FHA, VA, USDA, Conventional, and Down Payment Assistance, compared clearly so you know exactly where you stand.
Select any program below to see a full breakdown, who qualifies, what it costs, and whether it's right for you.
The most popular path into homeownership for first-time buyers, flexible credit, low down payment.
FHA loans are backed by the Federal Housing Administration, which means lenders take on less risk, and pass that flexibility along to you. If your credit isn't perfect or your savings are limited, FHA is almost always the conversation starter.
The trade-off is mortgage insurance. You'll pay an upfront MIP (1.75% of the loan amount, rolled into your loan) plus an annual premium. On a $250,000 loan, that's about $4,375 upfront and roughly $137/month. Unlike conventional loans, FHA mortgage insurance doesn't automatically drop off when you hit 20% equity, you'd need to refinance to remove it.
Key numbers for 2026
The best home loan on the market, full stop. If you've earned it, use it.
The VA loan is a benefit earned through military service, and it's genuinely the best loan program available. No down payment, no monthly mortgage insurance, competitive rates, and flexible qualification guidelines. San Antonio has one of the largest veteran populations in the country, and many buyers here don't realize how powerful this benefit is.
You pay a one-time VA funding fee (typically 2.15% for first use, rolled into the loan), but no monthly PMI, which alone saves hundreds per month compared to a conventional loan with less than 20% down. Veterans with a service-connected disability rating may be exempt from the funding fee entirely.
Key numbers for 2026
Zero down payment for eligible Texas communities, and more areas qualify than most buyers expect.
The USDA Rural Development loan is one of the most underused programs in Texas. It offers 100% financing, no down payment, for homes in eligible rural and suburban areas. The key misconception is that "rural" means farmland. Many San Antonio suburbs, bedroom communities, and smaller Texas cities qualify.
There are two forms of mortgage insurance: an upfront guarantee fee (1% of the loan, rolled in) and an annual fee (0.35%/year). That annual rate is significantly lower than FHA's MIP, making USDA one of the most affordable options for buyers who qualify, both on rate and monthly cost.
Key numbers for 2026
The best choice once your credit is solid, lower long-term cost and no lifetime mortgage insurance.
Conventional loans aren't backed by the government, they're sold to Fannie Mae or Freddie Mac on the secondary market. That means tighter qualification standards, but also better pricing for buyers with good credit and a lower total cost over time.
The biggest advantage over FHA: mortgage insurance (PMI) automatically cancels once you reach 80% loan-to-value. On FHA, you'd need to refinance. If your credit is 700+ and you have a modest down payment, conventional often wins on total cost. Fannie's HomeReady and Freddie's Home Possible programs allow just 3% down for first-time buyers with income at or below 80% of the area median.
Key numbers for 2026
Up to 5% toward your down payment and closing costs, programs many Texas buyers don't know they qualify for.
Texas runs some of the best down payment assistance programs in the country through the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC). These programs aren't loans from a payday lender, they're state-administered programs that pair with your FHA, VA, USDA, or conventional mortgage.
The assistance comes as either a grant (no repayment ever) or a forgivable second lien (forgiven after 3 years if you stay in the home). Combined with an FHA loan, many buyers close with little to nothing out of pocket.
Key numbers for 2026
| Program | Down Payment | Min. Credit | Mortgage Insurance | Best For |
|---|---|---|---|---|
| FHA | 3.5% | 580 | Required (life of loan) | Lower credit scores |
| VA | $0 | Flexible | None | Veterans & military |
| USDA | $0 | 640 | 0.35%/yr annual | Rural/suburban areas |
| Conventional | 3–20% | 620 | Drops at 80% LTV | Strong credit 680+ |
| Texas DPA | Up to 5% covered | 620 | Depends on base loan | Limited savings |
A 10-minute conversation tells you exactly where you stand, no cost, no obligation.