While some people have a family member or loved one that can help with a down payment, not everyone does. It’s important to know that there are thousands of down payment assistance programs available, offered regionally or even nationally, with some of them specifically created to help first-time buyers. 

Some of these programs are loans, either with monthly payments required or no payments required until you sell the home. Others are grants that don’t have to be repaid or forgivable loans that are forgiven once the homeowner has met the criteria for the program.

Down Payment Assistance can show up in various ways; we're here to help you determine which are available for you and help guide you through the process.

Furthermore, as the state housing finance agency for Texas, the TDHCA collaborates with private investors and lenders, as is commonly required for major housing initiatives.

The TDHCA’s focus is to assist eligible Texans, whose income levels qualify them, in locating affordable housing opportunities, while also offering educational resources and technical guidance on housing issues in the Lone Star State.

The Great State of Texas sponsors the “My First Texas Home” program, which is accessible statewide but only to veterans and first-time homebuyers. This program provides a 30-year mortgage with a 0% interest rate and up to 5% of the first lien mortgage amount, which can be applied to down payment and closing cost assistance.

The program offers flexible down payment options ranging from 2% to 5%, along with closing cost assistance, to make the path to homeownership more manageable for buyers. Although it is technically a loan, the funds allocated for the down payment and closing costs do not require repayment, sale, or refinancing.

To qualify, applicants must be veterans, first-time homebuyers, or those who have not owned a home in the past three years. This program can be combined with the “Texas Mortgage Credit Certificate” initiative, which provides a dollar-for-dollar reduction in federal tax liability for as long as the borrower owes on the mortgage loan and lives in the home.

To apply for Texas’ down payment assistance program, a minimum credit score of 620 is required. If the credit score falls below this benchmark, an FHA loan may be more appropriate. Under the terms of FHA loans, buyers with a credit score of 580 or higher must put down at least 5% of the loan and purchase mortgage insurance to be paid throughout the loan.

Furthermore, the Texas Department of Housing and Community Affairs mandates a homebuyer education program that takes two hours to complete. The program covers the three key stages of the home-buying process: preparing for homeownership, financing your home, and finally, purchasing your home.

Unlike other programs, "My Choice Texas Home" doesn't require you to be a first-time homebuyer or have any employment qualifications. It offers a 30-year fixed interest rate mortgage loan with down payment and closing cost assistance up to 5% of the loan amount. You can choose from government-backed loans (FHA, VA or USDA) or a conventional loan.

To be eligible for the program, you need to meet the income limit requirements, which are based on a sliding scale determined by the number of incomes in your household and the lender you choose. The minimum requirement for income is 30% of the median income in the area, with 30% of those with low and very low-income levels.

Purchase price limits are also in place for targeted and non-targeted areas, depending on the location of your new home. Credit score requirements dictate that you must have a score of at least 620 to qualify for the program.

Lastly, the Texas Statewide Homebuyer Education Program (TSHEP) is a mandatory requirement for this program. It works with local nonprofit organizations to teach pre- and post-purchase principles and applications. Only one person on the loan must complete the 6-8 hour program, which can be taken online at a cost of $75.

This plan offers fixed-rate mortgage loans, down payment assistance and mortgage interest tax credits for prospective homebuyers. The TSAHC also offers assistance of 5% of the loan so new homebuyers can cover the cost of the down payment and any closing costs. Also, if you are a first-time homebuyer, you can receive a tax credit known as a Mortgage Credit Certificate (MCC) that can save you up to $2,000 every year on your income taxes. TSAHC works with reputable lenders from all over Texas to give prospective buyers plenty of options.

Eligibility for the program is not limited to first-time homebuyers and is available statewide through participating lenders. While a realtor is not required, resources are available to help find a realtor who is familiar with the program's regulations. First-time homebuyers can also apply for a Mortgage Credit Certificate to increase potential savings.

Income limits vary by county in Texas, and expanded limits are available in targeted areas. Typically, gross household income must be less than $97,000, but some counties have higher limits.

Purchase price limits are also more lenient in targeted areas. For instance, in the Houston-Sugar Land-The Woodlands areas, targeted homes can cost up to $360,067 compared to $294,600 in non-targeted areas.

A credit score of 680 or higher allows for down payment assistance as a second lien loan at 0% interest and no monthly payments. This loan is repayable upon sale, transfer or refinance of the mortgage.

Like other TSAHC loan programs, completion of a homebuyer education course is required prior to closing, which can be done online or in person.

The primary purpose of the SETH is to offer tax-exempt, single-family mortgage revenue bonds. Those bonds are also available for multi-family housing projects. The SETH also provides homebuyer training. Additionally, it does not administer any Section 8 programs or contracts.

The SETH’s Board of Directors is composed of one representative from each jurisdiction of Southeast Texas.

The program aims to support aspiring homebuyers with upfront expenses, including down payments, closing costs, and prepaid items required for homeownership.

Eligibility for the plan does not require being a first-time homebuyer, but properties must be purchased within the program's designated areas, which exclude El Paso and Grand Prairie city limits and include Travis County.

Income limits vary depending on the location of the property in Texas. For instance, residents of the Dallas-Fort Worth-Arlington area can have a gross household income of up to $99,130 in Collin, Dallas, and Denton counties and still qualify, whereas residents of the Waco area are limited to $75,555 in McClennan County and $61,755 in Falls County.

Similarly, the purchase price limits are higher in urban areas of Texas, such as Dallas County, where eligible buyers can spend up to $404,480 on a home, compared to the limit of $331,760 in smaller counties like Montgomery and Waller. The maximum allowed sales price for homes under this plan is $484,350.

Lenders using this program require a minimum FICO score of 640, and all mortgage buyers must complete the online SETH Homebuyer Education class to be eligible

100% of the loan between $1,000 - $15,000 forgiven over a 5-year period  
100% of the loan between $15,001 - $30,000 forgiven over a 10-year period  

Only homes located within the city limits of San Antonio are eligible for this program

(HIP120) provides assistance to homebuyers in the general public by lending between $1,000 and $15,000 as a 0% interest / no payments second loan which can be used for the down-payment required by your lender and some of the additional costs associated with purchasing a home. 

25% of the loan will be perpetual. 75% of the loan will be forgiven over a 10-year period. 

Only homes located within the city limits of San Antonio are eligible for this program

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