Houston Mortgage and Down Payment Guide: How Financing Works at the $370K Median Price
For a $370,000 median-priced Houston home, your monthly PITI payment can vary by $500 or more depending on your loan type and down payment, with Texas property taxes adding hundreds of dollars to the monthly bill and significantly affecting your debt-to-income ratio.
Frequently Asked Questions
What is the minimum down payment for a home in Houston?
The minimum down payment depends on your loan type: 3% for conventional (first-time buyer), 3.5% for FHA, and 0% for VA. On a $370,000 median-priced home, that means $11,100, $12,950, or $0, respectively.
How do Texas property taxes affect my monthly payment on a $370,000 home?
At a typical 2.3% combined tax rate for Houston ISD, property taxes add about $709 per month to your principal and interest payment. That is roughly 21% to 22% of your total PITI.
What income do I need to qualify for a mortgage on a $370,000 home in Houston?
With a conventional 3% down payment and full PITI of $3,221 per month, you need a gross monthly income of about $7,491 (43% DTI) or $6,442 (50% DTI). This increases if you have other monthly debts.
Can the homestead exemption reduce my property taxes in Houston?
Yes, filing a homestead exemption on your primary residence exempts at least $40,000 of assessed value from school district taxes, reducing your annual bill by $800 to $1,000 or more. It also caps annual appraisal increases at 10%.