How Much Down Payment Do You Need to Buy a House in Houston?

Quick answer

There is no single number. FHA loans allow as little as 3.5% down with a credit score of 580 or higher, some conventional programs allow as little as 3%, and VA and USDA loans can mean 0% down for eligible buyers. The common 20% down figure is about avoiding mortgage insurance on a conventional loan, not a requirement to buy. On a typical Houston home, these percentages can mean anywhere from roughly $0 to $70,000 in cash, and Texas down payment assistance programs can lower that number further. Warens Financial Group (NMLS #2532048), a Houston mortgage broker, can review your file against several programs. Sources dated 2026 are listed at the end.

"How much down payment do I need" is usually the first money question a Houston buyer asks, and the answer depends on the loan program, your credit, and the home's price. This guide walks through each major loan type, shows dollar examples on a $340,000 home (close to the Houston median HAR reported in the first half of 2026), and covers the cash beyond the down payment that buyers often forget to budget for.

What is the minimum down payment to buy a house in Houston?

The minimum depends on the loan program: FHA allows 3.5% down (10% with a credit score of 500 to 579), some conventional programs allow 3%, and VA and USDA loans can allow 0% down for buyers who qualify for them.

Minimum down payment by loan type
Loan type	Minimum down payment	Notes
FHA	3.5% (580+ credit score); 10% (500 to 579)	Mortgage insurance applies; see below
Conventional	As low as 3% on some programs	PMI generally applies under 20% down; removable as equity grows
VA	0% for eligible borrowers with full entitlement	Available to qualifying veterans, service members, and some surviving spouses
USDA	0% in eligible areas	Property must be in an eligible rural or suburban area and meet income limits; Warens Financial Group does not currently offer this program
Jumbo	Varies by lender	Generally above the $832,750 2026 conforming limit for a one-unit home; no single standard

Sources: HUD, Let FHA Loans Help You (2026); FHFA, Conforming loan limit values for 2026; VA, Home Loans; USDA Rural Development, Single Family Housing Guaranteed Loan Program. Figures are program minimums and vary by lender overlay. Full links at the end of this article.

Important: a published minimum is not an approval. Your income, debts, credit, and the property itself all factor into what a specific lender can offer you.

How much down payment does an FHA loan need?

FHA loans need 3.5% down with a credit score of 580 or higher, or 10% down with a score between 500 and 579. Many lenders set their own minimum a little higher than the program floor.

FHA is insured by the Department of Housing and Urban Development, which is why lenders can offer more flexible credit terms than most conventional programs. The trade-off is mortgage insurance: with less than 10% down, FHA's annual premium generally lasts for the life of the loan, while 10% or more down lets it drop off after 11 years. See our FHA loans overview for the full picture.

Source: HUD, Let FHA Loans Help You (2026).

How much down payment does a conventional loan need?

Some conventional programs allow as little as 3% down for eligible buyers. Putting down less than 20% generally adds private mortgage insurance, called PMI, which can later be removed as you build equity.

Conventional loans are not insured by a government agency, so your credit profile carries more weight, and pricing tiers generally improve around scores of 680 and 740. Fannie Mae removed its fixed minimum score from automated underwriting in November 2025, though individual lenders still set their own floor. See our conventional loan overview for how PMI removal works.

Source: Fannie Mae, Originating and Underwriting (2026); CFPB, What is private mortgage insurance?

Do VA and USDA loans really let you buy with 0% down?

Yes, for buyers who qualify. VA loans can allow 0% down for eligible veterans, active-duty service members, and some surviving spouses. USDA loans can allow 0% down in eligible rural and suburban areas for buyers who meet income limits.

Eligibility decides both programs: VA depends on qualifying military service, and USDA depends on the property's location and household income, checked against USDA's own eligibility map. Warens Financial Group offers VA loans; we do not currently offer USDA loans, though it is worth knowing the program exists. See our VA loans overview for eligibility basics.

Source: VA, Home Loans; USDA Rural Development, Single Family Housing Guaranteed Loan Program.

Why do people say you need 20% down?

The 20% figure is a cost decision on a conventional loan, not a requirement to buy. Putting down less than 20% generally means paying PMI until your equity reaches roughly 80% of the home's value.

It avoids PMI on a conventional loan. Under federal law, PMI can generally be cancelled once your balance is scheduled to reach 80% of the home's original value, and it ends automatically at 78% if payments are current.
It does not apply the same way to FHA, VA, or USDA loans. FHA charges its own mortgage insurance regardless of down payment size, and VA and USDA loans do not charge monthly mortgage insurance at all.
It can lower your monthly payment either way. A larger down payment reduces what you borrow, which can lower your monthly payment even on a loan that does not require 20% down.

