It's not uncommon for a family seeking pre-approval to be surprised by a lower amount than expected. When asked why, the answer usually relates to DTI, or debt-to-income ratio. Simply put, this is the percentage of monthly income that goes toward debt repayment. A higher ratio means that the desired approval amount may not be granted.

The recent median sale price in Fort Worth, according to Redfin, is around $338,000 for the three months leading up to May 2026. Even with the same budget, the school district and commuting conditions can vary by area, so it's better to compare the school districts that Korean families are interested in alongside other areas.

Based on the $338,000 figure, here's how the down payment scenarios look. For an FHA loan at 3.5%, the down payment is $11,830, while the minimum for a conventional loan at 3% is $10,140. If these terms are unfamiliar, think of it this way: an FHA loan requires a government-backed loan with 3.5% down if your credit score is 580 or higher, and 10% ($33,800) if it's lower, while a conventional loan is assessed directly by the bank.

When comparing 5% ($16,900) and 10% ($33,800) down payments side by side, the 5% option has a lower initial burden but requires PMI for a longer period. Once you reach a 20% down payment of $67,600, PMI is eliminated, but that means you need to save a larger sum for a longer time. The right choice depends on your cash flow and the timing of your move.

If you make a 20% down payment of $67,600 and apply a 6.6% interest rate, the principal and interest payment will be around $1,730 per month. This means that your monthly payment will be fixed at this level, with property taxes and insurance added separately.

Fort Worth's Homebuyer Assistance Program, or HAP, is also worth considering as one of the two options. It offers first-time homebuyers up to $25,000 in a no-interest deferred loan, with a purchase price cap set between $290,000 and $305,000, and a DTI that must not exceed 35/45. A reserve fund equivalent to two months of payments is also required.

Receiving this assistance reduces your down payment burden, but it comes with restrictions on income and purchase price conditions. Families moving to Texas should also keep property taxes in mind. Texas has no state income tax, but the average effective property tax rate is around 1.6%, which is among the highest in the nation. Families moving from states with income tax may find this structure unfamiliar, so it's advisable to check the tax rates for each property.

To increase your approval rate, managing your credit score is the first step. As of July 2026, a score above 780 corresponds to an average 30-year fixed rate of 6.59%, while scores in the 760s are at 6.66%, 740s at 6.75%, and 700s at 6.91%. Just raising your score by one bracket can change your monthly payment.

To lower your DTI, it's practical to pay off credit card debt and auto loans, and getting pre-approved in advance can be advantageous when making an offer. It's generally wise to avoid new loans or job changes before closing, and it's better to prepare income documentation with pay stubs and tax returns in advance.

For self-employed individuals with fluctuating income, there's a method to prove income based on an average of two years of tax returns, and adding a spouse as a co-borrower can help lower the DTI with combined income. You can choose the method that best fits your situation.

Reserve funds are also an essential item. It's advisable to keep enough money in your account to cover two to three months of payments even after closing. This can be thought of as a cushion for unexpected expenses or income gaps, and lenders often check this balance during their assessment.

This article is not investment or legal advice, and program conditions and tax rates may vary by county, so it's safer to consult a professional before making any agreements.