The median home price in Houston as of June 2026 is $345,000. In comparison, Dallas is around $420,000, and Fort Worth is about $338,000, placing Houston in the middle among Texas's four major metros. It's also noteworthy that Houston is one of the few Texas markets where home prices have actually increased over the past year.

Based on the $345,000 figure, the down payment calculations are as follows: FHA at 3.5% requires $12,075, while a credit score below 580 necessitates 10%, which is $34,500. The minimum for a conventional loan at 3% is approximately $10,350.

There is a crucial difference between 5% ($17,250) and 20% ($69,000) regarding PMI. If you put down less than 20%, you will need to pay PMI monthly, but if you put down 20% or more, this cost is eliminated. However, if gathering the $69,000 delays your move-in date, you should also consider that opportunity cost.

With a 20% down payment of $69,000 and an interest rate of 6.6%, the monthly principal and interest would be around $1,760. You also need to factor in property taxes and insurance that will be added monthly. Since rental prices in Houston vary significantly by area, determining whether buying or renting is more advantageous should be assessed based on your expected duration of residence.

Within Houston, conditions can vary greatly depending on the area. The southwest school district, preferred by Korean families, has higher median prices, while other areas tend to be relatively lower. Use indicators like GreatSchools to reference school ratings, but keep in mind that boundaries change frequently, so check the assigned school for the specific address before purchasing.

If you are a household with insufficient down payment, it may be worth looking into the City of Houston's Homebuyer Assistance Program. This program offers up to $50,000 in zero-interest deferred loans to first-time homebuyers with an income at or below 80% of the area median income, and the repayment obligation is waived after five years of residency. Notably, there are no specific credit score requirements.

Families moving from out of state should reassess the property tax structure. Texas has no state income tax, but the average effective property tax rate is around 1.6%, which is among the highest in the nation. This rate can vary by county, so be sure to check each property individually.

The primary factor affecting approval rates is the credit score. As of July 2026, rates vary: 6.59% for scores above 780, 6.66% for the 760s, 6.75% for the 740s, and 6.91% for the 700s. This difference can significantly impact the total repayment amount over a 30-year term.

According to the Consumer Financial Protection Bureau, the ideal DTI is below 43% for back-end and below 28% for front-end. Paying off credit card debt and auto loans and obtaining pre-approval in advance can make it easier to meet approval thresholds. It's advisable to avoid new loans or job changes before closing and to have a reserve fund equivalent to a few months' worth of payments for stability.

If you have self-employment income, be aware that many lenders assess based on an average of two years of tax returns, so if you reported low income, your approval amount may decrease. Consider adding a spouse or family member as a co-applicant to combine incomes and lower the DTI. It's beneficial to seek pre-approval from multiple lenders to compare rates and terms.

After closing, it's wise to keep a reserve fund equivalent to a few months' worth of payments in your account. Lenders often check this balance during the review process, and having ample reserves can create a stable impression during approval. It's also advisable to avoid increasing credit card limits during the review period.

This article is not investment or legal advice, and it is recommended to consult with lenders and tax professionals before finalizing any contracts.