Tiyanica “Ty” GrayDFW Real Estate & Relocation

For Buyers

Everything you need to buy a home in Dallas–Fort Worth

Texas has its own rules, its own tax structure, and its own district quirks. This page covers the programs that can help you buy, and the concepts that trip people up if nobody explains them first.

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Programs

Homebuyer assistance programs

Many buyers assume they need 20% down. In Texas, a number of programs exist specifically to close the gap — and several are open to repeat buyers, not just first-timers.

Texas homebuyer programs

Statewide programs administered through the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC) pair a 30-year fixed mortgage with down payment and closing cost assistance, typically as a grant or a second lien. Many DFW cities and counties also run their own local assistance programs.

  • Down payment and closing cost assistance, often 3%–5% of the loan amount
  • Mortgage Credit Certificates (MCC) can convert part of your annual mortgage interest into a federal tax credit
  • Income and purchase-price limits apply and vary by county
  • First-time buyer status is often required — but not always; many programs waive it for veterans and targeted areas

Teacher programs

TSAHC's Homes for Texas Heroes program includes classroom teachers, teacher aides, school counselors, librarians, and school nurses. Educators frequently qualify for higher assistance percentages than the general program.

  • Down payment assistance designed specifically for school employees
  • Available for repeat buyers, not just first-time buyers
  • Can be combined with an MCC when you meet first-time buyer rules
  • Ask your district about any additional local employee housing benefits

First responder programs

Police officers, sheriff's deputies, firefighters, EMS personnel, and corrections officers are also covered under Homes for Texas Heroes, alongside some city-level assistance in the metroplex.

  • Assistance funds that reduce cash needed at closing
  • Some DFW municipalities offer additional incentives for employees who live in the city they serve
  • Shift-friendly scheduling on my side — showings and signings work around your rotation

Military & veteran programs

VA loans remain one of the strongest financing tools available: no down payment on most purchases, no monthly mortgage insurance, and competitive rates. Texas veterans have an additional state-level option through the Texas Veterans Land Board (VLB).

  • VA loan: $0 down for eligible service members, veterans, and many surviving spouses
  • No monthly mortgage insurance — a real monthly savings versus conventional or FHA
  • A VA funding fee applies and is often financed; many disabled veterans are exempt
  • VLB Veterans Housing Assistance Program offers below-market loan options for Texas veterans
  • Disabled veteran property tax exemptions can substantially reduce your annual tax bill — worth confirming early, because it changes your escrow

Program funding, income caps, and eligibility rules change regularly. Before you count on a specific program, we’ll confirm current terms with an approved lender for that program.

The home buying process, step by step

  1. 1

    Get pre-approved

    Talk to a lender before you tour. Pre-approval tells you your realistic price range and monthly payment, and in DFW's market a listing agent will expect it with any offer.

  2. 2

    Define your search

    We map out areas, commutes, school zones, HOA and district considerations, and must-haves versus nice-to-haves. For relocation clients this is where the most value gets created.

  3. 3

    Tour homes

    In person or by video walkthrough if you're still out of state. We compare honestly, including the things that are expensive to change later.

  4. 4

    Make an offer

    Price is only one term. Option period, closing date, financing type, and what you ask the seller to cover all shape how attractive your offer is.

  5. 5

    Option period & inspection

    A short negotiated window during which you can inspect and, for a small option fee, terminate for any reason. This is when the general inspection and any specialists happen.

  6. 6

    Negotiate repairs

    Based on inspection findings we can request repairs, a price reduction, or a closing-cost credit — or accept the home as-is.

  7. 7

    Appraisal & underwriting

    Your lender orders an appraisal to confirm value while underwriting verifies your documents. Keep your finances stable here: no new credit, no large deposits, no job changes.

  8. 8

    Title work & survey

    The title company researches ownership history and clears any issues, and a survey confirms boundaries and encroachments.

  9. 9

    Final walkthrough

    A last look shortly before closing to confirm the home's condition and that agreed repairs were completed.

  10. 10

    Closing day

    You sign at the title company, funds are wired, the deed is recorded, and you get your keys. In Texas, funding and recording usually happen the same day.

Major costs buyers should expect

Some costs come up before you ever reach the closing table, and others are due on closing day. Here’s what to plan for.

Pre-closing

  • Earnest money. Earnest money is like a security deposit showing you’re serious—it comes back to you through your closing numbers. A negotiated amount paid after the contract is executed to show the seller you’re serious about purchasing the home. If the transaction closes, the earnest money is typically credited toward the buyer’s funds due at closing. The amount is not automatically 1%–3% and can vary depending on the transaction.
  • Inspection — approximately $400–$600+. The cost depends on the size, age, condition, and complexity of the home, as well as the inspections you choose. Additional inspections, such as a pool, foundation, sewer, or specialized inspection, may cost extra.
  • Appraisal — approximately $425–$725+. An appraisal is typically required by the lender to determine the property’s market value. The cost can vary based on the property’s location, size, complexity, and the type of appraisal required.

