Low & Zero Down Payment Mortgage Options in Texas
You do not need 20% down to buy a home. Depending on eligibility, Texas buyers may have low down payment options through conventional, FHA, VA or USDA loans, plus state and local down-payment-assistance programs.
How little can you put down on a Texas home?
Eligible conventional and FHA loans can allow a low down payment, and eligible VA and USDA loans may not require one. Down-payment-assistance programs can reduce the cash a borrower contributes, but each program has its own income, credit, property and repayment rules.
See what different down payments look like
This simple calculator shows down payment and base loan amount before financed fees, mortgage insurance, closing costs or assistance.
Choose a percent to see your down payment and loan amount.
This is not cash-to-close. Closing costs, prepaid items, mortgage insurance/funding/guarantee fees, credits and assistance affect the final figures.
Low-down-payment mortgage options
| Program | Down payment needed | Good starting fit |
|---|---|---|
| Conventional | Low down payment | Eligible owner-occupied buyers who fit Fannie/Freddie high-LTV rules; PMI typically applies. |
| FHA | Low down payment | Buyers who benefit from FHA's credit/DTI flexibility and accept FHA mortgage insurance. |
| VA | May not require a down payment | Eligible Veterans, service members and qualifying surviving spouses; no monthly PMI. |
| USDA Guaranteed | May not require a down payment | Income-eligible households buying eligible primary residences in USDA-eligible rural areas. |
| Texas DPA | Varies | Eligible buyers who need help with down payment or closing costs and understand the assistance terms. |
Low down payment conventional mortgages
High-LTV conventional
Fannie Mae permits eligible high-LTV purchase transactions, subject to its transaction and underwriting requirements.
HomeReady / Home Possible
Income-targeted conventional programs can allow a low down payment with flexible eligible funding sources and program-specific benefits.
HomeOne
Freddie Mac HomeOne provides a low-down-payment option for qualified first-time homebuyers without the same income-limit structure as Home Possible.
FHA low down payment
HUD-insured FHA loans allow a low down payment for eligible buyers. FHA can be a strong option for borrowers who benefit from government-insured underwriting flexibility.
FHA does include upfront and annual mortgage-insurance costs, so it should be compared with conventional rather than assumed to be cheaper simply because the down payment is low.
Explore FHA home loansLow down payment does not equal low reserves
Putting less down can preserve emergency savings, which can be a feature—not a weakness. The right amount down should leave the buyer with a comfortable post-closing financial cushion.
VA and USDA may not require a down payment for eligible buyers
VA home loan
Eligible VA borrowers can often purchase with no VA-required down payment and no monthly PMI when the transaction meets VA requirements.
VA loans in TexasUSDA Guaranteed
Eligible households can receive 100% financing for eligible primary residences in qualifying rural areas, subject to household-income and property rules.
USDA loans in TexasDown payment assistance in Texas
Texas has statewide and local assistance programs. Two major statewide sources are the Texas State Affordable Housing Corporation (TSAHC) and Texas Department of Housing and Community Affairs (TDHCA).
TSAHC programs
TSAHC offers eligible homebuyers fixed-rate mortgage options, down-payment assistance and Mortgage Credit Certificate-related programs under current program rules.
TDHCA Texas Homebuyer Program
TDHCA's My First Texas Home targets eligible first-time buyers, while My Choice Texas Home can serve eligible repeat buyers. Current programs can pair a first mortgage with down-payment and closing-cost assistance.
Assistance is not automatically “free money.” Some DPA structures are grants, while others can be forgivable, deferred or repayable liens. First-mortgage pricing can also differ. We compare the assistance option against financing without DPA.
What else do you need besides the down payment?
Closing costs
Lender, title, appraisal and other transaction charges.
Prepaid items
Homeowners insurance, taxes, interim interest and initial escrow funding when applicable.
Earnest / option money
Contract deposits may be credited back toward cash needed at closing when properly documented.
Reserves
Money left after closing matters for both qualification in some files and real-life homeownership stability.
