$0 Down Home Loans in Texas: Your Complete Guide
Yes, you can buy a home in Texas with absolutely $0 out of pocket. Here are the programs, the cities that qualify, and how to stack them.
3 Ways to Buy with $0 Down
1. VA Loans (Veterans & Active Military)
- $0 down payment — no maximum loan amount
- No PMI ever
- Funding fee can be rolled into the loan
- Available to veterans, active duty, National Guard, and surviving spouses
- Texas has the 2nd largest veteran population in the US
- Works in every city — no geographic restrictions
2. USDA Loans (Rural & Suburban Areas)
- $0 down payment
- Below-market interest rates
- Low guarantee fee (0.35%) vs FHA MIP (0.85%)
- Income limits apply (usually up to 115% of area median)
- Many TX suburbs qualify: El Paso outskirts, San Antonio suburbs, areas outside Austin/DFW
3. Down Payment Assistance (DPA) Programs
- TSAHC (Texas State Affordable Housing Corp) — up to 5% of loan as a grant
- TDHCA My First Texas Home — 30-year fixed with DPA
- City-specific programs: El Paso, San Antonio, Houston each have local DPA
- Can be combined with FHA or Conventional loans
- Some programs forgive the assistance after 3-5 years
Texas Cities with USDA Eligibility
You'd be surprised — many areas just outside major metros qualify for USDA $0 down loans:
✓ El Paso (east & northeast)
✓ San Antonio (south & east)
✓ Kyle / Buda (Austin area)
✓ Waxahachie (DFW area)
✓ New Braunfels
✓ Killeen / Temple
✓ Corpus Christi suburbs
✓ Lubbock
✓ Amarillo
✓ Las Cruces, NM
Real Example: $0 Down in El Paso
Home Price: $250,000
Loan Type: USDA
Down Payment: $0
Interest Rate: 5.9%
Monthly Payment: ~$1,480
Guarantee Fee: 0.35%/yr
Closing Costs: ~$6,000
Seller Concessions: Up to $15,000
* With seller concessions covering closing costs, true out-of-pocket = $0. This is a real scenario we've closed.
Find out if you qualify for $0 down
We'll check your USDA eligibility, VA status, and DPA options in one 15-minute call. No credit pull required.
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