DOWN PAYMENT ASSISTANCE

Texas down-payment assistance programs.

TSAHC, TDHCA, and local programs that can put thousands toward your first Texas home.

State of Texas programs

The three flagship Texas DPA programs.

Texas runs one of the most active state DPA ecosystems in the country. Two state agencies (TSAHC and TDHCA) administer most of it, and we screen for both on every first-time-buyer file.

TSAHC My First Texas Home

TSAHC (Texas State Affordable Housing Corporation) runs the My First Texas Home program, which provides down-payment and closing-cost assistance as a grant or second lien. The program ties to a 30-year first mortgage in FHA, VA, USDA, or Conventional flavor. Assistance is typically 3–5% of the loan amount, used toward down payment and closing costs.

Eligibility highlights

First-time buyer (or veteran exempt from first-time-buyer rule)
Income at or below TSAHC limits (varies by county and household size)
Property must be in Texas
Property must be primary residence
Targeted for purchase price under TSAHC limit (varies)

How to apply

Application happens through a TSAHC-approved lender (we are one). The DPA application runs in parallel with the first-mortgage application; both close at the same closing.

TDHCA Down Payment Assistance Program

TDHCA (Texas Department of Housing and Community Affairs) runs two flagship programs: My First Texas Home (different from TSAHC’s identically-named program — yes, the naming is confusing) and My Choice Texas Home. Both fund down-payment and closing-cost assistance, typically 2–5% of the loan amount. Stacks with FHA, VA, USDA, or Conventional 30-year first mortgages.

Eligibility highlights

First-time buyer (or buying in a TDHCA-targeted census tract)
Income at or below TDHCA limits (varies by county and household size)
Property must be in Texas
Property must be primary residence
Maximum purchase price varies by area

How to apply

Application happens through a TDHCA-approved lender. Income limits, asset limits, and target-area maps are published on the TDHCA website.

Home Sweet Texas Home Loan

TSAHC’s bond-funded program for buyers who do not qualify as first-time buyers or who exceed My First Texas Home income limits. Same DPA mechanic — grant or second lien tied to a 30-year first mortgage — but broader eligibility for move-up Texas families.

Eligibility highlights

No first-time buyer requirement (open to repeat buyers)
Income limits higher than My First Texas Home (broader eligibility)
Property must be in Texas
Property must be primary residence
TSAHC-published purchase price and loan amount limits

How to apply

Application happens through the same TSAHC-approved lender network. We screen for both My First Texas Home and Home Sweet Texas Home Loan on every file.

Local DPA programs

City and county programs in DFW.

Many Texas cities run their own DPA programs that can stack on top of state DPA and the first mortgage. Funding is often competitive and varies by year — check current availability when you apply.

City of Dallas

The City of Dallas Mortgage Assistance Program (MAP) provides up to $50,000 in deferred-payment assistance to qualifying first-time buyers within Dallas city limits. Income limits and target-area maps apply.

City of Fort Worth

The Homebuyer Assistance Program (HAP) provides up to $20,000 in deferred-payment assistance for qualifying buyers in Fort Worth. Forgivable after a residency period.

City of McKinney

McKinney runs a Homebuyer Assistance Program through Collin County resources, with income limits and target areas. Funding is competitive and subject to availability.

City of Plano

Plano participates in regional first-time-buyer programs through partnerships with HUD-approved counseling agencies. Specifics vary year to year as funding cycles renew.

This list is not exhaustive — many smaller Texas cities run targeted DPA when funding is available. We check what is open and applicable to your specific address on every file.

How DPA stacks with your loan

DPA layers on top of FHA, Conventional, VA, or USDA.

Texas DPA is not a standalone mortgage. It is a second-lien or grant that funds the down payment and closing costs on a separate first mortgage. The first mortgage carries its own FICO floor, DTI ratios, and pricing — TSAHC, TDHCA, and local programs add the DPA layer on top.

Most Texas first-time buyers using DPA combine it with FHA (3.5% down), Conventional 3% Down, VA (0% down for veterans), or USDA (0% down for eligible areas). The combined structure can produce very little cash-to-close, especially when a seller credit is layered on top.

We model the full stack on every DPA file: first mortgage P&I, mortgage insurance, escrow, DPA structure (grant vs second lien), and remaining cash-to-close. No surprises at the closing table.

Frequently asked

Common Texas DPA questions.

How much down-payment assistance can I get in Texas?

Most Texas state DPA programs (TSAHC, TDHCA) provide 2–5% of the loan amount, typically structured as a grant (no repayment) or a deferred-payment second lien (repaid only when you sell, refinance, or pay off the first mortgage). City and county programs can provide additional assistance — sometimes $10,000 to $50,000+ depending on the program and area. Combined, qualifying first-time buyers can sometimes cover most of their down payment and closing costs.

Do I have to pay back Texas down-payment assistance?

It depends on the program structure. TSAHC and TDHCA grant assistance does not have to be repaid. Second-lien assistance is repaid when you sell, refinance, or pay off the first mortgage — sometimes with deferred payments and zero interest, sometimes with low-interest installments. City programs vary widely; some are forgivable after a residency period (e.g., five years of owner-occupancy). We walk through repayment terms for every program before you apply.

Can I stack DPA with an FHA loan?

Yes — TSAHC, TDHCA, and most local Texas DPA programs are designed to layer on top of FHA, VA, USDA, or Conventional first mortgages. The combined structure (FHA first + state DPA second) is one of the most common Texas first-time-buyer paths, often producing minimal cash-to-close after seller credits.

What credit score do I need for Texas DPA?

TSAHC requires 620 minimum FICO for most programs. TDHCA requires 620 minimum on most products. The underlying first mortgage program (FHA at 580+, Conventional at 620+) drives the actual floor for the combined structure. Higher scores unlock better pricing on the first mortgage; the DPA terms themselves do not vary much by FICO above the 620 floor.

How long does Texas DPA take to close?

Typically the same timeline as a non-DPA close — 30–45 days from contract. The DPA application runs in parallel with the first-mortgage application, and both close at the same closing. The exception is local city programs, some of which require a HUD-approved homebuyer education course (8 hours, online or in person) before close — we flag those upfront so you complete it on time.

Want to know if you qualify for Texas DPA?

We screen TSAHC, TDHCA, and local programs against your file and tell you the actual cash-to-close. Pre-approval in 24 hours.

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