Buying a home in Texas can be expensive, especially with rising housing costs. But did you know there are 7 down payment assistance programs that can make it easier? These programs offer grants, forgivable loans, and other financial support to help reduce upfront costs. Here’s a quick look at the best options:
- TSAHC Programs: Help for teachers, veterans, and more through forgivable loans.
- My First Texas Home: Grants up to 5% of the loan amount for first-time buyers.
- Austin Down Payment Assistance: Local support for Austin homebuyers.
- Houston HAP: Forgivable loans for homes within Houston city limits.
- Dallas DHAP: Up to $60,000 in forgivable loans based on income.
- Fort Worth Assistance: Forgivable loans for first-time buyers in Fort Worth.
- SETH 5 Star Program: Up to 5% of the loan amount for buyers in Southeast Texas.
Quick Comparison
| Program | Assistance Type | Eligibility Highlights | Max Assistance |
|---|---|---|---|
| TSAHC Programs | Forgivable loans | Teachers, veterans, and other professionals; primary residence only | Varies by program |
| My First Texas Home | Grants | First-time buyers, credit score 620+, income limits | 5% of loan amount |
| Austin DPA | Local grants/loans | HUD education, Austin city limits | Varies |
| Houston HAP | Forgivable loans | Income limits, property in Houston, home inspection required | Varies |
| Dallas DHAP | Forgivable loans | Income-based, credit score 640+, Dallas city limits | $15,000–$60,000 |
| Fort Worth Assistance | Forgivable loans | First-time buyers, local eligibility | Varies |
| SETH 5 Star Program | Forgivable loans | Southeast Texas counties, credit score 640+, income limits | 5% of loan amount |
If you’re buying a home in Texas, these programs can save you thousands. Check eligibility, complete required education, and work with approved lenders to get started.
The truth about Down Payment Assistance Programs in Texas
1. Texas State Affordable Housing Corporation (TSAHC) Programs
The Texas State Affordable Housing Corporation (TSAHC) offers two programs: Homes for Texas Heroes and Home Sweet Texas Home. Both programs provide financial help through a deferred-forgivable second lien, meaning no repayment is needed as long as specific conditions are met.
The Homes for Texas Heroes program is designed for professionals such as:
- Teachers and teacher’s aides
- Police and correctional officers
- Firefighters and EMS personnel
- Veterans
- Public security officers
Meanwhile, the Home Sweet Texas Home program is available to a broader group of homebuyers in Texas. To qualify, buyers must meet credit, income, and property requirements, as well as complete a HUD-approved homebuyer education course.
To remain eligible for these programs, buyers must:
- Use the property as their primary residence
- Meet debt-to-income ratio requirements
- Work with a TSAHC-approved lender to confirm eligibility and combine assistance with their main mortgage
Although first-time buyers are given priority, repeat buyers who have not owned a home recently may also qualify.
2. My First Texas Home
My First Texas Home is designed for first-time homebuyers in Texas, offering competitive mortgage rates along with help for down payment and closing costs.
This program provides up to 5% of the loan amount as down payment assistance through a 30-year second lien with 0% interest. Even better, this assistance is given as a grant, meaning you don’t have to pay it back as long as the home remains your primary residence.
Here’s what you need to qualify:
- Income limits: In Travis County, the limit is $118,000 for households of 1-2 people and $135,700 for households of 3 or more.
- Credit score: A minimum credit score of 620, with a debt-to-income ratio no higher than 45%.
- Purchase price: The home’s price can’t exceed $349,525 in most areas, though this limit increases to $427,198 in targeted areas.
- Property type: The home must be a single-family residence, townhouse, or condo that will serve as your primary residence. Investment properties and vacation homes don’t qualify.
The program defines a first-time homebuyer as someone who hasn’t owned a home in the past three years. However, veterans and buyers purchasing in targeted areas may not need to meet this requirement.
You can also pair this program with the Texas Mortgage Credit Certificate Program, which offers up to $2,000 per year in tax credits for the life of your loan.
If you meet the qualifications, here’s how to get started:
- Take a HUD-approved homebuyer education course.
- Work with a lender approved by the Texas Department of Housing and Community Affairs (TDHCA).
- Gather required documents like tax returns from the past two years, recent pay stubs, bank statements, and employment verification.
TDHCA-approved lenders throughout Texas can confirm your eligibility and help you combine assistance programs to get the most out of what’s available.
3. Austin Down Payment Assistance Program
The Austin Down Payment Assistance Program offers support to eligible buyers looking to purchase a home. For the most accurate and up-to-date information, check the official City of Austin website or the program’s dedicated page.
To get started, connect with a HUD-approved housing counseling agency or the Austin Housing Authority. They’ll guide you through the necessary steps, including understanding the required education, gathering documentation, and meeting qualification criteria.
If you’re looking for more tailored guidance on Austin’s housing market or need help finding trusted local agents, reach out to the Austin Local Team.
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4. Houston Homebuyer Assistance Program
Houston provides a specific program to help first-time homebuyers with their down payment and closing costs. Known as the Houston Homebuyer Assistance Program (HAP), this initiative offers a forgivable loan with no monthly payments. The loan is gradually forgiven as long as the home remains the buyer’s primary residence.
General Eligibility Requirements
To qualify, applicants must meet these criteria:
- Income must fall within the Area Median Income (AMI) limits.
