Down Payment Options for Houston-Area Buyers (Including First-Time Buyers)

How much down payment do you need in Texas? Here are practical options for buyers in Pearland, Friendswood, Alvin, and Manvel — plus smart strategies to protect your cash.

Let’s clear up one of the biggest myths in real estate:

You do not always need 20% down to buy a home.

In fact, many buyers in Pearland, Friendswood, Alvin, and Manvel purchase with far less — while still making smart financial choices.

What down payments usually look like

Down payment options depend on your loan type and situation, but common ranges include:

• lower down payment options for qualified buyers
• moderate down payment for a balance of payment + cash reserves
• higher down payments to reduce monthly payment or strengthen offers

The “smart down payment” mindset

I’m a big fan of this approach:
Put down what makes sense — but don’t drain your savings.

Because buying a home also comes with:

• closing costs
• moving expenses
• furniture/updates
• unexpected repairs

Having a cushion after closing can be more important than pushing for the biggest down payment possible.

Gift funds & help from family

Many buyers use gift funds as part of their down payment — and it’s often allowed (with proper documentation). Your lender will guide the process.

Strengthening your offer without overdoing the down payment

If you’re competing for a home, there are other ways to make your offer attractive:

• clean terms and timelines
• strong pre-approval
• flexible closing date
• seller-friendly options (when appropriate)
• strategic earnest money and option period

My advice

Before choosing a down payment amount, we’ll look at:

• your monthly payment goal
• your cash reserves
• your comfort level
• and what’s competitive in your target neighborhood

FAQs

Do I need 20% down in Texas?
No. Many buyers purchase with less depending on loan type and qualifications.

Is it better to put more down or keep savings?
It depends. If draining savings creates stress, it’s usually better to keep reserves.

Can I use gift money for a down payment?
Often yes — as long as it’s documented properly through the lender.

Want help choosing the best strategy for your situation? Message me your target city + price range and I’ll connect you with options that fit your goals.