A Practical Guide To Getting Help With Your First Home In Texas
Buying a home in Texas can feel like climbing a mountain, especially when the first big hurdle is saving for that down payment. Saving for a down payment in Texas can feel like you are trying to chase a moving target. Home prices have climbed, rent is not exactly cheap, and life keeps throwing expenses at you. The good news is that Texas has a solid mix of statewide and local down payment assistance programs that can help you close the gap between where you are and the keys to your own front door.
Down payment assistance in Texas is not charity. It is a policy aimed at helping working households, veterans, and community professionals build stability and wealth through homeownership. If you are doing your best to get ahead but the savings piece keeps slowing you down, it is perfectly reasonable to see which of these programs can meet you halfway.
Down payment programs are designed to tip the balance for Texans who can afford a mortgage payment but can’t put down 5 or 10 percent. Most Texas programs pair a standard 30-year fixed mortgage with help in one of two forms:
You still need to qualify for a mortgage, meet income and home price limits, and live in the home as your primary residence. But instead of trying to save every dollar of the down payment and closing costs on your own, you are getting 2% to 5% of the loan amount, or in some local programs, a flat dollar amount that can reach tens of thousands of dollars.
The Texas Department of Housing and Community Affairs (TDHCA) is one of the biggest players in the state when it comes to down payment assistance. Their programs are available through participating lenders across Texas, so you do not have to live in a specific city to qualify.
The My First Texas Home program targets first-time buyers and veterans. Think of it as the starter lane for those beginning their homeownership journey. This program pairs a 30-year, low-interest mortgage with up to 5% assistance for your down payment and closing costs. Qualifying typically means you haven’t owned a home in the past 3 years or you’re a veteran. You’ll need a credit score of at least 620, meet household income limits for your county, and ensure the price of your potential home doesn’t exceed program limits. There’s a bit of homework involved; a homebuyer education course is also required, but it’s a small price to pay for the benefits.
If you’re not a “first-time buyer,” the My Choice Texas Home program is open to repeat buyers who meet other criteria. The benefits mirror the “My First Texas Home” option: a 30-year fixed loan and up to 5% down payment, and closing cost help; no first-timer status required. Again, there are income and purchase price limitations, and a minimum credit score of 620 is mandatory. Completing the state’s homebuyer education class is also required.
The Texas State Affordable Housing Corporation (TSAHC) runs another set of popular programs that combine fixed-rate mortgages with down payment assistance. These are also offered statewide through participating lenders and are open to both first-time and repeat buyers, depending on the program.
Heroism doesn’t just belong in storybooks; it’s alive in your local school, firehouse, and police department. TSAHC’s Homes for Texas Heroes ensures teachers, firefighters, EMS personnel, police officers, correctional officers, and veterans have access to the same robust assistance: a 30-year fixed mortgage plus 3–5% down payment assistance, available as a grant or an interest-free second loan. This isn’t just thanks for your service, it’s real, tangible support that often makes the difference. There are no first-time buyer restrictions, but, as usual, you’ll need a credit score of 620 and fall within local income guidelines. Homebuyer education is part of the process.
The Home Sweet Texas Home Loan Program is a warm invitation to low- and moderate-income households across the state. This program doesn’t care if you’ve owned a home before; it’s all about making the math work, regardless of your prior homeowner status. You get access to a 30-year fixed-rate mortgage, plus up to 5% in down payment help. The big draw here is flexibility; income requirements are tailored to your county, and a 620 credit score remains the threshold. If you’re open to stacking benefits, TSAHC lets you combine this program with a Mortgage Credit Certificate that shaves money off your federal tax bill each year. And yes, another homebuyer education course is part of the journey.
The Southeast Texas Housing Finance Corporation (SETH) tailors the 5 Star Texas Advantage Program for a broad swath of borrowers, whether you’re buying for the first time or not. Most Texas counties (except for cities) are eligible. SETH offers up to 5% of your loan amount for down payment and closing costs, with no need to repay it. That’s right, grants, not loans. To qualify, buyers must have a credit score of at least 640 and meet regional income limits. Homebuyer education is, again, required, but having real money up front can tip the odds in your favor when making an offer.
In addition to the statewide options, many Texas cities and counties offer their own down payment assistance programs, either alongside or in addition to state programs. Here are a couple of well-known examples to give you a sense of how these work.
Harris County’s Down Payment Assistance Program (DAP) offers assistance to first-time buyers who haven’t owned a home in the past 3 years, subject to income and credit score requirements. Eligible buyers can receive significant financial aid on homes purchased within Harris County, excluding the City of Houston, provided they meet the criteria.
