How to Buy a Home in Texas with Little to No Down Payment
One of the biggest myths about buying a home is that you need to save up a massive down payment. The truth is there are several loan options available, especially here in Texas, that allow qualified buyers to purchase a home with little to no money down.
Whether you're a first-time homebuyer, a repeat buyer, and/or a veteran, this guide will walk you through your best options and what to expect when buying a home with minimal upfront costs.
1. USDA Loans – 100% Financing in Eligible Areas - The USDA loan program is backed by the U.S. Department of Agriculture and is designed for homebuyers in rural and some suburban areas.
Key Benefits:
No down payment required
Competitive interest rates
Flexible credit guidelines
Eligibility Tip: Many areas in Central Texas qualify as USDA-eligible, including communities just outside major cities.
2. VA Loans – No Down Payment for Veterans and Active-Duty Service Members - If you’ve served in the military, you may qualify for a VA loan backed by the Department of Veterans Affairs.
Key Benefits:
No down payment required
No private mortgage insurance (PMI)
Favorable interest rates
Eligibility Tip: VA loans are available to eligible veterans, active-duty service members, and some surviving spouses.
3. FHA Loans – Low Down Payment Option for First-Time Buyers - The Federal Housing Administration (FHA) offers loans with as little as 3.5% down.
Key Benefits:
Lower credit score requirements
3.5% down payment with a 580+ credit score
Widely available through approved lenders
Down Payment Assistance: Texas offers programs like the TSAHC (Texas State Affordable Housing Corporation) that help with down payment and closing costs for FHA loans.
4. Conventional 97 Loans – Just 3% Down - For buyers who may not qualify for a government-backed loan, Conventional 97 loans allow a 3% down payment with fewer restrictions..
Key Benefits:
Low down payment
Available to first-time and some repeat buyers
Can be combined with down payment assistance
5. Down Payment Assistance (DPA) Programs in Texas - There are several state and local programs that provide grants or forgivable loans to help cover your down payment and closing costs.
Examples:
TSAHC Home Sweet Texas Loan Program
TDHCA My First Texas Home Program
Eligibility Tip: Most programs are geared toward first-time buyers and have income or credit score limits.
Is Buying with No Down Payment Right for You? While buying with little to no down payment is possible, it's important to understand the trade-offs—such as higher monthly payments or mortgage insurance. But for many, these options make homeownership far more attainable than they thought.
The best way to find out what you qualify for is to speak with a knowledgeable loan officer who can walk you through all your options and help you take advantage of programs that fit your goals. I would be happy to explain your options and answer any questions.
📞 Schedule a free 30-minute consultation with me today to explore your low and no down payment options in Texas.
#TexasHomeLoans #FirstTimeBuyer #ZeroDownMortgage #HomeBuyingHelp #BryanScottLoans
Bryan Scott
P: (512) 864-4866
E: bscott@gfmortgages.com