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How Much Down Payment for a House in Texas (2025)
- Aaron Polk | BS Economics/Mathematics + MBA Finance
- Nov 3
- 5 min read
Quick Answer (Texas 2025)
• Average down payment in Texas: 5% (first-time homebuyers: 3.5%; repeat homebuyers: 6%)
• Minimums by program: Conventional 3%–5%, FHA 3.5%, VA/USDA 0%
• On a $340,000 home, 3.5% = $11,900, 5% = $17,000
An educational guide for first-time buyers and seasoned homeowners navigating Texas mortgage options
Buying a home in Texas is a significant milestone, but the biggest hurdle for many is the down payment. With rising home prices in cities like Austin, Dallas, Houston, and San Antonio, saving 20% for a traditional loan can feel impossible. Fortunately, a significant upfront cost isn’t your only option.
This guide breaks down practical ways to secure a low-down-payment home loan in Texas, especially if you’re shopping in today’s fast-moving market. Whether you're buying your first home or your next one, this guide will show you:
How much down payment do you really need in Texas
The best low-down-payment mortgage programs available
Who qualifies for Texas FHA loans and other flexible options?
How to prepare your finances to qualify for less money upfront
Which cities and lenders offer buyer-friendly loan programs
Let’s dive into the innovative, realistic options to make homeownership more accessible.
Why Down Payments Matter (But Don’t Need to Be 20%)
Let’s bust the myth up front: You do not need 20% down to buy a home in Texas.
The 20% figure comes from avoiding private mortgage insurance (PMI), but most buyers, especially in competitive markets, don’t wait that long. According to the National Association of Realtors, the average down payment for first-time buyers is just 6%. Repeat buyers tend to put down around 17%.
With flexible loan types like FHA, USDA, and VA loans, many borrowers in Texas and Florida can put down as little as 3%–5% and, in some cases, zero down.
What’s the Average Down Payment in Texas Right Now (2025)?
Understanding your market helps you calculate realistic down payment goals. As of mid-2025:
Dallas/Fort Worth Metroplex
Median home price ~$390,000
Houston
~$330,000
San Antonio
~$310,000
Austin
~$440,000
Statewide Average
~$335,000
That means:
20% down on a $340K home = $68,000
5% down = $17,000
3.5% down (FHA minimum) = $11,900
0% down (VA/USDA eligible) = $0
Clearly, choosing the right loan program can make or break your ability to buy.
Low Down Payment Mortgage Options in Texas
Here are the most popular programs Texas buyers use to keep their down payments low:
1. FHA Loans (Federal Housing Administration)
A top choice for first-time buyers with limited savings or lower credit scores.
Minimum Down Payment: 3.5%
Minimum Credit Score: 580 (500–579 with 10% down)
Mortgage Insurance: Required (MIP)
Pros: Easier qualification, lower barrier to entry
Best For: First-time buyers or those with lower credit scores
2. Conventional Loans (With 3%–5% Down)
Surprised? Some conventional loans allow down payments as low as 3%.
Minimum Down Payment: 3% (First-time buyers), 5% (Others)
Credit Score: 620+
PMI: Required under 20% down, can be canceled later
Best For: Buyers with good credit who want flexibility
Popular programs include Fannie Mae HomeReady and Freddie Mac Home Possible, which are ideal for low- to moderate-income households.
3. VA Loans (Veterans Affairs)
Exclusive to eligible service members, veterans, and spouses.
Down Payment: 0%
Credit Score: No official minimum, but most lenders prefer 620+
Mortgage Insurance: None
Other Perks: Lower rates, limited closing costs
Best For: Qualified military borrowers
4. USDA Loans (U.S. Department of Agriculture)
Designed for rural and some suburban buyers in eligible areas of Texas.
Down Payment: 0%
Location Restriction: Must be in an eligible rural area (many in Texas qualify)
Income Limits: Yes, based on household size
Best For: Moderate-income buyers outside major metros
5. Texas State-Specific Down Payment Assistance (DPA)
Texas offers local programs that help cover part or all of your down payment:
Texas State Affordable Housing Corporation (TSAHC)
Offers down payment assistance up to 5% of the loan amount
Available with FHA, VA, USDA, and conventional loans
Must meet income and purchase price limits
Ideal for teachers, police, healthcare workers, and other professions
Texas Department of Housing and Community Affairs (TDHCA)
Local cities like Dallas, San Antonio, and Houston also offer city-specific grants or second-lien assistance programs.
How to Qualify for a Low-Down Payment Home Loan in Texas
Getting approved isn’t just about choosing the right loan; it’s about preparing your finances to match.
Here’s how to boost your chances of qualifying for low-down payment programs:
Check Your Credit Score
FHA: 500 minimum (but 580+ preferred)
Conventional: 620 minimum
Better score = better rate & easier approval
Reduce Your Debt-to-Income Ratio (DTI)
Most lenders want to see DTI under 43%
Pay down credit cards, student loans, or personal loans where possible
Budget for More Than the Down Payment
You’ll still need to cover:
Closing costs (2%–5% of purchase price)
Home inspections and appraisals
First year of insurance, taxes, HOA fees (if applicable)
Get Pre-Approved
Before you house-hunt, get pre-approved by a lender like AsertaLoans. It shows sellers you’re serious and gives you a clear budget.
Average Down Payment on a House in Texas (2025)
Here’s what your upfront cost might look like in 3 Texas metro areas using a low down payment:
How to Choose the Right Mortgage Lender in Texas
Not all mortgage lenders offer the same flexibility. Here's what to look for:
Local Experience
Texas and Florida markets are unique; choose someone who knows the landscape.
Access To Multiple Loan Types
Work with a mortgage broker (like AsertaLoans) who can compare dozens of lenders for you.
Personalized Guidance
Especially if your credit or finances aren’t perfect.
At AsertaLoans, we help people across Texas and Florida find low-down-payment loans every day, from San Antonio teachers to Miami veterans to Austin first-time buyers.
FAQs: Low Down Payment Home Loans in Texas
Can I Get A Low-Down Payment Loan If I’ve Bought Before?
Yes! While some programs are limited to first-time buyers, others, like FHA and VA, are open to repeat buyers too.
Is There A Catch With Down Payment Assistance?
Not really. Some are grants, others are forgivable second loans. Read the terms. They help make homes more affordable.
Can I Use Gift Funds For The Down Payment?
Yes. Many programs allow gifts from family or employers; ask your broker for tips on documentation.
What’s The Difference Between Mortgage Lenders And Brokers?
Lenders offer one set of products. Brokers (like AsertaLoans) shop the market for you and find the best fit.
You Don’t Need 20%, Just the Right Plan
A low down payment can make the difference between waiting and owning. With FHA loans, local programs, and expert guidance, Texas homeownership is more within reach than you think.
At AsertaLoans, we help you find the right mortgage for your life, not just a loan that looks good on paper. If you’re ready to explore low-down payment options across Texas or Florida, we’re here to help.
Ready to get pre-approved or compare low-down payment loans?
Visit www.asertaloans.com to connect with a local expert and get started today.
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