How Much Down Payment Do You Need for a Texas House?

The down payment needed for a Texas house depends on the mortgage program, borrower, property, price, appraisal and source of funds. Twenty percent can reduce the loan balance and may avoid conventional private mortgage insurance, but it is not the entry price for every mortgage.

Down payment is not cash to close

Cash to close can include the down payment, settlement charges, prepaid interest, insurance and initial escrow deposits, minus credits and deposits already applied. Keep moving expenses, immediate repairs and emergency savings outside the amount committed at closing.

Compare the major loan paths

• Conventional loans may offer qualified borrowers low-down-payment options, with private mortgage insurance depending on the product and equity.
• FHA-insured financing is commonly associated with a 3.5 percent minimum investment for qualifying borrowers, plus program mortgage insurance.
• Eligible veterans, service members and certain surviving spouses may qualify for VA-backed purchase financing without a down payment when program requirements are met.
• Texas assistance programs may help with down payment or closing costs but have current income, purchase-price, lender and repayment rules.

Choose an amount without draining reserves

For each down-payment scenario, compare the payment, mortgage insurance, total cash to close and money remaining afterward. The safest amount often balances lower borrowing with enough liquidity to handle the first repair, insurance deductible or income interruption.