How much do I need to buy a first home in Texas?

First-time buyers in Texas can purchase with as little as 0-3.5% down depending on the loan program. FHA loans require 3.5% down, conventional loans start at 3%, VA loans require 0% for eligible veterans, and USDA loans require 0% for eligible rural properties. Down payment assistance programs can cover some or all of these costs.

What credit score do I need to buy a house in Texas for the first time?

The minimum credit score depends on the loan program. FHA requires 580 for 3.5% down, conventional has no GSE minimum (lender overlays apply), VA has no minimum, and USDA typically requires 640. First-time buyers with lower scores often have the most success with FHA or a broker who can shop multiple lenders.

What is the first step to buying a home in Texas?

The first step is getting pre-approved by a mortgage broker or lender. Pre-approval tells you exactly how much you can borrow, what your estimated payment will be, and what loan programs you qualify for. It also makes your offer stronger when you find a home.

Are there first-time home buyer programs in Texas?

Yes. Texas has several programs including TSAHC Homes for Texas Heroes (for teachers, first responders, veterans, and healthcare workers), TSAHC Home Sweet Texas (for all eligible buyers), and various city programs in Houston, Dallas, Austin, and San Antonio that provide grants or forgivable loans toward down payment and closing costs.

First-Time Home Buyer Texas | Step-by-Step Guide

The Texas Home Buying Process — Step by Step

Here is the entire process from start to keys in hand. Understanding each step removes the anxiety and puts you in control.

Get Pre-Approved

Before you look at homes, know your budget. Pre-approval tells sellers you are a serious buyer and tells you exactly what you can afford.

Choose Your Loan

Conventional, FHA, VA, USDA, or DPA programs. Kris identifies which programs you qualify for and which gives you the best terms.

Find a Home

Work with a real estate agent to find a home within your pre-approved budget. Your pre-approval letter makes your offer competitive.

Make an Offer

Your agent submits an offer. Once accepted, you are under contract. The clock starts on inspections and financing.

Inspection and Appraisal

A home inspector checks the property. Your lender orders an appraisal to confirm the home is worth the purchase price.

Underwriting and Clear to Close

Your loan file goes through underwriting. Kris manages this process and communicates any conditions quickly.

Closing Day

You sign documents at a title company, funds are transferred, and you receive your keys. The whole process typically takes 21-30 days.

You Own Your Home

Congratulations. Your mortgage payment replaces your rent. You are building equity with every payment and benefit from Texas no state income tax.

First-Time Buyer Loan Programs in Texas

As a first-time buyer you have access to more programs than most borrowers. Here are the most popular options in Texas.

Most Flexible

FHA Loan

3.5% down, 580+ credit score, flexible debt-to-income ratios. The most popular choice for first-time buyers with moderate credit.

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Lowest Cost

Conventional

As little as 3% down through Fannie Mae HomeReady or Freddie Mac Home Possible. No upfront MIP and PMI is removable.

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Military

VA Loan

Zero down payment for eligible veterans and active duty. No PMI ever. The most powerful home loan available.

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Rural Texas

USDA Loan

Zero down for eligible Texas properties outside major metro areas. More areas qualify than most people expect.

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Texas DPA

TSAHC Down Payment Assistance

Up to 5% of your loan amount as a grant or forgivable loan. Works on top of FHA, VA, USDA, or conventional.

Learn More →

Heroes

Homes for Texas Heroes

For teachers, first responders, veterans, and healthcare workers. Enhanced DPA limits and competitive rates.

Learn More →

What Lenders Look At

Understanding how lenders evaluate your application removes uncertainty from the process. Every lender weighs four main factors:

Credit score and history — Shows your track record of repaying debt. Higher scores unlock lower rates and better programs.

Income and employment — Stable, documented income for at least 2 years. W-2 employees and self-employed borrowers both qualify.

Debt-to-income ratio (DTI) — Your total monthly debt payments divided by gross income. Most programs want this below 43-50%.

Assets and down payment — How much you have saved and where the funds came from. Gift funds are allowed on most programs.

Frequently Asked Questions

First-time buyers in Texas can purchase with as little as 0-3.5% down depending on the loan program. FHA requires 3.5%, conventional starts at 3%, VA and USDA require 0% for eligible borrowers. Down payment assistance programs through TSAHC can cover up to 5% of the loan amount as a grant, potentially reducing your out-of-pocket costs to near zero. You will also need funds for closing costs (typically 2-4% of the loan) unless you negotiate seller concessions or use a no-closing-cost structure.

Credit score requirements vary by program. FHA requires 580 for 3.5% down (500-579 with 10% down). Conventional loans have no GSE minimum but lender overlays apply. VA has no minimum credit score. USDA typically requires 640 for automated approval. Working with a broker like Kris means your application is matched to the right program for your credit profile, rather than being declined and having to start over.

Get pre-approved. Pre-approval requires no credit pull to get started with Kris. Once you decide to move forward, Kris reviews your income, assets, and credit to determine how much you qualify for, which programs fit your situation, and what your estimated payment and closing costs will be. Pre-approval typically takes 24-48 hours and gives you a letter you can present with any offer.

Yes. Texas has excellent programs including TSAHC Homes for Texas Heroes (for teachers, first responders, veterans, and nurses), TSAHC Home Sweet Texas (for all eligible buyers), and city programs in Houston, Dallas, Austin, and San Antonio. TSAHC provides up to 5% of the loan amount as a grant or forgivable loan that can cover your down payment and closing costs. Kris is a TSAHC-participating lender and can apply these programs directly.

Once you are under contract on a home, the mortgage process typically takes 21-30 days to close. The timeline from starting your home search to closing depends on the market, but many buyers are in their new home within 60-90 days of starting the process. Getting pre-approved before you start searching puts you in the fastest possible position to close.

Closing costs in Texas typically range from 2-4% of the loan amount and include lender fees, title insurance, appraisal, survey, prepaid property taxes and insurance, and government recording fees. Seller concessions, lender credits, and down payment assistance programs can reduce or eliminate out-of-pocket closing costs. Kris provides a detailed loan estimate showing all costs before you commit to anything.

Buying Your First Home in Texas. Here is How It Works.

The Texas Home Buying Process — Step by Step

Get Pre-Approved

Choose Your Loan

Find a Home

Make an Offer

Inspection and Appraisal

Underwriting and Clear to Close

Closing Day

You Own Your Home

First-Time Buyer Loan Programs in Texas

FHA Loan

Conventional

VA Loan

USDA Loan

TSAHC Down Payment Assistance

Homes for Texas Heroes

What Lenders Look At

Frequently Asked Questions

Ready to Start?

Related Programs

Ready to become a Texas homeowner?