Texas Mortgage Qualification Estimator

Yes, Texas courts can award the homestead to one spouse in a 'just and right' division of community property under Texas Family Code Chapter 7. You must qualify for refinancing to remove your ex-spouse from the mortgage, typically within 60-90 days per the Final Decree. Your debt-to-income ratio must stay below 43%, and the home must appraise high enough to cover the existing mortgage plus any owelty buyout amount.

Lenders require your total debt-to-income ratio below 43% (some allow up to 50%) and housing costs under 28% of gross monthly income. With Texas's February 2026 median home price of $333,900, you need approximately $1,950-$2,400 monthly income dedicated to housing costs. Spousal maintenance and child support payments received count as qualifying income if documented for 6+ months with at least 3 years remaining.

Spousal maintenance received counts as qualifying income if you can document receipt for at least 6 consecutive months and the award continues for 3+ years. Under Texas Family Code § 8.054, maintenance is capped at $5,000 monthly or 20% of the payor's gross income, providing lenders verifiable income limits. Provide your Final Decree of Divorce and 6 months of bank statements showing consistent deposits.

Yes, if both spouses signed the original mortgage, both remain liable regardless of who receives the home in the divorce. Transferring the deed does not transfer mortgage responsibility—only refinancing removes your ex-spouse's liability. Most Final Decrees specify a 60-90 day refinancing deadline, and failure to refinance can result in contempt proceedings or forced sale.

The Texas median home price in February 2026 is $333,900, down approximately 1% from the previous year. Major metro areas vary significantly: Houston's median sits around $325,000, Dallas-Fort Worth near $380,000, and Austin approximately $450,000. The Texas Real Estate Research Center projects prices rising 1.3% to $334,000 by year-end 2026 with mortgage rates between 5% and 5.6%.

Divorce itself does not directly impact your credit score—Texas courts don't report to credit bureaus. However, missed mortgage payments during separation, closed joint accounts, and increased debt utilization from dividing assets can lower scores significantly. Lenders typically require a minimum 620 credit score for Texas first-time homebuyer programs and 580 for FHA loans.

Divorced individuals who haven't owned property in 3 years qualify as first-time homebuyers for Texas programs. My First Texas Home offers up to 5% down payment assistance with 30-year fixed rates. The Texas State Affordable Housing Corporation provides grants requiring a 620 minimum credit score. Houston's Homebuyer Assistance Program offers up to $50,000, while San Antonio's HIP provides $1,000-$30,000 in forgivable loans.

Yes, property settlement funds, owelty payments from your ex-spouse's buyout, and cash from asset division qualify as down payment sources. Lenders require a paper trail showing the funds originated from the divorce—provide your Final Decree of Divorce and bank statements documenting the transfer. With Texas's $333,900 median price, a 3.5% FHA down payment requires approximately $11,700, while conventional loans require 5-20%.