Every real estate question, one answer, across the whole Valley.
McAllen, Edinburg, Harlingen, Brownsville, Mission, Pharr, South Padre Island — the same financial questions come up everywhere in the Valley before anyone calls an agent. Run the numbers below, then see this region's featured advertising partner.
Quick answer: down payments run 3-5% for a first home, 15-25% for an investment property; DSCR loans qualify off rental income instead of yours; a 1031 exchange defers capital gains tax on a same-category swap within a 45/180-day IRS window.
Tier 1 — First-Time Buyer
Affordability and mortgage basics
How much house can I afford in McAllen, Edinburg, or anywhere in the Valley?
Most lenders cap total housing costs at roughly 28-36% of gross monthly income. Your down payment, credit, and other debts move that number more than the city you're buying in.
How much down payment do I actually need?
Conventional loans can go as low as 3-5% down for a primary residence; FHA loans allow 3.5% with a lower minimum credit score. Both require mortgage insurance until you build enough equity.
Can I buy a house with no credit history?
Yes, through manual underwriting or FHA programs that accept alternative credit (rent and utility payment history), though terms are usually less favorable than with an established credit score.
Can I buy a house with an ITIN instead of a Social Security number?
Yes. Several lenders in Texas offer ITIN loan programs, typically with higher down payment requirements (10-20%) and rates than a conventional loan.
Am I better off buying or renting right now?
It depends on how long you plan to stay and current rent-versus-mortgage costs in your target city — run both numbers before deciding.
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Tier 2 — Active Buyer
Ready to move, comparing neighborhoods and numbers
How much house can I qualify for on my current income?
Lenders generally use a debt-to-income ceiling around 43%, including the new mortgage payment plus existing debts — a rough starting point before a real pre-approval.
What's the best time of year to buy in the Valley?
Inventory typically loosens in late fall and winter as competition from summer buyers drops, though pricing varies by city and year.
Should I get pre-qualified or pre-approved?
Pre-approval involves actual document verification and carries more weight with sellers than a pre-qualification, which is just a quick estimate.
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Tier 3 — Investor
Rental property, DSCR loans, ROI
How much down payment do I need for an investment property?
Plan on 15-25% down for a non-owner-occupied loan — lenders treat rental property as higher risk than a primary residence.
What is a DSCR loan?
A DSCR loan qualifies you off the property's projected rental income instead of your personal income, common for investors with multiple properties or self-employed income.
How do I calculate ROI on a rental property?
Compare annual rent minus taxes, insurance, maintenance, vacancy, and management against your total cash invested — that gives you cash-on-cash return.
Can I buy an investment property with an LLC?
Yes, though LLC-held properties usually need commercial or DSCR-style financing rather than a standard conventional loan.
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Tier 4 — Seller / Equity
What your home is worth, and what to do about it
How much is my home worth right now?
Local comps within the last 90 days give the most accurate picture — national estimator tools are often off by a wide margin in smaller Valley markets.
Should I sell or rent out my current house?
Compare expected rental cash flow after expenses against your net proceeds from a sale, plus how hands-on you want to be as a landlord.
How do I use the equity in my house?
Common options are a cash-out refinance, a HELOC, or a home equity loan — each has different rates, repayment structures, and risk if home values drop.
What taxes do I pay if I sell my house in Texas?
Texas has no state capital gains tax, but federal capital gains tax still applies above the $250,000 (single) or $500,000 (married) primary-residence exclusion.
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Tier 5 — High-Net-Worth / Tax-Literate
1031 exchanges, ownership structure, and wealth-tier real estate
What is a 1031 exchange and what are the deadlines?
A 1031 exchange defers capital gains tax by reinvesting sale proceeds into a similar investment property. You have 45 days to identify a replacement property and 180 days total to close.
What is a reverse 1031 exchange?
It's a 1031 exchange done in the opposite order — you acquire the replacement property before selling the relinquished one, using an exchange accommodation titleholder to hold title temporarily.
What is cost segregation and does it apply to rental property?
Cost segregation breaks a property into components (fixtures, land improvements, structure) to accelerate depreciation and increase near-term tax deductions — typically worth exploring on properties above roughly $500,000.
What is depreciation recapture?
When you sell a rental property, the IRS taxes the depreciation you claimed while owning it, at a rate up to 25%, separate from capital gains tax on appreciation.
Should I hold rental property in an LLC?
An LLC can provide liability separation between the property and your personal assets, though it can also complicate financing and doesn't eliminate all tax or legal risk.
Can I buy real estate through a self-directed IRA?
Yes, though strict IRS rules prohibit personal use of the property and require all expenses and income to flow through the IRA itself.
What is a Delaware Statutory Trust (DST) and how does it compare to a 1031 exchange?
A DST lets multiple investors hold fractional interests in larger properties and can qualify as 1031 exchange replacement property, offering passive ownership versus direct property management.
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