Buying a home in Texas? That down payment can feel like your biggest obstacle. Houses aren’t cheap, and putting down thousands of dollars upfront isn’t easy. That’s where Texas down payment assistance programs come in. The right program could mean thousands of dollars toward your home. But not everyone qualifies, and the process can be confusing. So, let’s break this down.
What Are Texas Down Payment Assistance Programs?
These programs help homebuyers cover a portion—or even all—of their down payment and closing costs. Instead of waiting years to save, qualified buyers can get a head start on owning a home.
Three main types of assistance are available:
- Grants: Free money. No repayment needed.
- Forgivable loans: Follow the rules (like living in the home for a set time), and the loan disappears.
- Deferred loans: Pay it back later—usually when you sell or refinance.
Each program has its own rules, income limits, and requirements, so choosing the right fit is key.
Who Qualifies for These Programs?
Not everyone gets a free pass. Most programs focus on first-time homebuyers, but don’t assume you’re out just because you’ve owned a home before. Many programs define “first-time” as someone who hasn’t owned in the past three years.
Other common requirements:
- Income limits: Programs often target low-to-moderate income buyers.
- Credit score: Many require a minimum score of 620–640, but it varies.
- Homebuyer education: Some require an approved course before funding.
- Primary residence rule: The home must be your main residence, not an investment.
Even if you don’t check every box, some programs allow flexibility or exceptions—so don’t count yourself out too soon.
The Best Texas Down Payment Assistance Programs
Texas offers several solid choices, depending on where you’re buying and how much help you need. Here are some of the top options:
1. Texas State Affordable Housing Corporation (TSAHC)
✅ Offers up to 5% of the loan amount for down payment and closing costs.
✅ Forgivable after three years if terms are met.
✅ Open to first-time and repeat buyers who meet income and credit requirements.
This is a great fit for teachers, police officers, veterans, and other community heroes.
2. My First Texas Home Program
✅ Provides a 30-year, low-interest loan with down payment assistance.
✅ Down payment help is a second loan—but interest-free.
✅ Must be a first-time homebuyer or have not owned a home in the past three years.
This one pairs well with the Mortgage Credit Certificate (MCC) program, which lowers taxes for eligible buyers.
3. My Choice Texas Home
✅ No first-time buyer requirement.
✅ A solid option for repeat buyers needing help with upfront costs.
✅ Income and credit requirements apply.
If you don’t qualify for My First Texas Home, this program still gives you access to low-interest loans.
4. Local City- and County-Specific Programs
✅ Some local governments offer their own down payment assistance.
✅ Amounts vary based on city/county budgets.
✅ Income, residency, and employment conditions often apply.
Check with your city’s housing authority to see what’s available.
How to Apply for Texas Down Payment Assistance
Want to grab one of these programs? Here’s the game plan:
- Check eligibility: Review income, credit score, and homebuyer status requirements.
- Find an approved lender: Not all lenders handle these programs. Work with one who does.
- Complete homebuyer education: If required, take the course to qualify.
- Get pre-approved: Your lender will handle the paperwork, verify numbers, and lock in a loan.
- Submit your application: Once pre-approved, apply through the down payment assistance provider.
- Close on your home: If approved, funds apply at closing—then you get the keys.
Some programs close applications when funds run out, so act fast if you qualify.
FAQs
Can I combine down payment assistance programs?
Sometimes. Some programs allow stacking with others, including federal help. However, each provider has its own rules.
What’s the biggest mistake buyers make?
Waiting. If you think you might qualify, apply early. Funds go fast.
Are these programs available for new homes?
Yes. Many apply to new builds, but check each program’s guidelines.
What if my credit score is below 620?
Work on improving it first. Some lenders offer guidance on boosting scores.
How long does the process take?
It varies. Some programs move quickly, while others require extra approval steps.
Conclusion
Texas down payment assistance programs exist to make buying a home possible—even if saving for a down payment feels impossible. If that’s been holding you back, now’s the time to see what help is out there.