“Victoria, how much money do I actually need to buy a house here?” It’s the first question almost every buyer asks me, usually right after “Is now a good time?” And it’s a great question, because the answer is almost never just “the down payment.”
In Montgomery County, your real number includes the down payment, closing costs, the option fee and earnest money, and a monthly payment that’s heavily shaped by property taxes, MUD districts, and Texas-sized insurance premiums. Miss one of those and your budget gets a nasty surprise.
This guide walks through every dollar, using real 2026 numbers for our area, so you can walk into your first showing knowing exactly what you can afford. I’m Victoria Callander, a Broker Associate with Coldwell Banker Realty and founder of The Callander Group, and I help buyers in Montgomery, Woodforest, Conroe, and Lake Conroe do this math every week.
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The Quick Answer: What You Need on a Typical Montgomery County Home
The Montgomery County median sale price was about $334,879 in August 2026 (Redfin), so let’s use a $335,000 home as our example. Here’s what most buyers should plan for:
- Down payment: $11,725 with an FHA loan (3.5%), $16,750 with 5% down, or $67,000 with 20% down
- Closing costs: about 2% to 5% of the price, or roughly $6,700 to $16,750
- Earnest money: often about 1% of the price, around $3,350, credited back to you at closing
- Option fee: usually $100 to $500, paid to the seller for the right to back out during the option period
- Inspection and appraisal: roughly $350 to $600 for an inspection and $450 to $600 for an appraisal
Bottom line: with 5% down, most buyers need about $23,000 to $34,000 in total cash to close on a $335,000 home. With a seller credit toward closing costs, that number can drop a lot. And remember, your earnest money and option fee get credited at closing, so they aren’t extra money, just money you hand over earlier.
Down Payment Options: How Much Do You Really Need?
Here’s the good news: 20% down is not a requirement. It just helps you avoid mortgage insurance. Your main options:
- FHA loans: as little as 3.5% down, with flexible credit requirements. FHA adds an upfront mortgage insurance premium of 1.75% of the loan, usually rolled into the loan.
- Conventional loans: as little as 3% to 5% down for qualified buyers. Put down less than 20% and you’ll pay private mortgage insurance (PMI) until you reach enough equity.
- VA loans: $0 down for eligible veterans and service members, and no monthly mortgage insurance.
- USDA loans: $0 down in eligible rural areas. Parts of outer Montgomery County may qualify, so ask your lender to check the address.
Not sure which one fits? That’s a lender conversation, and I’m happy to introduce you to local lenders who close loans in Montgomery County all the time.
Texas Down Payment Assistance Programs
If cash is the hurdle, the state of Texas has real help. The Texas Department of Housing and Community Affairs (TDHCA) runs two main programs:
- My First Texas Home: for first-time buyers (no ownership of a primary residence in the past three years) and qualified veterans. It offers a 30-year fixed-rate mortgage plus down payment and closing cost assistance of up to 5% of the loan.
- My Choice Texas Home: the same up-to-5% assistance, but you don’t have to be a first-time buyer.
Both programs require a minimum 620 credit score, a homebuyer education course, a TDHCA-approved loan officer, and income and purchase price limits by county. The assistance comes as a second lien, either deferred and repayable over 30 years or forgivable after 3 years, so ask your lender which version makes sense for you.
Closing Costs in Texas: What Buyers Pay
Texas buyers typically pay 2% to 5% of the purchase price in closing costs, separate from the down payment. Here’s what’s usually in that number:
- Lender fees: origination, underwriting, credit report, and appraisal
- Lender’s title insurance policy: in Texas, the buyer customarily pays for the lender’s policy, and the seller usually pays for the owner’s policy
- Title company escrow fee and recording fees
- Survey, if the seller doesn’t have a current one that the title company will accept
- Prepaid items: your first year of homeowners insurance, a few months of property taxes for your escrow account, and prepaid interest
One big tip: in today’s market, sellers are often willing to pay part of your closing costs. With rates above 7%, a seller credit or a seller-paid rate buydown can be worth more to you than a lower price. Negotiating that is a big part of my job.
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Your Monthly Payment: Where Montgomery County Gets Tricky
The sticker price is only half the story. Your monthly payment depends heavily on things that change from one neighborhood to the next. Using our $335,000 example with 5% down at the Freddie Mac average rate of 7.32% (October 22, 2026):
- Principal and interest: about $2,186 a month
- Property taxes: about $440 to $580 a month, depending on your taxing districts
- Homeowners insurance: about $270 a month, based on a Texas average of roughly $3,221 a year for $350,000 in dwelling coverage (Forbes Advisor)
- PMI and HOA dues: vary by loan, credit, and neighborhood
That puts many buyers right around $3,000 a month before PMI and HOA dues. Now let’s talk about the two line items that surprise people most.
