Are you wondering how much cash you really need to buy in Castlegate? You are not alone. Between 0% down options, 3% and 3.5% programs, and closing costs, it can feel confusing fast. Here is a clear, local guide to down payment choices, what College Station lenders look for, and how to build a workable budget and timeline. Let’s dive in.
Down payment options at a glance
Conventional loans
Conventional mortgages can start at 3% down for eligible first-time buyers through programs like Fannie Mae’s HomeReady or Freddie Mac’s Home Possible. You will need solid credit and manageable debt-to-income to qualify at the lower down levels. If you put less than 20% down, you will pay private mortgage insurance (PMI), which you can usually cancel once you reach about 20% equity. Gift funds and seller-paid costs are allowed within program limits.
FHA loans
FHA is popular if you want a low down payment and flexible credit requirements. The minimum down payment is 3.5% if your credit score is 580 or higher, and 10% down if your score is 500–579, per FHA loan rules. FHA adds an upfront mortgage insurance premium that can be financed into the loan, plus a monthly mortgage insurance cost. If you are considering a condo, many projects need FHA approval.
VA loans
If you are a qualifying service member, veteran, or certain surviving spouse, VA financing allows 0% down. There is no monthly PMI, but most borrowers pay a one-time funding fee. Learn more from the VA home loan program. VA has rules for seller concessions and property standards, and you must plan to occupy the home.
USDA loans
USDA offers 0% down financing in eligible areas, with household income limits and a required guarantee fee. Not all parts of College Station qualify, so you must verify a home’s eligibility by location. See the basics on USDA Rural Development home loans.
Physician loans and specialty programs
Some banks offer physician loans for medical professionals that feature low or no down payment, flexible treatment of student loans, and sometimes no PMI. These are private programs, so terms vary by lender. If you have an employment contract or residency offer, you may be able to close before your start date.
What College Station lenders look for
- Local lenders and credit unions in Brazos County often pair first mortgages with Texas down payment assistance. They may also know Castlegate HOA requirements and common appraisal questions.
- National lenders and mortgage brokers serve the area too, but their “overlays” can differ, like higher minimum credit scores or extra reserves.
- Most purchase timelines run 30 to 45 days from contract to close for conventional, FHA, and VA. USDA and assistance programs can add processing time.
Pro tip: Get pre-approved with a local community bank or credit union and one additional lender or broker. Comparing two approaches helps you find better pricing, rules, and speed for a Castlegate home.
Budget smart for Castlegate
Plan beyond the down payment. Your cash-to-close usually includes:
- Down payment percentage based on loan type
- Closing costs and prepaids, often 2% to 5% of price
- Required reserves, sometimes 1 to 6 months of payments
- Upfront fees like FHA’s UFMIP, VA funding fee, or USDA guarantee fee
- Home inspection and appraisal
- HOA setup fees or dues if applicable
Sample costs on a $350,000 home
Use these rough ranges to frame your savings plan. Closing costs below exclude any financed upfront fees.
FHA at 3.5% down
- Down payment: $12,250
- Closing costs: about $8,750 to $14,000
- Upfront MIP may be financed
- Estimated cash-to-close: about $21,000 to $26,000
Conventional at 3% down
- Down payment: $10,500
- Closing costs: about $8,750 to $14,000
- PMI applies until you reach about 20% equity
- Estimated cash-to-close: about $19,000 to $25,000
VA at 0% down (if eligible)
- Down payment: $0
- Closing costs still apply; funding fee may be financed
- Estimated cash-to-close: prepaids and fees only, sometimes under $10,000 depending on negotiations
USDA at 0% down
- Down payment: $0 in eligible areas with income limits
- Closing costs and a guarantee fee apply; some costs may be financed
Timeline and documents
Typical timeline
- Pre-approval: same day to a few days once you send documents.
- Under contract: expect 30 to 45 days to close for most loans.
- Using DPA or USDA: add several days to a week for extra approvals.
- Physician loans: can be fast with an executed offer letter and license verification.
