Buying a Home with Cash in Texas: What DFW Buyers Need to Know Before Closing

What do cash buyers in Texas still need at closing?

Cash buyers in Texas still need to provide proof of funds, pay earnest money, arrange title insurance, and address the survey or T-47 affidavit before closing. The process is faster than a financed purchase, typically 10 to 14 days, but skipping key protections like the owner's title policy or a home inspection can create serious problems after you own the property. In DFW, 35.4% of home purchases closed without a mortgage in early 2026, well above the national average, and many of those buyers discovered that "cash" doesn't mean "simpler."

By Paul Blair | October 15, 2026

More than a third of home purchases in the Dallas-Fort Worth metro closed without a mortgage in the first four months of 2026, according to Realtor.com. That's well above the national rate of 31.4%, and it reflects a market where investors, equity-rich move-up buyers, and out-of-state relocators are regularly competing without financing.

But paying cash doesn't mean skipping the process. It means you're the one deciding which pieces of that process to keep.

Most cash buyers expect to skip the appraisal and the lender's checklist. What surprises them is everything they didn't know they still needed.

Proof of funds. You need a bank statement or letter from your financial institution confirming the full purchase price is available. Generic screenshots don't cut it; a formal letter dated within the last 30 to 60 days does.

Earnest money. Under the standard TREC one-to-four family residential contract, the earnest money goes to the title company immediately after execution. Typical DFW amounts run 1 to 2 percent of the purchase price, though on competitive offers that number sometimes goes higher.

A home inspection. No lender can force you to get one, but a licensed inspector can find foundation movement, HVAC failures, or active plumbing leaks that aren't obvious in a showing. An inspection in DFW runs $350 to $500. Compare that to the cost of discovering a sewer line issue six months after closing.

The owner's title insurance policy. Texas title insurance rates are set by the Texas Department of Insurance, not the individual title company, so the premium is the same no matter who you use. A lender would require a loan policy on your behalf. Without a mortgage, there's no lender policy at all. The owner's policy is the one that protects your equity.

The survey and the T-47 affidavit

This is the one that catches cash buyers most often.

Without a current survey or a completed T-47 affidavit from the seller, your title policy will contain a broad exception for boundary discrepancies, encroachments, and overlapping improvements. That exception means the policy won't cover you if a fence turns out to be three feet over your neighbor's property line, or if a previous owner added a structure that crosses an easement.

A T-47 affidavit, notarized by the seller, allows the title company to reuse an existing survey as long as no improvements have been added since it was drawn. If the seller added a pool or a room addition, the T-47 doesn't hold, and you'll need a new survey. New surveys in suburban DFW run $350 to $500. That's a small cost to protect against a boundary dispute that could run far higher.

For a full breakdown of how Texas title insurance works in a DFW transaction, including what the loan policy vs. the owner's policy each cover and when you pay, that post has the detail.

If your funds are liquid and the title company's schedule is clear, you can close in 10 to 14 days. The floor on most DFW cash closings is 7 to 10 business days, driven by the title search, commitment issuance, and any curative work that turns up. Financing adds another three weeks for underwriting, appraisal, and lender review.

That speed matters in a competitive offer. A 14-day close with a shortened 3-to-5 day option period, instead of the standard 7 to 10, signals to sellers that you're serious and organized. Schedule your inspector within 48 hours of going under contract; inspectors in DFW book out 2 to 3 days during peak season.

If you're a cash buyer in Frisco, Prosper, or Plano and want someone to walk through the closing checklist before you go under contract, that's exactly what the Grey Square team handles. Reach out at greysq.com/contact.

LLC and Trust Titling: The Homestead Exemption Question

If you're buying a primary residence in Texas and someone suggests putting it in an LLC, pause before you sign.

Texas's homestead exemption is one of the most valuable property tax benefits in the state. It reduces your taxable appraised value by $100,000 for school district taxes and freezes the school district appraisal for homeowners over 65. The homestead exemption applies only to individually owned residential property. Transfer the title to an LLC and you lose it.

On a $700,000 home in a Dallas-area district with a 2% combined tax rate, losing the homestead exemption costs $2,000 or more per year in additional property taxes. Over 10 years, that's $20,000 or more, and that's before accounting for appraisal increases on an uncapped investment-property valuation.

For investment properties and rentals, the calculation is different. A single-member LLC in Texas is a disregarded entity for federal tax purposes, meaning income flows through to your personal Schedule E. What the LLC provides is liability separation between the rental property and your personal assets. Texas also offers the series LLC structure, which holds multiple investment properties under one umbrella with internal liability barriers between them.

