Can I Buy a Home in Frisco, TX With 5% Down?

Omega Mejia is a real estate agent in Frisco, Texas helping buyers and sellers navigate the North Texas market.

A lot of people think they need 20% down to buy a home.

That’s one of the biggest reasons people keep waiting.

But here’s the reality…

You can buy a home in Frisco with 5% down. Sometimes even less.

What 5% Down Actually Looks Like

Let’s say you’re buying a $600,000 home.

5% down = $30,000

That’s a lot less than the $120,000 people assume with 20%.

That gap is what keeps people stuck.

What Changes When You Put Less Down

You’re not getting the same loan as someone putting 20% down.

Here’s what’s different:

• Your monthly payment will be higher

• You’ll likely have PMI (mortgage insurance)

• Your interest rate might be slightly higher

But you’re also getting into the market sooner.

Why Buyers Choose 5% Down Anyway

Because waiting has a cost too.

Home prices change
Interest rates change
Rent keeps going

A lot of buyers decide it makes more sense to move forward now… instead of trying to save for years.

A Real Scenario

I’ve worked with buyers who had solid income but felt stuck because they didn’t have 20% saved.

Once they understood they could buy with 5%, everything changed.

They stopped waiting and started looking.

And most of them said the same thing after closing:

“I wish I knew this earlier.”

What Most People Get Wrong

They focus only on the down payment.

But what really matters is:

• Monthly payment

• Overall financial comfort

• Long-term plan

You don’t need to put 20% down to make a smart decision.

When 5% Down Makes Sense

It usually works well if:

• You have stable income

• You plan to stay in the home for a few years

• You want to stop renting

When It Might Not Be Ideal

If your budget already feels tight, the higher payment might not make sense.

That’s where running the numbers matters.

Start Here

How Much Down Payment Do You Need to Buy in Frisco, TX?
What Credit Score Do You Need to Buy a Home in Frisco, TX?

FAQs

Is 5% down enough to get approved?

Yes, many loan programs allow it.

Do I need perfect credit?

No, but better credit helps with your rate.

Can I avoid PMI with 5% down?

Usually no, but there are exceptions depending on the loan.

Thinking about buying, selling, or moving to Frisco, Texas?

Omega Mejia is a real estate agent in Frisco, Texas with Simply Great Realty Group, helping buyers, sellers, and relocation clients navigate the North Texas housing market.

If you’re planning your next move, reach out for a clear, simple plan.

Omega Mejia, Realtor®️
Simply Great Realty Group
Real Estate Agent in Frisco, Texas

📱 214-620-3581
🌐 SimplyGreatRealestategrp.com

We’re transitioning to SimplyGreatRealty.com
Brokered by DCR