How To Buy A Texas House With Low Income And No Down Payment

Buying a home with low income and no down payment can feel impossible, especially in today’s market. But the truth is, you can become a homeowner in Texas, even if your budget is tight.

In this article, we’ll walk you through how to buy a Texas house with low income, what programs to explore, and what to do if you face financial emergencies along the way. We'll even cover how a title loan in Texas can help you stay on track during urgent situations.

Can You Buy A House With No Down Payment?

In a nutshell, everyone who’s planning on buying a house here in Texas would have to take care of a down payment, but there is some wiggle room for those who can’t afford to pay anywhere between $10,000 and $70,000 at once because of their low income. First of all, depending on your credit score and debt-to-income ratio, you might be allowed to put down only 3% of the house’s value upfront – which, in a lot of cases, might end up being a realistic sum.

What Is Required To Qualify For A Texas Home With Low Income?

However, that might not be an option for you if your credit score is below 579. Another thing for you to bear in mind is that you wouldn’t necessarily have to pay the entire amount out of your own pocket. There are several programs, in Texas or just in general, that can provide down payment assistance to those who are eligible. Keep in mind that most of these programs are usually available only to first-time home buyers and there are credit score requirements as well, but they can still help.

Top Programs That Help Buy A House In Texas

1. Texas State Affordable Housing Corporation Programs

You must have a credit score of at least 620 to qualify and there is a limit on the cost of the house that you can buy. Furthermore, there is a certain income limit that you would have to meet to be eligible. The housing organization has a short test that you can take to find out whether you might qualify for approval. If you are eligible, you will be instantly shown a list of the participating lenders in your area. Here are two programs from the TSAHC that you should look into:

• TSAHC Home Sweet Home: With this program, first-time home buyers will be able to benefit from a 30-year loan with fixed rates. You would also be provided a 5% down payment assistance.

• TSAHC Homes for Texas Heroes: You can take advantage of the same benefits listed above even if you’re not a first-time home buyer. However, just as the name suggests, you need to be a public service professional (a police officer, firefighter, teacher, etc.).

2. Texas Department Of Housing And Community Affairs Programs

The TDHCA has been created to help specifically low- and moderate-income families. They offer two main programs, each of which can be paired with MCC. To be able to benefit from the programs, you would have to meet a few strict requirements – the property that you’re planning on buying should be your main residence; you must meet the purchase and income limits; you must have a credit score of at least 620. Here are two programs you can find with the TDHCA:

• TDHCA My First Texas Home: Those who are eligible will benefit from a 30-year loan with fixed rates and closing costs and down payment assistance.

• TDHCA My Choice Texas Home: You wouldn’t necessarily have to pick a government-backed loan to qualify for this program. You will also be offered closing costs and down payment assistance.

3. Low-Down-Payment Home Loan And Downpayment Assistance Programs

The third option you should look into is getting a low-down-payment home loan and down payment assistance to help. This basically means you will use Downpayment Assistance Programs to fund your contribution – which means you end up paying zero down payment from your own pocket on the house you want. Downpayment Assistance Programs (or DPAs) are available in any state, even here in Texas. Requirements can vary, so make sure you are looking at eligibility for Texas specifically.

What To Do If You Face A Financial Emergency

While working toward homeownership, unexpected costs, like medical bills or car repairs—can slow you down.

That’s where a title loan or payday loan from Texas Car Title and Payday Loan Services, Inc. can help. If you need fast cash without affecting your mortgage eligibility, consider:

• Title Loans: Use your car title as collateral to borrow money quickly.

• Payday Loans: Get a short-term cash advance based on your income.

Learn more about title loans in Texas.

Make Homeownership Possible With the Right Support

Buying a Texas house with low income may be challenging, but it's achievable. Use these programs to reduce your upfront costs and lean on short-term loan options when emergencies strike.

If your savings are tied up in your down payment and you need a boost, we’re here to help with a quick title loan or payday loan.

Apply now for fast loan assistance.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.