Central Texas

McLennan County

Anchored by Waco, McLennan County blends affordability with steady Central Texas growth. Eligible buyers may qualify for TSAHC or TDHCA down payment assistance and the federal MCC tax credit, with income limits higher than many first-time buyers expect. TSAHC's 2026 limits in McLennan County may reach about $154,912 for Home Sweet Texas and $175,567 for Homes for Texas Heroes, at any household size.

Quick Facts

County seat Waco
Region Central Texas
Population 265,000
Home Sweet Texas income limit (non-targeted) ~$154,912
FHA loan limit $541,287 Source: hud.gov
FIPS code 48309

What Buyers Should Know

In McLennan County, TSAHC’s county income limits may allow household income up to about $154,912 for Home Sweet Texas and $175,567 for Homes for Texas Heroes, at any household size. Many McLennan County buyers may qualify for at least one TSAHC or TDHCA program; targeted areas are specific census tracts, not whole counties, so ask your lender whether a home’s address falls in one; outside those tracts, the standard income limits and first-time buyer rules apply.

FHA loan limits in McLennan mirror the Waco baseline. The 2026 conforming loan limit is $832,750 for a 1-unit home. VA loans are uncapped above conforming limits for full-entitlement veterans.

Property tax in McLennan County averages around 1.88% effective (verify current year at the county appraisal district). The Texas residence homestead exemption shaves $140,000 off school-district appraised value and caps appraised value growth at 10% per year. File with the appraisal district on or before April 30 of the year following purchase.

Waco + Baylor University

McLennan County is anchored by Waco (county seat, ~140,000) and Baylor University (~21,000 students). Hewitt, Robinson, Woodway, Bellmead, and Lacy Lakeview anchor the perimeter. Waco ISD, Midway ISD, La Vega ISD, Connally ISD, Lorena ISD, China Spring ISD, and Robinson ISD serve the county. The McLane Stadium + Magnolia Market at the Silos draw significant tourism + commuter buyer mix. Most McLennan County buyers route through state-level TSAHC and TDHCA programs.

Income Limits

McLennan County Down Payment Assistance Income Limits

Program	Max household income (non-targeted)	Max purchase price
Home Sweet Texas (TSAHC)	up to ~$154,912 (any household size)	bond DPA or MCC only: up to ~$566,354
Homes for Texas Heroes (TSAHC)	up to ~$175,567 (any household size)	bond DPA or MCC only: up to ~$566,354
My First Texas Home (TDHCA)	up to ~$101,500 (1–2 persons) / ~$116,725 (3+)	up to ~$566,354
My Choice Texas Home (TDHCA)	up to ~$152,320 (conventional) / ~$172,550 (FHA/VA/USDA)	No purchase price limit
Figures show approximately how high non-targeted-area limits may reach for the standard above-80%-AMFI tier. TSAHC limits apply at any household size, and Homes for Texas Heroes has a higher limit than Home Sweet Texas; TSAHC's purchase price limit applies to bond-funded assistance and the MCC. My First Texas Home varies by household size and is for first-time buyers using FHA, VA, or USDA loans. My Choice Texas Home adds repeat buyers and conventional financing and has no purchase price limit. Limits may be higher in HUD-targeted census tracts and change periodically, so confirm your county's current figure with a participating lender before applying.