What You Really Need To Know About Down Payments in Today’s Market
When it comes to buying a home, one of the biggest roadblocks buyers think they face is the down payment.
Many believe they need 20% down just to get in the game. That’s a myth—and for some, it’s a dream-crusher. But the good news? You may not need nearly that much. Whether you're a first-time buyer or planning your next move in Flower Mound, Southlake, or beyond, this blog breaks down what you really need to know about down payments in 2025.
The 20% Down Payment Myth
Let’s start with the biggest misconception in real estate:
“I need 20% down to buy a home.”
That used to be the gold standard—but in today’s market, it’s no longer the norm.
According to recent national data:
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The median down payment for first-time buyers is just 9%
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Many buyers put down even less, depending on their loan and financial profile
What’s more—down payments vary dramatically based on location, loan type, and the strategy you use. We’ve helped families right here in Denton and Tarrant County get into homes with 3.5% down, zero down, and everything in between.
How Little You Actually Need to Buy a Home
You don’t have to wait until you’ve saved tens of thousands of dollars. There are programs—backed by the government and trusted lenders—that make homeownership more attainable.
Here are some common low down payment options:
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FHA Loans: As little as 3.5% down
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VA Loans: 0% down for eligible veterans, active-duty military, and some surviving spouses
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USDA Loans: 0% down in certain rural and suburban areas (yes, some parts of North Texas qualify!)
Even conventional loans now offer options as low as 3% down for qualified buyers.
👉 Pro tip: You don't have to put down more just to “look serious” to sellers. Our Signature Sales Strategy helps you stand out—even with a lower down payment.
Down Payment Assistance Programs in Texas
Here’s a powerful stat:
80% of first-time buyers qualify for some kind of down payment assistance...
...but only 13% actually use it.
Why? Most don’t realize help is out there.
Programs like these can make a big difference:
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TDHCA My First Texas Home & My Choice Texas Home
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TSAHC (Texas State Affordable Housing Corporation)
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Local and county-specific programs across Denton, Tarrant, and Collin counties
Many of these programs offer grants, deferred loans, or forgivable assistance that can reduce your upfront costs significantly.
📊 Average benefit: $17,000
What This Means for Flower Mound and Southlake Buyers
If you're buying in Flower Mound, Southlake, or nearby areas like Lantana, Argyle, or Trophy Club—you’re in a strong position. Home values have grown steadily, but that doesn’t mean you're priced out.
Here’s why:
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Move-up buyers often use equity from their current home to cover the down payment entirely.
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First-time buyers can layer assistance programs with strategic financing.
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Local lenders we partner with know how to combine tools to fit your specific situation.
It’s not about how much you have—it’s about knowing your options.
Helpful Resources
Frequently Asked Questions
Q: Do I need 20% down to buy a house in Texas?
A: Not at all. Many loans allow as little as 3–5%, and some buyers qualify for 0% down options.
Q: Can I use gift money or grants for my down payment?
A: Yes. Many lenders and programs allow gift funds or assistance to be used toward your down payment and closing costs.
Q: Is down payment help only for first-time buyers?
A: No. Some programs support repeat buyers, especially if you haven’t owned in the past 3 years.
Q: Where can I find out how much I qualify for?
A: We’ll connect you with a trusted local lender who can run numbers based on your exact goals and guide you through available programs.
Ready to Take the First Step?
You may be closer than you think. Whether you’ve been saving for years or just getting started, we’re here to help you move forward with clarity and confidence.
👉 Schedule a free consult
Or message us anytime—our team is here to walk you through the process.
Let’s build your future together.
