Down Payment Assistance Programs in Texas
Buying a home in Texas when you are short on cash for a down payment is hard, but it is not hopeless; Texas has a surprisingly deep bench of down payment assistance programs if you know where to look. The key is matching your situation, credit, and income with the right program, then pairing it with a broker who actually knows how to use these tools day to day.
In Texas, help usually comes in a few familiar forms: a true grant that doesn’t have to be repaid, a deferred second loan with no payments. At the same time, you live in the home, or a forgivable second lien that disappears after you meet the program’s time and occupancy rules.
Below are the biggest statewide and local down payment assistance programs in Texas, who offers them, and what you typically need to qualify.
How Texas Down Payment Assistance Works
Most DPA programs in Texas are paired with a 30-year fixed-rate mortgage and are delivered through participating lenders. The assistance can cover some or all of your required down payment, and in many cases, it can also help with closing costs.
Most programs expect a few things from you: a minimum credit score, staying under set income and purchase price limits, using an approved lender, and completing a homebuyer education class, so you are not going in blind. The nice surprise is that many of these options are not just for “perfect” first‑time buyers, and some do not even require you to be a first‑timer at all.
Statewide Texas down payment assistance programs
To empower you with choice and clarity, let’s explore the various types of residential construction mortgages available. Each program is designed with different needs in mind, and we’ll help you determine the best fit for your unique home-building journey:
The Texas Department of Housing and Community Affairs, or TDHCA, runs two of the best‑known statewide options: My First Texas Home and My Choice Texas Home.
My First Texas Home
This is one of the most recognized statewide first-time homebuyer programs in Texas. TDHCA’s My First Texas Home pairs a 30-year mortgage with down payment assistance and is built specifically for first-time buyers, with certain exceptions for veterans and purchases in targeted areas.
- Who it is for: First‑time buyers and qualifying veterans who have not owned a home as a primary residence in the last three years.
- Benefits: A 30‑year fixed‑rate mortgage plus up to 5 percent of the loan amount to use toward your down payment and closing costs; you can also combine it with a Mortgage Credit Certificate for ongoing federal tax credits on the mortgage interest you pay.
- Eligibility: Borrowers must meet the TDHCA income and purchase-price limits, work with an approved lender, and meet minimum credit-score guidelines, which often start around 640, depending on loan type and loan‑to‑value.
A homebuyer education course is required for the program. It works with major loan types, including FHA, VA, USDA, and conventional loan options.
My Choice Texas Home
This program is the “you don’t have to be a first-time buyer” option. If you’re buying again, relocating, or you owned a home in the last three years, this is often the TDHCA lane that still keeps DPA on the table. TDHCA explicitly notes there’s no first-time homebuyer requirement for My Choice Texas Home.
- Who it is for: Buyers who qualify under income, credit, and purchase price limits but do not necessarily fit the “first‑time” label.
- Benefits: 30‑year fixed‑rate mortgage with up to 5 percent in down payment and closing cost assistance, available statewide; many buyers like this option when they have owned before but still need help at the closing table.
- Eligibility: Minimum credit score usually around 620, TDHCA income and price caps, approved property type, and completion of a state‑approved homebuyer education course.
TSAHC
The Texas State Affordable Housing Corporation, TSAHC, is another big name you will hear a lot when you start asking about help with a down payment. TSAHC works through local lenders and focuses on making it easier for low to moderate‑income Texans and community professionals to buy a home.
Home Sweet Texas Home Loan Program
If you want a program that feels flexible and practical, this is one of the big ones. TSAHC’s Home Sweet Texas program typically offers down payment assistance as a grant or as a second-lien option, depending on what fits your plan.
- Who it is for: Low to moderate‑income homebuyers across Texas, not limited to first‑time buyers.
- Benefits: 30‑year fixed‑rate mortgage with up to 5 percent in down payment and closing cost assistance statewide, plus the option to pair it with a Mortgage Credit Certificate for extra yearly tax savings.
- Eligibility: Credit score starting around 620, income limits that vary by county, and completion of homebuyer education; assistance can be structured as a grant or a forgivable second lien, depending on the setup.
Homes for Texas Heroes
This program is designed to help Texas educators, first responders (police, firefighters, EMS), correctional officers, and veterans buy homes by offering low-interest, fixed-rate mortgages and down payment assistance (either a grant or forgivable loan) to make homeownership affordable for these community servants. It’s a state-sponsored initiative to reward those who serve the public.
- Who it is for: Teachers, school staff, firefighters, EMS, police, and corrections officers, and certain other public service professionals; income guidelines still apply, but this program is built specifically to thank people in these roles.
- Benefits: Fixed‑rate 30‑year mortgages plus up to about 5 percent of the loan amount as either a grant you never repay or a deferred, forgivable second lien that only comes into play if you sell or refinance within the first three years.
- Eligibility: Minimum credit score of around 620, meet TSAHC income limits for your county, work with a participating lender, and complete an approved homebuyer education course.