Try our payment calculator to see how different down payment amounts change an illustrative monthly payment.

What does a down payment actually cost on a Houston home?

On a $340,000 Houston home, 3% down is about $10,200, 3.5% is about $11,900, 10% is about $34,000, and 20% is about $68,000. The Houston Association of Realtors has put the area's median sale price roughly in the $330,000 to $350,000 range for several months in the first half of 2026.

Down payment and loan amount on a $340,000 Houston home (illustrative)
Down payment	Down payment amount	Base loan amount	Often used with
0%	$0	$340,000	VA, for eligible buyers (USDA in eligible areas)
3%	$10,200	$329,800	Some conventional programs
3.5%	$11,900	$328,100	FHA, with a 580+ credit score
10%	$34,000	$306,000	FHA with a 500 to 579 score, or a buyer's choice
20%	$68,000	$272,000	Conventional, with no PMI

The down payment is only part of the cash you bring. Closing costs come on top, at about 2% to 5% of the loan amount, so on the 3.5% FHA example that is roughly $6,600 to $16,400 more. The base loan amount is before any upfront FHA mortgage insurance or VA funding fee, which are often added to the loan instead of paid in cash.

Figures are illustrative and rounded, based on a $340,000 purchase price. Your own numbers come from a Loan Estimate. Source: Houston Association of Realtors, Monthly Housing Update / MLS Sales Activity (2026).

Is the down payment the only cash you need at closing?

No. Closing costs are generally separate from the down payment and typically run about 2% to 5% of the loan amount, on top of whatever you put down.

Closing costs cover lender charges, third-party services like the appraisal and title work, and prepaid items such as taxes and insurance. Some assistance programs and seller concessions can help with closing costs as well as the down payment. See our closing costs in Houston guide for the full breakdown.

Can down payment assistance lower what you need upfront?

Often, yes. TDHCA, TSAHC, and the City of Houston Homebuyer Assistance Program can each reduce the cash a Houston buyer needs upfront, through assistance worth roughly 3% to 5% of the loan amount or, for the city program, up to $75,000.

None of these programs are run by Warens Financial Group; they are run by their own agencies, each with income limits, a credit minimum around 620, and a required homebuyer education course. See our full down payment assistance guide for how each program works and how they pair with FHA, VA, and conventional loans.

Source: TDHCA, Texas Homebuyer Program; TSAHC, Loans and Down Payment Assistance; City of Houston Housing and Community Development Dept., Homebuyer Assistance Program Guidelines 8.0 (2026).

Can you use gift funds toward your down payment?

Generally, yes. FHA, VA, and many conventional programs allow gift funds from an eligible donor, often a family member, to count toward some or all of the down payment, documented with a gift letter and a paper trail of the transfer.

Exact rules on who can give the gift and how much it can cover vary by loan program and lender, and gift funds can often be combined with a down payment assistance program too. Talk with a licensed loan officer before the funds move, en inglés o en español, so the paperwork matches what underwriting needs. Start at get pre-approved or empieza en español.

Source: CFPB, Where can I get money for a down payment on a home?

Frequently asked questions

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Next step

Talk to a licensed, bilingual Houston mortgage team.

Warens Financial Group is a Houston-based, bilingual (English/Spanish) mortgage brokerage licensed in Texas, Florida, and Indiana, offering FHA, VA, conventional, jumbo, and Non-QM, investor, and DSCR loan programs. Our team can review your credit, budget, and goals and explain the programs you may be eligible for, en inglés o en español. Pre-qualification is free, no-obligation, and not a commitment to lend.

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Buying in Houston? Start with our Houston mortgage broker page, or see how buying a home with WFG works.

Disclaimer: This article is for general educational purposes only and is not financial, legal, or tax advice, a commitment to lend, or an offer of credit. Dollar examples are illustrative and rounded, not a quote. Loan program minimums, mortgage insurance rules, and down payment assistance terms are set by HUD, the VA, USDA, Fannie Mae, Freddie Mac, and the named Texas and Houston agencies, not by Warens Financial Group, and can change or end without notice. Confirm current figures with the relevant agency and a licensed mortgage professional. Warens Financial Group, NMLS #2532048. Franklin Warens, Mortgage Broker, NMLS #1249423. Equal Housing Opportunity.

How much down payment do you need to buy a house in Houston?