Dreaming of a lake escape that is close enough for spontaneous weekends but feels a world away from city rush? If you are eyeing Lake Texoma on the Grayson County, Texas side, you are not alone. Buyers come for the water, the space, and the flexibility to gather family or generate rental income. In this guide, you will get clear, practical steps to choose the right property type, understand shoreline and dock rules, plan for utilities and insurance, and navigate taxes, STRs, and financing. Let’s dive in.
Why Lake Texoma fits second homes
Lake Texoma offers big-water boating and fishing with a range of homes, from cozy cabins to upscale waterfront. Many buyers come from the Dallas–Fort Worth area because most of the lake is about 60 to 90 miles away, which means a 1.5 to 2 hour drive depending on where you land. That distance keeps your second home accessible for frequent trips.
You will find a mix of buyer goals here. Some want a simple weekend retreat. Others seek a lower-maintenance spot for retirement. Investors look to capture seasonal short-term rental demand. Whatever your aim, knowing how property type, location, and rules affect use and costs will help you buy with confidence.
Seasonal rhythms shape this market. Interest often rises in spring and summer when the water calls. Inventory for true waterfront homes is typically tighter than inland options. That scarcity can affect pricing and resale, so it pays to do your homework early.
Property types in Grayson County
Waterfront homes
Waterfront homes give you direct access to the lake and often the strongest lifestyle draw. Construction style and age can vary widely. Before you assume dock rights, make sure you verify shoreline boundaries, easements, and permits. Water-level shifts are part of reservoir life, so think about dock design, placement, and seasonal usability.
Off-lake and in-town homes
Homes in nearby towns or just off the water can be easier to maintain and may offer municipal water and sewer. These properties typically reduce flood exposure and often sit on public, paved roads. You can still access marinas, ramps, and parks while trading direct frontage for simpler upkeep.
Cabins and weekend cottages
Smaller cabins and rustic cottages offer low-key retreats with less to maintain. Many rely on wells and septic. If that is your plan, budget for inspections, water testing, and routine septic maintenance.
Vacant lots and hilltop parcels
Buying land to build a custom lake house is common. You will want a current survey, topo clarity, and geotechnical insight if the lot is sloped. Slope stability, erosion control, and foundation design are real considerations around a large reservoir.
Gated and HOA communities
Private and planned communities may offer shared amenities such as marinas, boat slips, and common-area maintenance. Expect HOA covenants, architectural guidelines, and fees. Some HOAs restrict short-term rentals or limit parking, trailers, and exterior changes, so read the documents closely.
Shoreline, docks, and permits
Lake Texoma is managed by the U.S. Army Corps of Engineers. Private owners typically hold property up to a defined boundary, but the shoreline itself is federally managed. That means docks, boathouses, seawalls, and shoreline stabilization often require permits from the appropriate agencies.
Do not assume you can add or enlarge a dock. Confirm what is allowed for the specific lot, including setbacks, easements, and any prior permit history. If a dock exists, review maintenance obligations and transferability. Start early if you plan changes, since permits can take time.
Reservoirs experience water-level fluctuations. Docks that work at summer pool may sit high or low in other seasons. Consider adjustable systems, access steps, and safe anchoring. Shoreline erosion control can be subject to review, so factor that into your budget and timeline.
Access, roads, and utilities
Road access varies by neighborhood. Some waterfront streets are paved and public. Others are private or unpaved, which may require a road maintenance agreement. The US‑75 corridor is the main regional route serving Sherman and Denison, and it connects you back to DFW.
Utilities differ across communities:
- Water: Some areas have municipal water. Many rural properties use private wells.
- Sewer: Towns may have sewer service. Septic systems are common in lakeside subdivisions.
- Electricity: Service is available from regional utilities or co‑ops. Check if lines are overhead or underground and whether extension costs apply.
- Internet/cell: Coverage can be spotty in some coves and rural pockets. Confirm speeds and providers if you plan to work or stream.
Before you close, line up inspections: a general home inspection plus targeted looks at foundations, roofs, HVAC, and any marine structures. If the property has a septic system, book a septic inspection and confirm permitting and capacity. If it has a well, test both potability and flow rate. Order a survey that clearly shows waterfront boundaries, easements, and access routes.
Flood risk and insurance
Use FEMA flood maps to check whether the property falls in a Special Flood Hazard Area. If a lender is involved and the home is in an SFHA, flood insurance will be required. Even if it is not required, it can be a smart coverage layer for lake-adjacent homes.
Expect homeowners insurance premiums for lakeside properties to be higher than for inland homes. Standard policies typically do not include flood coverage. If you plan to operate a short-term rental, you may need a specialized policy because standard homeowner policies often exclude business or STR activity. Ask about liability coverage for guests, docks, and watercraft.
Short-term rentals on the Texas side
Short-term rental rules vary by city, county, and HOA. You should confirm local ordinances for places like Pottsboro, Denison, or Sherman, then cross-check HOA covenants if you are in a governed community. If you rent, you may owe state sales tax and local occupancy or lodging taxes. Registration and compliance are essential.
