How Much Do You Need for a Down Payment in Texas? (2026 Guide)

How Much Do You Need for a Down Payment in Texas? (2026 Guide)
One of the first questions every Texas homebuyer asks is: how much do I need for a down payment?
The short answer might surprise you — it could be a lot less than you think. Depending on your loan type, income, and military status, you may be able to buy a home in Texas with as little as 0% down. Even buyers who need to put something down have options starting at just 3%.
Here’s everything you need to know about down payments in Texas in 2026.

The Quick Answer: Down Payment Requirements by Loan Type
Loan TypeMinimum Down PaymentWho It’s Best ForVA Loan0%Veterans, active duty, surviving spousesUSDA Loan0%Buyers in rural/suburban Texas areasFHA Loan3.5% (580+ credit)First-time buyers, lower credit scoresConventional3–5% (with programs)Buyers with good creditConventional (standard)20%Buyers who want to avoid PMI
The right loan for you depends on your situation — and that’s exactly where working with an independent mortgage broker pays off. We can compare all of these options with one application.

Mortgage Broker vs. Bank: Which Is Better for Texas Homebuyers?

0% Down Payment Options in Texas
VA Loans — The Best Deal in Mortgage Lending
If you’re a veteran, active duty service member, or surviving spouse, the VA loan is almost always your best option. There is no down payment required, no private mortgage insurance (PMI), and VA loans consistently offer some of the lowest interest rates available.
Texas has one of the largest veteran populations in the country — especially in San Antonio, Killeen, and the Dallas-Fort Worth area. If you qualify, there’s rarely a reason not to use your VA benefit.
VA loan eligibility requirements:

90 days of active duty service during wartime, OR
181 days of active duty during peacetime, OR
6 years of service in the National Guard or Reserves
Surviving spouses of veterans who died in service may also qualify

The savings add up fast. On a $400,000 home, skipping a 20% down payment saves you $80,000 upfront — and no PMI saves you $150–200 per month on top of that.
Learn more about VA home loans in Texas
USDA Loans — 0% Down for Rural Texas
USDA loans are one of the best-kept secrets in Texas home buying. If you’re purchasing in a qualifying rural or suburban area, you may be able to buy with no down payment at all.
More areas qualify than most people expect — including many communities surrounding Austin, Houston, Dallas, and San Antonio. Parts of Bastrop, Hays, Caldwell, Montgomery, Kaufman, and Parker counties may all qualify.
USDA requirements:

Property must be in a USDA-eligible area (we can check this for you instantly)
Household income must be within USDA limits for your county
Must be your primary residence
Credit score of 640+ preferred

Learn more about USDA home loans in Texas

Low Down Payment Options in Texas
FHA Loans — 3.5% Down for First-Time Buyers
FHA loans are insured by the Federal Housing Administration and are one of the most popular options for first-time homebuyers in Texas. With just 3.5% down and flexible credit requirements, they open the door to homeownership for buyers who might not qualify for conventional financing.
FHA requirements in Texas:

Minimum 3.5% down payment with a credit score of 580+
10% down payment if credit score is between 500–579
FHA loan limits in most Texas counties: up to $524,225 for a single-family home
Must be your primary residence

On a $350,000 home, a 3.5% down payment is $12,250 — significantly more achievable than a 20% down payment of $70,000.
Learn more about FHA home loans in Texas
Conventional Loans — As Low as 3% Down
Many buyers assume you need 20% down for a conventional loan. That hasn’t been true for years. Programs like Fannie Mae’s HomeReady and Freddie Mac’s Home Possible allow down payments as low as 3% for buyers who meet income requirements.
Conventional loan highlights:

3% down with HomeReady or Home Possible programs
5% down standard
20% down to avoid PMI (private mortgage insurance)
Conventional loan limits up to $832,750 in Texas for 2026
Best rates for buyers with 740+ credit scores

The trade-off with less than 20% down on a conventional loan is PMI — typically $50–200/month added to your payment until you reach 20% equity.
Learn more about conventional home loans in Texas

