First-Time Buyer Programs
Texas offers up to 5% down payment assistance for first-time home buyers through official state programs.
TDHCA
Housing & Community Affairs
TSAHC
Affordable Housing Corp
SETH
SE Texas Housing Finance
Last updated: July 28, 2026
What is Texas down payment assistance?
Texas down payment assistance (DPA) gives eligible home buyers up to 5% of their loan amount to cover the down payment and closing costs on an FHA, VA, USDA, or conventional mortgage. It comes as a grant or a forgivable/deferred second lien through TDHCA, TSAHC, or SETH, and you layer it on top of the first mortgage you already qualify for.
Because assistance is calculated as a percentage of your loan amount, there is no fixed dollar cap and no minimum loan size — a smaller loan simply earns proportionally less DPA. Programs are available in all 254 Texas counties. Shopping across options? See our best Texas down payment assistance programs, ranked.
Who qualifies for Texas DPA?
| Requirement | Detail |
|---|---|
| Assistance amount | 2%–5% of your first-lien loan amount (no fixed dollar cap) |
| Minimum credit score | 620 (TSAHC conventional loans: 640) |
| First-time buyer required? | Only for My First Texas Home; repeat buyers qualify via My Choice Texas Home or TSAHC |
| Debt-to-income (DTI) | Follows automated underwriting (AUS) findings on approved files |
| Loan types | FHA, VA, USDA, or conventional |
| Repayment | Grant, 3-year forgivable second lien, or 30-year deferred second lien |
| Homebuyer education | Required before closing (short online course) |
| Service area | All 254 Texas counties |
TDHCA Programs
Texas Department of Housing and Community Affairs
My First Texas Home
Assistance
Up to 5%
Min Credit
620+
First-Time?
Required
Repayment
3-year forgivable OR 30-year deferred
Loan Types
Highlights
- First-time buyers only
- All loan types
- 0% interest per TDHCA
My Choice Texas Home
Assistance
Up to 5%
Min Credit
620+
First-Time?
Not Required
Repayment
3-year forgivable OR 30-year deferred
Loan Types
Highlights
- Repeat buyers OK
- All loan types
- 0% interest per TDHCA
TSAHC Programs
Texas State Affordable Housing Corporation
Home Sweet Texas
Assistance
Up to 5%
Min Credit
620+
First-Time?
Not Required
Repayment
Grant OR 3-year forgivable
Loan Types
Highlights
- Grant option
- Lower 620 credit
- Repeat buyers OK
Homes for Texas Heroes
Assistance
3-5%
Min Credit
620+
First-Time?
Not Required
Repayment
Grant OR 3-year forgivable
Loan Types
Highlights
- Teachers, veterans, first responders
- Grant option
- Lower credit
SETH Programs
Southeast Texas Housing Finance Corporation
Geographic Exclusions
Travis County, El Paso, Grand Prairie, McKinney
SETH 5 Star Government
Assistance
3-5%
Min Credit
640+
First-Time?
Not Required
Repayment
3-year forgivable OR 30-year deferred
Loan Types
Highlights
- Can own other property
- Not first-time required
- Forgiven at 36 months
SETH 5 Star Conventional
Assistance
3-5%
Min Credit
640+
First-Time?
Not Required
Repayment
3-year forgivable OR 30-year deferred
Loan Types
Highlights
- Conventional only
- Can own other property
- Not first-time required
Check Your Eligibility
Answer a few quick questions to see if you qualify
Have you owned a home in the last 3 years?
Quick Comparison
Compare all Texas state DPA programs at a glance
| Program | Provider | Min FICO | First-Time? | Max DPA | Repayment |
|---|---|---|---|---|---|
| My First Texas Home | TDHCA | 620+ | Yes | 5% | 3-yr forgivable |
| My Choice Texas Home | TDHCA | 620+ | No | 5% | 3-yr forgivable |
| Home Sweet Texas | TSAHC | 620+ | No | 5% | Grant or 3-yr |
| Homes for Texas Heroes | TSAHC | 620+ | No | 5% | Grant or 3-yr |
| SETH 5 Star Gov | SETH | 640+ | No | 5% | 3-yr or 30-yr |
| SETH 5 Star Conv | SETH | 640+ | No | 5% | 3-yr or 30-yr |
Can you stack local gift funds on top of Texas DPA?
Yes. In select Texas counties, buyers using the TDHCA My First Texas Home program can layer an additional Housing Finance Corporation (HFC) gift on top of their state down payment assistance — extra money toward the down payment that does not come back to you as cash. Availability and amounts depend on where you are buying, so the county you purchase in determines whether this second layer is on the table.
| HFC gift source | Gift amount | Where it applies |
|---|---|---|
| Capital Area HFC | $7,500 | Bastrop, Blanco, Burnet, Caldwell, Fayette, Lee, Llano |
| Capital Area HFC | $2,500 | Hays, Williamson |
| McKinney HFC | $5,000 | City of McKinney |
| Harris County HFC | $1,000 | Harris County |
HFC gift funds apply only to the TDHCA My First Texas Home program and cannot be returned to the buyer as cash back. Amounts and availability are set by each HFC and may change without notice.
Popular Texas DPA Guides
Go deeper on the programs above with our most-read articles.
Find Your Best Program Match
Use our calculator to see which programs you qualify for, or take our quiz for a personalized recommendation.
Programs subject to underwriting approval and eligibility requirements. Rates and terms subject to change without notice. Not all borrowers will qualify for all programs. Income limits vary by county and household size. TDHCA, TSAHC, and SETH programs are administered by their respective agencies. Cornerstone First Mortgage LLC, NMLS #173855.