Documents to have ready
- Photo ID and Social Security number
- Two years of W-2s or 1099s, plus 30 days of pay stubs
- Two to three months of bank statements for all accounts
- Two years of tax returns if self-employed or multiple income sources
- Student loan statements or lender-calculated payments
- VA Certificate of Eligibility if applicable
- Gift letter and donor statements if using gift funds
- Employment offer letter or residency documentation for physician loans
A saving strategy that works
- Set a target cash-to-close, then divide by your months to purchase to set a monthly savings goal.
- Keep funds in a separate account for easy tracking.
- Document large deposits and any gift funds so your lender can source them quickly.
Use Texas assistance and benefits
You may be able to reduce cash-to-close through state programs that work with FHA, VA, USDA, and conventional loans.
- Explore programs from the Texas Department of Housing and Community Affairs and the Texas State Affordable Housing Corporation. Many offer deferred or repayable second liens for down payment, and some provide grants. Most require a brief homebuyer education course.
- City or county programs can appear based on funding cycles. Check City of College Station and Brazos County housing resources for current offerings.
Physician loans and employer relocation
- Physician loans are lender-designed, not government programs. They often allow low or no down payment and may treat student loans more flexibly.
- Many employers offer relocation assistance. Ask HR about any lump-sum, temporary housing, or closing cost help, and ask your lender how to document these funds.
Questions to ask your lender
- Which low-down-payment option fits my credit, income, and timeline best?
- Can I qualify for 3% down through HomeReady or Home Possible? What are the income limits?
- How do you calculate my student loan payment for DTI?
- What are your overlays for credit score, reserves, or condo/HOA reviews in College Station?
- Can I stack Texas assistance with my first mortgage? What are the tradeoffs?
- What is my estimated cash-to-close with itemized closing costs and prepaids?
- How do PMI and FHA mortgage insurance compare for my scenario over 5 to 7 years?
- If the appraisal comes in low, what are my options with my chosen down payment?
Next steps for Castlegate buyers
Start by narrowing your loan path and getting two pre-approvals. Then build a clear budget that includes down payment, closing costs, and a little cushion. In Castlegate, sellers will expect clean offers and a strong pre-approval, and a local lender can help you anticipate HOA and appraisal questions early. If you want help comparing options or introductions to lenders who regularly finance homes in the neighborhood, we are here to help.
Have questions about buying in Castlegate or nearby neighborhoods? Connect with Laura Lea Smith to map your down payment path, compare lenders, and plan your timeline.
FAQs
How much do I need for a down payment in Castlegate?
- Depending on eligibility and loan type, options range from 0% down (VA or USDA in eligible areas) to 3% down for some conventional programs and 3.5% down for FHA, plus 2% to 5% for closing costs.
Can family gift my down payment for a College Station home?
- Yes for many loans if properly documented with a gift letter and donor statements; your lender will guide what counts toward down payment or closing costs.
Does PMI go away on conventional loans?
- PMI on conventional loans is typically cancelable around 20% equity and often auto-cancels near 22%, subject to servicer rules.
Do student loans block low-down-payment mortgages in Bryan–College Station?
- Not usually; lenders either use the actual payment or a calculated amount for DTI, and physician loans may treat student debt more flexibly.
How long does closing take for a College Station purchase?
- Most conventional, FHA, and VA loans close in about 30 to 45 days; USDA and down payment assistance can add several days.
Are condos in College Station harder to finance than houses?
- Some loans require condo project approval and a review of HOA budgets and insurance; ask your lender about required documents and timelines.
Can I use retirement funds for a down payment on a Brazos County home?
- Often you can via a 401(k) loan or IRA withdrawal, but ask a tax advisor about costs and confirm lender documentation requirements.
How do I choose between FHA and conventional for a Castlegate home?
- Compare monthly payments, mortgage insurance cost and length, interest rates for your credit tier, and how long you plan to keep the home; ask lenders for side-by-side quotes and consult the Consumer Financial Protection Bureau mortgage guides for context.
