How Federal Policies Could Make Homeownership Easier in Texas This Year

2026 Federal Changes

Homeownership in Texas continues to be one of the most important financial goals for individuals and families. But rising property prices, limited housing inventory, and volatile mortgage rates have made the path to owning a home more complex. In 2026, federal policies are taking steps to reverse this trend and make homeownership more achievable—especially for first-time buyers, moderate-income households, and those who have been sidelined by market pressures.

By understanding how these federal changes interact with Texas’s own housing initiatives, buyers can take advantage of new opportunities and secure more favorable terms when purchasing a home.

Lower Mortgage Rates Through Federal Bond Buybacks

One of the most significant developments in 2026 is the federal government’s move to stabilize mortgage rates by purchasing mortgage-backed securities. In January, the administration announced a $200 billion bond buyback initiative through Fannie Mae and Freddie Mac. This strategy is designed to reduce long-term interest rates and improve affordability for homebuyers nationwide, including those in fast-growing markets like Dallas, Austin, and Houston.

Analysts estimate that this action could reduce mortgage interest rates by 0.25 to 0.5 percentage points. While the decrease may seem modest, it translates to significant monthly savings for Texas families—especially in areas where home prices have risen by double digits in recent years.

This federal effort directly impacts buyers by increasing their purchasing power. A lower interest rate allows a buyer to qualify for a larger loan or reduce their monthly mortgage payment, making ownership more attainable. LBC Capital ensures that clients benefit from these rate changes by closely monitoring rate movements and offering fast pre-approvals tailored to the shifting market.

Continued Support From the Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) continues to shape the mortgage landscape through its oversight of Fannie Mae and Freddie Mac. These agencies are key players in setting lending standards, mortgage limits, and affordability guidelines that impact millions of buyers each year.

One important feature of this system is the availability of federally backed loan programs. These include FHA loans, VA loans, and USDA loans, which are especially helpful for Texas buyers looking for flexible credit requirements, reduced down payments, and capped closing costs.

LBC Capital provides access to these federal programs and helps clients choose the right mortgage for their financial situation. Whether it’s an FHA loan for a first-time buyer or a VA loan for a veteran purchasing in San Antonio, we simplify the process and match borrowers with the most advantageous programs.

Expanded FHA Loan Access

FHA-insured loans remain a cornerstone of federal housing support. These loans allow borrowers to purchase homes with as little as 3.5% down, even if they have a limited credit history. In Texas, where many renters are saving for a down payment while dealing with rising rent costs, FHA loans open doors to homeownership that would otherwise remain closed.

LBC Capital guides clients through the FHA process, helping them understand eligibility and ensuring smooth closings.

Energy Incentives and Tax Credits for Homeowners

Federal housing policy doesn’t stop at mortgage rates. The Inflation Reduction Act continues to provide financial incentives for energy-efficient upgrades in homes. These include tax credits for installing solar panels, heat pumps, insulation, and other improvements that reduce long-term utility bills.

For Texas homeowners, where summer energy costs can be substantial, these incentives create long-term value. Buyers can factor in these savings when budgeting for monthly expenses, making homeownership more sustainable.

LBC Capital helps clients understand how to take advantage of these incentives during the homebuying process. From energy-efficient home loans to programs that bundle renovation costs into the mortgage, we ensure buyers maximize every available benefit.

Coordination Between Federal and Texas State Policy

While federal policies influence interest rates and loan programs, Texas lawmakers have taken their own steps to address housing affordability. In 2025, a bipartisan group of legislators passed key housing reforms designed to increase housing supply and ease development restrictions across the state.

New state laws now allow more housing types to be built in areas previously restricted by zoning regulations. The result is an expected increase in affordable starter homes and multi-family developments, particularly in high-demand metro areas.

LBC Capital tracks these regional housing developments to help clients find emerging opportunities. As new homes come onto the market, we provide financing solutions that align with updated zoning and development plans.

Local Reforms That Boost Supply

Recent legislation in Texas, including bills like SB 840, cut red tape for developers and promote faster home construction. These reforms are vital in a state with a growing population and a housing shortage that has driven up prices in many urban and suburban areas.

By increasing housing supply, these reforms complement federal efforts to improve mortgage access. More inventory leads to healthier competition, better prices, and a stronger chance for buyers to find the right home.

LBC Capital supports clients by pre-approving them early in the process, so they’re ready to act when new listings become available.

Down Payment Assistance Through Federal and State Partnerships

Federal funds are also supporting down payment assistance programs managed at the state level. In Texas, organizations like the Texas State Affordable Housing Corporation (TSAHC) offer grants, second-lien loans, and matched savings plans to help first-time and income-qualified buyers bridge the gap.

These programs are often paired with federal mortgage products and require homebuyer education to ensure long-term financial success. LBC Capital works with TSAHC and other partners to connect clients to the right assistance program, making homeownership achievable even with limited upfront savings.

Closing the Affordability Gap

Down payment assistance helps solve one of the biggest challenges facing today’s homebuyers—saving enough cash for closing. By combining federal support with state-level execution, these programs provide a powerful boost to Texas families eager to own their first home.

LBC Capital offers personalized support to ensure every buyer explores their eligibility and secures the help they need to move forward with confidence.

Long-Term Outlook: A Year of Opportunity

While not every federal proposal will create immediate results, 2026 stands out as a year of opportunity for Texas buyers. Interest rates are easing, home construction is accelerating, and down payment support is more widely available than in previous years.

Still, navigating these policies requires local expertise. LBC Capital provides that advantage. We combine real-time market insights with personalized mortgage solutions to ensure clients don’t miss out on programs that could save them thousands.

Whether you’re buying in Houston, Austin, San Antonio, or smaller communities across the state, LBC Capital makes the process simple, transparent, and efficient. So we understand how federal and state programs work together—and we use that knowledge to put more Texans in homes.