Buyer Financing Options 

The best agents aren’t loan officers, but they do understand how financing works well enough to open doors for their clients. In today’s market, creativity matters. Knowing what financing tools exist allows you to guide buyers to the right lender, structure stronger offers, and help clients buy homes they may not think are possible.

Your role is simple and powerful:
Know what’s available, ask smart questions, and connect buyers with the right expertise.

Below is a high-level guide to the most common mortgage options and assistance programs available to buyers in 2026, plus exactly how to explain each one in plain English.

What they are
Traditional mortgages backed by Fannie Mae or Freddie Mac. These can be fixed-rate or adjustable and often offer better long-term costs for buyers with strong credit.

Best for
Buyers with good credit, steady income, and some savings.

Why they matter
They’re flexible, widely accepted, and often come with lower mortgage insurance costs once equity builds.

How to explain it to your buyer
“This is the most common type of home loan. If your credit and income are strong, a conventional loan often gives you solid rates and flexibility, especially long term.”

What they are
Government-insured loans designed to help buyers with lower credit scores or smaller down payments.

Best for
First-time buyers or buyers rebuilding credit.

Why they matter
They lower the barrier to entry and allow buyers to get in the game sooner.

How to explain it to your buyer
“FHA loans are designed to help buyers who don’t have perfect credit or a big down payment. They’re a great stepping stone into homeownership.”

What they are
Loans available to eligible veterans, active-duty service members, and certain surviving spouses.

Best for
Qualified military buyers.

Why they matter
Often no down payment, competitive rates, and limited mortgage insurance.

How to explain it to your buyer
“If you qualify for a VA loan, it’s one of the strongest options out there. It can reduce your upfront costs and your monthly payment.”

What to know about VA Entitlement

VA loans are based on entitlement, not a one-time use benefit. Most veterans can use their VA loan more than once, depending on how much entitlement they have available.

If a veteran sells their current home and pays off the VA loan, their full entitlement is restored and they can use a VA loan again, often with no down payment.

If they keep the home or allow a non-veteran to assume the loan, some entitlement may stay tied up, which could require a down payment on the next purchase.

To qualify, buyers need a Certificate of Eligibility (COE), which confirms how much VA entitlement they have available. A VA-experienced lender can pull this quickly and explain how it affects their options.

How to explain it to a buyer or seller:
“VA loans are reusable, but how much you can use depends on your entitlement. Your COE shows what’s available, and a VA-savvy lender can review it so we protect your buying power.”

What they are
Government-backed loans for buyers purchasing in eligible rural or suburban areas.

Best for
Buyers within income limits who are open to specific locations.

Why they matter
Zero down payment options can significantly expand buying power.

How to explain it to your buyer
“If the property qualifies by location and your income fits the guidelines, USDA loans can allow you to buy with little to no money down.”

👉 USDA Income & Property Eligibility Tool (official USDA map and checker) — Use this to enter a property address and see if it falls in a USDA-eligible area. Property eligibility is based on location and mapping of rural areas defined by the USDA.

Quick tip:
You’ll need to choose “Single Family Housing Guaranteed” and then the Property Eligibility tab once you open the tool, then accept the disclaimer and enter the full address to check.

This is the official source most lenders use to confirm USDA eligibility before underwriting a loan.

If you want, I can also point you to a few easy third-party maps that let you paste an address and see eligibility too — just let me know.

What they are
Loans with a lower initial interest rate for a fixed period, then adjust later.

Best for
Buyers who plan to sell or refinance before the adjustment period.

Why they matter
They can improve affordability in the short term.

How to explain it to your buyer
“This loan can offer a lower payment upfront. It’s a good option if you don’t plan to keep the home long term and want flexibility now.”

What they are
Loans that exceed standard conforming loan limits.

Best for
Higher-price homes and luxury buyers.

Why they matter
They allow buyers to purchase homes above conventional caps.

How to explain it to your buyer
“For higher-priced homes, jumbo loans step in where traditional loans cap out. They usually require stronger financials, but they open the door to higher price points.”