Texas Down Payment Assistance Programs
Texas has several programs designed to help buyers cover their down payment — including grants that never have to be repaid.
TSAHC — Texas State Affordable Housing Corporation
TSAHC offers down payment assistance of up to 5% of the loan amount as either a grant (free money, no repayment) or a forgivable loan wiped clean after three years. Available statewide for both first-time and repeat buyers who meet income limits.
Homeownership Across Texas (HAT)
The HAT program provides grants of 5% of the loan amount for VA, FHA, and USDA loans, and 3% for conventional loans. No repayment required. Income limits apply.
TDHCA — Texas Department of Housing and Community Affairs
TDHCA offers below-market interest rate loans combined with down payment and closing cost assistance. Available through approved lenders including Texas Mortgage Consultants.
Important: Many buyers who qualify for down payment assistance don’t know they qualify. A mortgage broker who specializes in Texas loans can identify which programs you’re eligible for and stack them with your loan for maximum savings.

How Much Should You Actually Put Down?
The right down payment isn’t always the minimum. Here’s how to think about it:
Put less down if:

You have limited savings and need to keep cash reserves
You qualify for 0% down (VA or USDA) — take it
You can use down payment assistance to cover the gap
Mortgage rates are low enough that investing extra cash elsewhere makes more sense

Put more down if:

You want to avoid PMI on a conventional loan (need 20%)
You want a lower monthly payment
You’re buying in a competitive market and want a stronger offer
You have significant savings beyond what you’d use for the down payment

The most important thing: Don’t drain your emergency fund to make a larger down payment. Lenders want to see that you have reserves after closing — typically 2-3 months of mortgage payments in savings.

Beyond the Down Payment — Closing Costs
One thing many Texas buyers forget to budget for is closing costs — typically 2–5% of the loan amount on top of the down payment.
On a $400,000 home, closing costs might run $8,000–$20,000 depending on your loan type, lender, and negotiations with the seller.
Ways to reduce closing costs in Texas:

Ask the seller to contribute toward closing costs (seller concessions)
Use down payment assistance programs that cover closing costs too
Compare lenders — closing costs vary significantly
Roll closing costs into the loan in some cases

As your mortgage broker, we help you structure your offer and loan to minimize out-of-pocket costs at closing.

How It Works With Texas Mortgage Consultants

Free consultation — tell us your budget, timeline, and how much you have saved
We identify your options — which loan types you qualify for, whether you’re eligible for down payment assistance, and what your total out-of-pocket costs would be
Pre-approval in 24–48 hours — you’ll know exactly what you can afford before you start shopping
Rate shopping — we compare rates across 40+ wholesale lenders to find your best deal
Closing — we stay involved through closing day

No obligation, no upfront cost.
Get Pre-Approved Today →

FAQ
Can I buy a house in Texas with no money down?
Yes — if you qualify for a VA loan (veterans and active duty military) or a USDA loan (rural and suburban areas), you can purchase with 0% down. Down payment assistance programs can also cover the required down payment for FHA and conventional loans, effectively getting you to $0 out of pocket in some cases.
What is the minimum down payment for a first-time buyer in Texas?
FHA loans require just 3.5% down with a 580+ credit score. With Texas down payment assistance programs like TSAHC, that 3.5% can be covered by a grant — meaning some first-time buyers pay nothing out of pocket for their down payment.
Do I need 20% down to buy a house in Texas?
No. 20% down eliminates private mortgage insurance (PMI) on conventional loans, but it is not required. Most Texas homebuyers put down 3–5%, and veterans can buy with 0% down using a VA loan.
How much are closing costs in Texas?
Closing costs in Texas typically run 2–5% of the loan amount. On a $350,000 home, expect $7,000–$17,500 in closing costs. These can sometimes be covered by seller concessions or down payment assistance programs.
How do I find out if I qualify for down payment assistance in Texas?
Contact us — we’ll review your income, credit, and location to identify every program you qualify for. Many Texas buyers are eligible for assistance they don’t know about.

Ready to Find Out How Little You Need to Buy a Home in Texas?
Every buyer’s situation is different. The best way to know your exact down payment requirement is to talk with a Texas mortgage broker who can review your full picture — credit, income, savings, and location — and match you with the right loan program.
Texas Mortgage Consultants, PLLC
Russell Stout | NMLS #220896
📞 (512) 423-4663
📧 rstout@texasmortgageconsultants.com
Get Your Free Pre-Approval →