Most people assume buying a home means saving for years before you’re even close to ready. And honestly, that assumption is keeping a lot of Texans renting longer than they need to.
The truth is, there are real programs government-backed, widely used, not some loophole that let you buy a home in Texas with no money down. Thousands of buyers use them every year. This is not due to the lack of these programs. This is because nobody knows about these programs. With 2026 summer upon us and the North Texas market remaining active, it’s finally time to see where you really stand. Let us understand further.
The Three Main Ways to Buy With Zero Down
1. VA Loans – Best Option for Veterans and Military
If you’ve served in the military, this is the one to know about. VA loans require no down payment, no private mortgage insurance, and typically come with lower interest rates than conventional loans.
To qualify for a VA loan as a Texas first-time home buyer, you’ll need:
- A Certificate of Eligibility confirming your service
- A credit score of around 580–620 (varies by lender)
- The home to be your primary residence
There’s a one-time funding fee (usually 1.25%–3.3% of the loan), but it can be rolled into the mortgage so you’re still not paying anything upfront. Veterans with a service-connected disability are typically exempt from this fee altogether.
VA loans are common across the North Texas market – Frisco, Plano, McKinney, Dallas and sellers here are very familiar with them.
2. USDA Loans – Zero Down for Suburban Buyers
USDA loans are probably the most misunderstood program out there. People hear “USDA” and picture farmland. In reality, plenty of suburban Texas communities qualify.
However, there’s a catch in that the property must be within a USDA eligible area and the buyer’s income should not surpass 115% of the area’s median income. To some extent, this cap is higher than most anticipated.
Key requirements:
- Credit score of around 640
- Home must be your primary residence
- Property must be in a USDA-eligible area
For USDA loans in North Texas, Frisco and Plano are largely ineligible due to population size. But parts of McKinney and communities further north along the 380 corridor may still qualify. Always check the current USDA eligibility map before ruling it out boundaries do change.
3. Texas Down Payment Assistance Programs
Not a veteran? Not in a USDA-eligible area? There’s still a clear path forward through Texas down payment assistance programs in 2026.
Two state agencies run the main programs:
TSAHC (Texas State Affordable Housing Corporation) offers up to 5% of the loan amount as either a grant money you never pay back or a forgivable loan wiped clean after three years. It applies to both your down payment and closing costs.
They run two tracks:
- Homes for Texas Heroes – for teachers, firefighters, police officers, EMS workers, and veterans
- Home Sweet Texas – open to any buyer who meets income limits
TDHCA (My First Texas Home): Similar to 5% down, but as a zero-interest deferred loan, which means no repayments until selling or refinancing the property at some point. The special thing about this one is that it is for first-time home buyers in Texas only.
It can be combined with an FHA, VA, or conventional mortgage and requires taking a homebuyer education class.
Quick Comparison
| Program | Down Payment | Who It’s For |
| VA Loan | 0% | Veterans, active duty, surviving spouses |
| USDA Loan | 0% | Moderate-income buyers in eligible areas |
| TSAHC – TX Heroes | Covered up to 5% | Teachers, first responders, veterans |
| TSAHC – Home Sweet TX | Covered up to 5% | Any income-qualifying buyer |
| TDHCA My First TX Home | Covered up to 5% | First-time buyers |
What About Closing Costs?
Zero down doesn’t always mean zero cash at closing. Closing costs typically run 2%–5% of the purchase price and that surprises a lot of buyers. If you’re still early in the process, it helps to understand what paperwork you’ll need to buy a home in Dallas TX before your first lender meeting.
The good news: TSAHC and TDHCA assistance can cover closing costs too, not just the down payment. VA loans also allow sellers to contribute up to 4% toward your closing costs. With the right setup, it’s very realistic to close with almost nothing out of pocket.
FAQs
Can I really buy a home in Texas with zero down payment?
Yes. VA and USDA loans require no down payment at all. TSAHC and TDHCA programs cover the required down payment on FHA or conventional loans, bringing your upfront cost close to zero for qualifying buyers.
Who qualifies for a VA loan in Texas?
Military personnel on active duty, veterans, Guard and Reservists under specific criteria, and spouses of eligible veterans. You will require a Certificate of Eligibility and you must use the house as your main home.
What credit score do I need to buy a home with no money down in Texas?
VA loans typically require 580–620. USDA loans usually need 640. Down payment assistance programs paired with FHA generally require 580–620. Higher scores open more options, but buyers in the high 500s do close successfully with the right program.
What is the TSAHC down payment assistance program in Texas?
Through the TSAHC Program, one is able to access 5% of the total amount borrowed as a down payment assistance program whereby one receives a grant that he/she does not repay, or one receives a forgivable loan after three years. One does not have to be a first-time home buyer in the Home Sweet Texas Program.
What is the "Homes for Texas Heroes" program and who qualifies?
It is also a TSAHC program offering the same financial aid at 5%, but this particular program focuses on teachers, firefighters, police and corrections officers, emergency medical services employees, and veterans. You may choose this option if you work in any of these fields.
Are USDA loans available in Frisco, McKinney, or Plano TX?
Most of Frisco and Plano doesn’t qualify due to population density. Parts of McKinney and communities further north may still be eligible but it’s address-specific. Check the USDA Property Eligibility tool or ask a local agent who knows the current boundaries.
Not Sure Where You Stand? Let's Find Out Together
Knowing how to buy a home in Texas with no money is one thing. Figuring out which program actually fits your situation is where having the right person in your corner makes all the difference.
Buying a home in Texas with no money requires the right guidance. North Texas Luxury Living Realty Group is here to help. Christopher Vierthaler knows this market inside out and he’ll tell you straight what you qualify for and what your next step should be.
Call Chris at (214) 430-8844 or email chris@northtexasluxuryliving.com.