The Same House, Half the Household, and Texas Escrows
Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.
Everything else on this site is about rules. This page is about the arithmetic they produce, which is where Texas buyouts actually succeed or fail.
★★ The structural problem
The house was bought on two incomes. The buyout is underwritten on one: and the new loan is often larger than the old one, because it must retire the existing mortgage and fund the payment to the other spouse.
★★★ And the Texas-specific weight on the payment
Texas has no state income tax and comparatively high property taxes. Property tax is escrowed into the monthly payment we underwrite.
★★★ So on a Texas file the escrow line is a materially larger share of the payment than in most states, which means the $140,000 school-district homestead exemption is not a footnote. It is one of the biggest levers on whether one income carries the house. The current amounts.
★★ Practical instruction: send us the actual tax figure for the property and tell us whether the exemption is in place. Do not let us estimate from a sale price.
★★ What is working in your favour
- ★★ The loan limit is not in play. All 254 counties at $832,750, and the dearest Texas metro is $514,969. A typical Texas buyout is an agency loan, so the agency provisions apply. Why
- ★★ Limited cash-out treatment, if the twelve-month and written-agreement conditions are met. The conditions
- ★★ No on-title waiting period if you were legally awarded the home.
- ★ Child support income may be grossed up where it qualifies, because it is nontaxable.
★★ What is working against you
- ★★★ Support that ends too soon. Selling Guide B3-3.4-02 requires it to be documented to continue at least three years from the application date, and directs lenders to check limitations such as the age of the children or the duration of alimony. Support for a teenager often fails that.
- ★★★ A lump-sum equalisation payment is not income: the guide says so in terms. If you are the spouse receiving the buyout and buying next, plan on it as assets.
- ★★ Heavy escrows, as above.
- ★★ An uncertain division figure. Because Texas divides "just and right" rather than equally, the buyout number is not knowable from the equity alone. Why
★★★ The order we would do this in
- ★★ Settle the structure question with your attorney first: owelty or otherwise. In Texas the lien question precedes the loan question. The two subsections
- ★★ Pull the deed and the tax bill. The deed gives the twelve-month date; the tax bill gives the real escrow.
- ★★★ Find the end date of any support order before pricing anything on it.
- ★★★ Run the one-income numbers before the division figure is agreed, not after. A number that cannot be financed is not an agreement; it is a second negotiation.
★★ When it does not work, we will say so
Sometimes a one-income buyout of a two-income house does not qualify at any price on any product. We will say so plainly and early, because discovering it after a decree is built around it is far worse.
★ Nobody pays us to deliver that message. It is here because it is sometimes the true one.
★ Our lane
We are a lender, not a law firm. We make no attorney referrals, take no position on what should be agreed, and do not advise on owelty structuring. Agency requirements were read 2026-10-10 and are subject to change and to lender overlays. No rates or payment figures are published anywhere on this site.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
Can I qualify for the house on one income after a Texas divorce?
It depends on the payment against your income, and the new loan is often larger than the old one because it must retire the existing mortgage and fund the payment to your former spouse. On a Texas file the escrowed property tax is a large share of that payment, so whether the $140,000 homestead exemption is in place matters materially.Does a lump-sum divorce payment count as income in Texas?
No. Fannie Mae B3-3.4-02 states that lump sum equalization payments are not considered a steady source of income. The money can still help as assets toward a next purchase, but it does not support the income side of a debt-to-income calculation.Why does Texas property tax matter so much to a divorce buyout?
Because Texas has no state income tax and comparatively high property taxes, and property tax is escrowed into the monthly payment a lender underwrites. That makes the escrow line a larger share of a Texas payment than in most states, so the homestead exemption is one of the biggest levers on what a single income can carry.When should I check whether the buyout can be financed?
Before the division figure is agreed. An agreed number that cannot be financed is not an agreement, it is a second negotiation, and in Texas the lien structure should be settled with your attorney before the loan question is priced at all.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about mortgage financing during and after a divorce. Not a loan commitment, and not legal, tax or financial advice. Cornerstone First Mortgage is a lender; it is not a law firm, does not represent any party to a dissolution, does not make attorney referrals, takes no position on how property should be divided, and does not advise on how an owelty of partition should be documented or closed. Texas homestead and property-division rules are set by the Texas Constitution and the Family Code and applied by the courts; homestead tax exemptions are administered by county appraisal districts. Agency requirements described here are Fannie Mae Selling Guide provisions current as of the date shown and are subject to change and to lender overlays. Housing market figures describe the twelve months to August 2026 and are not a forecast. All loans are subject to borrower, property and program qualification.