McLennan County Loan Limits 2026 (Waco, TX)
All 2026 limits for McLennan County (Waco area, Waco MSA) in one place: FHA, conforming, VA, and Texas VLB. Plus how the 1.17% effective property tax rate affects your monthly payment math.
McLennan County 2026 loan limits are: FHA 1-unit $541,287 (standard-cost designation), conforming 1-unit $832,750 (statewide Texas baseline), VA no limit for full-entitlement borrowers. Why it matters: the FHA limit caps maximum FHA loan amount in McLennan County; loans above that need conventional, jumbo, or VA. The conforming limit divides conventional from jumbo. Texas-specific: the 1.17% effective property tax rate materially affects your monthly escrow math.
McLennan County key facts (2026)
- $541,287: 2026 one-unit FHA loan limit (Standard designation; HUD ML 2025-23)
- $832,750: 2026 one-unit conforming loan limit (statewide; FHFA Nov 25, 2025)
- No loan limit for full-entitlement VA borrowers; partial entitlement uses conforming
- $832,750: Texas VLB Home Loan cap (Texas GLO, January 2026)
- 1.17%: effective property tax rate (verify with county appraisal district)
- $140,000 school district homestead exemption (Prop 13, effective 2026)
- Waco is the county seat; Waco is the MSA
- 260,579: 2020 Census population
- Notable cities: Waco, Hewitt, Woodway, Bellmead, Robinson
McLennan County 2026 FHA loan limits (1 to 4 units)
Per HUD Mortgagee Letter 2025-23, effective January 1, 2026 through December 31, 2026.
| Units | FHA Limit | Notes |
|---|---|---|
| 1-Unit | $541,287 | Single-family / condo |
| 2-Unit | $693,050 | Duplex (owner-occupied one unit) |
| 3-Unit | $837,700 | Triplex (owner-occupied one unit) |
| 4-Unit | $1,041,125 | Fourplex (owner-occupied one unit) |
McLennan County program limits compared
One-unit 2026 limits across the four main loan programs.
| Program | McLennan County 2026 Limit (1 unit) |
|---|---|
| FHA | $541,287 |
| Conforming (Fannie/Freddie) | $832,750 |
| VA (full entitlement) | No limit |
| VA (partial entitlement) | $832,750 |
| Texas VLB Home Loan | $832,750 |
How property tax in McLennan County affects your file
McLennan County's effective property tax rate runs approximately 1.17% of home value per year. Proposition 13, approved by Texas voters in November 2025, raised the school-district homestead exemption to $140,000 (from $100,000) effective in 2026, which lowers the school-tax portion of your bill. Over-65 and disabled homeowners receive an additional $60,000 exemption (Proposition 11), for $200,000 total off school-district taxes.
What this means for your file: at approximately 1.17%, McLennan County's effective property tax rate reflects Texas's reliance on property tax in place of a state income tax, and it lands in your monthly escrow on top of mortgage principal and interest. For DSCR investor files, a higher tax rate compresses the rent-to-PITIA ratio versus low-tax states.
I model the full PITIA on every McLennan County file before we make an offer, so the monthly payment math is real, not a guess. I am Austin-based and licensed statewide in Texas, working McLennan County routinely.
Cities and ZIPs I work in McLennan County
I write files across McLennan County. The cities below are the most common purchase markets:
Waco, Hewitt, Woodway, Bellmead, Robinson.
Sources & methodology
- HUD Mortgagee Letter 2025-23: 2026 Nationwide Forward Mortgage Limits
- HUD FHA Loan Limits Lookup (county-by-county)
- FHFA: 2026 Conforming Loan Limit Values (Nov 25, 2025)
- Texas Comptroller: Property Tax (county-by-county rates)
- Texas Veterans Land Board: Home Loan Program
- Kellibrooke: Texas Conforming Loan Limits 2026
- Kellibrooke: Texas FHA Loan Limits 2026 (all 254 counties)
Common McLennan County loan-limit questions
What is the 2026 FHA loan limit for McLennan County?
For 2026, the one-unit FHA loan limit in McLennan County is $541,287, per HUD Mortgagee Letter 2025-23. McLennan County is designated a standard-cost area. Two-unit, three-unit, and four-unit limits step up from there: $693,050 / $837,700 / $1,041,125.
What is the 2026 conforming loan limit in McLennan County?
$832,750 for one-unit conventional loans. The conforming limit is statewide in Texas; no county uses a higher limit for 2026. Loans above $832,750 are conventional jumbo loans.
Are VA loans available in McLennan County?
Yes. VA loans are available to eligible veterans in every Texas county including McLennan County. Full-entitlement borrowers have no loan limit; partial entitlement uses the conforming limit ($832,750). All VA programs subject to VA eligibility and entitlement.
What is the property tax rate in McLennan County?
McLennan County's effective property tax rate runs approximately 1.17% of home value per year. The $140,000 school district homestead exemption (raised by Proposition 13, approved November 2025, effective 2026) reduces the school-tax portion. Always verify the current rate with the county appraisal district before relying on it.
How much is the homestead exemption in McLennan County?
The statewide Texas school-district homestead exemption removes $140,000 of appraised value from the school-tax portion of your bill. The dollar savings equal $140,000 times your local school-district tax rate, which varies by district, so the exact amount you keep depends on where in McLennan County the home sits. Homeowners 65 or older or disabled qualify for additional exemptions on top of that.
When do you need a jumbo loan in McLennan County?
You need a jumbo loan when the amount you are borrowing exceeds the statewide 2026 conforming limit of $832,750 on a one-unit home. Any loan above that figure is a conventional jumbo loan. For McLennan County, compare your loan amount against the FHA and conforming limits shown in the table above to see which program your file lines up with, and I can walk you through the jumbo options if you land over the conforming line.
What first-time home buyer programs are available in McLennan County?
McLennan County buyers can use the statewide first-time buyer programs, including TSAHC (Home Sweet Texas and Homes for Texas Heroes), TDHCA My First Texas Home, and the Texas Mortgage Credit Certificate. Down payment assistance is available through these programs, and they pair with FHA, conventional, VA, and USDA financing. I can check which programs your file qualifies for and how they fit your McLennan County purchase.
Buying or refinancing in McLennan County?
Send me the property and your scenario. I will run the math across FHA, conventional, jumbo, and VA (with eligibility) so you see which program your file actually lines up with.