Average Down Payment for a Dallas-Area Home: 2025 Update
Despite common misconceptions, 20% down is rarely needed in the DFW area.
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First-time home buyers in the Dallas area tend to have a lot of questions about down payments.
It's easy to understand why. Surveys have shown that the down payment is the biggest challenge for most home buyers, especially those who are buying their first property.
Summary: In this report, we'll take a look at the average down payment among first-time home buyers in the DFW area, using 2025 home price data.
The Key Takeaways From This Guide
A 20% down payment is not required for most Dallas-area home buyers, though some choose to invest that much to avoid mortgage insurance.
Some mortgage loan programs allow for down payments as low as 3%, making homeownership more accessible to a larger audience.
VA loans allow military members and veterans to finance up to 100% of the purchase price, taking the down payment out of the equation.
Home buyers can often use gift money from family to cover the upfront expense, as long as the donor does not expect repayment.
Down payment assistance programs are available in the Dallas area, offering grants and forgivable loans to eligible buyers.
The average down payment for first-time buyers in Dallas is around 9% (or $33,000 for a median-priced home). But many buyers pay much less.
What Buyers Should Know About Down Payments
Before we get to the averages, here are some things Dallas-area home buyers should know about down payments:
1. A 20% down payment is rarely necessary in the Dallas area.
There's a widespread notion among first-time home buyers that a 20% down payment is needed when using a mortgage loan. But that's not accurate. Some people choose to put down 20% or more to avoid paying mortgage insurance. But it's rarely required in the Dallas area.
2. Some mortgage loans allow you to put down as little as 3%.
Fannie Mae and Freddie Mac (the government-sponsored enterprises that buy home loans from lenders) both have programs that allow for a 97% loan-to-value ratio. This means borrowers can put down as little as 3%. These and similar programs simplify the path to homeownership by reducing the amount of money you have to pay upfront.
3. The money can be gifted from a third party, such as a family member.
Did you know that most mortgage programs allow you to use gift money from a third party to cover the down payment? It's true. And this applies to FHA, VA, and conventional mortgage loans.
This could help you buy a home in the Dallas area sooner rather than later. But the money provided must truly be a gift—it cannot be an interpersonal loan.
4. You might be eligible for a down payment assistance program.
Home buyers struggling to come up with the funds needed for a down payment might be eligible for an assistance program.
Down payment assistance (DPA) programs are offered by state and local housing agencies, often in partnership with nonprofit organizations. The assistance can come in several forms, including grants and forgivable loans.
Average Down Payment in the Dallas Area: 2025
Home buyers in the Dallas area typically do not need to put down 20%, unless they're buying a high-end luxury property (i.e., jumbo loan).
The average down payment among DFW first-time buyers is closer to 9%.
Here's a quote from last year's Profile of Home Buyers and Sellers, published by the National Association of Realtors:
"In 2024, the median downpayment among all buyers was 18%, nine percent for first-time home buyers, and 23 percent for repeat buyers. This is the highest downpayment for first-time buyers since 1997 and the highest downpayment for repeat buyers since 2003."
The median home price for the DFW metro area is $370,384, as of March 2025.
Here's what the down payment would be for a median-priced home in the Dallas area, at several key thresholds:
3% (minimum down payment for conventional loans): $11,111
3.5% (minimum down payment for FHA home loans): $12,963
9% (average down payment amount first-time buyers): $33,334
20% (amount needed to avoid mortgage insurance): $74,076
Based on this data, we could say that the average down payment among first-time home buyers in the Dallas area is currently around $33,000.
But most borrowers don't have to invest that much.
Some mortgage programs allow for a down payment down into the 3% range. This is why home buyers should explore all of their mortgage options.
VA Loans Offer 100% Financing
Dallas-area home buyers who are military members or veterans should seriously consider using the U.S. Department of Veterans Affairs (VA) loan program.
With this program, eligible borrowers can qualify for 100% financing. This means the loan will cover the entire purchase price, eliminating the need for a down payment.
VA borrowers can also avoid paying mortgage insurance, which is usually required when a person makes a small (or no) down payment. It’s a win-win.
DFW Down Payment Assistance Programs
There are several down payment assistance programs available in the Dallas-Fort Worth area. These programs help certain buyers overcome the upfront hurdle associated with a home purchase.
