First-Time Buyer Guide
First-time home buyer in Houston — everything you need before you tour
The honest, no-pressure guide. The five fears every first-time buyer brings to the first call, the real numbers you’ll need, the Texas DPA programs that lower the cash-to-close, and what the first year of homeownership actually costs.
5
fears every first-time buyer brings to call #1
3%
conventional down payment minimum
$1.4-2.5K
typical annual Texas homestead savings
The fears that hold buyers back
The five fears every first-time buyer brings to the first call
“I don’t have 20% down”
You don’t need it. Conventional starts at 3% down, FHA at 3.5%, VA and USDA at 0%. The 20% number is folklore — useful for avoiding PMI, not required to buy a home.
“My credit score isn’t perfect”
It doesn’t need to be. FHA loans work at 580+. Conventional loans work at 620+. A high-680 or 700+ score gets you the best terms, but you don’t need 760 to qualify.
“I don’t know how much I can actually afford”
That’s what pre-approval is for. A real lender pre-approval (not just an online “estimate”) gives you the actual price ceiling with the actual monthly payment math.
“What if the inspection finds something terrible?”
That’s the point of the option period. Texas gives you a defined window to inspect, evaluate, and walk away with your earnest money intact. You’re protected by the contract.
“What if I’m the wrong person for this house?”
Then you don’t buy it. There’s no penalty for touring a home and saying no. The right house feels like the right house — and it’s my job to tell you honestly when something isn’t a fit.
The real numbers
How much do you actually need?
Down payment
3% conventional, 3.5% FHA, 0% VA or USDA. On a $300,000 home, that’s $9,000–$10,500 conventional, $0 if VA/USDA.
Closing costs
2%–4% of the purchase price. Lender fees, title fees, escrow, appraisal, recording. A negotiated seller-paid credit can offset some or all.
Earnest money and option fee
Earnest money: 1% of purchase price is typical in Houston. Option fee: $250–$500 buys you the right to inspect and walk. Both apply to closing if you proceed.
Prepaid escrows + inspection
Inspection: $400–$700 depending on home size. Prepaid escrow: 2-3 months of tax and insurance reserves. Lender-required.
The assistance landscape
Real Texas down payment assistance programs
See my full Houston DPA guide for the deep walkthrough. Headlines:
TSAHC
Two flagship programs: Homes for Texas Heroes (for teachers, first responders, nurses, vets) and Home Sweet Texas (general). Both can stack ~5% DPA. See my TSAHC walkthrough.
TDHCA — My First Texas Home
For first-time buyers or those who haven’t owned in 3+ years. Up to 5% in DPA, optional MCC tax credit layer.
Local and lender-specific programs
City of Houston, Harris County, and several lenders run their own DPA products with different limits and tiers.
The loan types
The credit score conversation, made simple
FHA loan
Best for: credit 580-680, or first-time buyers with limited down payment. 3.5% down, FHA mortgage insurance for the life of the loan in most cases.
Conventional loan
Best for: credit 680+ with at least 3% down. PMI required below 20% down but drops off automatically at 78% LTV.
VA loan
Best for: veterans, active-duty, and eligible surviving spouses. 0% down, no PMI, very competitive rates. Should be the first option evaluated.
USDA loan
Best for: buyers in USDA-eligible Houston-area pockets — parts of far north Harris, Brazoria, Waller, Liberty counties. 0% down on eligible homes.
The honest year-1 math
What the first year of homeownership actually costs
On a $300,000 Houston home, year 1 typically looks like:
Monthly principal + interest (5% down, 7.5% rate, 30-year): ~$1,990
Property taxes: ~$650–$800 (depends on submarket + homestead)
Insurance: ~$150–$220
HOA (if any): ~$30–$150
Utilities: ~$200–$350 (Houston summers raise the cooling load)
Routine maintenance reserve: ~$200 (you should set this aside even if you don’t spend it every month)
Typical year-1 monthly all-in: $3,200–$3,700.
Year 1 also tends to include one or two unexpected repairs. Budget for them, don’t fear them. Most are smaller than you imagine.
One step do not forget
The Texas homestead exemption (file this!)
After closing, you have until April 30 of the following year to file your homestead exemption. It reduces your taxable value and caps annual appraisal increases at 10% for owner-occupied homes.
Example: On a $300,000 Houston home with a $140,000 school-district + city homestead exemption stack, you save $1,400 to $2,500 saved per year in property tax for as long as you own and occupy the home.
This is one of the highest-value 30 minutes of paperwork in Texas homeownership. See my full homestead walkthrough. I remind every first-time buyer post-close.
Real examples
Three first-time buyer scenarios I see often
The 28-year-old solo buyer with a steady tech job
Good credit, ~$25K saved. Usually goes conventional, 5%-10% down on a $280K-$350K starter. TSAHC sometimes layers if income qualifies.
The young couple with one income on parental leave
Lender qualifies on the working spouse’s income. Often FHA 3.5% down or conventional 3% down, with DPA stacking when household income qualifies.
The veteran buyer using VA benefits
0% down VA loan, no PMI, often layered with TSAHC Heroes program. The most efficient first-time-buyer path that exists for eligible veterans.
The process
How I work with first-time buyers specifically
- The first call is longer. 30-45 minutes. We cover the fears, the math, the timeline, and the loan options. No pressure, no scripts.
- Pre-approval before tours. I introduce you to Texas-licensed lenders I’ve closed with. Pre-approval first, tours second.
- Tour education, not tour pressure. I explain what to look at, what to ignore, and what we’d need to verify in the option period.
- Post-close, I’m not done. Homestead reminder, service intros, year-1 check-in, and protest filing reminder.
Ready for the no-pressure first call?
Tell me where you are in the process — even if you’re six months out. The earlier we talk, the more efficient the path is when you’re ready.
Call or text 832-343-8383Start with the Buyer GuideAbout the author
Eddie Weir, REALTOR®
REMAX Signature. ABR + LUXE designations. TX license #560899. Top 1% of Houston-area REALTORs by transaction volume. A meaningful share of my clients every year are first-time buyers — including TSAHC, VA, and conventional 3%-down stacks. Read more about how I work, or text 832-343-8383.
