There are cases where families with the same credit score receive significantly different approval amounts and interest rates from different lenders, which can be surprising. Pre-approval varies by bank due to slight differences in their assessment criteria, so it's premature to make a judgment based on just one result.

The median sale price in San Antonio is $295,000 as of May 2026, according to Texas Realtors data, which is a 4.5% increase from the previous year. Among major cities in Texas, it remains relatively low, making it a more accessible market for first-time homebuyers.

Based on the $295,000 figure, here's a breakdown of down payments. An FHA loan at 3.5% requires $10,325, while a credit score below 580 requires 10%, which is $29,500. The minimum for a conventional loan at 3% is around $8,850.

Between 5% at $14,750 and 20% at $59,000, there is a difference regarding PMI. If you start with less than 20%, PMI will be added monthly, but this cost disappears once you reach 20%. If initial funds are limited, entering with a lower down payment and later eliminating PMI is also worth considering.

With a 20% down payment of $59,000 and an interest rate of 6.6%, the principal and interest would be calculated at around $1,510 per month. It's also useful to know that you can request PMI cancellation once the loan balance falls below 80% of the home value.

San Antonio has several options to supplement down payments. The city's Homeownership Incentive Program and the Down Payment Loans program from Neighborhood Housing Services of San Antonio are notable examples, along with support from TSAHC, the Texas State Affordable Housing Corporation, which can be used statewide. TSAHC offers grants or deferred loans ranging from 2% to 5% of the loan amount, with a requirement of a credit score of 620 or higher.

Whether you can apply for both the city program and TSAHC varies slightly by lender, so it's clearer to inquire about this when seeking pre-approval. Organizing the application order and documents in advance can save time during the actual contract phase.

If you are moving from another state, you should review the property tax structure again. 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. This figure can vary by county and school district, so be sure to check for each property.

The key points to increase approval rates are clear: credit score, DTI, and income stability. As of July 2026, rates vary with credit scores: above 780 is 6.59%, in the 760s is 6.66%, in the 740s is 6.75%, and in the 700s is 6.91%. An ideal DTI is below 43% for back-end and below 28% for front-end.

It is advantageous to seek pre-approval from two or three places, and it is safer to avoid new loans or job changes before closing. Preparing income documentation with pay stubs and tax returns in advance, along with securing a reserve fund equivalent to a few months' payments, will present stability during the assessment process.

For self-employed income, it is often assessed based on an average of two years of tax returns, so if you have reported low income, the approval amount may be less than expected. It is also worth considering adding a spouse as a co-applicant to lower the DTI with combined income, and it is advisable to keep a few months' worth of payments as reserves after closing. In summary, the three key factors are credit score, DTI, and reserve funds.

This article is not investment or legal advice, and program conditions and rates may vary by lender, so please consult a professional before entering into a contract.