Six things that quietly changed for Texas borrowers on January 1

Archive note: This is a dated January 2026 recap, not a substitute for the current rule sources. The current evergreen references are the Texas conforming-limit guide, Texas FHA county table, Texas homestead guide, and Texas VA entitlement guide. Each one links to the controlling agency material.

The first week of January, every mortgage outlet runs the same recap. Limits went up, that is the lede, and the rest is filler. But the practical picture for a Texas borrower in January 2026 is more layered than the headlines suggest.

Six things actually took effect or carried forward into the new year. A few are headline items. A few are quiet changes that most lenders are not even mentioning to their clients. Here is the working version.

1. Conforming loan limit moved to $832,750

Up from $806,500. The baseline applies statewide in Texas because the FHFA file lists no Texas high-cost conforming counties. The current Texas conforming-limit reference carries the full 1-4 unit table; the FHFA announcement is the primary source. The calendar change mattered most for loan amounts above the old $806,500 limit and at or below the new $832,750 limit.

2. FHA limits also moved

Floor now $541,287 for one unit. Twenty-five Texas counties go higher (Austin MSA at $571,550, DFW at $563,500, San Antonio at $557,750, Glasscock at $813,050). Use the searchable Texas FHA loan limits table for all 254 counties and HUD Mortgagee Letter 2025-23 for the governing announcement.

3. Homestead exemption went to $140,000

The Prop 13 increase took effect for the 2025 tax year. School district exemption is $140,000 for everyone with a homestead. Seniors and disabled homeowners get an additional $60,000 under Prop 11, bringing their combined exemption to $200,000.

The exemption can affect a later escrow analysis, but it does not guarantee a refund or payment decrease. The servicer also accounts for the actual tax bill, insurance, prior shortages or surpluses, and the permitted cushion. The escrow-analysis guide explains those moving parts.

For a purchase qualification, the relevant estimate depends on the property, taxing units, expected eligibility, and lender method. The higher school-district exemption may reduce the estimate for an eligible future homestead, but it does not replace a property-specific calculation or guarantee approval.

For the current exemption rules, use the Texas homestead exemption guide and the Texas Comptroller exemption page. The November 2025 article remains the dated change report.

4. Texas VLB home loan cap raised to $832,750

The Texas Veterans Land Board raised the Home Loan maximum in early January to match the 2026 conforming limit. VLB is a separate state benefit with its own eligibility, participating-lender, rate, discount, and property rules. Verify the current terms on the official GLO VLB Home Loans page; the Texas VA entitlement guide explains how VLB differs from the federal VA guaranty.

5. HUD rescinded the Supplemental Consumer Information Form

HUD Mortgagee Letter 2025-15 rescinded the FHA Handbook requirement to provide Fannie Mae/Freddie Mac Form 1103, the Supplemental Consumer Information Form, for FHA Title II single-family forward programs effective June 27, 2025. The change did not alter pricing or qualification. Read the HUD mortgagee letter for its exact scope.

6. VA Circular 26-25-10

The VA issued Circular 26-25-10 on December 1, 2025, explaining how the new conforming limit affects the guaranty calculation for partial-entitlement VA borrowers. If you are a veteran with partial entitlement, the 2026 conforming limit can enter the calculation. Use the Texas VA entitlement guide for the full-entitlement distinction and the direct VA source.

The circular is scheduled to be rescinded January 1, 2027. Confirm its current status in the VA Home Loan circular index before relying on it.

What is the same

Most of the regulatory framework is unchanged. The big ones:

Texas 50(a)(6) cash-out refinance. The Article XVI Section 50 framework that governs cash-out refis on Texas homesteads. The Texas 50(a)(6) reference covers the current constitutional framework and source links; this dated recap should not be used as a substitute.

Reg Z trigger terms. The federal advertising rules that govern when a broker has to provide full TILA disclosures did not change. Anyone advertising specific rates, payments, or down payment percentages without proper disclosures is doing the same dance they were doing in 2023 and 2024.

RESPA Section 8. Anti-kickback and referral fee restrictions are unchanged. CFPB has signaled continued focus on this area.

Texas SML rules. Chapter 56 of Title 7 of the Texas Administrative Code, which governs Texas mortgage broker licensing and conduct, completed its first full year in effect on November 23, 2025. No further amendments announced for early 2026. The complaint notice text on my disclosures page reflects the current required language.

What did not change but probably should have

Rates did not drop. The Federal Reserve has been signaling gradual easing through most of 2025, but the mortgage market does not move in lockstep with Fed signals. The spread between the 10-year Treasury and the 30-year mortgage rate has been persistently wider than historical norms for almost two years running. Pricing improvement in 2026 is more likely to come from spread compression than from outright Fed cuts.

Government-shutdown noise affected some processing in December but did not carry into the new year materially. FHA case number assignments and VA loan processing are running normally as of early January.

What to do with this

If you have a file in process or one queued for the next few months, three asks for your loan officer:

1. Confirm they are using the new $832,750 conforming limit in your scenario calculations, not the old $806,500
2. If you have a homestead exemption, confirm your tax estimate uses the new $140K (or $200K if you qualify for the senior add-on)
3. If you are a vet, confirm they know which scenario (full vs partial entitlement) you are in under VA Circular 26-25-10

These are quick checks. They do not take more than a couple minutes. But on borderline qualification scenarios, they are the difference between a clean approval and a structural restructure.

If you want a second set of eyes on any of this, send me what you have and I will run the numbers.