What You Really Need to Know Before Buying a Home or Land
Dreaming of owning your first home, investing in land, or finding that perfect ranch property in Texas—but feeling overwhelmed by the idea of a big down payment?

Dreaming of owning your first home, investing in land, or finding that perfect ranch property in Texas—but feeling overwhelmed by the idea of a big down payment?

You’re not alone—and the good news is, you have more options than you think.

At Preferred Properties of Texas, our seasoned agents have been helping buyers navigate the real estate process for over 30 years. Whether you’re a first-time homebuyer or experienced investor, we’re here to help you set realistic goals and turn your dreams into reality.

💡 The Truth About Down Payments

A lot of people think you need 20% down to buy a home. That’s one of the most common myths in real estate—and it’s simply not true.

In 2024, the National Association of REALTORS® reported:

• The median down payment across all buyers was 18%
• First-time buyers put down an average of 9%—the highest since 1997
• Repeat buyers averaged 19%, the highest since 2003

👉 In many cases, you can buy a home with as little as 3% down, depending on the loan program and your financial profile.

🛡️ What If You Put Less Than 20% Down?

If your down payment is under 20%, you’ll likely pay something called Private Mortgage Insurance (PMI). This monthly cost protects the lender—not you—if you stop making payments.

But here’s the key:
PMI isn’t forever. Once you’ve built 20% equity in your home, you can cancel it (or it will automatically drop off once you reach 78% of the original loan amount).

For most buyers, PMI is a small extra cost that allows them to get into a home sooner, rather than waiting years to save up 20%.

🔍 Real-World Example: $200,000 Home

Waiting to save $40,000 might delay your purchase for years—while $80/month in PMI could get you into a home now.

💡 You Have More Options Than You Think

You don’t have to fund your down payment from savings alone. Many buyers use a mix of:

• Personal savings
• Gifts or loans from family
• Proceeds from selling another property
• Retirement funds or other assets
• Down payment assistance programs from local or state governments

In Texas, there are numerous programs that provide grants, forgivable loans, or low-interest second loans to help you get started.

❌ Don’t Let 20% Myths Keep You on the Sidelines

A Freddie Mac survey found that 1 in 3 buyers still believe a 20% down payment is required. That belief is keeping people from pursuing homeownership—when in fact, it’s entirely possible with much less.

Here’s what’s more realistic in today’s market:

📍 We’re Here to Help You Every Step of the Way

At Preferred Properties of Texas, we make the process easier—from explaining your financing options to helping you find the perfect home, land, or ranch property. We’ve been proudly serving buyers across Stephenville and surrounding areas for over three decades.

Whether you’re just starting or ready to take the next step—we’re ready when you are.

📞 Call us today at 254-965-7775
📲 Use this Down Payment Calculator to get a head start
🌐 Learn more at preferredpropertiestx.com

Preferred Properties of Texas – Stephenville, TX