The dream of homeownership in Texas can feel out of reach for many, but there are down payment assistance programs designed to make it possible. These programs help first-time buyers, low- to moderate-income individuals, and even veterans secure the best home loan assistance to buy a home with little to no down payment.
This guide covers the best down payment assistance programs in Texas, eligibility requirements, and how to apply for these grants and low-interest mortgage programs.
Key Takeaways
- Texas State Affordable Housing Corporation (TSAHC) provides grants, forgivable loans, and Mortgage Credit Certificates (MCCs) for first-time and repeat homebuyers.
- Texas Department of Housing and Community Affairs (TDHCA) offers low-interest mortgages and down payment assistance grants for first-time buyers.
- City and county programs in Houston, Dallas, and Travis County provide local down payment assistance for eligible homebuyers.
- Nonprofits and community groups offer financial aid, homeownership education, and budgeting workshops.
- Texas Veterans Land Board (VLB) provides special home loan assistance for veterans with competitive rates and lower down payments.
Texas State Affordable Housing Corporation (TSAHC)
The Texas State Affordable Housing Corporation (TSAHC) offers some of the best down payment assistance programs in Texas to help low- and moderate-income families achieve homeownership.
Program Offerings
✅ Homes for Texas Heroes – Down payment grants for teachers, firefighters, EMS personnel, police officers, correctional officers, and veterans.
✅ Home Sweet Texas – Grants and forgivable second-lien loans for eligible buyers.
✅ Mortgage Credit Certificates (MCCs) – Provides a federal tax credit to lower mortgage costs.
Eligibility
- Income limits apply (varies by county).
- Credit score of 620+ required for participation.
- Must work with an approved TSAHC lender to apply.
✔ Pro Tip: Check your eligibility with TSAHC’s online quiz before applying.
Texas Department of Housing and Community Affairs (TDHCA)
The Texas Department of Housing and Community Affairs (TDHCA) offers low-interest mortgages and down payment assistance grants to help first-time buyers purchase a home.
TDHCA Programs
🏡 Texas First-Time Homebuyer Program – Provides grants and low-interest home loans.
💰 My First Texas Home – Offers 30-year fixed-rate mortgages with up to 5% down payment assistance.
📉 My Choice Texas Home – Available to repeat homebuyers looking for financial assistance.
Eligibility
- First-time homebuyers or buyers who haven’t owned a home in the last three years.
- Credit score of 620+ required.
- Must complete a homebuyer education course.
✔ Pro Tip: TDHCA updates eligibility and program details frequently, so visit TDHCA’s website for the latest information.
City and County Down Payment Assistance Programs in Texas
Many cities and counties in Texas offer their own home loan assistance programs.
1. City of Houston Homebuyer Assistance Program (HAP)
- Offers up to $50,000 in forgivable loans to first-time homebuyers.
- Household income must be below 80% of the area median income (AMI).
- Property must be located within Houston city limits.
✔ Learn more at Houston’s Housing Department.
2. Travis County Hill Country Home Down Payment Assistance (DPA) Program
- Offers 4-6% of the loan amount as down payment assistance.
- Competitive 30-year fixed-rate loan available.
✔ Visit Travis County Housing for details.
3. City of Dallas Homebuyer Assistance Program (DHAP)
- Provides up to $60,000 in high-opportunity areas and $50,000 elsewhere.
- Targeted toward first-time buyers with income below 80% AMI.
✔ Find more at Dallas Housing Department.
Nonprofit and Community Down Payment Assistance Programs
Various nonprofit organizations offer financial assistance and homeownership education.
Neighborhood Housing Services (NHS)
- Offers down payment assistance grants and homebuyer workshops.
- Requires a minimum credit score of 580 and first-time buyer status.
✔ Find local NHS programs by searching online or visiting NeighborWorks America.
Texas Veterans Land Board (VLB)
- Provides special home loans for veterans with low interest rates and down payment assistance.
- Offers land purchase options with a minimum 5% down payment.
✔ More details at Texas VLB.
Frequently Asked Questions
1. Are there penalties for selling a home after receiving down payment assistance?
Some programs require repayment if you sell within a certain timeframe. Always review program terms before applying.
2. Can non-citizens qualify for down payment assistance in Texas?
Some programs allow permanent residents to apply, but others may be limited to U.S. citizens. Check each program’s requirements.
3. Can I combine down payment assistance with other incentives?
Yes! Some programs allow stacking with employer assistance, tax credits, or VA loans for maximum benefits.
Conclusion: Making Homeownership Affordable in Texas
Owning a home in Texas is achievable with the right down payment assistance programs. Whether you’re a first-time buyer, veteran, or public service professional, financial support is available to help you secure the best home loan assistance.
📍 Ready to take the next step? Contact Crimson Realty TX for expert guidance on navigating homeownership in Texas.
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