What down payment assistance programs are available to Texas home buyers? Texas buyers have access to several established down payment assistance programs, including TSAHC, SETH’s 5 Star Texas Advantage Program, and NACA, along with a free search tool through HAR.com covering more than 2,000 programs nationwide.
If you’ve been holding off on buying a home because you think you need 10 or 20 percent saved up, it’s worth taking a second look. Down payment assistance programs exist specifically to close that gap, and several of the strongest options in the country are available right here in Texas. Some come as grants that never have to be repaid. Others are forgivable loans. None of them require you to be a first-time buyer.
Whether you’re a first-time buyer in Richmond, Texas, a repeat buyer in Rosenberg, or searching anywhere else across Fort Bend County or the Greater Houston area, here’s a breakdown of the programs worth knowing about and where to check your eligibility.
TSAHC: Grants and Forgivable Assistance for Any Qualified Buyer
The Texas State Affordable Housing Corporation (TSAHC) pairs a 30-year, fixed-rate mortgage with down payment assistance of 2 percent, 3 percent, 4 percent, or 5 percent of the loan amount. You can take that assistance as a grant, which never has to be repaid, or as a forgivable second lien.
This assistance is open to any buyer who meets the credit and income requirements, whether it’s your first home or your fourth. TSAHC also runs a version reserved for public-service professionals, including teachers, police officers, firefighters, EMS personnel, correctional officers, and veterans. If you work in one of those fields, it’s worth asking about directly, since many buyers do not realize a hero-specific option exists.
A few things to know before you apply:
- Minimum credit score of 620, which is lower than a lot of buyers assume they need.
- You do not have to be purchasing your first home to qualify.
- TSAHC offers a free online eligibility quiz and a loan calculator that estimates, based on your credit score, how much of your closing costs the program can cover. You can find both at tsahc.org.
SETH: Up to 5 Percent Toward Your Down Payment and Closing Costs
The Southeast Texas Housing Finance Corporation (SETH) offers the 5 Star Texas Advantage Program, which works in a similar way to TSAHC. You can receive up to 5 percent of your final loan amount toward a down payment and closing costs, delivered as a second lien. One version is forgiven after three years, and the other is a 0 percent interest option deferred for 30 years with no monthly payments.
SETH requires a minimum credit score of 640 and does not require first-time buyer status. The program is available throughout most of Texas, including Fort Bend and Harris Counties, so it applies broadly across the Greater Houston area. It is not available in Travis County or within the city limits of El Paso, Grand Prairie, or McKinney, which will not affect most buyers searching in our market.
NACA: No Down Payment, No Closing Costs, No Credit Score Requirement
NACA, the Neighborhood Assistance Corporation of America, takes a different approach entirely. Instead of a credit score cutoff, NACA underwrites based on your overall financial responsibility: your income, your savings pattern, and your payment history. The result is a program with no down payment, no closing costs, no points or fees, and no mortgage insurance.
It is not a fast process. NACA requires membership, mandatory homebuyer workshops, and financial counseling before you become “NACA Qualified,” and you will need to work with a NACA-approved real estate agent once you are ready to search for a home. Purchase prices are also capped at the conforming loan limit for your area. For buyers who are willing to put in the time up front, though, the terms are some of the most favorable available anywhere. You can read more about the process at naca.com.
A Free Tool to Check Your Eligibility
Beyond these three programs, the Houston Association of REALTORS® maintains a free search tool at har.com/downpayment that pulls from a database of more than 2,000 down payment assistance programs nationwide. You answer a short set of questions about your household size, income, buyer history, military service, profession, and disability status, and the tool surfaces programs you may be eligible for in your specific area.
This is a useful starting point if you are exploring your options in Richmond, Rosenberg, or anywhere in the Greater Houston area before you ever pick up the phone with a lender.
What This Means for You
Down payment assistance is not a niche option for a small group of buyers. Between TSAHC, SETH, NACA, and the programs indexed on HAR.com, there is a good chance something applies to your situation, regardless of your income level, credit score, or whether this is your first home or your fifth. The programs differ enough in structure and eligibility that it is worth reviewing more than one before deciding which path fits your finances best.
Frequently Asked Questions
Do I have to be a first-time homebuyer to use these programs? No. TSAHC and SETH are both open to repeat buyers, and NACA does not have a first-time buyer requirement either. Some add-on benefits, such as a Mortgage Credit Certificate, are limited to first-time buyers, but the core down payment assistance is not.
What credit score do I need? TSAHC requires a minimum of 620, and SETH requires a minimum of 640. NACA does not use a credit score at all, relying instead on a review of your overall financial history.
Will using one of these programs slow down my closing? TSAHC and SETH both work through participating lenders and generally follow a fairly standard timeline once you are approved. NACA takes longer up front because of the counseling and workshop requirement, but that happens before you start house hunting, not during the closing process itself.
Ready to talk about which down payment assistance option fits your situation? Give me a call at 832-220-1461 or schedule a time that works for you: Click Here
— Amanda Dockum, Owner and Managing Broker, Crimson Realty | Richmond, Texas
