Are you trying to figure out how much cash you really need to buy a home in San Antonio? You are not alone. Between loan types, down payment assistance, and timelines, it can feel like alphabet soup. In this guide, you will learn the main down payment paths, how Texas and local programs can help, and what lenders look for so you can shop with confidence. Let’s dive in.
Down payment basics in San Antonio
Buying with the minimum down is possible, but the right amount for you depends on timeline, competitiveness, and monthly budget. Some loans start at 0% or 3% down, while others reward larger down payments with lower mortgage insurance. You also need funds for closing costs, earnest money, and inspection. If you plan to use assistance or gift funds, build in a little extra time for documentation.
Four main loan paths
Conventional loans
Conventional loans are popular with buyers who have moderate to strong credit. First-time buyers may qualify with as little as about 3% down, and many buyers choose 5 to 20% down to reduce or avoid private mortgage insurance (PMI). PMI can be canceled once you reach the required equity, which can lower your monthly payment over time.
Pros:
- Lower total mortgage insurance costs than some government-backed loans when you bring more down.
- Flexible property types and strong for competitive offers when you can put 5 to 10% down or more.
Considerations:
- Stricter credit and income documentation than some programs, and lender overlays vary.
FHA loans
FHA loans are designed for buyers with limited savings or lower credit scores. Minimum down payments often start around 3.5% for higher-score borrowers, and gift funds are allowed. Mortgage insurance premiums apply and can make monthly payments higher than a comparable conventional loan, so it is smart to compare both options side by side.
Pros:
- Easier credit qualifying and higher allowable debt-to-income ratios in many cases.
- Gift funds permitted for all or part of your down payment.
Considerations:
- Upfront and annual mortgage insurance apply, which affects monthly cost.
If you want personalized guidance on FHA readiness or budgeting, connect with a local expert through HUD-approved housing counseling agencies.
VA loans
If you are a veteran, active-duty service member, or an eligible surviving spouse, a VA loan can be a powerful path to homeownership. Many VA loans allow 0% down and do not require private mortgage insurance. A funding fee may apply unless you are exempt, and it can be financed into the loan.
- Learn more at the official VA home loan program.
USDA loans
The USDA Single Family Housing Guaranteed Loan helps qualified buyers purchase in eligible rural areas around greater San Antonio. It often offers 0% down when both the property and borrower meet program rules. Income limits and location eligibility apply, so you will want your lender to verify.
- See the USDA Single Family Housing Guaranteed Loan Program for details.
Pairing your loan with assistance
Many San Antonio buyers combine a primary mortgage with down payment assistance (DPA). Assistance can come as a forgivable, deferred, or repayable second lien. This can reduce your cash to close while keeping your monthly payment within budget. Your lender will underwrite the first mortgage and the assistance together, so use a lender familiar with the program you choose.
Texas and local assistance that help with down payment
TDHCA programs
The Texas Department of Housing and Community Affairs (TDHCA) offers fixed-rate mortgages for first-time and repeat buyers, often bundled with down payment assistance. Some buyers may also qualify for a Mortgage Credit Certificate that can reduce federal tax liability. Eligibility includes income and purchase price limits, first-time buyer rules, and credit minimums.
- Explore current options through TDHCA homebuyer programs.
TSAHC programs
The Texas State Affordable Housing Corporation (TSAHC) provides DPA through participating lenders, including targeted programs such as Homes for Texas Heroes. TSAHC also offers Mortgage Credit Certificates in many cases. Program amounts and eligibility change, so confirm details with a participating lender.
- Review offerings at TSAHC down payment assistance.
City and county help
The City of San Antonio’s Neighborhood & Housing Services Department administers programs funded by federal sources that may offer down payment or closing cost help for qualifying households. Availability shifts based on annual allocations and local priorities, so check often.
- Start with the City of San Antonio Neighborhood & Housing Services for current assistance and program contacts.
Bexar County periodically administers homeowner assistance using federal funds or partnerships. Offerings can include gap financing or education through local nonprofits. Contact the county or local housing nonprofits to see what is currently open and how waitlists work.
Mortgage Credit Certificates (MCC)
An MCC can reduce your federal tax liability and may increase your qualifying power. MCCs are offered in Texas through TDHCA and some local issuers. Because benefits and limits vary, ask your lender to run side-by-side comparisons with and without an MCC.
