![]() ![]() Learn more about Texas Down Payment Assistance and First-Time Home Buyer Programs. Interested in getting down payment assistance in Texas? There are a number of DPA programs for homebuyers in the state. Down payment assistanceĭown payment assistance (DPA) may not be the most common source of down payment funds for first-time home buyers, but it likely should be.ĭPA programs offer significant sums of money to help buyers make the largest down payment possible, and many programs don’t require you to repay that money. For example, the person or organization making the gift needs to provide documentation clearly indicating the money does not need to be paid back. If you go this route, do be mindful that there are rules about documenting a gifted down payment. Twenty-two percent of new buyers get their down payment this way. Gifts and loans from family or friends are also a common source of down payment funding for first-time buyers. You are definitely allowed to use money from other sources, like gifts, loans, and other down payment assistance, but you’ll need to show proof of the money’s origins. In other words, you’ll need to show that the money has been in your bank account for a minimum amount of time, usually sixty days. This means most lenders require that any personal money you use for your down payment has been “seasoned”. ![]() But lenders want to make sure the money in your bank account comes from your personal savings, as opposed to another, undisclosed source (like a loan from another institution or a gift that you didn’t mention). Seasoned fundsįorty-seven percent of buyers use personal savings to make at least some of their down payment. Here are the most common ways first-time home buyers come up with down payments. It might be a challenge, but getting a down payment together is certainly possible. Twenty six percent of first-time home buyers say that saving for a down payment was the most difficult part of their home purchase process. If these down payment numbers feel a bit intimidating, you’re not alone. How do first-time buyers in Texas come up with their down payments? Texas Down Payment Assistance and First-Time Home Buyer Programs.The Best Places to Live in Texas for Families.The Best Neighborhoods in Dallas for Families.Cost of Living in Colorado vs Texas: How Each State Stacks Up.Cheapest Places to Live in Texas: The 8 Most Affordable Cities.Check out these other articles about buying a house in Texas. Making a down payment might be the first item you tackle in the home buying process, but it’s certainly not the only one. ![]() Houston: Based on a $261,794 median home price, the average down payment in Houston is $15,707. San Antonio: Based on a $263,747 median home price, the average down payment in San Antonio is $15,824 These numbers are based on the 6% national average down payment for first-time buyers, coupled with the median home price for each specific metropolitan area.Īustin: Based on a $557,292 median home price, the average down payment in Austin is $33,437.ĭallas: Based on a $309,505 median home price, the average down payment in Dallas is $18,570.įort Worth: Based on a $307,816 median home price, the average down payment in Fort Worth is $18,468. Average down payments by Texas metro area *All median home prices in this article are based on data through July 31, 2023. ![]() Your mortgage professional will help you understand all of the options available to you. Since there’s no interest rate decrease for raising your down payment from 5% to 6%, it might be better in your situation to make a 5% down payment and save the extra cash for unexpected repairs, moving expenses, or the like.Īlternatively, you may be able to use the extra savings to buy down your interest rate. But your interest rate only decreases at 5%, 10%, or 20% down. One of the biggest benefits to making a higher down payment is the interest rate reduction it buys you. Three percent is the minimum down payment for FHA loans, although some loan types have higher or lower minimums. Also, for many people, six percent isn’t necessarily the optimal amount to put down on a first home. This percentage varies up or down depending on each home buyer’s situation. Given that the median home price in Texas is $301,763*, that places the average down payment on a house in Texas at $18,105 for first-time home buyers. What is the average down payment on a house in Texas?Īccording to the National Association of Realtors, the average down payment on a house for first-time homebuyers nationwide is 6%. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation. Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. ![]()
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