At closing

  • Down payment. FHA loan: 3.5% · Conventional: 3%–20% · VA/USDA: 0% (if eligible).
  • Closing costs (typically ~2–5%).
  • Homeowners insurance — varies by property. Texas homeowners insurance premiums can vary significantly. Factors may include the home’s size and replacement cost, age, roof condition, construction type, location, deductible, coverage amount, and insurance company.
  • Property taxes. Texas does not have one statewide property-tax rate. Your total property-tax bill can depend on the county, city, school district, and other taxing jurisdictions that apply to the property. Some homes may also be located in areas with MUD, PID, or other special district assessments.
  • HOA fees (if applicable).

Property taxes in Texas

Texas has no state income tax, and property taxes carry more of the load as a result. Rates here look high compared to many other states — commonly in the 1.5% to 2.7% range of assessed value per year across DFW, depending on the exact combination of taxing entities.

Your bill isn’t one tax. It’s the sum of separate rates from the county, the city, the school district, and often a community college district, hospital district, or special district. That’s why two homes at the same price in neighboring cities can have noticeably different tax bills.

The county appraisal district sets an assessed value each year. You can protest that value, and many owners do.

Exemptions that lower your bill

  • Homestead exemption — for your primary residence. It reduces taxable value and caps how fast your assessed value can rise each year. File it after closing.
  • Over-65 and disability exemptions — additional reductions and a school tax ceiling.
  • Disabled veteran exemptions — tiered by disability rating, with a full exemption available at 100%.

Important for buyers: the seller’s current tax bill may reflect exemptions you won’t receive right away. Budget from the unexempted rate so your escrow doesn’t surprise you at the first annual adjustment.

MUD and PID districts

Two acronyms that show up constantly in newer DFW master-planned communities — and two of the most common surprises for relocating buyers.

MUD — Municipal Utility District

A MUD is a special political subdivision created to finance and operate water, sewer, drainage, and sometimes road infrastructure in areas outside existing city utility service. The district issues bonds to build that infrastructure and repays them through a tax on properties inside the district.

How it affects you

  • · A MUD tax rate is added on top of your other property tax rates
  • · It can add meaningfully to your monthly escrow — sometimes several hundred dollars
  • · MUD rates often decline over time as bonds are paid down, though that isn’t guaranteed
  • · You also pay the district for water and sewer service itself
  • · Texas law requires sellers to provide a MUD notice before you’re bound to the contract

PID — Public Improvement District

A PID is a defined area where property owners fund enhancements — landscaping, trails, entry monuments, lakes, lighting, sometimes roads — through a special assessment. Unlike a MUD tax, a PID assessment is a fixed lien amount tied to your property.

How it affects you

  • · It appears as an annual assessment, usually collected with your taxes
  • · PID assessments are generally not deductible the way property taxes are
  • · The assessment has a payoff balance you may be able to pay in full
  • · A PID is separate from HOA dues — a home can easily have both
  • · Sellers must deliver a PID notice; always review the remaining balance and term

Before you fall in love with a home, we check whether it sits in a MUD, a PID, both, or neither — and we run the true monthly number, not the sticker payment.

What your mortgage payment is made of

Lenders call it PITI — principal, interest, taxes, and insurance — plus HOA if the community has one.

P

Principal

The portion that reduces your loan balance. Early on it's small; it grows every month as the loan amortizes.

I

Interest

The cost of borrowing. In the first years of a 30-year loan this is the largest slice of the payment.

T

Taxes

Property taxes, typically collected monthly into an escrow account and paid to the taxing entities on your behalf. In Texas this is a big line item.

I

Insurance

Homeowners insurance, also escrowed. This may include mortgage insurance (PMI on conventional, MIP on FHA) — VA loans have none.

H

HOA

If applicable. Usually paid directly to the association monthly, quarterly, or annually, not through escrow — but it still counts in your budget and in what you qualify for.

Escrow amounts get recalculated annually. If your assessed value rises or an exemption drops off, your monthly payment can change even on a fixed-rate loan. That surprises a lot of first-time Texas homeowners, so plan a small cushion.

What a title company does

In Texas, most closings happen at a title company rather than with an attorney. The title company is a neutral third party — it doesn’t represent the buyer or the seller.

Its central job is to make sure the property’s ownership can transfer cleanly and that whatever you’re buying is actually what the seller can sell.

  • Title search. Researches the ownership chain for liens, judgments, unpaid taxes, easements, and errors in past deeds.
  • Title commitment. Issues a document listing exactly what will be insured and what is excluded. Read it — it reveals easements and restrictions.
  • Escrow. Holds your earnest money and option fee, and later the lender’s funds, in a neutral account.
  • Clears problems. Works to resolve liens and defects before closing so they don’t become your problem.
  • Title insurance. An owner’s policy protects against past defects that surface later; a lender’s policy protects the lender. In Texas, premiums are set by state regulation.
  • Closing & recording. Prepares the settlement statement, hosts the signing, disburses funds, and records the deed with the county.

Ready to see what’s out there?

Browse live listings across the Dallas–Fort Worth metroplex, then tell me which ones you’d like to walk through.

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