Day 3: Learn About Loan Options

By Toni | January 4, 2026

If you’re planning to buy a home in North Texas or the Dallas–Fort Worth area, learning about home loan options early is one of the most important steps you can take. On Day 3 of my 30-Day Home Buyer Preparation Checklist, we focus on helping DFW home buyers understand common mortgage types before touring homes or making offers.

This step is about education, not choosing a lender or locking into a loan.

Why Loan Education Matters for North Texas Home Buyers

The DFW real estate market can move quickly, especially in areas like Fort Worth, Arlington, Keller, Grapevine, Hurst, Euless, Bedford, Mansfield, and surrounding North Texas communities.

Your loan type affects:

  • Your monthly mortgage payment
  • How much cash you need upfront
  • Your interest rate
  • How competitive your offer appears to sellers

The Consumer Financial Protection Bureau (CFPB) offers an excellent overview of the mortgage process and how loans work, written in clear, buyer-friendly language:
👉 https://www.consumerfinance.gov/owning-a-home/

Common Home Loan Options for DFW and North Texas Buyers

Conventional Home Loans in North Texas

Conventional loans are not government-backed and are commonly used by buyers with stronger credit profiles in the Dallas–Fort Worth metroplex.

Key points:

  • Often require higher credit scores
  • Down payments may start as low as 3–5%
  • PMI may apply with less than 20% down
  • Frequently preferred by sellers in competitive DFW markets

You can learn more about how conventional loans work directly from Fannie Mae, which outlines eligibility and down payment options:
👉 https://www.fanniemae.com/education

FHA Loans for First-Time Home Buyers in DFW

FHA loans are backed by the Federal Housing Administration and are often used by first-time home buyers in North Texas.

Key points:

  • Lower credit score requirements
  • Down payments as low as 3.5%
  • Mortgage insurance is required
  • Helpful for buyers with limited savings or rebuilding credit

Official FHA loan information is available through HUD (U.S. Department of Housing and Urban Development):
👉 https://www.hud.gov/buying/loans

VA Loans in North Texas

VA loans are available to eligible veterans, active-duty service members, and some surviving spouses buying homes in North Texas and DFW.

Key points:

  • No down payment required in many cases
  • No private mortgage insurance
  • Competitive interest rates

Eligibility details and benefits can be found on the U.S. Department of Veterans Affairs website:
👉 https://www.va.gov/housing-assistance/home-loans/

USDA Loans in North Texas and Surrounding Areas

USDA loans are designed for buyers purchasing in qualifying rural and suburban North Texas locations.

Key points:

  • Zero down payment possible
  • Income limits apply
  • Property location must qualify

The USDA Rural Development site includes program details and eligibility tools:
👉 https://www.rd.usda.gov/programs-services/single-family-housing-programs

Many buyers are surprised to learn that some areas outside major city centers in North Texas may qualify.

Fixed-Rate vs Adjustable-Rate Mortgages for DFW Buyers

In addition to loan programs, buyers also choose how their interest rate works.

Fixed-Rate Mortgages

  • Same interest rate for the life of the loan
  • Predictable monthly payments
  • Popular with buyers planning to stay long-term in DFW

Adjustable-Rate Mortgages (ARM)

  • Lower initial interest rate
  • Rate may change after a set period

The CFPB offers a clear explanation of how adjustable-rate mortgages work and how they compare to fixed-rate loans:
👉 https://www.consumerfinance.gov/ask-cfpb/what-is-an-adjustable-rate-mortgage-en-195/

What North Texas Home Buyers Should Focus on Right Now

At this stage, your goal is to:

  • Learn what loan options exist in North Texas
  • Understand the basic differences between them
  • Know what questions to ask local DFW lenders

You are building knowledge, not committing to a loan.

Continue the 30-Day Home Buyer Plan

Day 3 focuses on loan options for North Texas home buyers.
Day 4 will cover Down Payments and Closing Costs, including fees buyers often overlook.

To preview that topic, the CFPB provides a helpful explanation of closing costs and the Closing Disclosure form:
👉 https://www.consumerfinance.gov/owning-a-home/closing-disclosure/

Download the full 30-Day Home Buyer Preparation Checklist for North Texas buyers using the link in my profile and follow along daily.

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