How much down payment do you need to buy in Dallas?
The down payment depends on the loan, not on the city. Texas has no state rule about down payments. The loan program and the lender set the minimum.
- Conventional loans: as little as 3% down for many first-time buyers through Fannie Mae and Freddie Mac programs, and 5% down for most other buyers of a primary home.
- FHA loans: 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579. Many lenders set their own higher score floor.
- VA loans: no down payment for eligible veterans, service members and some surviving spouses.
- Jumbo loans: for loan amounts above the conforming limit. Each lender sets its own down payment, credit and reserve rules, usually stricter than a conventional loan.
Putting 20% down on a conventional loan removes private mortgage insurance, called PMI, and lowers the loan amount. It is a good target if you have the cash, but it is not a requirement. Many buyers put down less and keep money in the bank for reserves, repairs and moving. When you are ready to look, see buying a home.
Ask for a side-by-side of two or three down payment amounts on the same house. Seeing the payment, the PMI and the cash to close next to each other makes the choice much easier.
What costs should you budget for besides the mortgage?
Besides principal and interest, your monthly cost includes property taxes, homeowners insurance, mortgage insurance if you put down less than 20% on a conventional loan, and HOA dues if the home has an association. In Dallas County, property taxes are often the largest piece after the loan itself.
One-time costs before and at closing
- Earnest money and the option fee, paid within 3 days of the contract. Both are usually credited back to you at closing.
- Home inspection, and any specialist you add: foundation, sewer line, roof, termite.
- Appraisal, lender fees and the lender's title policy.
- Prepaid items: the first year of homeowners insurance and a starting balance in your escrow account for taxes and insurance.
- A survey if the existing one cannot be used, and HOA transfer and resale certificate fees.
Taxes buyers pay in Texas
Texas has no state income tax, and the Texas Constitution bars a tax on the transfer of a home by deed, so there is no transfer tax when you buy. What you do pay is property tax. At closing, the seller credits you for their share of the current year's taxes, and you pay the full bill when it comes due. Your bill is the appraised value from the Dallas Central Appraisal District, known as DCAD, times the combined rates of every taxing unit: city or town, school district, county and others.
That is why a tax bill can differ between two homes a few blocks apart. Highland Park and University Park are separate towns with their own rates and Highland Park ISD, so compare the actual rates and the property's history on DCAD before you buy there, and see the Highland Park page for how to check. Once the home is your principal residence, apply for the homestead exemption with DCAD.
Who pays the buyer's agent in Dallas?
The buyer's agent is paid what the written agreement between the buyer and the agent's broker says, and that amount is negotiable. Since January 1, 2026, Texas law, Senate Bill 1968, requires a written agreement before an agent shows you a home, or before making an offer for you if no home is shown. The agreement must state the compensation and say plainly that broker compensation is not set by law and is fully negotiable.
In practice, the buyer can ask the seller to pay some or all of that compensation as part of the offer, and many sellers agree. If the seller pays less than the agreement says, the agreement decides whether the buyer owes the difference. You do not pay to tour homes. You sign the agreement first, and it spells out when and how anyone is paid.
Read the agreement before you sign it, and ask about anything unclear. More on how this works is on working with a Realtor.
How Andy and the GPS Group handle the money side
Talk to a lender before you start touring, and my first step with a buyer is that conversation. I spent years in high-tech and software before real estate, so I like numbers laid out clearly: the cash you need, the monthly cost and the costs people forget.
- I introduce you to lenders, including the mortgage team inside Dave Perry-Miller's OnePoint process, where agent, mortgage, insurance and title work as one connected process. You are free to use any lender you choose.
- I look up the property's tax history and HOA details before you write an offer, not after.
- When it helps your situation, I write seller-paid closing costs into the offer, within what your loan program allows.
- During the contract, I track every deadline: earnest money, the option fee, the option period and the financing approval.
Moving from another city or state? Relocating to Dallas covers buying from a distance.
You can ask the seller to pay part of your closing costs, and you can compare lender fees line by line on the Loan Estimate. In Texas, title insurance premiums are set by the Texas Department of Insurance, so compare lender and escrow fees instead.
