Texas down payments range from 3% to 20% of the home price, depending on the loan type and lender

There is no single down payment requirement for buying a house in Texas. What you need depends on which loan program you use — a conventional loan from a bank, an FHA loan backed by the federal government, a VA loan if you served in the military, or a USDA loan if you are buying in a rural area. Each program has its own rules about how much cash you must put down before the lender will fund the rest.

The down payment is the money you bring to the closing table. The lender then finances the remainder through a mortgage — a loan secured by the house itself. A larger down payment means you borrow less, pay less interest over time, and often get better interest rates. A smaller down payment means lower upfront costs but higher monthly payments and sometimes additional fees.

Texas itself does not set down payment rules. State law allows you to buy with as little as 3% down on a conventional loan, but individual lenders may require more. The real limits come from the loan program you choose and the lender's own policies.

Key Takeaways

  • Conventional loans typically require 3% to 20% down, with 20% avoiding mortgage insurance fees that add to your monthly payment.
  • FHA loans allow down payments as low as 3.5%, making them common for first-time buyers, but require mortgage insurance for the life of the loan if you put down less than 10%.
  • VA loans and USDA loans may allow 0% down if you meet the program requirements, but not all Texas properties or sellers accept these loans.
  • Your credit score, income, and the property location all affect which down payment amounts a lender will actually offer you.
  • Down payment size directly changes your monthly payment, interest rate, and whether you pay mortgage insurance — so comparing loan types matters more than the down payment percentage alone.

Conventional loans: 3% to 20% down

A conventional loan is a mortgage that is not backed by any government agency. The lender — usually a bank, credit union, or mortgage company — takes the risk if you stop paying. Because of that risk, conventional lenders set their own rules about down payments.

Most conventional lenders in Texas will accept 3% down, though some require 5% or more. The trade-off is clear: put down less than 20%, and you will pay private mortgage insurance (PMI), a monthly fee that protects the lender if you default. PMI typically costs 0.5% to 1% of the loan amount per year, split into monthly payments added to your mortgage bill. Once you have paid down the loan to 80% of the original home price, you can request to stop paying PMI.

If you can put down 20%, you avoid PMI entirely and usually get the best interest rate the lender offers. The catch is that 20% of a $300,000 house is $60,000 — a sum many buyers do not have saved. For that reason, most Texas homebuyers put down 5% to 10% and accept PMI as a cost of buying sooner.

FHA loans: 3.5% down with mortgage insurance built in

An FHA loan is backed by the Federal Housing Administration, a government agency. Because the government guarantees the loan, lenders can offer much lower down payments — as little as 3.5% in Texas. FHA loans are popular with first-time buyers and people with lower credit scores, because FHA lenders are more flexible on both.

The trade-off is that FHA loans require mortgage insurance premiums (MIP) — similar to PMI but required by federal rule. You pay an upfront MIP at closing (usually 1.75% of the loan amount) and then a monthly MIP for as long as you hold the loan. If you put down less than 10%, you cannot remove the monthly MIP even after you have paid down the loan. If you put down 10% or more, the monthly MIP drops off after 11 years.

For a buyer with limited savings, an FHA loan with 3.5% down can be the only realistic path to homeownership. The total cost — upfront MIP plus monthly MIP — is higher than a conventional loan with 20% down, but lower than a conventional loan with 3% down and PMI, depending on the interest rate and loan term.

VA loans and USDA loans: 0% down if you may have access to

If you served in the military, a VA loan may allow you to buy a house in Texas with 0% down. The Department of Veterans Affairs guarantees the loan, so lenders do not require a down payment. You will pay a one-time VA funding fee (usually 2.3% of the loan amount for first-time users) either at closing or rolled into the loan balance.

USDA loans work similarly for rural properties. If you are buying in a USDA-may be able to access area outside Texas cities and suburbs, you may may have access to for 0% down through the U.S. Department of Agriculture. USDA loans require an upfront may provide fee and annual mortgage insurance, but no down payment.

The catch with both programs is that not all sellers accept them. Some sellers prefer conventional offers because VA and USDA loans involve more paperwork and longer closing timelines. Additionally, not all properties may have access to — the house must meet condition and location standards set by each program.

What affects how much down payment you can actually put down

Your down payment options depend on more than just the loan type. Lenders also look at your credit score, income, debt, and the property itself. A buyer with a 750 credit score and stable income may get approved for 3% down on a conventional loan, while a buyer with a 620 score may need 10% or be steered toward an FHA loan instead.

The property location and type also matter. Some lenders will not finance condos or investment properties with low down payments. Rural properties may only may have access to for USDA loans. New construction sometimes has different rules than existing homes.

The price of the home relative to the neighborhood also affects approval. If you are buying a house that is priced well below comparable homes in the area, lenders may worry about resale value and require a larger down payment to protect themselves.

How down payment size changes your total cost

A larger down payment lowers your monthly payment and total interest paid, but it also delays homeownership and ties up cash you might need for emergencies or repairs. A smaller down payment gets you into a home faster but costs more over time.

Consider a $300,000 house in Texas with a 30-year mortgage at 7% interest. With 20% down ($60,000), your monthly payment is roughly $1,260 plus property taxes and insurance. With 5% down ($15,000), your monthly payment is roughly $1,680 plus PMI of about $150 to $200 per month — a difference of $570 to $620 per month. Over five years, that is $34,200 to $37,200 more in payments, but you kept $45,000 in cash for other needs.

The math changes if interest rates shift or if you plan to stay in the house for decades. A mortgage calculator specific to Texas rates and your situation will show you the real numbers for your scenario.

Down payment information and grant programs in Texas

Several Texas cities and nonprofits offer down payment help to first-time buyers and people with lower incomes. These programs may provide grants (money you do not repay) or second mortgages (loans with favorable terms). The availability and rules vary widely by city and county.

Common sources include your city or county housing authority, nonprofit community development organizations, and employer-sponsored programs if you work for a large company or government agency. Some programs are tied to specific neighborhoods or property types. Others require you to complete a homebuyer education course before you can use them.

The best starting point is to contact your city or county housing authority or search the Texas Housing and Community Affairs Department website for programs in your area. Many programs have income limits and other requirements, so early research can save time later.

Frequently Asked Questions

Can I buy a house in Texas with no money down?

Yes, if you may have access to for a VA loan or USDA loan. VA loans require military service and a valid Certificate of may be able to access. USDA loans require the property to be in a rural area and your income to fall below the area limit. Both programs charge upfront and ongoing fees instead of a down payment.

What is the minimum down payment most Texas lenders will accept?

Most conventional lenders accept 3% down, and FHA lenders accept 3.5% down. Some lenders require 5% or more depending on your credit score and income. Ask multiple lenders what they will offer you before deciding.

Does Texas have a state down payment requirement?

No. Texas law does not set a minimum down payment. Individual lenders and loan programs set their own rules. The loan type you choose — conventional, FHA, VA, or USDA — determines your down payment options.

If I put down less than 20%, when can I stop paying PMI?

On a conventional loan, you can request to remove PMI once you have paid the loan down to 80% of the original home value. On an FHA loan with less than 10% down, you cannot remove the monthly mortgage insurance — it lasts the life of the loan.

Should I save for a larger down payment or buy sooner with a smaller one?

That depends on your situation. Buying sooner locks in a home price and builds equity instead of paying rent, but costs more per month. Waiting to save more reduces monthly costs and total interest. A mortgage calculator and a conversation with a lender about your specific numbers will show which path makes sense for you.