What lenders look at in San Antonio
Underwriting basics
Lenders review credit score, debt-to-income ratio, and employment stability. Conventional loans often prefer a total DTI near or below the mid-40% range, while FHA can sometimes allow higher ratios with compensating factors. Some programs require reserves, and self-employed buyers will provide recent tax returns. Gift funds are widely allowed, but you will need a gift letter and documentation of the transfer.
How DPA fits with your first mortgage
If you are layering DPA with FHA, VA, USDA, or conventional financing, the assistance is usually a subordinate lien with its own terms. Lenders must confirm it is acceptable under the rules of the primary program and investor. The key is to work with a lender that regularly closes TDHCA, TSAHC, or city assistance, since they know the documentation and timelines.
Timelines and pre-approval
A fully documented pre-approval carries more weight with sellers than a quick pre-qualification. With complete paperwork and a straightforward file, many loans close in about 30 to 45 days. DPA can add steps, especially if the program requires an extra approval, so build in time and lock your rate according to the program’s deadlines.
Local offer strategy: turning financing into strength
Competitiveness and cash to close
In a competitive neighborhood, strong financing signals can help. A larger earnest money deposit, shorter timelines, and a clear pre-approval that verifies your down payment and assistance can make your offer more compelling. Ask your lender to confirm how your letter will reflect approved DPA and documented cash to close.
Gift funds and seller concessions
Gift funds can cover part or all of your down payment on many loans, but they must be properly documented. Seller concessions can often help with closing costs, but they usually cannot cover your down payment. Each loan type limits how much the seller can contribute, so review caps with your lender before you write the offer.
Appraisals and property condition
FHA and VA loans have property condition requirements that are part of the appraisal process, and some DPA programs have minimum standards as well. If a home needs repairs to meet guidelines, plan for timelines and negotiation. Your agent will help you structure contingencies to manage these requirements without disrupting your move.
Long-term costs to compare
Even when down payments are similar, long-term costs vary. FHA mortgage insurance, conventional PMI, the VA funding fee, and USDA fees all affect your monthly payment. Ask your lender for a side-by-side estimate for each loan type you qualify for so you can compare apples to apples.
Quick buyer checklist
- Get a full pre-approval from a lender experienced with TDHCA, TSAHC, or local assistance if you plan to use DPA.
- Ask that your pre-approval letter clearly reflects any assistance and cash to close.
- Confirm documentation for gift funds, including a gift letter and proof of transfer.
- Verify eligibility for VA, USDA, or first-time buyer rules, along with income and purchase price limits.
- Connect with a local counselor for budgeting and program navigation through HUD-approved housing counseling agencies.
- Check the City of San Antonio Neighborhood & Housing Services for current assistance and any waitlists.
- Review timelines with your lender so your financing aligns with offer deadlines.
Ready to plan your purchase?
Whether you are using 0% down options, stacking assistance, or choosing a conventional path, the right plan puts you in control of your budget and timeline. Our broker-led team helps you match financing to neighborhoods, craft competitive offers, and coordinate lenders and timelines so closing day is smooth. If you are relocating for military service, moving up, or buying your first home, we will meet you where you are and guide every step. Reach out to Harkin Realty to map your path and start home shopping with confidence.
FAQs
Can I buy a home in San Antonio with 0% down?
- Yes, if you are eligible for a VA loan or if the home and your income qualify for a USDA loan, both often allow 0% down; otherwise, look to state or local assistance to reduce cash to close.
What is the minimum down payment for first-time buyers?
- Conventional first-time buyers may qualify with about 3% down, while FHA often starts around 3.5%; confirm details with your lender because credit and program rules vary.
Can I combine down payment assistance with FHA, VA, or conventional loans?
- Often yes, many DPA programs are designed to layer with these loans, but the assistance must meet the primary program’s rules and your lender’s investor guidelines.
How long does closing take if I use assistance?
- Many buyers close in about 30 to 45 days with complete documents, but DPA can add steps, so build in extra time for approvals and funding.
What is a Mortgage Credit Certificate (MCC) in Texas?
- An MCC can reduce your federal tax liability and may increase qualifying power, and it is offered in Texas through TDHCA and some local issuers; ask your lender to compare scenarios.
