Texas DPA Income Limits Explained by County

Texas DPA income limits are based on the Area Median Family Income (AMFI) for your county, and most programs set their ceiling at 115% of AMFI — meaning you can earn 15% more than the local median and still qualify. Limits vary by county and household size: a 1-2 person household in Harris County (Houston) can earn approximately $86,000 to $99,000, while Travis County (Austin) allows up to $96,000 to $110,000. Households of three or more get higher limits, often $10,000 to $15,000 above the base. Both TDHCA and TSAHC set their limits independently, so exceeding the threshold for one program does not rule out the other. Properties in TDHCA-designated targeted areas carry even higher limits and waive the first-time buyer requirement. The Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855) can verify the exact limits for your county and household size.

Texas DPA Income Limits Explained by County

One of the first questions people ask about Texas down payment assistance is: "Do I make too much money to qualify?" It is a fair question, and the answer depends on your county, your household size, and which DPA program you are applying for.

Income limits exist to ensure that DPA funds go to the buyers who need them most. But the limits are more generous than most people expect, especially in Texas. Many middle-income families are surprised to learn they qualify. In this guide, we explain exactly how income limits work so you can determine your eligibility before you apply.

How DPA Income Limits Are Determined

Texas DPA programs set income limits based on the Area Median Family Income (AMFI) for each county or metropolitan statistical area (MSA). The AMFI is calculated annually by the U.S. Department of Housing and Urban Development (HUD) and reflects the median income for families in a given area.

Most Texas DPA programs set their income limits as a percentage of the AMFI:

• 80% AMFI is the typical limit for some grant options and targeted areas
• 115% AMFI is common for standard DPA eligibility through TSAHC and TDHCA programs

What this means in practical terms is that you can earn above the median income for your area and still qualify. A household earning 115% of the area median is solidly middle class in most Texas communities.

How Household Size Affects Your Limit

Income limits are not one-size-fits-all. They scale based on the number of people in your household:

• 1-2 person household: Base income limit
• 3+ person household: Higher income limit (typically 115% of the base limit)

This distinction matters significantly. A single buyer will have a lower income limit than a family of four buying in the same county. The larger household threshold accounts for the reality that families with more members have higher living expenses.

What Counts as Household Size?

For most DPA programs, household size includes:

• The borrower(s) on the mortgage application
• The borrower's spouse (even if not on the loan)
• Dependent children living in the home
• Other dependents claimed on your tax return who live with you

It does not typically include roommates, extended family members not on your tax return, or adult children who are not dependents.

County-by-County Income Limit Overview

Here is an overview of approximate income limits for some of the most populous counties in Texas. These figures are based on recent AMFI data and are representative. Actual limits may vary slightly by program year and specific DPA program.

Harris County (Houston)

Harris County is part of the Houston-The Woodlands-Sugar Land MSA, one of the largest metro areas in Texas.

• 1-2 person household: Approximately $86,000 to $99,000
• 3+ person household: Approximately $97,000 to $114,000

Houston's relatively affordable housing market combined with these income limits means a large portion of working families in Harris County qualify for DPA.

Dallas County (Dallas)

Dallas County falls within the Dallas-Fort Worth-Arlington MSA.

• 1-2 person household: Approximately $90,000 to $103,000
• 3+ person household: Approximately $103,000 to $119,000

The DFW metro area has seen strong income growth, and the AMFI reflects this. Many professionals earning solid salaries in Dallas still fall within these limits.

Tarrant County (Fort Worth)

Also part of the DFW metro area, Tarrant County shares the same MSA-level AMFI as Dallas County.

• 1-2 person household: Approximately $90,000 to $103,000
• 3+ person household: Approximately $103,000 to $119,000

Fort Worth and the surrounding communities in Tarrant County tend to have lower home prices than Dallas proper, making DPA dollars stretch further here.

Bexar County (San Antonio)

Bexar County is part of the San Antonio-New Braunfels MSA.

• 1-2 person household: Approximately $76,000 to $88,000
• 3+ person household: Approximately $87,000 to $101,000

San Antonio remains one of the most affordable major cities in Texas, and the income limits combined with lower home prices make DPA especially impactful in Bexar County.

Travis County (Austin)

Travis County is part of the Austin-Round Rock-Georgetown MSA, which has one of the highest AMFI levels in Texas.

• 1-2 person household: Approximately $96,000 to $110,000
• 3+ person household: Approximately $110,000 to $127,000

Austin's higher cost of living is reflected in higher income limits, which helps more buyers qualify despite the area's elevated home prices.