- The property must be located within Houston city limits.
- The purchase price must stay within the program’s affordability limits.
- Buyers must meet a minimum credit score requirement.
- A personal financial contribution toward the purchase is required.
Program Participation Rules
Participants must also:
- Complete a HUD-approved homebuyer education course.
- Use the property as their primary residence during the affordability period.
- Obtain a fixed-rate mortgage from an approved lender.
- Purchase a qualifying property, such as a single-family home, townhouse, or condominium.
Additionally, the property must pass a Housing Quality Standards inspection to ensure it meets basic safety and livability standards.
If you meet these criteria, you can apply by contacting the City of Houston’s Housing and Community Development Department or visiting their official website. Applications are reviewed on a first-come, first-served basis, so submitting yours early is a smart move.
5. Dallas Homebuyer Assistance Program
Dallas has its own program to help local buyers, known as DHAP (Dallas Homebuyer Assistance Program). It provides forgivable loans ranging from $15,000 to $60,000, depending on household income and the location of the property.
Assistance Based on Income Levels
| Income Level | Maximum Assistance | Property Location Requirements |
|---|---|---|
| 60% AMI or below | Up to $60,000 | Any eligible area in Dallas |
| 61-80% AMI | Up to $40,000 | Any eligible area in Dallas |
| 81-120% AMI | Up to $15,000 | Only in designated target areas |
This tiered setup ensures that buyers with lower incomes receive greater financial support.
Who Can Qualify?
To be eligible for DHAP, applicants need to meet these conditions:
- Be a first-time homebuyer or haven’t owned a home in the last three years.
- Have a minimum credit score of 640.
- Contribute at least $1,000 toward the purchase.
- Complete a HUD-approved homebuyer education course.
- Purchase a home within Dallas city limits.
- Use the home as their primary residence.
- Have household income at or below 120% of the Area Median Income (AMI).
What Homes Qualify?
Properties must meet the following conditions to qualify for the program:
- Maximum purchase price: $300,000 for existing homes or $325,000 for new construction.
- Pass a home inspection and environmental review.
- Cannot be in a flood zone.
- Must meet HUD’s Housing Quality Standards.
How to Apply
Applications are handled through approved lenders, who will submit your documents to the Dallas Housing Department. Funds are distributed on a first-come, first-served basis. The loan is forgiven after five years, as long as the home remains your primary residence during that time.
6. Fort Worth Homebuyer Assistance Program
The Fort Worth Homebuyer Assistance Program supports first-time buyers by offering forgivable loans to help with down payments and closing costs. The exact assistance amount, income limits, and property requirements can differ, so it’s best to check the latest details directly with the City of Fort Worth Housing Department or approved lenders.
7. Southeast Texas Housing Finance Corporation 5 Star Texas Advantage Program
The Southeast Texas Housing Finance Corporation’s 5 Star Texas Advantage Program helps eligible homebuyers in 41 counties across Southeast Texas. It provides a forgivable second lien of up to 5% of the loan amount to cover down payment and closing costs.
This second lien is forgiven after three years, as long as the homeowner continues to live in the property and makes all mortgage payments on time.
Eligibility requirements include:
- Income limits: Annual income must not exceed $115,000 in most counties.
- Minimum credit score: A FICO score of at least 640 is required.
- Property location: The home must be in one of the 41 participating counties.
- Purchase price: The home price cannot exceed $472,645 in most counties (as of March 2025).
The program works with both FHA and conventional loans. While first-time buyers are prioritized, individuals who haven’t owned a home in the past three years may also qualify.
To get started, complete a HUD-approved homebuyer education course and connect with a SETH-approved lender. Funds are limited and awarded on a first-come, first-served basis.
Next Steps for Texas Homebuyers
Here’s how to make the home-buying process smoother and more manageable in Texas. These steps will help you prepare and stay organized.
Complete Required Education
Most down payment assistance programs ask that you complete a HUD-approved homebuyer education course. These certifications are typically valid for 12 months.
Organize Your Documents
Gather the following before applying:
- Tax returns for the last two years
- Pay stubs from the past 30 days
- Bank statements from the last 2–3 months
- Proof of residence
- A valid government-issued ID
Set Your Budget
Figure out the following financial details:
- Your maximum monthly mortgage payment (including taxes and insurance)
- How much you can put toward a down payment
- Estimated closing costs
- An emergency savings cushion
Connect With Local Experts
If you’re in Austin, consider reaching out to a buyer’s agent familiar with down payment assistance. A helpful resource is Austin Local Team (https://localteam.ai).
Track Application Deadlines
These programs often have limited funding and work on a first-come, first-served basis. Make a timeline to stay on top of:
- Application deadlines
- Document submission requirements
- Pre-approval steps
- Your home search
- The closing process
Stay Informed
Sign up for local real estate newsletters and keep an eye on official program updates. Remember, terms, income limits, and purchase price caps often change each year.
Monitor Your Credit
While applying, take these steps to maintain good credit:
- Regularly check your credit report
- Resolve any errors quickly
- Avoid opening new credit accounts
- Keep up with all payments
Be aware that down payment assistance programs often come with specific property requirements and price limits that vary by county. Work closely with your real estate agent to confirm that homes meet the program’s criteria before submitting an offer.