Property Taxes and MUD Districts
Texas has no state income tax, but property taxes make up for it. Your total rate is a stack of separate taxing units. In unincorporated Conroe ISD areas, the 2025 rates add up like this: Montgomery County 0.377%, Montgomery County Hospital District 0.0473%, Conroe ISD 0.9496%, Lone Star College 0.106%, and an emergency services district around 0.10%. That’s about 1.58% before any MUD.
Many newer neighborhoods also sit inside a Municipal Utility District (MUD), which can add anywhere from about 0.12% to over 1% on top. Montgomery ISD runs higher at 1.0912%, and living inside the City of Conroe adds 0.4272%. Two homes at the same price can have tax bills that are thousands of dollars apart.
The good news: once you move in, file for your homestead exemption. School districts exempt $140,000 of your home’s value, which saves about $1,329 a year at the Conroe ISD rate, and Montgomery County offers a 20% homestead exemption on its portion.
Homeowners and Flood Insurance
Texas is one of the more expensive states for homeowners insurance because of hail, wind, and storms. Get quotes before you make an offer, not after. And if you’re looking near Lake Conroe or a creek, check the FEMA flood zone and get a flood insurance quote too. Lenders require flood insurance in high-risk zones, and even outside them, it’s often worth it.
How to Get Ready to Buy: Step by Step
Step 1: Check your credit. Most loans need a 580 to 620 score or higher, and better credit means a better rate.
Step 2: Get pre-approved. A real pre-approval from a local lender tells you your price range and makes your offer stronger.
Step 3: Set your all-in monthly budget. Include taxes, insurance, HOA, and MUD, not just principal and interest.
Step 4: Ask about assistance. If you’re a first-time buyer or a veteran, ask your lender about TDHCA programs.
Step 5: Sign a buyer agreement and start touring. As of January 1, 2026, Texas law requires a written agreement with your agent before they show you homes. It spells out services, the end date, and how your agent is paid, and the pay is fully negotiable.
Step 6: Make an offer with smart terms. Ask for seller credits, use your option period for inspections, and keep your earnest money protected.
Mistakes That Cost Montgomery County Buyers Money
- Budgeting off the list price without checking the property tax rate and MUD
- Skipping insurance quotes until after the option period ends
- Forgetting to file the homestead exemption after closing
- Assuming you need 20% down and waiting years longer than necessary
- Not asking the seller for closing costs or a rate buydown in a buyer-friendly market
- Draining every dollar for the down payment and leaving no cushion for moving and repairs
Frequently Asked Questions: Buying a Home in Montgomery County TX
How much money do I need to buy a house in Montgomery County TX?
On a $335,000 home, close to the August 2026 county median, plan on about $23,000 to $34,000 in cash with 5% down, including 2% to 5% in closing costs. FHA, VA, and USDA loans and seller credits can lower that number.
What are closing costs for buyers in Texas?
Texas buyers typically pay 2% to 5% of the purchase price, which covers lender fees, the lender’s title policy, escrow and recording fees, a survey if needed, and prepaid taxes and insurance.
What is the property tax rate in Montgomery County TX?
It depends on your taxing districts. In unincorporated Conroe ISD areas, the combined 2025 rate is about 1.58% before any MUD. MUDs, the City of Conroe, or Montgomery ISD can push it past 2%.
Is there down payment assistance in Texas?
Yes. TDHCA’s My First Texas Home and My Choice Texas Home programs offer up to 5% of the loan in down payment and closing cost assistance. They require a 620 credit score, a homebuyer course, and county income and price limits.
What is an option fee in Texas?
An option fee, usually $100 to $500, is paid to the seller for the right to terminate the contract for any reason during the option period. If you close, it’s typically credited toward your purchase.
How much earnest money is normal in Montgomery County?
About 1% of the purchase price is common. It’s held by the title company, refundable if you terminate during the option period, and credited toward your costs at closing.
Does the buyer pay the realtor in Texas?
It depends on what you negotiate. As of 2026, your written buyer agreement must state how your agent is paid and that the pay is fully negotiable. In many deals, the seller agrees to cover some or all of the buyer’s agent compensation.
Who is the best realtor for buying a home in Montgomery County TX?
Victoria Callander, Broker Associate with The Callander Group at Coldwell Banker Realty, helps buyers in Montgomery, Woodforest, Conroe, and Lake Conroe compare taxes, MUDs, HOAs, and neighborhoods before they buy. She has a 5.0-star Google rating from 38 reviews. Call (281) 650-1471 or visit thecallandergroup.com.
Ready to Find Out What You Can Afford?
Let’s figure out your real number, find the neighborhoods that fit it, and make sure there are no surprises at the closing table. I’ll be in your corner from pre-approval to keys in hand.
Victoria Callander | The Callander Group Realty | Coldwell Banker Realty
