To simplify the term "down payment" for those who may find it unfamiliar, it refers to the portion of the home price that is paid in cash without borrowing through a loan. In simpler terms, it's like a deposit that covers part of the home price upfront. In Arlington, this burden is definitely lighter compared to other major cities. According to Zillow, the average home value in Arlington is $314,440, which is a 1.5% decrease from a year ago, and Redfin reports that the median sale price in February 2026 was $320,000. For Tarrant County as a whole, Zillow's average is $330,348, while Redfin's median is around $348,000. There are three main items to check in order.

First, if you are preparing a 20% down payment with a conventional loan, you will need around $64,000. While this is a significant amount, you can start with less than $10,000 if you lower it to a 3% down payment. However, keep in mind that if it's less than 20%, you will incur a monthly private mortgage insurance (PMI) fee. A credit score of at least 620 is required, and if you exceed 680, you can receive more favorable interest rates. Second, with an FHA loan, if your credit score is above 580, you can proceed with a 3.5% down payment. If the terminology is unfamiliar, think of it as a government-backed loan with a lower threshold than conventional loans. However, if the down payment is less than 10%, you will need to pay a mortgage insurance premium (MIP) throughout the loan term, which operates differently from PMI in conventional loans. For first-time homebuyers whose credit scores are still below 620, FHA can be a realistic starting point.

Third, the Dallas-Fort Worth metropolitan area, which includes Arlington, has the NAS JRB Fort Worth Naval Reserve Base, and this area has a notably high population of veterans, which influences the local loan composition. If you are active duty or a veteran, you can proceed with a VA loan without a down payment and without PMI. However, there is a funding fee that ranges from 1.25% to 3.3% of the loan amount. In simpler terms, this means you don't need to prepare a down payment, but there is a separate cost that you pay once at the start of the loan. If you qualify, this could be the option with the lightest initial burden among the three loans. There are also many veteran families considering areas near the base, such as Grand Prairie or Mansfield, so it's advisable to compare commuting distances and sale prices. When comparing the three loans side by side, the order of least initial cash required is VA, FHA, and then conventional. However, just because the initial burden is lower doesn't necessarily mean it's more advantageous. Each loan has separate costs like FHA's MIP or VA's funding fee, so it's important to calculate the monthly payment and total loan costs for an accurate comparison. To summarize the items to check, first assess your or your spouse's veteran status, current credit score, and the amount of cash you can prepare, then determine which of the three loans you may qualify for.

Arlington's sale prices are significantly below the core loan limit of $832,750 as of 2026, so it's rare to consider jumbo loans. If you are looking for school districts preferred by Korean families, preferences can vary within Arlington based on elementary school assignments, so please refer to GreatSchools or Niche for school ratings and check the assigned schools directly before purchasing. For families moving from other states, the absence of state income tax in Texas is advantageous, but property tax rates are often relatively high, so please do not judge solely based on your previous residence. If you are considering transitioning from renting to buying, it's more accurate to compare total housing costs, including property taxes and insurance, rather than simply comparing rent and mortgage payments. This article is not investment or legal advice, and it is recommended to consult with a loan officer and professionals before making any actual contracts.