Closing Costs in Texas for Buyers: What You'll Pay in 2026 and How to Cover It

Ask most people what it takes to buy a house and they’ll name the down payment. Closing costs are the second number, and they’re the one that tends to surprise buyers, usually after they’ve already budgeted down to the dollar.

Texas buyers actually have a few things working in their favor here. One of the largest line items, title insurance, is priced by the state, so its premium is the same no matter which title company you use. Texas doesn’t charge a transfer tax when you buy a home. And the state’s down payment assistance programs can pay closing costs, not just the down payment.

This guide walks through closing costs in Texas for buyers: what they include, how much they typically run, who pays what under a standard Texas contract, what title insurance costs under the 2026 rates, and the ways to cover them without emptying your savings.

What buyers assume about closing costs, and what’s true in Texas

Knowing which of these apply to you can change how much cash you need by thousands of dollars. Here’s the detail.

How much are closing costs in Texas?

Freddie Mac puts closing costs at roughly 2% to 5% of the purchase price. On a $300,000 home, that’s about $6,000 to $15,000. Where you land in that range depends on your loan type, your lender’s fees, the title and escrow charges, and how much you prepay for insurance and taxes.

The CFPB’s overview of closing fees notes that buyers generally pay the costs tied to their purchase, though the seller may pay some depending on the contract or state law. In Texas, the contract does a lot of that work, which the next section covers.

Action step: as soon as you apply, your lender has to send a Loan Estimate. Its “Estimated Cash to Close” box is the best early read on your real number, far better than any rule of thumb.

Who pays closing costs in Texas: buyer or seller?

Most Texas resale purchases use the Texas Real Estate Commission’s One to Four Family Residential Contract (Resale), form 20-19. Paragraph 12 sets the default split, and paragraph 6A has a checkbox for who buys the owner’s title policy.

Paragraph 12 also has a blank where the seller can agree to pay up to a set dollar amount toward your expenses. That’s a seller concession, and your loan program limits how large it can be. Our guide to seller concessions in Texas lists the limits by loan type.

Texas title insurance rates for 2026

In Texas, the state sets title insurance premiums. The Texas Department of Insurance cut basic premium rates by 6.2% effective March 1, 2026, under Commissioner’s Order 2025-9697. For policies between $100,001 and $1 million, the premium is $780 plus 0.494% of the amount above $100,000, per the TDI 2026 title insurance rate chart.

When the lender’s policy is issued at the same time as the owner’s policy, for no more than the owner’s policy amount, TDI’s Rate Rule R-5 sets its premium at $100. Lenders usually require a few endorsements on top, priced by TDI rule:

• T-19 (restrictions, encroachments, and minerals) on a residential loan policy: 5% of the basic rate on the loan amount, at least $50. On a loan of about $294,600, that’s roughly $87.
• T-17 (planned unit development): $25, if your home is in a PUD.
• T-36 (environmental protection lien): $25.

The premium is only part of what a title company charges. TDI’s consumer tips on title insurance point out that every Texas company charges the same title insurance rates, but some closing fees may differ, and you can choose the company. Its title insurance FAQ adds that escrow fees and other closing costs vary between agents.

Does Texas have a transfer tax?

No. Texas doesn’t charge a real estate transfer tax when a home changes hands, and a 2015 constitutional amendment keeps it that way. Article VIII, Section 29 of the Texas Constitution says that after January 1, 2016, no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property. Buyers in states with transfer or mortgage taxes can pay thousands at closing; in Texas, that line is simply missing.

Prepaid items: insurance, property taxes, and interest

Prepaid items aren’t fees. They’re money paid in advance for costs you’d owe anyway, and in Texas they can be one of the largest parts of your cash to close.

• Homeowners insurance. Under paragraph 12 of the TREC contract, the buyer pays prepaid items, including required hazard and flood insurance premiums and insurance reserve deposits, so your first year’s premium and an escrow cushion are typically part of your cash to close. The Texas Department of Insurance’s market overview shows an average annual homeowners premium of $3,489 for 2025, a preliminary figure. Get quotes early, because insurance can change both your closing costs and your monthly payment.
• Property tax reserves. Texas has no state property tax; local taxing units set the rates. According to the Texas Comptroller’s property tax payment guide, bills go out starting in October and are generally due by January 31. Because Texas taxes are paid in arrears, the seller usually credits you for the part of the year they owned the home, under paragraph 13 of the TREC contract. Your lender then collects reserves so the escrow account can pay the next bill.
• Prepaid interest. You pay interest from the day your loan funds to the end of that month. Closing later in the month means fewer days to prepay.