What they are
Loans that allow a buyer to take over the seller’s existing mortgage, including the interest rate and remaining balance. Most commonly FHA and VA loans.

Best for
Buyers in a higher-rate environment when the seller has a lower existing rate.

Why they matter
They can dramatically reduce monthly payments and improve affordability.

How to explain it to your buyer
“If the seller has a low interest rate, we may be able to explore assuming their loan instead of getting a new one. It doesn’t work every time, but when it does, it can be a huge advantage.”

MORE INFO HERE

What they are
Programs that provide grants or forgivable loans to help cover down payment and closing costs.

State & Nonprofit Programs

Examples include TSAHC and other statewide housing organizations.

County & Local Programs

Many counties and cities offer their own assistance programs that can sometimes be layered with state or federal options.

Why they matter
Cash to close is often the biggest hurdle for buyers. These programs can remove or reduce that obstacle.

How to explain it to your buyer
“There are programs designed to help with down payment and closing costs. If you qualify, they can significantly reduce the cash you need upfront. We’ll connect you with a lender who knows how to check and apply these correctly.”

Statewide Down Payment Assistance Programs (Texas)

These apply across the state and are great to know first:

Texas Department of Housing and Community Affairs (TDHCA)

• My First Texas Home – first-time homebuyers (or hasn’t owned in last 3 years) get a 30-yr mortgage + up to ~5 % DPA.

• My Choice Texas Home – similar to My First Texas Home, no first-time requirement.
Both programs can include assistance as zero interest, deferred second liens and may combine with mortgage credit certificates (MCCs).

Texas State Affordable Housing Corporation (TSAHC)

• Home Sweet Texas Home Loan Program – 30-yr fixed mortgage + up to ~5 % DPA grant or forgivable second lien.

• Homes for Texas Heroes – similar assistance, focused on community service professionals like teachers, first responders, and veterans (but not limited to first-time buyers).

City & Local Down Payment Assistance Programs (Texas) 

These vary by municipality and change often. Always confirm current guidelines with local HFC or housing department.

North Texas & DFW Area
• City of Arlington Homebuyers Assistance Program – up to ~$20,000 for qualified first-time buyers.
• City of Dallas Homebuyer Assistance Program (DHAP) – up to ~$60,000 depending on income and area.
• City of Denton Homebuyers Assistance Program – up to ~$50,000.
• City of Frisco Down Payment Assistance Program – up to ~$10,000.
• City of Mesquite Down Payment Assistance Program (DPAP) – up to ~$10,000.
• City of Plano First-Time Homebuyers Assistance & Education Programs – up to ~$10,000 or more based on program.
• City of McKinney First-Time Homebuyers Purchase Assistance – up to ~$10,000.

Other Nonprofit or Community-Based Programs

In addition to the state and city programs noted above, there may be nonprofit, neighborhood housing services, and veterans-focused programs, especially in larger metros. For example:

• SETH 5 Star Texas Advantage Program – grant assistance through Southeast Texas Housing Finance Corporation.

• Neighborhood Housing Services (NHS) affiliates – local down payment support and education in many communities.

Key Things for Agents to Remember

✔ City and county DPA programs change often and may have income, purchase price, first-time buyer, or residency rules.

✔ Programs may offer forgivable loans, deferred second liens, or outright grants — know the structure because that affects buyer expectations.

✔ Always refer buyers to approved lenders or housing counselors who regularly work with these programs so execution stays smooth.

✔ Local assistance can stack with statewide and federal financing options to give buyers real purchasing power.

You don’t need to structure loans or quote rates.
You do need to know what’s possible.

Great agents:

• Ask how buyers plan to finance early

• Recognize when cash, credit, or rates are the real obstacle

• Bring creative options into the conversation

• Connect buyers with lenders who specialize in the right programs

You’re not just opening doors. You’re opening options.

When buyers feel informed and supported, they move faster, make stronger offers, and trust you as their advisor.

That’s what makes you the rockstar in the transaction.