Ken Paxton Accused of Misrepresenting Homes for Mortgage Benefits

Texas Attorney General Ken Paxton and his wife, State Senator Angela Paxton, listed three different Texas homes as their primary residence in mortgage documents, a move that could have given them access to better loan terms and tax breaks, according to public records.

The potential misrepresentation involves homes in McKinney and Austin. The couple has resided in a home in McKinney valued at over $1 million, according to voter registration records. That property lies within the Senate district Angela Paxton represents and was previously represented by Ken Paxton before he became attorney general in 2014.

However, the Paxtons also hold mortgages on two Austin homes, each of which they declared as a primary residence in loan paperwork. Online listings indicate those homes are being rented out. Paxton’s financial disclosure forms show rental income from two Austin sources.

Properties used as rentals are typically classified as investment properties, which come with stricter lending standards. Mis-stating a property's intended use on a mortgage document can constitute fraud under state and federal law, though such cases are often difficult to prosecute.

“You have to show they actively knew they were lying, and they knew what they were doing,” said James C. Spindler, a corporate and securities law professor at the University of Texas at Austin.

Tax records show the couple also claimed homestead exemptions, which reduce the taxable value of a home on two properties at once. They have claimed an exemption on their McKinney home since purchasing it.

These developments follow two major personal and political announcements. Angela Paxton filed for divorce in early July, citing adultery, and Ken Paxton announced plans to challenge Sen. John Cornyn in the 2026 Republican primary.

Cornyn’s campaign criticized Paxton.

“At a time when millions of Americans are fighting to survive under high home mortgage rates, Ken Paxton lied to banks to amass a property empire making him a multimillionaire while on a government salary,” said senior adviser Matt Mackowiak.

The Paxtons have previously faced scrutiny over real estate. In 2022, Ken Paxton purchased a $1.6 million home in Broken Bow, Oklahoma, declaring it a second home in mortgage documents. That home has been listed for rent.

Another property in College Station, labeled a secondary home when purchased, has been rented multiple times since 2015, according to Zillow listings.

It remains unclear whether any violations occurred or whether any investigation is underway.