Seasonal demand tends to peak in late spring and summer, with softer shoulder seasons. Gross revenue can look strong in peak months, but factor in utilities, cleaning, yard and dock upkeep, furnishing, higher insurance, and management fees. Conservative modeling helps you avoid surprises.
Financing a Lake Texoma second home
Lenders usually treat a second home differently than a primary residence. Minimum down payments are often higher, commonly in the 10 to 20 percent range, and you may need to show stronger reserves. Investment properties and homes intended for STR use often require even larger down payments and different loan products.
Appraisals can be challenging for unique lake properties with fewer direct comparables. Build time into your contract for appraisal and potential reconsideration of value. VA loans are generally for primary residences, so confirm eligibility with your lender if you are exploring that path.
Taxes and ongoing costs
Texas has no state income tax, which is relevant for out-of-state buyers. Property tax is a significant annual expense. Second homes generally do not qualify for Texas homestead exemptions, so plan your budget accordingly.
If you operate an STR, be prepared for state sales tax and any local occupancy or lodging taxes. Keep records, register where required, and remit on time. Beyond taxes and insurance, ongoing costs can include septic pumping, dock inspection and maintenance, shoreline care, HOA dues, and seasonal landscaping.
Lifestyle, marinas, and services
Lake Texoma is known for powerboating, sailing, and jet-skiing, with a strong fishing reputation that includes striped bass. Public boat ramps and a network of marinas provide fuel, slips, and service, though slip availability can change with the season and some locations keep waiting lists. If a slip is essential, check policies early.
You will find groceries, hardware, and dining in lakeside towns like Pottsboro and Denison. Larger retail and hospital services are concentrated in the Sherman and Denison area. For specialty care, the Dallas–Fort Worth metroplex is within a reasonable drive.
Due diligence checklist
Work through these items before you make an offer and during your contingency period:
- Title and survey that confirm shoreline boundaries, easements, and any riparian access claims.
- Dock and shoreline: existing permit history, condition, ownership, and steps for any new or replacement dock.
- Flood risk: FEMA flood maps and written quotes for flood insurance if needed.
- Septic and well: inspections, permits, capacity, water testing, and compliance with county health regulations.
- General home inspection: structure, roof, HVAC, pest, moisture, and any lake-specific concerns like seawalls.
- HOA documents: covenants, architectural rules, STR restrictions, financials, and pending assessments.
- STR compliance: city or county rules, registrations, and applicable taxes.
- Utilities: current providers, service quality, and any extension fees.
- Access: road type, private road agreements, gates, and maintenance responsibilities.
- Marina access: slip policies, fees, and waitlist status if relevant.
Smart buying tips
- Start permits and flood insurance research early. Both can take weeks.
- Visit the property in multiple seasons to understand lake levels, access, and neighborhood activity.
- Use local specialists. A lake-experienced agent, surveyor, inspector, and marine contractor can save time and money.
- If you plan an STR, model income conservatively and include higher insurance, utilities, management, and repairs.
Work with local guidance you can trust
Buying a lake home is part lifestyle and part logistics. You want clear answers on docks, utilities, STRs, insurance, and long-term costs. Our boutique team combines deep North Texas lake knowledge with hands-on service to help you compare communities, navigate rules, and close smoothly. Ready to explore the Grayson County side of Lake Texoma with a trusted local guide? Connect with Lake & Country Realty® today.
FAQs
Can I build a dock on Lake Texoma if I buy a waterfront home?
- Dock construction and replacement typically require permits, and you must confirm shoreline boundaries, setbacks, easements, and agency approvals for the specific lot before you buy.
Do I need flood insurance for a Lake Texoma second home?
- If your home is in a FEMA Special Flood Hazard Area and you use a lender, flood insurance will be required; even outside high-risk zones, separate flood coverage can be a smart safeguard.
Are short-term rentals allowed on the Texas side of Lake Texoma?
- Rules vary by city, county, and HOA, so verify local ordinances and your HOA covenants, and plan for state sales tax and any local occupancy taxes if you operate an STR.
How are utilities handled for lakefront homes near Pottsboro or Denison?
- Some neighborhoods have municipal water and sewer, but many lakeside homes use private wells and septic systems, which require inspections, testing, and routine maintenance.
What is the typical drive time from Dallas to Lake Texoma?
- Many areas of Lake Texoma are roughly 60 to 90 miles from Dallas, often a 1.5 to 2 hour drive depending on the exact location and traffic.
How do lenders finance a Lake Texoma second home or STR?
- Second homes often require 10 to 20 percent down and strong reserves, while investment or STR properties may need larger down payments and different loan products with stricter underwriting.
Who manages shoreline and dock rules on the Grayson County side?
- The U.S. Army Corps of Engineers oversees the shoreline, and local, state, and HOA rules may also apply, so verify permits and policies for your specific property.
What ongoing costs should I budget for a Lake Texoma vacation home?
- Plan for property taxes, homeowners and flood insurance, septic pumping, dock upkeep, shoreline care, utilities, landscaping, and any HOA dues, plus STR compliance costs if you rent.
