Down Payment Calculator (Texas)
How much do you really need to put down? Compare 3%, 3.5% (FHA), 5%, 10% and 20% side by side — monthly payment, PMI, and total cash to close — and see how a KAT Realty buyer rebate shrinks the number.
Your purchase
| Down | Cash to close | Monthly | PMI/mo | Fits? |
|---|
How much down payment do you need in Texas?
Not 20%. Conventional loans allow as little as 3% down for first-time buyers, FHA requires 3.5%, and VA and USDA loans can be zero down. The trade-off is private mortgage insurance below 20% and a slightly higher monthly payment. The table above shows each option's cash to close, monthly payment and PMI so you can pick the one that fits the cash you actually have.
Texas down payment assistance
Texas offers real help: TSAHC's Homes for Texas Heroes and Home Sweet Texas programs provide up to 5% of the loan amount as a grant or forgivable second lien, and TDHCA's My First Texas Home pairs a low-rate mortgage with assistance. Income limits apply and vary by county. We'll tell you which programs you qualify for before you start shopping.
Stretch your cash with a rebate
A KAT Realty buyer rebate is applied at closing toward closing costs and prepaids. On a $400,000 home with a seller-paid 3% fee, that's about $7,000 — which is why the 'cash to close' column above is lower than a traditional agent would quote you. More of your savings goes to the down payment itself.
Frequently asked questions
What is the minimum down payment in Texas?
3% for many conventional loans, 3.5% for FHA, 0% for VA and USDA. Program eligibility depends on credit, income and the property.
How can I avoid PMI?
Put 20% down, use a VA loan, or use lender-paid PMI at a slightly higher rate. PMI on conventional loans drops off automatically at 78% loan-to-value.
Can the rebate be my down payment?
Lenders generally apply rebates to closing costs and prepaids first. Any excess can reduce the purchase price or buy down the rate, which indirectly frees your cash for the down payment.
Are gift funds allowed?
Yes, for most programs, from family members with a gift letter. FHA allows the entire down payment to be gifted.
Does a bigger down payment get a better rate?
Often, yes — rates improve at 5%, 10%, 20% and 25% down tiers, and PMI cost falls as loan-to-value drops.
Related calculators
KAT Realty Group is a full-service flat fee real estate service: buyer representation for $4,999 and seller listing for $5,999, serving Austin, Dallas–Fort Worth, Houston, San Antonio and all of Texas. See all calculators or request a consultation.