DFW First-Time Buyer Reality Check

The Average DFW First-Time Buyer

This is who's actually getting approved and closing on homes

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38

Median Age

Up from 29 in 1981. If you feel "behind," you're actually right on track. The system changed, not you.

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716

Median Credit Score

Not 780. Not 800. Many buyers approved at 620-680. You don't need perfect credit.

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6%

Median Down Payment

Not 20%. On a $380K home, that's $22,800—not $76,000. Most use 3.5-7%.

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$76K

Median Household Income

About $6,333/month gross. Single and dual income households both qualify.

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The Point

You don't need to be perfect. You don't need six figures. You don't need 800 credit. You don't need 20% down. You need to be "good enough" on multiple factors—and there are multiple paths to qualifying.

If you're reasonably close on these metrics, you're closer than you think. If you're not there yet, you have a clear roadmap of what to improve.

What Homes Actually Cost in DFW

Median prices by area (Q4 2024 data)

Dallas County

$365K

Wide range by neighborhood

Tarrant County

$350K

Fort Worth metro area

Collin County

$485K

Plano, Frisco, McKinney

Denton County

$420K

Denton, Lewisville, Flower Mound

Ellis County

$340K

Waxahachie, Midlothian

Kaufman County

$320K

Forney, Terrell

Rockwall County

$450K

Rockwall, Heath

Johnson County

$335K

Burleson, Cleburne

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First-Time Buyer Sweet Spots

Best value areas for first-time buyers: Ellis County, Kaufman County, Johnson County, and parts of Tarrant County offer the most home for your money. You'll trade commute time for affordability—30-45 minutes to Dallas or Fort Worth.

Up-and-coming areas: Forney, Midlothian, and Waxahachie are seeing rapid growth with new construction, good schools, and prices 20-30% below DFW average.

Down Payment: Myth vs. Reality

What people think they need vs. what buyers actually put down

❌ THE MYTH

20%

"You need 20% down to buy a house"

On a $380K home = $76,000

✅ THE REALITY

3-7%

What most first-time buyers actually use

On a $380K home = $11,400-$26,600

What First-Time Buyers Actually Put Down

3-5% down (FHA & low-down conventional) 38%

5-10% down 29%

10-20% down 19%

20%+ down 14%

86% of first-time buyers put down LESS than 20%

Credit Score: What You Actually Need

Minimum requirements vs. what gets approved

Minimum Score 580

Minimum Down Payment 3.5%

Median Approved Score 680

PMI Required Yes (MIP)

Minimum Score 620

Minimum Down Payment 3-5%

Median Approved Score 740

PMI Required If <20% down

Credit Scores of Approved First-Time Buyers

760+ (Excellent - best rates) 22%

700-759 (Good) 35%

660-699 (Fair) 24%

620-659 (Below average) 14%

580-619 (FHA minimum) 5%

43% of first-time buyers have credit scores below 700

The Property Tax Reality

Texas property taxes are HIGH—here's what to budget

Collin County 2.45%

Dallas County 2.30%

Tarrant County 2.35%

Denton County 2.20%

Annual Tax (2.3%) $8,740

Monthly (in escrow) $728

After Homestead Exemption ~$650/mo

That's added to mortgage Yes

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Don't Forget This

Your mortgage payment includes property taxes. When you see a $380K home and calculate the mortgage at $2,200/month, add another $700+ for property taxes. Your ACTUAL payment will be closer to $2,900-3,100/month (including taxes and insurance).

File for Homestead Exemption immediately after closing. This reduces your taxable value and saves you hundreds per year. You MUST file—it's not automatic.

Quick Affordability Check

Annual Household Income

Monthly Debt Payments

Down Payment %

Estimated Purchase Price

$0

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Bottom Line

The "perfect" buyer is a myth. Real first-time buyers are 38 years old with 716 credit scores putting 6% down. They have car payments and student loans. They're nervous and unsure. And they're closing on homes every single day in DFW.

If your profile is close to these numbers—or you can get there in 6-12 months—homeownership is within reach. The question isn't whether you're "good enough." The question is: what specific gaps do you need to close, and how long will it take?

Data sources: National Association of Realtors 2024 Profile of Home Buyers and Sellers, Texas A&M Real Estate Center, Zillow Research, local MLS data. Figures represent medians and averages; individual situations vary. Property tax rates are approximate effective rates including all taxing entities.