We compare low-down options side by side
Guarantee Mortgage, LLC
Company NMLS #279696
Instead of steering every buyer into one assistance program, we compare down payment, payment, mortgage insurance, seller credits, available DPA, cash to close and likely time in the loan.
Low & zero down payment FAQs
Do I need 20% down to buy a home?
No. Many owner-occupied mortgage programs allow substantially less than 20% down. Depending on eligibility, options can include conventional, FHA, VA and USDA loans with low or no down payment for eligible buyers.
Which conventional loans allow a low down payment?
Fannie Mae and Freddie Mac both have eligible high-LTV structures. Programs such as HomeReady, Home Possible and HomeOne have specific borrower, income, occupancy and transaction requirements.
Does FHA allow a low down payment?
HUD states that FHA purchase financing can allow a low down payment for eligible borrowers and transactions. FHA mortgage insurance and qualification requirements also apply.
Can I buy a home with no down payment in Texas?
Potentially. Eligible VA borrowers can often buy with no VA-required down payment, and USDA Guaranteed loans can provide 100% financing for eligible households and eligible rural properties. Certain assistance programs can also reduce the borrower's out-of-pocket down payment.
Is a zero-down mortgage the same as zero cash to close?
No. Even with 100% financing, there can be closing costs, prepaid taxes and insurance, escrow funding, inspections, earnest money, and other transaction expenses. Seller credits, lender credits, gifts or assistance may cover some items when allowed.
What is down payment assistance?
Down payment assistance is a grant, forgivable or repayable second lien, or other assistance structure used with an eligible first mortgage. Program terms vary, so borrowers should understand whether the assistance must be repaid and what happens on sale or refinance.
Does Texas have down payment assistance programs?
Yes. Texas programs include assistance offered through organizations such as TSAHC and TDHCA, subject to current income, purchase-price, credit, education, lender and program requirements.
Do I have to be a first-time buyer to get down payment assistance?
Not always. Some programs target first-time buyers, while others have options for repeat homebuyers. For example, TDHCA currently distinguishes My First Texas Home from My Choice Texas Home.
Is down payment assistance free money?
Not necessarily. Some assistance can be grant-based, while other options are forgivable, deferred, or repayable second liens. The interest rate and first-mortgage pricing can also differ from a no-assistance option, so compare the complete financing.
Can my family gift me the down payment?
Many conventional and government mortgage programs allow eligible gift funds from acceptable donors, subject to documentation and program rules.
Does putting less than 20% down mean I will have mortgage insurance?
Often on conventional loans, yes, private mortgage insurance may apply above 80% LTV. FHA uses its own mortgage-insurance structure. VA does not require monthly PMI, and USDA uses a guarantee-fee structure rather than conventional PMI.
Should I put more money down if I can?
Maybe, but not automatically. Compare the effect on payment, mortgage insurance, interest rate, emergency reserves, liquidity and other financial priorities. Keeping adequate reserves can be more valuable than putting every available dollar into the down payment.
What is the cheapest way to buy with a low down payment?
There is no universal winner. The lowest upfront cash option can have a different interest rate, mortgage insurance or assistance repayment structure. Compare monthly payment, cash to close and expected long-term cost.
Can Guarantee Mortgage compare assistance with a normal low-down-payment loan?
Yes. We can compare the eligible DPA structure with standard low-down-payment options and show how the rate, payment, cash to close and assistance terms differ.
Sources and program references
Mortgage guidelines change. These primary sources are included so borrowers can verify the underlying program rules.
Let us compare the low-down-payment paths for you
Tell us your target price, available funds, income and approximate credit profile. We can compare conventional, FHA, VA, USDA and applicable assistance options.
Guarantee Mortgage, LLC · Company NMLS #279696. Equal Housing Opportunity. Program availability, down-payment requirements, assistance, mortgage insurance, funding fees, income limits and credit requirements can change and depend on borrower/property eligibility. Not a commitment to lend.
