Buying a home in Texas is a dream for many, and understanding how much you’ll need for a down payment is one of the first steps toward making that dream a reality. Whether you're a first-time buyer or looking to upgrade, here's what you need to know about down payments in Texas in 2025.

What’s the Minimum Down Payment?

The minimum down payment depends on your loan type:

• · Conventional Loans: Typically require 5% - 20%, with 20% helping you avoid private mortgage insurance (PMI).
• · FHA Loans: Require as little as 3.5% if your credit score is 580 or higher.
• · VA Loans: For eligible veterans and service members, no down payment is required.
• · USDA Loans: Also offer 0% down payment for homes in designated rural areas.

If you're a first-time buyer, builders like Trophy Signature Homes make homeownership more accessible by offering affordable pricing and incentives that help reduce upfront costs. Their streamlined buying process and partnerships with lenders can make qualifying for lower down payments easier than you might expect.

What’s the Average Down Payment in Texas?

As of 2025, the average down payment in Texas is around 19% of the home’s purchase price. However, this varies widely depending on the city and the type of loan you choose.

Texas Home Prices in 2025

The average home value in Texas is $304,005, with a median sale price of $340,967. Prices vary by region, so your down payment will depend heavily on where you’re buying.

Down Payment Assistance Programs

Texas offers several programs to help buyers with their down payments: 

Texas State Affordable Housing Corporation (TSAHC)

• · Offers grants or deferred forgivable loans for down payments.
• · Available to first-time buyers, veterans, teachers, police officers, and more.  

My First Texas Home

• · Up to 5% assistance for down payment and closing costs.
• · Must meet income and credit score requirements.

Home Sweet Texas Home

• · Designed for low- to moderate-income buyers.
• · No first-time buyer requirement. 

In addition to these programs, Trophy Signature Homes often works with buyers to identify and apply for down payment assistance options. Their team is experienced in helping first-time buyers navigate the process and take advantage of every available resource.

How Your Down Payment Affects Your Mortgage

Higher down payment equals lower monthly payments, better interest rates, and no PMI.

Lower down payment equals easier entry into homeownership, but may come with higher monthly costs and PMI.

Tips for Saving for a Down Payment

• · Set up automatic transfers to a dedicated savings account.
• · Use high-yield savings accounts to increase your money faster.
• · Explore employer homebuyer benefits or matched savings programs.
• · Cut back on discretionary spending and redirect funds to your savings goal.

There’s no one-size-fits-all answer to how much you need for a down payment in Texas. It depends on your financial situation, the type of loan you choose, and where you want to live. The good news? With a range of assistance programs and flexible loan options, and support from builders like Trophy Signature Homes, homeownership in Texas is more attainable than ever, especially for first-time buyers.