Down Payment Assistance in Texas
Texas home buyers can receive up to 5% of their loan amount in down payment assistance through state-sponsored programs administered by TDHCA and TSAHC. Whether you are purchasing your first home or your next one, assistance is available as grants, forgivable second liens, and deferred loans across every county in the Lone Star State.
Texas DPA Programs Overview
Texas stands out nationally for the breadth and accessibility of its down payment assistance programs. Two state agencies serve as the primary administrators of DPA for home buyers across the state: the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC). Together, these agencies operate multiple programs designed to reduce the upfront costs of purchasing a home, making homeownership attainable for thousands of Texans each year.
TDHCA Programs
TDHCA administers the My First Texas Home program for first-time buyers and the My Choice Texas Home program for both first-time and repeat buyers. Both programs provide DPA of up to 5% of the mortgage loan amount, structured as a zero-interest deferred forgivable second lien. The assistance is fully forgiven after three years of continuous occupancy in the home as your primary residence.
TDHCA programs work with FHA, VA, and USDA loan types, and income limits are set by county based on the Area Median Family Income. These programs have consistently been among the most utilized DPA options in Texas, serving buyers in urban, suburban, and rural communities across all 254 counties.
TSAHC Programs
TSAHC operates the Texas Homebuyer Program (formerly Home Sweet Texas) for the general public and the Homes for Texas Heroes program, which provides enhanced benefits for teachers, firefighters, EMS personnel, police officers, corrections officers, and veterans.
TSAHC DPA is available as either a grant that never needs to be repaid or as a deferred forgivable second lien. The grant option makes TSAHC programs especially attractive for eligible borrowers, as there is no repayment obligation regardless of how long you stay in the home. TSAHC programs are compatible with FHA, VA, USDA, and conventional loan types, providing flexibility across a wide range of borrower profiles and property types.
Beyond TDHCA and TSAHC, many Texas cities and counties operate their own local down payment assistance programs. Cities such as Houston, Dallas, San Antonio, Austin, and Fort Worth each have municipal programs that may offer additional funds on top of state-level assistance. The Southeast Texas Housing Finance Corporation (SETH) also provides regional DPA options. With over 40 programs available statewide, Texas home buyers have more paths to affordable homeownership than in nearly any other state.
Learn more about these programs in our detailed guides: explore our blog for in-depth articles, or use the DPA calculator to estimate your potential assistance.
Popular Cities for DPA in Texas
Down payment assistance is available in every Texas city and county. Below are the five largest metro areas where we help the most buyers access DPA programs. Select a city to learn about local programs and eligibility details specific to that area.
Houston, TX
The largest city in Texas and the fourth largest in the nation, Houston offers a robust housing market with a median home price well below many other major metros. Multiple DPA programs serve the Greater Houston area, including city-specific programs through the Houston Housing Authority.
Dallas, TX
As part of the thriving Dallas-Fort Worth metroplex, Dallas features a dynamic real estate market with strong job growth across technology, finance, and healthcare sectors. The Dallas Homebuyer Assistance Program provides additional DPA options on top of state programs.
San Antonio, TX
San Antonio remains one of the most affordable major cities in Texas, making it an ideal market for first-time home buyers. The San Antonio Housing Trust offers local DPA that can be combined with state-level TDHCA and TSAHC programs.
Austin, TX
The Texas capital and a national tech hub, Austin has experienced rapid growth and rising home prices. Down payment assistance is especially valuable here, helping buyers bridge the affordability gap in one of the state's most competitive markets.
Fort Worth, TX
Fort Worth combines big-city amenities with a lower cost of living compared to neighboring Dallas. The city benefits from strong DPA program availability and a growing inventory of homes within program purchase price limits.
Texas DPA Eligibility Requirements
While each DPA program has its own specific guidelines, the following core requirements apply to most Texas down payment assistance programs through TDHCA and TSAHC. Meeting these baseline criteria is the first step toward securing assistance for your home purchase.
Minimum 620 Credit Score
Both TDHCA and TSAHC programs require a minimum credit score of 620. A higher score may qualify you for better interest rates on your first mortgage, reducing your monthly payment over the life of the loan.
Income Limits Apply
Household income must fall within program limits, which are based on the Area Median Family Income (AMFI) for your county. Limits vary by county, household size, and program, typically ranging from 80% to 115% of AMI.
Homebuyer Education Course
All Texas DPA programs require completion of a HUD-approved homebuyer education course before closing. Courses are available online through providers like eHome America and Framework, typically costing $0 to $99.
Primary Residence Requirement
The property must be your primary residence. Investment properties and second homes do not qualify. Most forgivable second liens require you to remain in the home for at least three years for the DPA to be fully forgiven.
Additional Eligibility Notes
- First-time buyer status is not always required. The TDHCA My Choice Texas Home program and TSAHC Texas Homebuyer Program are open to both first-time and repeat home buyers, so prior homeownership does not disqualify you.
- Purchase price limits vary by county. Each program sets maximum acquisition costs that align with local housing markets. In most Texas counties, these limits accommodate the majority of available homes on the market.
- Qualifying professionals receive enhanced benefits. Teachers, firefighters, EMS workers, police officers, corrections officers, and veterans may qualify for additional DPA through the TSAHC Homes for Texas Heroes program.
- Compatible with multiple loan types. Texas DPA programs work with FHA, VA, USDA, and conventional mortgages, giving you flexibility to choose the loan product that best fits your financial situation.
Texas DPA by the Numbers
Texas is one of the most generous states in the country when it comes to down payment assistance. Here is a snapshot of what the Lone Star State offers home buyers looking for help with upfront costs.
With a median home price of approximately $331,000 and an average property tax rate of 1.74%, understanding and leveraging DPA can save Texas buyers thousands of dollars at closing. On a $330,000 home with 5% DPA, you could receive up to $16,500 in assistance toward your down payment and closing costs.
Texas DPA Programs Directory
Below is a comprehensive list of the major down payment assistance programs available to Texas home buyers. The Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855) is approved to originate loans through these programs and can help you determine which one offers the best benefit for your situation.
- My First Texas Home (TDHCA)
- My Choice Texas Home (TDHCA)
- Texas Homebuyer Program (TSAHC)
- Homes for Texas Heroes (TSAHC)
- Home Sweet Texas Home Loan Program (TSAHC)
- Houston Housing Authority DPA
- Dallas Homebuyer Assistance Program
- San Antonio Housing Trust DPA
- SETH (Southeast Texas Housing Finance Corporation)
- TDHCA Homeownership Programs
Check Your Eligibility for Texas DPA
Not sure if you qualify? Take our two-minute eligibility quiz to find out which Texas DPA programs you may be eligible for. Our team of licensed loan originators, Tanner Cook (NMLS #2090424) and Zac Cook (NMLS #2111496), will follow up with a personalized analysis of your best options at no cost and no obligation.
Cook Brothers Mortgage Team at Cornerstone First Mortgage | NMLS #173855