Below is a detailed list of down payment assistance programs available for home buyers in the Dallas-Fort Worth metro area. These programs are offered by local city agencies as well as state-level organizations.
Note: Many down payment assistance programs are geared toward first-time home buyers. But the definition of a "first-time" buyer can vary. For instance, some DPAs define it as a person who has not owned a home in the past three years.
1. Fort Worth Homebuyer Assistance Program (HAP)
What It Offers: Up to $25,000 in financial assistance for down payments and closing costs. Buyers may use a portion (up to 3% of the loan amount) for closing costs, with the remainder applied to the down payment—or opt to use all funds for the down payment.
Who Qualifies: Typically available to first-time homebuyers (or those who have not owned a home in the last three years) with income limits based on HUD guidelines. The property must be located within Fort Worth city limits.
2. Dallas Homebuyer Assistance Program (DHAP)
Provides financial assistance based on need, with three distinct offerings:
Standard DHAP: Assistance up to $50,000 (or up to $60,000 in designated high opportunity areas).
Targeted Occupations DHAP: Tailored for workers in education, healthcare, and protective services.
Anti-Displacement DHAP: Designed for long-time Dallas residents (living in the city for at least 10 years) to help combat displacement.
Who Qualifies: Must be a U.S. citizen or eligible permanent resident with income at or below 80% of the Area Median Income (AMI) and meet other program criteria (including having a pre-executed sales contract and mortgage approval).
3. Irving Homebuyer Down Payment Assistance Program
What It Offers: Assistance in the form of a zero percent interest, deferred forgivable loan. The funds can be applied to down payment and closing costs to purchase a home within the City of Irving. The exact dollar amount may vary; applicants should review program details.
Who Qualifies: Typically targets income-eligible, first-time homebuyers within Irving (or those who have not owned a home in the past three years) within Irving.
4. Denton Homebuyers Assistance Program
What It Offers: This program helps low- and moderate-income families with the down payment and closing costs to buy their first home. Assistance is in the form of a forgivable loan at 0% interest for five (5) years to fifteen (15) years.
Who Qualifies: Designed for income-qualified first-time buyers (or those meeting the "first-time" criteria of not owning within the past three years). Buyers must complete a home buying education course.
5. Arlington Homebuyers Assistance Program
What It Offers: Provides up to $20,000 in assistance toward down payments and closing costs.
Who Qualifies: Available to eligible first-time homebuyers (no ownership in the past three years) with income below the program threshold and buying within Arlington city limits. Household income should not exceed 80% of the local median.
6. Plano First-Time Homebuyers Assistance Program
What It Offers: Helps eligible low and moderate-income households buy a home in Plano by providing down payment and closing costs assistance in the form of deferred payment loans. The United States Department of Housing and Urban Development (HUD) funds this program.
Who Qualifies: Available to income-eligible, first-time home buyers who are buying a home within Plano city limits. Once again, the three-year rule applies for no past homeownership.
7. Frisco Down Payment Assistance Program
What It Offers: Provides up to $10,000 in assistance for down payment and closing costs, in the form of a forgivable loan.
Who Qualifies: Designed to help low and moderate-income families employed by the City of Frisco or the Frisco Independent School District. Borrowers must complete a home buying education class and counseling.
8. Grand Prairie Buying Power Program
What It Offers: Offers assistance up to $7,500 to help with down payments and closing costs.
Who Qualifies: Available to income-eligible first-time homebuyers purchasing within the city of Grand Prairie.
9. Texas State Affordable Housing Corporation (TSAHC)
At the state level, TSAHC administers a variety of programs, including:
Homes for Texas Heroes Program: Provides down payment assistance between 3% and 5% of the loan amount for eligible “hero” professionals (e.g., teachers, first responders, EMS personnel, police, and correctional officers).
Home Sweet Texas Program: Offers similar assistance options for buyers who do not qualify for the Heroes program.
Both programs have specific income and credit requirements, with additional criteria (such as employment in a designated "hero" profession for the Heroes program) and are available statewide, including the Dallas-Fort Worth area.
(Note: The above information was accurate as of March 2025. But these programs can change over time. If you see something that needs to be updated, please comment below.)