Welcome back to Learning About Loans! Today, we’re diving deep into FHA down payment assistance in Texas by exploring Buyer’s Choice, a powerful FHA loan assistance option specifically designed to help Texas homebuyers—particularly in markets like Dallas—purchase a home with minimal upfront costs.
What Is Buyer’s Choice FHA Down Payment Assistance?
Buyer’s Choice is a specialized FHA loan program offering robust FHA down payment assistance. The program significantly reduces (and can even eliminate) the down payment and closing costs required with a standard FHA loan.
This financial support covers up to 5% of the home’s purchase price or appraised value, whichever is lower, empowering Texas homebuyers who may not have substantial savings available.
Unlike traditional zero-down mortgages (such as USDA or VA loans), Buyer’s Choice FHA down payment assistance is available to everyone without location restrictions, military service obligations, or first-time homebuyer limitations—making it uniquely flexible for Texans, especially buyers around Dallas.
FHA Buyer’s Choice Assistance Options
Buyer’s Choice provides two distinct pathways to FHA down payment assistance:
Option 1 – Five-Year Forgivable FHA Down Payment Assistance
- FHA Down Payment Assistance
- Fully forgiven after five years, provided you remain in the home
- No extra monthly repayment required
- Available to homebuyers with credit scores as low as 620
Option 2 – Ten-Year Repayable FHA Down Payment Assistance
- Structured as a second lien with manageable monthly payments over 10 years
- Offers lower primary FHA home loan interest rates
- Ideal for homebuyers seeking lower overall monthly mortgage payments
- Easily refinanced if future FHA mortgage rates decrease
Buyer’s Choice FHA Down Payment Assistance Requirements & Benefits
Here’s a quick look at FHA down payment assistance through Buyer’s Choice and its key benefits for Texas homebuyers:
- 101.5% financing fully covers FHA down payment and potentially closing costs
- No first-time homebuyer requirement; available for repeat buyers
- No income limits, open to all Texas homebuyers regardless of income level
- Flexible credit standards, accepting scores as low as 620
- Available statewide, with excellent value for Dallas and Texas homebuyers
- Ability to combine with interest rate buydowns for even lower monthly mortgage payments
Why Choose Buyer’s Choice Over Other Texas FHA Down Payment Assistance Programs?
Compared to popular Texas FHA down payment assistance options like SETH, TDHCA, or TSAHC, Buyer’s Choice stands apart by offering:
- No hidden program fees
- Fewer restrictions—no income, first-time buyer, or Texas-specific constraints
- Higher FHA assistance amounts, including upfront mortgage insurance premiums
- Competitive lower interest rates through repayable assistance
Quick Overview of FHA Loans & Benefits
FHA loans, government-backed by HUD, feature several key benefits:
- Low FHA down payment requirement of just 3.5%
- Flexible qualification requirements, particularly regarding credit
- No mandatory first-time homebuyer status
- Specifically for primary residences
When combined with Buyer’s Choice FHA down payment assistance, upfront costs can be drastically reduced, making homeownership more accessible for Texans looking for down payment assistance.
FHA Down Payment Assistance Example Scenario (Texas)
Let’s illustrate how FHA down payment assistance in Texas works with Buyer’s Choice:
- Purchase Price: $350,000 (Dallas home example)
- FHA Down Payment: 3.5%
- Mortgage Loan Amount: Approximately $343,661 (including FHA funding fee of 1.75%)
- Estimated Monthly Payment: Around $2,172 (principal and interest at a 6.5% fixed interest rate, 7.322% APR; excludes taxes and insurance)
Can You Combine an FHA Loan with FHA Down Payment Assistance?
Absolutely! Buyer’s Choice FHA down payment assistance specifically allows Texas homebuyers to pair assistance directly with an FHA home loan.
This makes Buyer’s Choice an excellent choice for buyers in cities like Dallas or throughout Texas who may otherwise find down payments and closing costs challenging.
Additional Financial Support Options
Beyond FHA down payment assistance, additional financial resources exist to make homeownership attainable.
Matched savings programs and interest rate buydowns are examples your Mortgage Mark loan officer can help explain! We’ll work directly with you to identify the best combination of FHA and other mortgage solutions tailored specifically for your needs.
Get Started Today with FHA Down Payment Assistance in Texas!
Ready to learn more about Buyer’s Choice and FHA down payment assistance in Texas? Contact the Mortgage Mark Team today. Our experienced mortgage professionals can help you explore your options, answer questions, and start your journey to affordable homeownership in Dallas and across Texas. Reach out today!
Special thanks to one of our awesome loan officers, Tamara, for her expertise. Stay tuned for more insights from Learning About Loans with Mortgage Mark!
Mark Pfeiffer
Regional Sales Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com