First-Time Home Buyer Guide for Aubrey & Pilot Point

After more than 20 years in Aubrey, I've helped a lot of neighbors buy their first home. Most of them started with the same worry: "I don't think I can qualify yet." More often than not, they could, or they were closer than they thought. Here's what it actually takes to buy your first home in Aubrey or Pilot Point, and the Texas programs that can help.

Who counts as a first-time buyer?

In Texas, most programs treat you as a first-time buyer if you haven't owned and lived in a home in the last three years. So if you owned a home years ago, you may qualify again. Veterans can often skip this rule entirely.

What credit score do you need?

It depends on the loan:

• FHA: 580 or higher for the 3.5% minimum down payment
• Texas down payment assistance (TDHCA): usually 620 or higher
• Conventional: generally 620 or higher, with as little as 3% down
• USDA: no official minimum, but most approvals start around 640

If your score is a little short, don't give up. Small changes, like paying down a credit card, can move it faster than most people expect.

How much income do you need for a $300,000 home?

Here's a rough example. On a $300,000 home with an FHA loan and 3.5% down, at a 6.5% interest rate, your payment would be about $2,670 a month, including principal and interest, property taxes, insurance and FHA mortgage insurance.

Lenders typically want your total monthly debts, including that payment, to stay under about 45% of your gross income. That works out to about $71,000 a year with no other debts, or about $85,000 if you also pay $500 a month toward a car or credit cards. Your numbers will depend on your rate, taxes and debts, so let us run them for you before you shop.

How much do you need for a down payment?

Less than most people think:

• FHA: 3.5%
• Conventional: as little as 3%
• VA and USDA: $0 down for those who qualify

You'll also have closing costs, usually a few percent of the price. That's where the next section comes in.

Texas programs that help with down payment and closing costs

• TDHCA My First Texas Home: 2% to 5% of your loan amount toward down payment and closing costs, paired with an FHA, VA or USDA loan. It requires a homebuyer education course and usually a 620 credit score.
• TSAHC Home Sweet Texas: down payment help for low- and moderate-income buyers. TSAHC recently raised its income limits to 150% of the area median income, so more families qualify.
• TSAHC Homes for Texas Heroes: for teachers, police, firefighters, EMS, corrections officers and veterans, with income limits up to 170% of the area median.
• USDA zero-down loans: many areas around Aubrey and Pilot Point have qualified. See our zero-down USDA guide for how it works.

Which programs fit the home you want?

Many programs depend on where the home is, not just on you. Our free Texas Down Payment Assistance Checker lets you enter any Texas address and see which programs may be available for that home: city and county grants, state programs, USDA and VA options. It takes about a minute, and there's no credit check.

Your next step

Run an address through Program Match, then give me a call at 972-978-9791. I'll walk you through what you qualify for and what it would take to get there.

Jennifer Hamilton, Branch Manager, Team Texas at Efinity Mortgage, NMLS 1793916. Examples are estimates for illustration only, not a loan offer. Program terms and limits change; ask us for current details.