Buying Above the Texas Loan Limit Before You Sell
Program and regulatory figures verified September 17, 2026. Details change; confirm your scenario with us.
Texas has no high-cost county, so the conforming line sits at the same place across the whole state. Crossing it changes the financing more than most buyers expect.
Where the line sits in Texas
FHFA set the 2026 baseline conforming limit for a one-unit property at $832,750, announced on November 25, 2025. High-cost areas run to a ceiling of $1,249,125, which is 150 percent of the baseline. That ceiling applies to designated high-cost counties, and Texas does not have one. Whether you are buying in Highland Park, West Lake Hills, Memorial or Alamo Heights, the same statewide figure applies.
This is worth saying because Texans reading national advice often assume their metro must be high-cost. Coastal California and the Washington DC suburbs are. The Texas metros, at the county level FHFA measures, are not.
What changes above the line
- Reserves. Expect more of them, and expect the requirement to grow when a second property is in the picture. This is the item that most often needs planning rather than fixing.
- Documentation. Deeper income and asset review than a conforming file.
- Appraisal. More scrutiny, and sometimes more than one.
None of that is a problem. It is a scheduling reality, and it argues for starting the conversation earlier than you would on a conforming purchase.
The part that does not change
The homestead ceiling. Article XVI, Section 50(a)(6)(B) caps the new credit plus all existing homestead debt at 80 percent of fair market value, and that is a percentage rather than a dollar figure. Owning a more valuable Texas home does not loosen it. Neither does the prohibition on subordinate HELOC financing behind a Section 50(a)(6) loan, nor the twelve-day floor before closing.
In practice, higher-priced Texas move-up buyers land on carrying both and recasting, or on keeping the departing house as a rental, more often than on borrowing against the old home. The constraint is proportional, so it bites at every price.
See how the three structures compare or read the homestead rules in detail.
Your real estate agent handles the purchase paperwork and the offer itself. We handle the money: what you qualify for, how the equity gets used, and what the payment looks like.
Frequently asked questions
What is the conforming loan limit in Texas for 2026?
$832,750 for a one-unit property. That is the baseline limit FHFA announced on November 25, 2025, and because no Texas county is designated high-cost, it applies statewide rather than varying by metro.
Are any Texas counties high-cost for loan limits?
No. The 2026 high-cost ceiling of $1,249,125 applies to designated high-cost areas, and Texas does not have one. Texans reading national guidance often assume their metro qualifies; at the county level FHFA measures, it does not.
Does a bigger Texas home give me more equity to work with?
Not proportionally more. The homestead ceiling is 80 percent of fair market value, a percentage rather than a dollar cap, so a more valuable home does not loosen the constraint. That is why higher-priced Texas move-up buyers often end up carrying both homes or renting the departing one.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Texas homestead lending rules, property tax treatment, and loan limits change and depend on your facts; your real estate agent handles the purchase paperwork and your CPA or a Texas attorney handles legal and tax questions. Loans are subject to borrower and property qualification.