Little (or No) Money Down: Your Friendly Guide to Getting a Mortgage in North Texas 🏡✨

The Truth Behind the Myth

Loan Programs That Open Doors

1. FHA Loans – Forgiving and Flexible

• Down Payment: As low as 3.5%
• Best for: Buyers with average credit or limited savings
• Bonus: Backed by HUD, FHA loans allow easier qualification and competitive rates.
  

2. VA Loans – A Salute to Service

• Down Payment: 0%
• Eligible For: Veterans, active-duty members, and qualifying spouses
• Perks: No mortgage insurance and often lower interest rates.
  

3. USDA Loans – Rural Advantage, Real Opportunity

• Down Payment: 0%
• Best for: Homes in eligible rural areas (many still in Collin County!)
• Bonus: Competitive rates and flexible credit standards.
  

4. Conventional Loans – Big Benefits, Small Down

• Down Payment: As low as 3% for first-time buyers
• Best for: Buyers with solid credit
• Note: Private mortgage insurance (PMI) applies until enough equity builds.
  

Down Payment Assistance: Free Help for Texans

If saving for a down payment feels daunting, Texas offers real solutions—grants and forgivable second loans that can cover part (or all) of your upfront costs.

TSAHC “Home Sweet Texas”

• Up to 5% assistance toward down payment or closing costs
• May include Mortgage Credit Certificates (MCCs) for annual tax savings
• Available statewide to qualifying buyers

You don’t have to choose between your dream home and your savings account.

“But Rates Feel High…” — Refinance Later

Your first mortgage isn’t forever.
Once you’ve moved in and the market shifts, refinancing can lower your payment or shorten your term.
VA buyers even enjoy a Streamlined IRRRL refinance — no appraisal, minimal paperwork.

Don’t wait for perfect conditions — start where you are and grow from there.

Why Buying Beats Renting in North Texas



• Principal Paydown: Every payment builds equity. Rent builds nothing.
• Appreciation: Collin County homes continue to rise in value, especially in McKinney, Allen, Frisco, and Plano.
• Credit Growth: On-time mortgage payments strengthen your credit profile.
• Legacy Building: Equity can fund college, renovations—or become part of your family’s story.

Each year of rent is money gone for good.
Each year of ownership is money that works for you — building equity and long-term value.
After five years, a renter may have spent $90,000 with nothing to show, while a homeowner could have $90,000 in gained equity and appreciation.

Collin County Snapshot: A Market with Momentum



Inventory: Up slightly—giving buyers more choices.
Prices: Average home values hover in the $400Ks–$500Ks depending on city and condition.

Market Strength: McKinney, TX was recently ranked #1 in the nation for real estate performance in WalletHub’s 2025 Best Real Estate Markets study, which analyzed more than 300 U.S. cities on market strength, housing trends, and local economic indicators (WalletHub, 2025).

The North Texas housing engine is humming along—steady, strong, and full of opportunity.

Your Path to “Keys in Hand”

Step 1: Get Pre-Qualified

See what you can afford and which programs fit best.
Step 2: Pick Your Loan Lane

FHA (3.5%), VA (0%), USDA (0%), or Conventional (3%)—each with unique strengths.
Step 3: Layer Assistance

Ask about TSAHC and other Texas DPA options for added savings.
Step 4: Shop Smart

Focus on resale value, neighborhood growth, and your lifestyle goals.
Step 5: Refinance Later

When rates drop or equity grows, you can optimize.

Let’s match you with the right lender, the right plan, and the right home — here in the heart of Collin County and North Texas.

📞 Call or Text: 469-499-7452

📧 Email: cindycoggins@kw.com

Sources:

1. WalletHub. 2025’s Best Real Estate Markets. Retrieved October 2025, from https://wallethub.com/edu/best-real-estate-markets/14889