How Much Do You Need to Buy a Home in Plano, TX?

The short answer

You do not always need 20% down. Depending on the loan, buyers can put down as little as 3% to 3.5%, and VA and USDA loans can allow zero down for eligible borrowers. But the down payment is only one piece of the cash you need.

The three buckets of cash

• Down payment. Varies by program. Conventional loans can start at 3%, FHA at 3.5% for qualifying borrowers.
• Closing costs. Often estimated at roughly 2% to 5% of the price, covering lender fees, title, appraisal, prepaid taxes and insurance. In some cases a seller can help.
• Reserves. Some loans want a few months of payments left in the bank after closing.

A quick example

On a $400,000 home, 3.5% down is $14,000 before closing costs. Your real number depends on the loan, the property and the negotiated deal, so ask for a written estimate before you fall in love with a house.

Help may be available

Texas has down payment assistance programs for eligible buyers. We can check whether you qualify for one.

Frequently asked questions

Do I need 20% down to avoid mortgage insurance?

On conventional loans, 20% down generally avoids private mortgage insurance. Many buyers choose less down and accept the insurance to buy sooner. We can run both scenarios.

Call (469) 414-5554 for a personal cash-to-close estimate.

By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not a commitment to lend or financial advice. Programs, rates and guidelines vary and change.