How Much House Can You Afford in Texas?
Affordability has two answers: what a lender will approve, and what will feel good on the 15th of the month. Smart buyers look at both.
What PITI actually includes
Your housing payment is principal, interest, taxes and insurance — PITI. In Texas, taxes are a heavier share of PITI than in most states, and homeowners insurance has risen sharply. A payment estimate built only on principal and interest will mislead you badly.
Debt-to-income ratio
Lenders divide your total monthly debt obligations — including the proposed PITI — by gross monthly income. Every program has its own tolerances, and automated underwriting can allow higher ratios when the rest of the file is strong.
- Counted: car payments, student loans, credit card minimums, personal loans, child support
- Not counted: utilities, phone, groceries, insurance premiums outside of escrow, streaming
Central Texas specifics
Property tax rates and any MUD or PID assessments differ meaningfully between Austin, Pflugerville, Manor, Elgin, Taylor and Bastrop, as do homeowners association dues. Two identically priced homes in Travis County and Williamson County can carry noticeably different monthly payments.
Qualifying vs. comfortable
The maximum a lender will approve is not a recommendation. Build in room for maintenance, a rise in insurance and escrow adjustments. A payment you can carry through a bad month is a payment you keep.
Everything on this page is general homebuyer education. Mortgage eligibility is subject to program guidelines, lender requirements, underwriting and borrower-specific circumstances — it is never decided by an article.