The City of Houston Homebuyer Assistance Program (HBAP) provides eligible first-time buyers with up to $125,000 toward down payment and closing costs. Applicants must meet income requirements and complete a homebuyer education course. There’s also the Harvey Homebuyer Assistance Program, which provides substantial support to those impacted by past disasters, with conditions based on years of homeownership to receive full benefits.
Austin’s Down Payment Assistance Program helps low-income families with up to $40,000 for down payment and closing costs. Homebuyers must meet income guidelines, be first-time buyers, and purchase within Austin city limits, with eligibility based on household size and income.
Dallas’ Homebuyer Assistance Program (DHAP) provides qualified buyers with up to $50,000, subject to need and area limits. You must buy within Dallas city limits and meet income rules tied to the area median income (usually no higher than 80% AMI).
The Homeownership Incentive Program (HIP) helps buyers within the San Antonio city limits. It includes HIP 80 and HIP 120, each offering a zero-interest, forgivable second loan of $1,000 to $30,000. Income limits apply, and buyers must complete a HUD-approved homebuyer class and provide a $500 earnest money deposit.
Abilene offers first-time buyers $5,000 toward down payment and closing costs, available to residents who have been in the community for at least 6 months, meet income requirements, and complete community service hours.
Frisco’s assistance program delivers up to $10,000 in down payment help, targeted to first-time buyers who are city or Frisco ISD employees with an annual income below $131,989 and purchase price under $531,300. Funding comes via a no-interest, deferred, forgivable loan, with a five-year term.
Tyler provides up to $50,000 for first-time homebuyers with household income at or below 80% AMI, and less than $15,000 in liquid assets. Applicants need to be prequalified and are subject to standard requirements.
Victoria’s Down Payment and Closing Cost Assistance includes up to $5,000 per assistance type and is open to buyers who meet income limits (≤ 80% AMI). It’s a grant, no repayment needed.
Finding the right down payment assistance program in Texas can feel overwhelming—but you don’t have to navigate it alone. These programs each have different income limits, credit requirements, and benefits, and choosing the right one can make a major difference in your homebuying journey. That’s where we come in.
We work with statewide and local down payment assistance programs every day—from TDHCA and TSAHC to city- and county-based grants. We know the eligibility rules and can help you understand exactly which programs match your financial profile and goals.
As a mortgage broker, we have access to multiple lenders who participate in down payment assistance programs. That means more options, more flexibility, and competitive terms you may not find on your own.
Your financial situation, income level, and location determine which DPA programs you can qualify for. We take the time to understand your circumstances and tailor a recommendation that aligns with your budget and long-term plans.
We are Texas-based experts who understand how statewide and local programs differ from county to county. Whether you’re buying in a major city or a smaller community, we’ll help you identify the assistance options available where you plan to purchase.
Down payment assistance can make the dream of owning a home feel closer than ever. Whether you’re a first-time buyer, a veteran, or someone working hard to build stability for your family, we’re here to help you tap into the programs designed to lighten the upfront cost of buying a home.
Our team will guide you through the options, eligibility rules, and how much assistance you may qualify for—so you can move forward with confidence.
If you are feeling a bit overwhelmed, that is normal. Between TDHCA, TSAHC, and local programs, the web of acronyms is a lot to keep track of. The good news is that you do not have to memorize every detail.
A practical way to approach it is to start with three questions:
The answers to those questions usually point you toward a short list of programs that are worth a serious look. Call us today at (877) 280-4833. We’ll walk you through the eligibility and how much assistance you might actually receive at closing.
Texas down payment assistance programs provide grants or low- or zero-interest second liens that help cover your down payment and closing costs when you buy a home. Most programs pair this assistance with a 30-year fixed-rate mortgage and are designed for buyers who can afford the monthly payment but need help with upfront cash to close.
Statewide programs like TDHCA and TSAHC generally offer 2% to 5% of your loan amount to use toward your down payment and closing costs. Several local programs offer flat-dollar amounts ranging from a few thousand to tens of thousands of dollars, depending on the area and your qualifying profile.
Some programs are strictly for first-time buyers or those who have not owned a home in the last three years, while others are open to repeat buyers. For example, My First Texas Home and many city programs target first-time buyers, but My Choice Texas Home and several TSAHC and SETH options also serve eligible repeat buyers who meet income, credit, and property guidelines.
Yes. Texas down payment assistance programs are designed to layer on top of common mortgage types such as FHA, VA, USDA, and conventional loans. Your lender must be approved to participate in the specific program and will structure the first mortgage and assistance to comply with all program rules and underwriting guidelines.