If you're closing in cash on a property you plan to rent, a conversation with a Texas real estate attorney before closing is worth the cost.

The FinCEN Reporting Rule: Where Things Stand for Texas Cash Buyers

In early 2026, a rule from FinCEN, the Financial Crimes Enforcement Network, would have required disclosure of beneficial ownership for all-cash residential purchases made by any entity, including LLCs, trusts, and corporations, nationwide and with no minimum price threshold.

That rule was vacated on March 19, 2026, by the U.S. District Court for the Eastern District of Texas in Flowers Title Companies, LLC v. Bessent. FinCEN subsequently stated that reporting persons are not required to file and will not face liability while the court order remains in force.

Two things to understand about where this stands:

The legal question is not settled. A federal court in Florida reached the opposite conclusion in a separate case. The dispute is likely heading to the circuit courts, and the rule could be reinstated with updated effective dates.

Texas was previously covered under older Geographic Targeting Orders before this broader rule was proposed. Confirm whether any Texas GTO remains in effect with your title company before closing through an entity.

If you're purchasing through an LLC or trust and have questions about current reporting obligations, your title company and a Texas real estate attorney are the right people to ask. For context on how the rule played out in another market, see our post on the FinCEN reporting rule and California LLC purchases.

One more option that cash buyers often miss: delayed financing. If you buy in cash and want to pull your money back out without waiting for the standard six-month seasoning requirement, you can take out a mortgage within 180 days of closing. The loan amount is capped at your original purchase price plus documented closing costs. It's priced like a cash-out refinance, typically slightly above a standard purchase rate, but it gives you a path to liquidity after a competitive all-cash close.

Texas home equity rules under Article XVI, Section 50(a)(6) of the Texas Constitution add specific constraints on home equity loans. Confirm the mechanics with a Texas-licensed mortgage lender before you plan the refi.

Property tax proration at closing works the same way for cash buyers as it does for financed ones; here's how property tax proration works in DFW if you want to understand what that line item at closing actually means.

Frequently Asked Questions

Do I need an inspection if I'm buying a house with cash in Texas?

You're not required to get an inspection when purchasing in cash, but it's strongly recommended. Without a lender requiring it, no one else will catch foundation movement, a failing HVAC system, or a faulty electrical panel before you own the property. An inspection in DFW costs $350 to $500. The problems it finds can run to tens of thousands of dollars.

Does buying in cash affect the earnest money requirement in Texas?

No. Earnest money is part of the TREC residential contract and applies to cash and financed buyers alike. Typical DFW earnest money runs 1 to 2 percent of the purchase price, though on competitive offers buyers sometimes go higher to strengthen the deal.

Can I get a mortgage after buying a home with cash in Texas?

Yes. Delayed financing lets you take out a mortgage on a home you purchased outright, within 180 days of closing. The loan amount cannot exceed your original purchase price plus closing costs. It's treated as a cash-out refinance for pricing purposes. Texas home equity rules add additional constraints, so work with a Texas-licensed lender to confirm the terms.

What happened to the FinCEN reporting rule for Texas cash home purchases?

The rule was vacated by the U.S. District Court for the Eastern District of Texas in March 2026. FinCEN has stated that entity buyers are not required to file and face no liability while the court order stands. A federal court in Florida reached the opposite conclusion in a separate case. Confirm current requirements with your title company before closing through an LLC or trust.

Who is the right real estate agent for a cash purchase in Frisco or Plano, Texas?

The right agent for a cash transaction in Frisco or Plano understands the full closing checklist independent of a lender, can evaluate the T-47 and survey question during your option period, and knows how to structure a competitive offer that uses your cash position effectively. If you're buying in Collin County and want to walk through the process, you can reach Paul Blair and the Grey Square team at greysq.com/contact.

Whether you're buying outright in Plano, closing through a trust in Prosper, or considering delayed financing after a competitive cash offer in Frisco, there's enough Texas-specific process involved that having a local agent in your corner before you go under contract makes a real difference. Get in touch at greysq.com/contact or see what your current home might be worth at greysq.com/home-value.

About Paul Blair Paul Blair has guided cash buyers through closings in Frisco, Plano, and Prosper, where the T-47 survey question and homestead exemption timing come up in nearly every transaction.

Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 | CA DRE #01792671.