Many people wonder how much they need to save for a down payment, and it can be simplified to two main factors: the type of loan and your credit score. If you're looking for a home in Arlington, it's essential to check these two criteria first.

According to Redfin, as of February 2026, the median home price in Arlington is $320,000. Based on this price, let's go through the items you need to consider in order.

First, there's the FHA loan. If your credit score is 580 or higher, you'll need 3.5%, which is $11,200; if it's lower, you'll need 10%, which amounts to $32,000. Second, for a Conventional loan, many choose 5%, which would be $16,000. Third, if you can cover 20%, that would be $64,000, allowing you to proceed without PMI.

If PMI is unfamiliar to you, think of it this way: it's an insurance premium that lenders add to reduce their risk when the down payment is less than 20% of the home price. If you put down more than 20%, this cost disappears.

Fourth, there's the property tax in Texas. Texas has no state income tax but has relatively high property taxes, with an average effective tax rate of about 1.58% (propertytaxrates.org, as of 2026). If you're coming from a state without income tax, this might feel unfamiliar, so it's good to calculate this in advance.

Fifth, down payment assistance is available. The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program, which provides up to 5% of the loan amount as a no-interest loan, deferred until the sale or refinancing. A credit score of 620 or higher is required, and you must not have owned a home in the last three years to apply.

This type of assistance can directly impact approval rates. Applicants who lack sufficient personal funds may find that meeting the requirements with assistance allows them to get approved.

Sixth, consider your credit score and interest rates. As of July 2026, a score above 780 has an interest rate of 6.59%, in the 760s it's 6.66%, in the 740s it's 6.75%, and in the 700s it's 6.91% (themortgagereports.com). Simply put, raising your score by one tier can reduce your monthly payments.

Seventh, there's the DTI (Debt-to-Income ratio). If you're unfamiliar with this, think of it as the percentage of your income that goes toward monthly debt payments. Ideally, the back-end ratio should be below 43%, Conventional loans range from 36% to 45%, and the front-end ratio should be below 28% (Consumer Financial Protection Bureau). Avoid taking on new loans or changing jobs before closing.

Eighth, consider the source of your funds. If you've received a down payment as a gift, a good way to organize this is to obtain a gift letter in advance. Timing the deposit to be at least two months before closing can reduce the likelihood of being asked to verify the source of a large sum of money.

Ninth, income verification is essential. Lenders will check your employment history for the past two years, so if you've recently changed jobs or switched to self-employment, it's good to know that you'll need additional documentation. It's also beneficial to compare rates and fees from at least two or three lenders rather than just one. After getting pre-approved, locking in your rate can reduce the risk of fluctuations until closing, and the lock period is typically between 30 to 60 days. If you're dealing with competitive listings, it's wise to keep some extra funds on hand in case the appraisal comes in below the offer price, which is the last item to check in order.

Tenth, pre-approval and reserve funds are important. It's advisable to prepare income documentation in advance and ensure you have enough capacity to cover several months of payments after closing. Areas with school districts preferred by Korean families often have higher prices, so consider incorporating this into your down payment plan. However, school district boundaries can change frequently, so be sure to verify the assigned school before purchasing. This article is not investment or legal advice, and it's recommended to consult a professional before finalizing any contracts.