Down Payment Assistance in Texas

What is down payment assistance in Texas?

Texas homebuyers benefit from a lower cost of living compared to many states, and with the right down payment assistance programs, owning a home here can be even more attainable than you’d expect.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Panhandle to the Gulf Coast, Texas homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Texas or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Texas

State programs through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing & Community Affairs (TDHCA) are the state’s central source for statewide DPA programs. Neither organization lends directly to buyers. Homebuyers apply through an approved participating lender, which will combine the assistance with the mortgage.

All TSAHC programs share a few baseline requirements:

• Minimum credit score of 620 for FHA, VA, or USDA loans
• Minimum credit score of 640 for conventional loans
• No DTI requirements will apply to any loan using DPA that received underwriting approval
• Must complete an approved homebuyer education course
• You must meet income limits

TSAHC Home Sweet Texas Home Loan Program

The Home Sweet Texas Home Loan Program is designed to help low- and moderate-income Texans own a home. Through this program, TSAHC works with approved lenders to provide a mortgage loan and funding to use for down payment assistance. Qualified buyers can choose to receive the down payment assistance as a grant (which does not have to be repaid) or a deferred forgivable second lien loan (has to be repaid if the home is sold or refinanced within three years).

TSAHC Homes for Texas Heroes Program

The Homes for Texas Heroes Program provides down payment assistance and fixed-rate home loans to individuals in the following professions:

• Public school teachers
• Corrections officers
• EMS personnel
• Firefighters
• Veterans
• Active military
• Police officers
• School librarians
• School counselors
• School nurse

TDHCA down payment assistance programs

The TDHCA offers two down payment assistance programs:

My First Texas Home: This program offers down payment assistance and 30-year, low-interest mortgage rates for first-time homebuyers.

My Choice Texas Home: The program offers down payment assistance and 30-year, low-interest

Austin down payment assistance program

Austin pulls in homebuyers with a booming tech scene, a legendary live music culture, and no state income tax. Add in the outdoor lifestyle around Lady Bird Lake, and it’s easy to see why so many professionals and remote workers call it home.

Austin Down Payment Loan Assistance This program offers up to $40,000 in assistance to income-eligible, first-time homebuyers.

Requirements include:

• Must complete homebuyer education classes must be your primary residence for a minimum of five years
• Must be a first-time homebuyer or not owned a home in the last three years
• Meet income requirements

Tarrant County down payment assistance program

Fort Worth and the surrounding Tarrant County suburbs give buyers a way into the DFW metroplex without Dallas-level prices, backed by steady job growth. It’s a favorite for families and first-time buyers chasing more space and a lower cost of living, all while staying close to the region’s job centers.

Tarrant County down payment assistance The program provides up to $50,000 in financial assistance for down payment, closing costs, and principal reduction for income-qualified homebuyers in Tarrant County (but outside Fort Worth, Arlington, and Grand Prairie). The assistance is provided as a 0% interest, deferred, forgivable loan.

Program requirements include:

• Must occupy the home as their primary residence for up to 20 years, depending on the amount of the loan
• Home must pass minimum acceptable standards inspection and environmental review in Tarrant County
• Must complete HUD-certified homebuyer education course
• Household annual gross income may not exceed 80% of the area’s median income

Dallas down payment assistance program

Dallas draws homebuyers with a strong job market and a lifestyle that blends big-city energy with Texan hospitality. From upscale urban living downtown to family-friendly suburbs across the metroplex, the city offers something for nearly every buyer.

Dallas Homebuyers Assistance Program (DHAP) The program provides up to $50,000 in down payment and closing cost assistance, and potentially up to $60,000 in high opportunity areas for low-to-moderate-income households to purchase eligible homes within the city limits of Dallas. The funds are provided as a forgivable, deferred second loan with 0% interest and no monthly payments.  Program requirements include:

• Must meet income eligibility requirements
• Must meet property requirements and be within the city limits
• Must have a purchase contract for a property
• Must have a HUD-approved homebuyer education certificate
• Must live in the home as a primary residence

These are the main down payment assistance programs available across Texas. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Texas down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at tsahc.com and tdhca.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. All programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Texas property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Texas down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}