Mortgage Credit Certificate (MCC)
An MCC isn’t a down payment grant, but it can make homeownership easier to hold onto. It’s a mortgage interest tax credit concept that TSHAC includes in its program lineup, and it’s commonly offered to first-time buyers, with specific waivers in some cases.
Think of it as a tool that can reduce your federal income tax liability, freeing up monthly cash flow for homeownership costs.
SETH 5 Star Texas Advantage Program
The Southeast Texas Housing Finance Corporation, or SETH, offers one of the more flexible programs in terms of who qualifies and how the money is structured.
- Who it is for: Eligible buyers across most of Texas, with some exceptions such as Travis County and certain city limits.
- Benefits: Up to 5 percent of the loan amount to use for down payment and closing costs in the form of a grant, which means there is no repayment as long as you meet the program terms.
- Eligibility: Minimum credit score of around 640, income limits based on where you are buying, use of a participating lender, and completion of SETH’s required homebuyer education course.
For buyers who are short on funds but have stable income and decent credit, this program is the missing puzzle piece that finally gets the numbers to work.
Major city down payment assistance programs in Texas
City of Houston, Homebuyer Assistance Program
Offered by the City of Houston Housing and Community Development Department, Houston’s program can be substantial. The City of Houston states eligible first-time homebuyers can receive up to $125,000 in down payment assistance, with income limits tied to the area median income, plus location requirements related to the city’s tax jurisdiction.
City of Dallas, Dallas Homebuyer Assistance Program (DHAP)
Offered by the City of Dallas, Housing and Neighborhood Revitalization
Dallas DHAP is well-known for meaningful assistance levels. The City of Dallas lists assistance up to $60,000 in High Opportunity Areas and $50,000 in other Dallas locations, along with published sales price limits and income guidance.
City of Austin, Down Payment Loan Assistance
Offered by the City of Austin (homebuyer resources and participating lender system)
Austin’s program is straightforward and very “check the boxes, then work with a participating lender.” The City of Austin states that eligible first-time homebuyers may qualify for up to $40,000, subject to a sales price cap, an 80% median family income threshold, homebuyer education, and use of participating lenders.
City of San Antonio, Homeownership Incentive Programs (HIP 80 and HIP 120)
Offered by the City of San Antonio, Neighborhood and Housing Services Department (NHSD)
The city clearly lays out San Antonio’s HIP options. For example, HIP 80 is described as a 0% interest, no-payments second loan ranging from $1,000 to $30,000, with forgiveness schedules based on the loan amount, plus purchase price limits and published household income limits.
County and Regional Help
Harris County Down Payment Assistance
The Harris County Down Payment Assistance Program (DAP) helps first-time, low-to-moderate-income homebuyers purchase homes in unincorporated areas of Harris County (outside Houston) with a forgivable loan for down payments and closing costs, offering up to $23,800 for eligible applicants who meet income, credit (min 580), and debt ratio requirements. This no-interest loan is secured by a lien and forgiven over a 5- or 10-year period if the home is maintained, with required homebuyer education and application through participating lenders.
If you are shopping in a specific metro like Houston, Dallas–Fort Worth, Austin, or San Antonio, it is often possible to layer a local program on top of a statewide option, as long as both sets of rules allow it and your lender knows how to structure the file.
FAQs: Down Payment Assistance Programs in Texas
Not always. Some Texas programs are built specifically for first-time buyers, but others are open to repeat buyers, too. For example, certain statewide options are designed to help buyers even if you’ve owned a home recently, as long as you meet income, property, and occupancy rules.
It depends on the program. Some assistance is a true grant that doesn’t require repayment. Other programs provide a second loan that’s deferred (no monthly payment) or forgivable after you meet specific requirements, such as living in the home for a certain number of years. Your lender should walk you through the exact terms before you commit.
Yes, many Texas DPA programs allow funds to be used for closing costs as well as down payment, but the rules vary by program. Some caps how much can go toward closing, while others structure the assistance as a percentage of the loan amount, which can be applied where it’s needed most.
Most programs focus on a few core things: you’re buying a primary residence, your household income is within the limit for your area, and you complete a homebuyer education course when required. Many also require you to work with an approved participating lender and stay within purchase price limits based on the county or city.
How to choose the right Texas down payment assistance program
This part is more personal than people expect. The “best” DPA program is usually the one that fits your zip code, income, loan type, and timeline without causing stress later.
If you’re a first-time buyer anywhere in Texas, you usually start by comparing TDHCA My First Texas Home and TSAHC Home Sweet Texas. If you’re buying again, TDHCA My Choice Texas Home can be the difference between “not eligible” and “actually, yes.”
And if you’re buying in a major city, it’s worth checking the local program too, because the assistance amounts can be genuinely game-changing in the right scenario.
Call us today at (281) 801-6965 to speak with one of our home loan specialists and see how we can help you access the down payment assistance option that fits your needs.