Texas Down Payment Assistance
Texas Down Payment Assistance Programs
A guide to current down payment assistance options in Texas, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Texas homebuyers.
Texas Housing Finance Agency
Texas Department of Housing and Community Affairs (TDHCA)
TDHCA administers the primary DPA programs for Texas. Program details below are current as of April 23, 2026 - confirm current terms directly with TDHCA before applying.
Statewide DPA Programs in Texas
My First Texas Home
TDHCA
30-year fixed-rate first mortgage paired with up to 5% of the loan amount in down payment and closing cost assistance, delivered as a second lien.
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Required
- Primary residence only
- Income: See TDHCA county-specific income and purchase price limits.
- Homebuyer education required
First-time homebuyer required (no primary residence ownership in the last three years). First-time requirement waived in TDHCA-designated targeted areas and for qualified veterans.
Source: welcomehome.tdhca.texas.gov
My Choice Texas Home
TDHCA
Down payment and closing cost assistance at 2%, 3%, 4%, or 5% of loan amount, paired with a 30-year fixed-rate first mortgage.
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Not required
- Primary residence only
- Income: See TDHCA My Choice Texas Home income and purchase price schedule.
- Homebuyer education required
Open to both first-time and repeat homebuyers. Available on a first-come, first-served basis subject to funding availability.
Source: welcomehome.tdhca.texas.gov
Texas Mortgage Credit Certificate (MCC)
TDHCA
Federal tax credit for a portion of annual mortgage interest paid (dollar-for-dollar reduction in federal tax liability), available for the life of the loan while the home remains the primary residence.
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Required
- Primary residence only
- Income: TDHCA MCC income and purchase price limits apply.
- Homebuyer education required
Can be used with a TDHCA first mortgage or as a stand-alone option with a non-TDHCA first mortgage. First-time homebuyer requirement waived in targeted areas and for qualified veterans.
Source: welcomehome.tdhca.texas.gov
Homes for Texas Heroes Home Loan Program
Texas State Affordable Housing Corporation (TSAHC)
Fixed-rate first mortgage with a grant of up to 5% of the loan amount for down payment and closing costs (or a deferred forgivable second-lien option, forgiven after three years).
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Not required
- Primary residence only
- Minimum FICO: 620
- Income: Household income must meet TSAHC program limits.
- Homebuyer education required
Eligible professions include public school educators, police officers, firefighters, EMS, corrections officers, county jailers, active military, and veterans. TSAHC is a separate statewide nonprofit and runs its own DPA pool independent of TDHCA.
Source: www.tsahc.org
Home Sweet Texas Home Loan Program
Texas State Affordable Housing Corporation (TSAHC)
Fixed-rate first mortgage with a grant of up to 5% of the loan amount for down payment and closing costs (or a deferred forgivable second-lien option, forgiven after three years).
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Not required
- Primary residence only
- Minimum FICO: 620
- Income: Low- and moderate-income households per TSAHC limits.
- Homebuyer education required
Open to buyers who do not qualify under the Heroes program. Can be combined with a Mortgage Credit Certificate from TSAHC for first-time homebuyers.
Source: www.tsahc.org
Major City & County Programs in Texas
Houston Homebuyer Assistance Program (HAP)
City of Houston Housing and Community Development Department · City of Houston, TX
Up to $50,000 as a no-interest forgivable second lien; 20% of the principal is forgiven for each completed year of residency over five years.
For households at or below 80% AMI purchasing a primary residence in the Houston city limits; requires HUD-certified homebuyer education.
Source: houstontx.gov
Austin Down Payment Assistance Program
Austin Housing Finance Corporation / City of Austin Housing Department · City of Austin, TX (Full Purpose city limits)
Up to $40,000 as a 0% interest loan for down payment, closing costs, and prepaids on an owner-occupied single-family home or condo.
Limited to first-time homebuyers at or below 80% MFI; maximum sales price of $440,000. Homebuyer education required.
Source: www.austintexas.gov
Texas Notes for Homebuyers
- Texas runs DPA through two separate statewide entities: TDHCA (state agency) and TSAHC (independent nonprofit). Programs are not interchangeable.
- Texas is a non-judicial foreclosure state using deeds of trust; homestead protections are strong.
2026 Loan Limits in Texas
Conforming (Conventional)
$806,500 baseline
FHA
$524,225 floor
Most Texas counties use the FHA floor limit.
Live DPA Pricing for Texas
Pricing below is sourced live from hundreds of wholesale lenders for a Texas scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
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