Loan programs, down payments, closing costs, and the underwriting details that decide whether you close on time. No lender pitch — just what you need to know before you shop.
Program fit
Conventional, FHA, VA, and USDA each favor a different buyer profile.
Real monthly cost
Texas property taxes and insurance often rival the principal and interest.
Closing costs
Budget roughly 2–4% of the price on top of your down payment.
Rate strategy
Buydowns and seller credits can beat a lower price on your payment.
The four loan programs most buyers use here
Conventional loans start at 3% down for qualified first-time buyers and 5% otherwise, with private mortgage insurance that falls off once you reach 20% equity. Strong credit gets rewarded most in this program.
FHA allows 3.5% down with more flexible credit, but carries mortgage insurance for the life of most loans. VA loans, for eligible service members and veterans, allow zero down with no monthly mortgage insurance — the strongest program available if you qualify. USDA offers zero down in designated rural areas, which still exist on the outer edges of the metro.
Conventional — best long-term cost for credit scores in the 700s and up
VA — zero down, no monthly MI, competitive rates for those eligible
USDA — zero down in eligible areas outside the built-up metro
What underwriting actually looks at
Three things drive approval: credit history, debt-to-income ratio, and documented reserves. Most programs want total monthly debt under roughly 43–50% of gross income, though compensating factors move that line.
The single most common cause of a delayed closing is a change during underwriting — a new car loan, a furniture credit line, a large unsourced deposit, or a job change. From application to funding, keep everything still.
Budgeting the whole payment, not just the loan
Texas has no state income tax, and property taxes reflect that. Combined rates in Sachse, Murphy, Wylie, and Rowlett commonly run in the 1.8% to 2.4% range depending on district and any MUD or PID assessments, and that amount is escrowed into your monthly payment.
Homeowners insurance in North Texas prices in hail risk and has climbed sharply in recent years. Quote insurance during your option period, not the week of closing, and confirm the roof age — it drives your premium more than anything else.
Also file for your homestead exemption after closing. It reduces your taxable value and caps annual increases on your primary residence, and it is free to file.
Principal and interest, plus escrowed taxes and insurance
HOA dues, and MUD or PID assessments in some newer developments
Closing costs of roughly 2–4% of the price, sometimes seller-assisted
Cash reserves for the option fee, inspections, and the first month of ownership
Rate strategy in a moving market
A 2-1 temporary buydown or permanent points paid by a seller credit frequently improves your monthly payment more than the equivalent price reduction. On new construction, builder lender incentives are often the largest concession available.
I do not originate loans, and I do not take referral fees. I will introduce you to two or three lenders who close on the dates they promise, and you compare their loan estimates side by side.
Questions
Frequently asked
How much do I need for a down payment?
Between zero and 20% depending on program. VA and USDA can be zero down, FHA is 3.5%, and conventional starts at 3–5% for qualified buyers. Twenty percent avoids mortgage insurance but is not required.
What credit score do I need?
FHA can work in the low 600s and sometimes below with compensating factors. Conventional pricing improves meaningfully at 680, 720, and 760. A lender can often map out a short path to the next tier.
What are closing costs?
Lender fees, title, escrow, appraisal, prepaid taxes and insurance — typically 2–4% of the purchase price. Seller-paid closing cost assistance is negotiable and common.
Should I wait for rates to drop?
Nobody times this reliably. Buy on the payment you can carry today; if rates fall later you can refinance, and if inventory tightens you will be competing with everyone who waited.
Do you recommend specific lenders?
I will introduce you to lenders with a track record of closing on time in this market, and I take no compensation for it. Compare their written loan estimates yourself.
Client Stories
Reviews from real clients
Verified reviews from past clients are published here. Happy to connect you directly with recent sellers who can speak to the process first-hand.
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