How Much Money Do You Need to Buy a House in Dallas? (Cash-to-Close Breakdown)

To buy a house in Dallas, plan for your down payment (as little as 0% for VA, 3% for some conventional loans, or 3.5% for FHA), plus closing costs and prepaid items that often add another 2%–5% of the price. On a $400,000 home — close to the DFW metro median in spring 2026 — many buyers need somewhere around $20,000 to $35,000 with a low down payment loan, before any seller credits or down payment assistance.

The five pieces of cash you'll need

1. Earnest money. Paid when your offer is accepted and held by the title company. In DFW it's commonly around 1% of the price, but it's negotiable. It counts toward your down payment and closing costs at closing — it's not an extra cost.

2. Option fee. Under the standard Texas (TREC) purchase contract, you can pay the seller a negotiated option fee for the right to back out for any reason during the option period. It's often a few hundred dollars. Whether it's credited to you at closing depends on the contract terms.

3. Down payment. Your share of the purchase price. The minimum depends on your loan type (see the table below).

4. Closing costs. Lender fees, appraisal, title insurance, title company escrow fee, survey (if needed), and recording fees.

5. Prepaid items and escrow deposit. Your first year of homeowners insurance is typically paid up front, plus a starting balance for your escrow account to cover future property tax and insurance bills, plus daily interest from closing to the end of that month.

You'll also pay for a home inspection before closing, and many loans require reserves — savings left over after closing.

Example: $400,000 home in DFW

Add closing costs and prepaids, which commonly run about 2%–5% of the price ($8,000–$20,000 on a $400,000 home). The actual amount depends on your lender, title charges, the tax rate, insurance premiums, and your closing date. Your Loan Estimate will list each item.

Ways to need less cash

• Seller concessions. You can negotiate for the seller to pay some of your closing costs. Each loan program caps how much the seller can contribute.
• Down payment assistance. Texas has statewide programs through the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC), and some cities and counties offer their own. Eligibility often depends on income, price limits, and first-time buyer status.
• Gift funds. Most loan programs allow gifts from family toward your down payment, with proper documentation.
• Lender credits. You can sometimes accept a slightly higher rate in exchange for a credit toward closing costs.

Don't drain your savings

The cash you need to close isn't the only cash you need. Keep a cushion for moving costs, furniture, and the surprises that come with a new house — especially in Texas, where an HVAC repair in August isn't optional.

FAQ

How much do I need to put down on a $300,000 house in Texas? The minimum ranges from $0 (VA) to $9,000 (3% conventional) to $10,500 (3.5% FHA). Closing costs are on top of that.

Who pays closing costs in Texas, the buyer or the seller? Both sides have closing costs, and many costs are negotiable in the contract. Talk with your real estate agent about what's customary in your area and what to request.

Do I get my earnest money back? At closing, it's applied toward your costs. If the deal doesn't close, whether you get it back depends on the terms of your contract. Ask your agent to explain your contract's contingencies.

Can I buy a house in Dallas with no money down? VA loans allow 0% down for eligible borrowers. Some USDA-eligible areas outside the city also allow 0% down. You'll usually still need some cash for closing costs unless they're covered by credits or assistance.

Want an exact cash-to-close estimate? Call or text Mike Tanas at 214-604-5245