How to Check Your Specific Income Limit

Because income limits change annually and vary by program, the best way to check your exact limit is:

1. Take our eligibility quiz for a quick estimate based on your county, income, and household size
2. Visit the TSAHC website for the most current income and purchase price limits by county
3. Visit the TDHCA website for My First Texas Home and My Choice Texas Home program limits
4. Contact our team directly and we will look up the exact figures for your situation

We always verify income limits at the time of your pre-approval to ensure accuracy, since the limits published online may not reflect the most recent updates.

What Counts as Income for DPA Purposes?

Understanding what counts toward your household income is just as important as knowing the limit. Here is a general breakdown:

Income That Typically Counts

• Gross wages and salary from employment (before taxes)
• Overtime, bonuses, and commissions if consistent over the past two years
• Self-employment income (net income from tax returns)
• Social Security income and disability payments
• Pension and retirement income
• Alimony and child support (if used as qualifying income)
• Rental income from investment properties

Income That Typically Does Not Count

• Foster care payments in most cases
• One-time lump sums such as insurance settlements or inheritances
• Employer-provided benefits like health insurance premiums paid by your employer
• Income from persons under 18 who are dependents

Some DPA programs use the income as reported on your mortgage application, while others may look at total household income regardless of who is on the loan. The specific methodology depends on the program. Your lender will clarify which income calculation applies to the program you are using.

What If You Exceed the Income Limit?

If your household income is slightly above the limit for one program, you may still have options:

• Try a different program. TSAHC and TDHCA have different income limits, and one program may work even if the other does not.
• Check targeted area limits. Some census tracts within your county are designated as targeted areas and have higher income limits. If the property you are buying falls in a targeted area, you may qualify at a higher income.
• Revisit your household income calculation. Sometimes borrowers include income that does not need to be counted. A thorough review by an experienced lender can make a difference.
• Consider timing. If your income has increased recently due to a raise or new job, some programs look at annualized income rather than projected income, which might put you back within range.

The Bottom Line on Income Limits

Texas DPA income limits are designed to serve working families, not just low-income households. If you earn a middle-class salary in Texas, there is a strong chance you qualify for down payment assistance. The key is checking the specific limits for your county, your household size, and the DPA program you are considering.

Do not assume you make too much. Let us run the numbers and find out for sure.

How Income Limits Are Calculated

Understanding the methodology behind DPA income limits helps you predict whether you will qualify and plan accordingly. The process starts at the federal level and filters down to your specific county.

The Role of Area Median Family Income (AMFI)

Each year, the U.S. Department of Housing and Urban Development (HUD) surveys income data and publishes the Area Median Family Income for every metropolitan statistical area (MSA) and non-metro county in the country. The AMFI represents the midpoint — half of families in the area earn more, and half earn less.

Texas DPA programs then apply a percentage multiplier to the AMFI to set their income ceilings:

• TDHCA programs typically set limits at 115% of AMFI for standard eligibility, meaning you can earn 15% more than the median family income and still qualify
• TSAHC programs use similar thresholds, though the exact percentages may differ slightly between their grant and second lien options
• Targeted areas — certain census tracts designated by TDHCA — carry higher income limits and also waive the first-time buyer requirement, making them especially valuable for buyers who might otherwise exceed the standard ceiling

Household Size Adjustments

Income limits are adjusted by household size to account for the reality that larger families have higher expenses. The standard approach uses two tiers:

• 1-2 person households use the base income limit
• 3 or more person households receive a higher limit, typically around 115% of the base figure

This means a family of four could have an income limit that is roughly $10,000 to $15,000 higher than a single buyer or couple purchasing in the same county. The adjustment recognizes that a household supporting children or other dependents needs more income to maintain the same standard of living.

Annual Updates and Timing

AMFI figures are updated annually, usually in the spring. When HUD publishes new numbers, TDHCA and TSAHC adjust their program limits accordingly. This means the income limits you see today may change next year. If you are close to the current limit, timing your application relative to the annual update could work in your favor. Your lender can advise you on when new limits are expected and whether waiting a few weeks might be beneficial.

What Counts as Income for DPA Qualification

The income calculation for DPA programs is not always identical to the income used to qualify for your mortgage. Understanding the difference is critical because the DPA income calculation determines whether you are eligible for assistance, while the mortgage income calculation determines how much you can borrow.

