Buying a Home in San Antonio: The South Texas Mortgage Landscape

San Antonio’s median home sale price has run well below Austin’s and Dallas’s for most of the past decade. That persistent affordability advantage, combined with one of the largest concentrations of active military and veterans in the country, makes the Alamo City one of Texas’s most active mortgage markets. Whether you are a first-time buyer drawn by price, a military family relocating to Joint Base San Antonio, or a move-up buyer looking for more square footage per dollar than the state’s other major metros offer, the mortgage dynamics here deserve a careful look before you make an offer.

This post covers what makes San Antonio’s mortgage market different, the property tax picture in Bexar County, which loan products dominate locally, and what TSAHC down payment assistance programs are available to buyers who qualify.

San Antonio’s Affordability Position in Texas

Among the five largest Texas metros, San Antonio consistently posts the lowest median home prices. While Austin’s metro median hovered around $440,000 to $460,000 in early 2026 and Dallas-Fort Worth ran in the $380,000 to $420,000 range, San Antonio’s median sold price has typically stayed in the $255,000 to $290,000 range over the same period (Texas Real Estate Research Center data).

That gap matters for mortgage purposes in a few ways:

• More buyers qualify at San Antonio’s price points, particularly for FHA loans (max loan limits are the same statewide, so lower prices mean more room below the ceiling)
• Down payment requirements in absolute dollars are lower, reducing the savings needed to enter the market
• Monthly PITI payments are more manageable relative to median San Antonio household income, which supports stronger DTI qualification at standard prices

The tradeoff is that San Antonio’s economy skews toward healthcare, military, tourism, and government employment. Income levels for some buyer segments run below the Austin or Dallas averages, so affordability in price does not always translate directly to affordability in monthly payment if income is constrained.

Bexar County Property Taxes

Bexar County’s effective property tax rate typically runs between 1.90% and 2.30%, depending on the municipality, school district, and any special utility district levies. Within the City of San Antonio, the combined rate including the city, county, school district (NISD, NEISD, SAISD, and others), and Bexar County itself generally produces an effective rate in the 1.95% to 2.20% range.

On a $275,000 home at a 2.10% effective rate:

• Annual property tax: approximately $5,775
• Monthly escrow contribution: approximately $481

On a $350,000 home at the same rate:

• Annual property tax: approximately $7,350
• Monthly escrow contribution: approximately $613

Texas property taxes are among the highest in the country as a percentage of home value, but San Antonio’s lower home prices mean the absolute annual dollar amounts remain below what Austin or Dallas buyers pay. File your homestead exemption within the first year of ownership. Under the 2023 expansion, the school district portion of your homestead exemption removes $100,000 of taxable value, which at a 0.85% school district rate saves roughly $850 per year.

For a statewide comparison of property tax rates by county, see my guide to Texas property taxes by county across the major metros.

The Military Factor: What It Means for San Antonio’s Mortgage Market

Joint Base San Antonio encompasses Lackland Air Force Base, Fort Sam Houston, and Randolph Air Force Base, and supports over 80,000 military and civilian personnel. That concentration makes VA loans a dominant product in the San Antonio mortgage market, accounting for a disproportionately large share of purchase originations here compared to most Texas metros.

VA loans offer zero down payment, no private mortgage insurance (PMI), and competitive rates. For active-duty service members and veterans who qualify, a VA loan at San Antonio’s median price points is one of the most cost-effective mortgage structures available anywhere in the country.

VA appraisals in Bexar County can sometimes come in below the agreed purchase price on older homes or in rapidly changing neighborhoods. Work with a loan officer who has experience with VA transactions in this specific market and understand the options, including asking the seller to reduce the price, paying the difference in cash, or negotiating a repair credit that brings the appraised value into alignment.

FHA and Conventional Loans for San Antonio Buyers

For buyers without VA eligibility, FHA and conventional loans are the primary options at San Antonio’s price points.

FHA loans require a minimum 3.5% down payment with a 580 credit score (or 10% down with a score between 500 and 579). The FHA loan limit for Bexar County in 2026 is $524,225 for a single-unit property, which covers virtually every home in the San Antonio metro. FHA loans carry mandatory mortgage insurance premium (MIP): an upfront premium of 1.75% of the loan amount (typically financed into the loan) plus an annual premium that for most borrowers runs 0.55% of the outstanding balance. For a full breakdown, see my FHA loans in Texas guide.

Conventional loans offer more flexibility at lower mortgage insurance costs for buyers with credit scores above 700 and down payments of 3% to 5% or more. At $275,000 with a 5% down ($13,750), the loan amount is $261,250. A buyer with a 720 credit score would typically pay less in total mortgage insurance over time on a conventional loan versus FHA at that credit profile. See the full comparison in my conventional loans in Texas guide.

TSAHC Down Payment Assistance for San Antonio Buyers

The Texas State Affordable Housing Corporation (TSAHC) operates two down payment assistance programs that are available to qualifying buyers in San Antonio and throughout Texas:

• Home Sweet Texas Home Loan Program: Available to any income-qualifying Texas homebuyer. Provides a 3% or 5% grant (not a loan; no repayment required) toward down payment and closing costs, paired with a 30-year fixed-rate first mortgage. Income limits apply by county.
• Homes for Texas Heroes: Available to teachers, police officers, firefighters, EMS personnel, veterans, corrections officers, and nurses. Same grant structure as Home Sweet Texas, with additional eligibility categories for public service workers.

