Down payment
0–3.5%min.
VA and USDA loans can require nothing down. FHA starts at 3.5%, and conventional loans for first-time buyers can start at 3%.
First-Time Home Buyers · Dallas–Fort Worth
First-Time Home Buyer Guide for Dallas–Fort Worth
Find out what you can afford, what you'll need to get started, and which programs can help, from a REALTOR® and licensed loan officer who handles both sides for you.
- One advisorREALTOR® and loan officer, so nothing gets lost between agent and lender
- 280+ lendersYour loan shopped across wholesale lenders, not just one bank
- As low as 0–3.5%Down payment options with VA, USDA, conventional, and FHA loans
- Texas programsDown payment assistance from TSAHC and TDHCA for qualified buyers
Start Here
Which one sounds most like you?
Every first-time buyer starts somewhere different. Pick the one that fits, and I'll build a plan around where you are today.
The first step isn't finding a house. It's knowing where you stand.
The Numbers
How much do you actually need?
Most renters wait because they think they need 20% down. Most first-time buyers put down far less.
Closing costs
2–4%typical
Lender, title, and prepaid costs. Seller or builder credits and assistance programs can cover part or all of them.
Cash at contract
~1%earnest
Earnest money plus a small Texas option fee at contract. Both are typically credited back to you at closing.
| Loan type | Minimum down | Good fit for |
|---|---|---|
| FHA | 3.5% | Buyers rebuilding credit or with higher debt-to-income. Scores as low as 580 can qualify with 3.5% down. |
| Conventional | 3% | Buyers with stronger credit. Mortgage insurance can be removed once you reach enough equity. |
| VA | 0% | Eligible veterans and service members. No monthly mortgage insurance. |
| USDA | 0% | Homes in eligible areas, including some on the edges of Collin County, with income limits. |
Minimums depend on credit, income, property, and lender guidelines. Not all buyers will qualify.
Affordability
See what your payment could be
Pick a loan type and adjust the numbers. Property taxes in North Texas are a big part of the payment, so they're included.
$
%
%
%/yr
$/yr
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Estimated monthly payment$0Loan amount $0
- Principal & interest
- $0
- Property taxes
- $0
- Home insurance
- $0
- Mortgage insurance
- $0
- HOA dues
- $0
Estimated down payment: $0. Plan for closing costs of roughly $0, which credits or assistance may cover.
Estimates only, for illustration. Not a loan offer, commitment, or approval. FHA estimate includes a 1.75% upfront mortgage insurance premium added to the loan and 0.55% annual mortgage insurance. Conventional mortgage insurance is shown as an estimate and varies with credit score and down payment. VA estimate includes a 2.15% first-use funding fee added to the loan; some veterans are exempt. Taxes, insurance, and HOA dues vary by property. PJ Zaji, NMLS #2280005.
Down Payment Assistance
Texas programs that can help you get in
State programs can cover part of your down payment and closing costs, often as a grant or a loan that's forgiven after a few years.
Homes for Texas Heroes
- For teachers and school staff, police, firefighters, EMS, corrections officers, and veterans
- Assistance typically a percentage of the loan amount
- Grant or forgivable second lien options
- Income and credit requirements apply
Home Sweet Texas
- For low- and moderate-income buyers in any profession
- First-time buyer status not always required
- Grant or forgivable second lien options
- Income limits vary by county
My First Texas Home
- For first-time buyers (no ownership in the last three years) and veterans
- Down payment and closing cost help as a second loan
- Paired with a state-sponsored first mortgage
- Income and purchase price limits apply
City programs
- Some cities, including Dallas, run their own homebuyer assistance
- Usually tied to income and the home's location
- Funding and availability change through the year
- Can sometimes be combined with state programs
Program amounts, income limits, and rules change. I'll check what you qualify for today and compare the cost of each option against a standard loan, because assistance isn't always the cheapest path.
Myths
Most buyers don't have a money problem. They have an information problem.
×You need 20% down
Reality: many first-time buyers put down 0–5%.
×Your credit has to be perfect
Reality: FHA loans can work with scores in the 500s and 600s.
×You need to be debt-free
Reality: student loans and car payments are normal. What matters is your debt-to-income ratio.
×You need a huge income
Reality: lenders look at your whole picture: income, debts, credit, and savings.
×Renting is cheaper
Reality: it depends. Compare your rent to a real payment estimate before deciding.
×If you were ready, you'd know
Reality: almost every first-time buyer starts out unsure.
The Process
Buying your first home in 7 steps
You don't need to know everything today. You only need to know what comes next.
- Get pre-approvedKnow your real budget before you look. Sellers take pre-approved offers seriously.
- Pick your areaCompare cities, commutes, schools, and tax rates.
- Tour homesResale and new construction, with someone on your side.
- Make an offerPrice, credits, and terms that fit your budget.
- Option periodInspections and negotiation, with the right to walk away.
- Appraisal & approvalThe lender verifies the home's value and your file.
- Close & move inFinal walkthrough, sign, and get your keys.
