), 5.3 months of inventory, and 54 days on market. Source: HAR market report, DataUSA Houston. The research could not confirm a City of Houston-only MLS median for August 2026.
Down Payment on the $330,000 Median
Minimums by loan type. Arithmetic from the research.
$11,550
FHA 3.5%
$9,900
Conventional 3%
$16,500
Conventional 5%
$66,000
Conventional 20%
$0
VA and USDA
The national median first-time buyer down payment is 10% (NAR 2025 Profile), which would be $33,000 here; that is a national figure, not a Houston figure. A secondary source puts the 2026 Texas FHA floor at $541,287, so every tier in the scenarios below fits FHA. Source: TSAHC minimums, NAR 2025 Profile, FHA limit (secondary).
Schools and Commute
School Districts and Commute for Houston Buyers
A Houston mailing address does not mean Houston city limits or Houston ISD. The City HAP requires the home to pay City of Houston taxes, while the Harris County DAP requires the opposite (unincorporated county), so the address, not the ZIP, drives the school district, the tax stack, and program eligibility.
2026 TEA A-F Ratings
Rated A: Tomball ISD. Rated B: Houston ISD, Clear Creek, Crosby, Cypress-Fairbanks, Deer Park, Fort Bend, Galena Park, Galveston, Goose Creek CISD, Humble, Katy, Klein, Lamar CISD, Pasadena, and Spring Branch. Rated C: Aldine, Alief, Huffman, Sheldon, and Spring.
Ratings can be appealed and are finalized in December. The research could not confirm district scores, and the Conroe and Pearland ratings.
ZIP Codes With a Houston Address, Different Districts
These ZIP codes cross multiple districts, so buyers must check the exact address:
- 77084 (Houston): Cypress-Fairbanks ISD and Katy ISD.
- 77024 (Houston and the Memorial villages): Houston ISD and Spring Branch ISD.
- 77072 (Houston): Alief ISD.
- 77090 (Houston): Aldine ISD and Spring ISD.
Average commute for Houston residents: 27.2 minutes (2024), longer than the 26.4-minute U.S. average.
Worked Examples
Buyer Scenarios at $250,000, $350,000, and $500,000
These are estimates, not a loan offer. Rates are as of October 1, 2026: FHA 30-year at 7.15% (Mortgage News Daily daily index) and conventional 30-year at 7.28% (Freddie Mac PMMS, 20% down, excellent credit). FHA uses 3.5% down, a 1.75% upfront MIP financed into the loan, and a 0.55% annual MIP on the base loan. Taxes use Houston city limits and Houston ISD with a homestead on file. Insurance uses the $6,084 per year Insurify Houston estimate ($507.00 per month); with the TDI statewide $3,506 instead, each FHA payment below drops by $214.83 per month. No flood insurance, HOA, or MUD is included, and flood coverage may be required in a mapped floodplain. Closing costs run 2% to 5% of price.
$250,000 · FHA
- Down payment
- $8,750
- Loan
- $245,471.88
- Monthly payment
- $2,533.14
- Without homestead
- $2,719.58
- Cash to close
- $13,750 to $21,250
Monthly: P&I $1,657.93 + MIP $110.57 + taxes $257.63 + insurance $507.00.
Programs: TDHCA My First Texas Home (under $566,354), TSAHC up to 5% ($12,273.59), and SETH up to 5% (640 score). City HAP is closed, and Harris County DAP is only for Beryl or derecho-affected buyers in unincorporated county under $285,000 existing.
$350,000 · FHA
- Down payment
- $12,250
- Loan
- $343,660.62
- Monthly payment
- $3,382.89
- Without homestead
- $3,604.61
- Cash to close
- $19,250 to $29,750
Monthly: P&I $2,321.11 + MIP $154.80 + taxes $399.98 + insurance $507.00.
Programs: TDHCA My First Texas Home, TSAHC up to 5% ($17,183.03), and SETH. Harris County DAP does not fit (over the price limit).
$500,000 · FHA + Conventional
- FHA down
- $17,500
- FHA monthly
- $4,657.52
- FHA cash to close
- $27,500 to $42,500
- Conventional 20% down
- $100,000
- Conventional monthly
- $3,857.36
FHA monthly: P&I $3,315.87 + MIP $221.15 + taxes $613.51 + insurance $507.00 ($4,932.16 without homestead). Conventional monthly: P&I $2,736.85 + taxes $613.51 + insurance $507.00; cash to close $110,000 to $125,000.
Programs: TDHCA My First Texas Home (under $566,354, if income is at or below $104,000 for 1 or 2 people or $119,600 for 3 or more), TSAHC up to 5% on the FHA loan ($24,547.19, income up to $156,000), and SETH.
Estimates, not a loan offer. Your exact numbers depend on the property, your credit, the lender, and your closing day. Rates move weekly, so I pull the freshest figures for your situation. Sources: Mortgage News Daily, Freddie Mac PMMS, FHA MIP guide, TSAHC closing costs.
Remote Buyers
Buying in Houston From Out of Town
A relocating buyer can absolutely finance and close in Houston from a distance, but a few program rules matter. TDHCA's My First Texas Home requires first-time buyer applicants to reside in Texas at the time of application.
Program and Occupancy Rules
- FHA requires move-in within 60 days of signing and at least one year of occupancy; SETH is limited to primary residence purchases.
- Texas allows online notarization of documents involving Texas real estate (Government Code Chapter 406, Subchapter C; Secretary of State standards effective August 19, 2018).
- City HAP, if it reopens, requires an 8-hour homebuyer course before applying (draft guidelines) and caps liquid assets at $50,000.
Checklist From a Distance
- Flood homework from a distance: read the seller's disclosure flood items (required by Property Code 5.008) before the option period ends, and order a flood quote early. The NFIP waiting period does not apply to coverage bought at loan closing.
- Homestead exemption: the application requires a Texas driver's license or ID showing the property address (a waiver request is possible in some cases), and since 2022 new owners can apply right after closing.
The research could not confirm whether a specific lender or title company will do a fully remote purchase closing, so ask at contract.
Start Reading
Houston Mortgage Guides and Answers
Every guide below was written by Patrick Kevin Fagan to answer the questions Texas buyers ask most.
The Best First-Time Homebuyer Loans in Texas
Texas Down Payment Assistance
How to Get Pre-Approved
VA Home Buying Guide
Closing Costs in Texas: What Buyers Pay
Mortgages and Financing Q&A
Buying in the Houston area?
Book a free discovery call and we will map your loan options and cash to close. Prefer to talk now? Call or text me directly at 210-317-6514. I return every message.
Explore all mortgage services with Patrick Kevin Fagan, including VA loans in Texas and Texas down payment assistance.
About Patrick Kevin Fagan, REALTOR®
Patrick Kevin Fagan is a Texas Real Estate Sales Agent (#454749) with AXEN Realty LLC and a Senior Loan Officer (individual NMLS 877741) with NEXA Lending (Company NMLS #1660690). He brings 23+ years in mortgage lending and 19 years in real estate, providing real estate services throughout Greater San Antonio and the Texas Hill Country and home loans statewide across Texas.