Income Sources That Count

• W-2 wages and salary — Your gross income before taxes and deductions, including regular wages, tips, and shift differentials
• Self-employment income — Net income from your business as reported on Schedule C (sole proprietors), Schedule K-1 (partnerships and S-corps), or your corporate tax return. Lenders typically average the past two years of tax returns
• Overtime, bonuses, and commissions — Counted if you have a consistent two-year history. Declining overtime or bonuses may be averaged or excluded
• Social Security and disability income — Counted at face value. Some programs gross up non-taxable Social Security income by 25% to account for its tax-free nature
• Pension and retirement distributions — Regular distributions from retirement accounts or pension plans
• Child support and alimony received — Counted if documented by a court order and received consistently for at least six months, with at least three years of payments remaining
• Rental income — Net rental income from investment properties, typically as reported on Schedule E

Income Sources That Generally Do Not Count

• One-time payments such as insurance settlements, inheritances, or legal judgments
• Employer-provided fringe benefits like health insurance premiums or retirement contributions made by your employer
• Foster care payments in most program guidelines
• Income from minor dependents under the age of 18
• Irregular gifts from family members (though large deposits will still need to be sourced and documented for the mortgage)

The DPA vs. Mortgage Income Distinction

An important nuance: your mortgage lender calculates your qualifying income to determine your debt-to-income ratio and maximum loan amount. The DPA program calculates household income to determine whether you meet the income limit. These two numbers can differ. For example, if your spouse earns income but is not on the loan application, their income may not count for mortgage qualification purposes but could still count toward the DPA household income calculation. Your lender needs to evaluate both calculations to ensure you qualify on both sides.

What If You Are Right at the Income Limit?

Being close to the income threshold does not automatically disqualify you. There are several legitimate strategies and considerations that can make the difference:

Review What Is Actually Counted

Work with your lender to do a detailed income breakdown. Common items that buyers mistakenly include in their self-assessment:

• Pre-tax retirement contributions — Some programs look at gross income before 401(k) or IRA deductions, while others use adjusted figures. Knowing which methodology applies can shift your number
• Non-recurring income — A one-time bonus or a period of heavy overtime does not necessarily establish a pattern. If your income spiked temporarily, the two-year average may be lower
• Employer-paid benefits — Health insurance premiums, HSA contributions, and other fringe benefits paid by your employer are generally excluded

Explore Targeted Areas

TDHCA designates certain census tracts across Texas as targeted areas. Properties in these areas benefit from higher income limits and waived first-time buyer requirements. A property just a few miles from where you were originally looking could fall in a targeted tract and put you within the qualifying range. Your lender can run an address through the TDHCA lookup tool to check.

Consider Timing

If you received a recent raise that pushes you over the limit, remember that some programs look at annualized current income while others average the past two years of tax returns. The methodology matters. A raise that took effect last month may not impact a two-year average. Conversely, if you know a raise is coming, it may be worth applying before the increase takes effect.

Compare Programs

TDHCA and TSAHC calculate income differently and set their limits independently. It is entirely possible to exceed the limit for one program while comfortably qualifying for another. Always have your lender evaluate both options.

Frequently Asked Questions About Income Limits

Do income limits apply to only the borrower or the entire household?

It depends on the program. TDHCA programs generally consider the income of all adults who will occupy the property, even if they are not on the loan. TSAHC programs may use a different methodology. The critical step is having your lender clarify which household members' income is counted for the specific program you are applying for. If your spouse works but you are applying for the mortgage alone, their income may still be factored into the DPA eligibility calculation.

Are income limits the same for all DPA programs in my county?

No. TDHCA and TSAHC set their limits independently, and the limits can differ even within the same county. Additionally, TDHCA's targeted area limits are higher than standard limits. Always check limits for each program individually rather than assuming a single number applies across the board.

How often do income limits change?

Income limits are updated annually, typically in the spring when HUD releases new AMFI data. The new limits usually take effect within a few weeks of publication. If you are applying near the annual update window, ask your lender whether the new or old limits apply to your application.

Can I reduce my qualifying income to get under the limit?

There are legitimate strategies for managing your qualifying income. Increasing pre-tax retirement contributions through your employer's 401(k) plan reduces your gross income on paper while building your retirement savings. However, you should never misrepresent your income on a mortgage application — that is fraud. Work with your lender to understand exactly how income is calculated under the program rules, and make informed decisions about timing and structure.

What if my income changes between pre-approval and closing?

If your income increases between pre-approval and closing — say, due to a raise or job change — the DPA program may re-verify your income during underwriting. If the new income exceeds the limit, you could lose DPA eligibility. This is another reason to work with an experienced DPA lender who can manage the timeline and advise you on how to handle income changes during the process.

Ready to Get Started?

Checking your income eligibility takes just a few minutes. Take our eligibility quiz to get an instant estimate, or reach out to us directly for a detailed review of your qualifications.

• Tanner Cook - 480-420-4918
• Zac Cook - 480-406-2016

The Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855) works with Texas DPA programs every day. We know the income limits, the exceptions, and the strategies to help you qualify.

Zac Cook is a licensed mortgage loan originator (NMLS #2111496). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.