Texas-Specific
What nobody tells first-time buyers in Texas
The option period
A small option fee buys you a set number of days to inspect the home and back out for any reason. It's your most important protection.
Property taxes
Texas has no state income tax, so property taxes run higher. Rates vary a lot by city and school district, so compare before you choose an area.
Read: ownership costsMUD and PID districts
Many newer neighborhoods carry special district taxes or assessments on top of the base rate. Ask before you fall in love with a home.
Homestead exemption
Once the home is your primary residence, file a homestead exemption with your county appraisal district to lower your taxable value.
Survey and title
The title policy protects your ownership, and the survey shows property lines and easements. Both are part of a normal Texas closing.
Seller and builder credits
In many markets, sellers and builders help with closing costs or rate buydowns. Asking the right way can save thousands.
Read: builder incentives
New vs. Resale
Should your first home be new construction?
In Collin County, builder incentives often make a new home the easiest way in for first-time buyers. It depends on your budget and timeline.
New construction
- Builder incentives like rate buydowns and closing cost help
- Lower repair costs in the first years, plus a builder warranty
- Energy-efficient systems and modern layouts
- Often farther out, and may carry MUD or PID taxes
Resale
- Established neighborhoods with mature trees and amenities
- Often closer in, with more room to negotiate on price
- Fences, blinds, and landscaping usually included
- Older systems may need repairs sooner
Browse Homes
Starter homes in North Texas
Live searches from the MLS. No sign-up required to browse.
By price
Single-family homes across Collin County.
By city
Homes under $400,000 in cities popular with first-time buyers.
TX REALTOR® #631862 · NMLS #2280005
Monument Realty · NEXA Mortgage
Monument Realty · NEXA Mortgage
Why Work With PJ
Your agent and your lender, in one person
Most first-time buyers juggle an agent, a lender, and a lot of unanswered questions. With me, the person negotiating your home is the same person structuring your loan.
✓
Know your real budget first
Pre-approval, payment, and cash to close before you tour a single home.
✓
Your loan shopped across 280+ lenders
As a mortgage broker, I compare wholesale lenders to find your best rate and terms.
✓
Offers that win
Sellers trust offers when the financing is already structured and verified.
✓
One person from first call to closing
No handoffs, no finger-pointing, and one number to call.
FAQ
First-time buyer questions, answered
Straight answers for first-time buyers in Dallas–Fort Worth.
How much do I need to buy my first home in Texas?
It depends on the loan. VA and USDA loans can require no down payment, FHA starts at 3.5%, and conventional loans for first-time buyers can start at 3%. Plan for closing costs of roughly 2% to 4% of the price, plus earnest money and an option fee at contract.
Seller or builder credits and down payment assistance programs can reduce how much cash you need at closing.
What credit score do I need to buy a house?
FHA guidelines allow scores as low as 580 with 3.5% down, and some lenders go lower with a larger down payment. Conventional loans usually start around 620. A higher score generally means a better rate and lower mortgage insurance.
Can I buy a home with student loans or a car payment?
Yes. Lenders look at your debt-to-income ratio, which compares your monthly debts to your income. Many first-time buyers have student loans and car payments and still qualify.
Are there down payment assistance programs in Dallas-Fort Worth?
Yes. Statewide programs from TSAHC and TDHCA offer assistance to qualified buyers, and some cities, including Dallas, run their own programs. Each has income limits and other requirements, and terms change, so check current eligibility before you count on it.
Is FHA or conventional better for a first-time buyer?
FHA is more flexible on credit and debt. Conventional can cost less with good credit, and its mortgage insurance can be removed once you build enough equity. The right choice depends on your credit, down payment, and how long you plan to keep the loan.
Can my family gift me money for the down payment?
Yes. Most loan programs allow gift funds from family for the down payment and closing costs. The lender will need a signed gift letter and records showing where the money came from.
Should I wait for interest rates to drop?
Nobody can reliably predict rates. If you buy now and rates fall later, you may be able to refinance. Waiting can also mean paying more rent and facing higher prices. Run the numbers for both paths before deciding.
How long does it take to buy a house?
Getting pre-approved can take a few days. Once your offer is accepted, closing on a resale home typically takes about 30 to 45 days. New construction depends on how far along the home is.
What is the option period in Texas?
The option period is a set number of days after your contract starts when you can inspect the home and terminate for any reason. You pay a small option fee for that right. It's negotiated as part of your offer.
Do I need a real estate agent as a first-time buyer?
You aren't required to have one, but the listing agent and builder sales staff represent the seller. Your own agent helps you price your offer, negotiate repairs and credits, and keep the contract on schedule. You'll sign a written buyer agreement that explains how your agent is paid.
Free Buying Plan
Find out where you stand in one conversation
I'll show you what you can afford, how much cash you'll need, which programs you qualify for, and what your monthly payment would be. No pressure, whether you're buying this year or next.
PJ Zaji · TX REALTOR® #631862 · NMLS #2280005