Once you own and live in the home, file for your homestead exemption. The Comptroller’s exemptions page explains that school districts must exempt $140,000 of a homestead’s value, and you apply with Form 50-114 at your county appraisal district, not the Comptroller. A buyer who acquires the home after January 1 may get the exemption for the rest of that year if the previous owner didn’t already receive it.

Upfront fees by loan type

Government-backed loans come with an upfront fee that’s often added to the loan rather than paid in cash.

See our guides to FHA loans in Texas, VA loans in Texas, USDA loans in Texas, and private mortgage insurance for how each fee works over the life of the loan.

Lender and program fees on Texas assistance loans

If you use a TSAHC or TDHCA program, the agencies limit what lenders can charge in some categories and list their own program fees. Whether a fee appears on your Loan Estimate depends on how your lender handles it, so ask.

Only approved lenders can offer these programs, and not every lender is approved, so make sure the lender you talk to works with them.

How down payment assistance can cover closing costs

This is the part many buyers miss. TSAHC’s guidelines say its assistance may fund your cash requirement to close, including the down payment, closing costs, and prepaid items, and TDHCA’s Lender Guide says the same for its programs. Both offer up to 5% of the loan amount, though the levels available change with each rate sheet.

Pair assistance with a seller credit and many buyers bring far less to closing than they expected. Neither agency allows the assistance to come back to you as cash, apart from reimbursing excess earnest money or items you paid outside closing once your minimum contribution is met, so the goal is to cover what you owe, not more.

Each program comes with its own terms. Read our guides to Home Sweet Texas, My First Texas Home, and My Choice Texas Home, and see how a grant, forgivable loan, or deferred loan differs. Income limits apply; our TSAHC income limits and TDHCA income limits pages list them by county.

How to lower your closing costs in Texas

• Compare Loan Estimates from several lenders. Origination fees, points, and lender credits vary. Ask for estimates on the same day for the same loan.
• Ask the seller for help. Request a contribution in paragraph 12 of the contract, or ask the seller to pay for the owner’s title policy in paragraph 6A.
• Use an existing survey if you can. The TREC contract lets the seller provide an existing survey with a T-47 affidavit or T-47.1 declaration; if the title company and lender accept it, you may not need a new one.
• Shop the escrow side. Title premiums are the same everywhere in Texas, but escrow and other closing fees aren’t.
• Consider lender credits. The CFPB explains that a lender can offset some closing costs in exchange for a higher rate. That trades cash today for a bigger payment, so weigh it carefully when rates are already high.
• Apply for down payment assistance. It can cover closing costs and prepaids along with the down payment.

Action step: once you have a Loan Estimate, highlight every fee that isn’t set by the state or the loan program. Those are the ones worth asking about.

When you’ll see your final closing costs

Two federal disclosures bookend the process. The CFPB says your lender must provide a Loan Estimate within three business days of your application, and the Closing Disclosure at least three business days before you close. Compare the two line by line, and ask about anything that changed. Our guide to mortgage pre-approval covers the earlier steps.

Closing costs are real money, and it’s better to know your number early than to find it in the last week. The upside in Texas is that you can plan around a good part of it: title premiums are published, there’s no transfer tax, sellers can contribute, and the state’s assistance programs can help pay the bill. A participating lender can show you exactly how much you’d need to bring with assistance in the mix.

Closing costs in Texas: FAQ

Closing costs in Texas: FAQ

† ShopDPA is The Texas Down Payment Assistance Marketplace, a home loan and down payment assistance referral service. We are not a mortgage lender, mortgage broker, loan officer, title company, real estate broker, or attorney, and we do not originate, fund, or service loans. We connect Texas homebuyers with licensed mortgage professionals and with down payment assistance programs. We are not affiliated with Freddie Mac, Fannie Mae, HUD, FHA, the VA, USDA, the Texas Department of Insurance, the Texas Real Estate Commission, the Texas Comptroller, TSAHC, TDHCA, or any government agency. Costs shown are illustrations based on published rates and program guidelines, not a quote or legal or tax advice. Fees and program rules are subject to change and lender overlays. Confirm current figures with a participating licensed lender and your title company. Equal Housing Opportunity.