Both programs pair with FHA or conventional first mortgages. A buyer using a TSAHC 5% grant on a $275,000 FHA purchase receives $13,750 toward down payment and closing costs, which covers the entire 3.5% FHA down payment requirement plus a portion of closing costs.

Income limits for Bexar County vary by household size. Check current limits directly at tsahc.org before applying. The programs are income-verified at origination.

San Antonio Neighborhoods and What They Cost

San Antonio’s metro spans a wide price range by neighborhood:

• Alamo Heights and Terrell Hills: The closest San Antonio equivalent to Austin’s premium neighborhoods. Median prices in the $450,000 to $650,000 range. Excellent school districts.
• Stone Oak / North San Antonio: Master-planned communities north of Loop 1604 in the $300,000 to $500,000 range. Popular with military families relocating from Randolph.
• Helotes and Leon Valley: West side of the metro, more affordable entry points, typical range $240,000 to $380,000.
• Universal City and Schertz: Communities immediately adjacent to Randolph Air Force Base, popular with active-duty military. Range $220,000 to $350,000.
• New Braunfels and Seguin (adjacent metros): Buyers who need more space or lower prices often look 30 to 40 miles northeast. New Braunfels has grown significantly and carries higher prices than Seguin.

Property taxes vary by school district within Bexar County. Northside ISD, Northeast ISD, and North East ISD have slightly different rates. Always verify the specific rate for any address with the Bexar County Appraisal District (bcad.net) before committing to a purchase price.

Frequently Asked Questions

What is the median home price in San Antonio in 2026?

San Antonio’s metro median home price has typically run in the $255,000 to $290,000 range in 2026, making it the most affordable of Texas’s five largest metros. Prices vary significantly by neighborhood, from $220,000 in suburban areas adjacent to military bases to $600,000-plus in Alamo Heights. Data from the Texas Real Estate Research Center.

What is the property tax rate in Bexar County?

Bexar County’s effective combined rate (county, city, school district) typically runs between 1.90% and 2.30% depending on the specific municipality and school district. On a $275,000 home at 2.10%, that is approximately $5,775 per year or $481 per month in escrow. File your homestead exemption after closing to reduce the school district portion by the equivalent of $100,000 in taxable value.

Are VA loans common in San Antonio?

Yes. Joint Base San Antonio supports over 80,000 military and civilian personnel, making San Antonio one of the highest-volume VA loan markets in Texas. VA loans require zero down payment and no PMI. For active-duty and veteran buyers who qualify, VA is typically the most cost-effective purchase loan at San Antonio’s price points. Work with a loan officer experienced in Bexar County VA appraisals, as VA appraisals on older properties can sometimes come in below the purchase price.

What TSAHC programs are available in San Antonio?

The Texas State Affordable Housing Corporation (TSAHC) offers the Home Sweet Texas Home Loan Program (available to any income-qualifying Texas buyer) and Homes for Texas Heroes (available to teachers, police, firefighters, EMS, veterans, corrections officers, and nurses). Both provide a 3% or 5% grant toward down payment and closing costs, paired with a 30-year fixed-rate first mortgage. Income limits apply by county. Check current limits at tsahc.org.

Should I use FHA or conventional for a home in San Antonio?

For buyers with credit scores below 680, FHA often provides better pricing on the mortgage insurance component. For buyers with scores above 720 and a 5% or larger down payment, conventional can be more cost-effective over the life of the loan because conventional PMI can be removed once you reach 20% equity, while FHA MIP stays for the life of the loan if your down payment is under 10%. Run both scenarios with your loan officer using your specific credit score and down payment amount.

What neighborhoods near military bases in San Antonio are affordable for buyers?

Universal City and Schertz sit directly adjacent to Randolph Air Force Base and offer home prices typically ranging from $220,000 to $350,000. Lackland-adjacent neighborhoods on the west side of San Antonio including Westover Hills and Helotes offer broader inventory in the $240,000 to $400,000 range. Both areas have active VA loan markets and experienced real estate agents familiar with military relocation timelines.

If you are relocating to San Antonio or buying locally and want to map out your loan options before you start making offers, reach out and let’s talk through your specific situation at anthonyferrando.com/contact. No pressure, just a clear picture of what you qualify for and which program makes the most sense for your goals.

Anthony Ferrando | Mortgage Loan Originator | NMLS# 1919613 | Ferrando Financial LLC NMLS# 2403080 | Licensed in Texas. This is not a commitment to lend. Loan approval is subject to credit, income, and property qualifications. TSAHC program availability, income limits, and grant amounts are subject to change; verify current terms at tsahc.org before applying. Property tax rates are approximate and vary by specific address. Equal Housing Lender. Sources: Texas Real Estate Research Center, Bexar County Appraisal District (bcad.net), TSAHC (tsahc.org).