Patrick's Quick Answer
FHA is not technically zero down, but smart structure gets buyers to the table with very little cash. Pair the 3.5% down payment with down payment assistance and seller concessions, up to 6% of the price on FHA, and your out-of-pocket cash-to-close can shrink dramatically. It is not a trick, it is using the programs Texas offers in the right order.
An FHA loan is not itself a zero-down loan. The FHA program requires a 3.5 percent down payment, so on its own FHA is never 100 percent financing. What some buyers advertise as a "zero down FHA" is actually a combination strategy: a standard FHA loan at 3.5 percent down, paired with a down payment assistance second lien that covers that down payment, plus seller concessions that cover most of the remaining closing costs and escrows. Stacked together, that combination can bring a buyer's cash to close down to about $1,000. It is the strategy, not the loan product alone, that does the work.
I am Patrick Kevin Fagan, The Mortgage Patriot, and I have spent over 23 years originating loans and 19 years in real estate sales. This article follows up on my video on this exact strategy, and I will walk you through the real numbers on a $300,000 home so you understand exactly how the pieces fit together and whether this path makes sense for you.
About Patrick Kevin Fagan, REALTOR®
Patrick Kevin Fagan is a Texas Real Estate Sales Agent (#454749) with AXEN Realty LLC and a Senior Loan Officer (NMLS ID #877741) with NEXA Mortgage, LLC (NMLS #1660690). He brings 23+ years in mortgage lending and 19 years in real estate, serving homebuyers, homeowners, and sellers across Greater San Antonio and the Texas Hill Country.
Answered by Patrick Kevin Fagan
Texas Real Estate Sales Agent #454749, AXEN Realty LLC · Senior Loan Officer, NMLS ID #877741, NEXA Mortgage, LLC
Call or text: 210-317-6514
