Before you commit to buying a house in the Houston area you need to first understand how much you will be required to have as a down payment. And this all depends on the loan type and a few other factors. Let’s dive in…


First, we are going to cover the traditional means of financing the purchase of a home. Some of the most common loans you will see are FHA, VA, and Conventional loans. Each have their own requirements and eligibility to qualify.

FHA – 3.5% of purchase price is minimum down payment.

VA – 0% down. This loan is only available to veterans and current members of our armed forces.

Conventional – 3% down if you are a first time home buyer, 5% if you have already previously purchased a home.


If you can’t qualify for a traditional mortgage, you do have other options available to you. These are called Non-QM Mortgages or Non-Qualified Mortgages. Basically they do not meet the governments guidelines. So what does this mean for your down payment? Well, you need to speak with a lender to see what programs they have available to you.

Most lenders want to see some skin in the game, meaning they want 15-20% down before they consider approving you for the loan.

For example, let’s review what a bank statement loan looks like.

You would need to provide bank statements (usually 3+ months) to a lender so they can determine how much of a loan you can qualify for. The down payment for this type of loan is 20%. And unfortunately you will have a higher interest rate than traditional mortgages. Sometimes a few points higher!

The best thing you can do is talk with your lender to determine which route is best for you given your current situation. Is it worth going the Non-QM route, or is it better to wait and work to get yourself in the qualifying stage of traditional financing? The answer lies within you.

If you enjoyed this video and article, learned something or know someone who might enjoy it, please share it to them or your social media. If you are ready to get the home buying process started, schedule your buyer’s consultation with our team so that we can point you in the right direction.

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