Texas' Top Mortgage Brokers Since 1996

Buy a House in Texas with Just 1% Down

It’s Time to Pay Yourself, Not Your Landlord.


With Austin Capital Mortgage’s 1% Down Payment Loan, you can break free from the rent cycle and start building equity now.

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What is a 1% Down Paymen Loan?

A 1% down mortgage is a loan that allows you to make a down payment of just 1% of the home's purchase price.


So, if the home costs $300,000, your down payment would be just $3,000.


That's a lot of savings compared to the traditional 3% you need (that would amount to a $9,000 down payment).

Why should you get a 1% Down Payment Loan?

With the median home price in Texas rising 15% over the past year, waiting to save a large down payment could mean paying significantly more later.


Typically, the lowest down payment you can make on a conventional mortgage is 3%.


Some government-backed mortgages allow no down payment, but these loans are only available to borrowers who meet specific eligibility criteria (like being a military member or veteran, for instance). 


For those that don't fall into those specific categories, a 1% down mortgage can be a good fit.


With our 1% down loan, you can secure today’s prices and start building equity right away.

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1% Down Loan Requirements in Texas 2025

The specific requirements can vary depending on the lender and any additional state or local programs you might qualify for.



As Texas' top rated mortgage brokers, we find you the best local lenders with flexible requirements - based on your unique financial situation.


Here are the general eligibility requirements for a 1% Down Payment Loan:

Minimum Credit Score


  • Typically, a credit score of 620 or higher is required.


Income Requirements


  • Lenders will require W-2 forms, pay stubs, and possibly tax returns.

  • For self-employed individuals, additional documentation such as 1099 forms and profit-and-loss statements will be needed.

  • Some lenders may adjust income limits based on the area’s median income, especially in Texas cities like Dallas and Austin with rapidly rising housing costs.

Debt-to-Income (DTI) Ratio


  • Most programs require a DTI ratio of 43% or lower, although some may allow up to 50% with compensating factors.


  • In Texas, if the property is in a flood zone, you may be required to purchase flood insurance, which is an added cost that some lenders might factor into your DTI.


First-Time Homebuyer Status

  • While not always a requirement, some lenders may give preference to first-time homebuyers or those who have not owned a home in the last three years.


Private Mortgage Insurance (PMI)

  • Since the down payment is less than 20%, PMI is typically required, which adds to the monthly mortgage payment.

Property Location and Type

  • The property must be a primary residence and located within Texas.


  • The program typically applies to single-family homes, though some condos and townhomes may qualify depending on the lender.
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FAQs

Got a question? We’re here to help.

  • What is a 1% Down Payment home loan?

    A 1% Down Payment home loan is a mortgage program where the borrower must contribute only 1% of the purchase price as a down payment while the lender finances the remaining 99 percent.

  • How does a 1% Down Payment home loan benefit borrowers?

    This loan program makes homeownership more accessible by reducing the upfront cash requirement, making it particularly beneficial for first-time homebuyers or those with limited savings.

  • Are 1% Down Payment home loans widely available?

    Availability may vary depending on lenders and financial institutions. It's recommended to research and compare different lenders to find those offering such loan programs.

  • What are the eligibility criteria for a 1% Down Payment home loan?

    Eligibility criteria may differ among lenders. Typically, factors like creditworthiness, income stability, and debt-to-income ratio are considered when assessing eligibility for this type of loan.

  • Do borrowers have to pay private mortgage insurance (PMI) with a 1% Down Payment home loan?

    PMI requirements can vary, but with a low downpayment, borrowers may be required to pay PMI to protect the lender in case of default. It's important to clarify this with the lender.

  • Can a 1% Down Payment home loan be used for any type of property?

    The eligibility of the loan for different property types can vary. It's essential to check with the lender if the loan program applies to the property you intend to purchase.

  • What are the interest rates like for 1% Down Payment home loans?

    Interest rates can vary depending on credit score, loan term, and market conditions. It's advisable to compare interest rates among different lenders to get the best possible rate.

  • How long does the loan approval process take for a 1% Down Payment home loan?

    The loan approval process duration can vary among lenders. Typically, it involves verifying your financial documents, conducting a credit check, and assessing the property. On average, it may take around 30-45 days, but this can vary.

  • Can down payment assistance programs be combined with a 1% Down Payment home loan?

    Some downpayment assistance programs can be combined with a 1% Down Payment home loan. It's essential to research and consult with lenders to understand the available options in your area.

  • Are there any potential drawbacks to a 1% Down Payment home loan?

    While a lower down payment can be beneficial, it's essential to consider the overall costs, including potential PMI and higher monthly payments. Ensuring the loan fits your financial situation and long-term goals is essential.