Buying a home in Texas is more accessible than many buyers realize—thanks to a wide range of down payment assistance (DPA) programs. These programs are especially helpful for first-time buyers or anyone who needs help covering upfront costs when purchasing in markets like Dallas County and surrounding areas.
What Down Payment Assistance Actually Is
Down payment assistance programs help cover:
- Down payment (typically 3%–5%)
- Closing costs
- Upfront mortgage expenses
In many cases, assistance comes as:
- Grants (no repayment)
- Forgivable loans
- Deferred second mortgages
Major Statewide Programs in Texas
1. TSAHC (Texas State Affordable Housing Corporation)
- Offers up to ~5% assistance
- Available for FHA, VA, and conventional loans
- Can be structured as a grant or forgivable loan
- Popular with first-time buyers and repeat buyers
👉 One of the most widely used programs in Texas.
2. TDHCA – My First Texas Home
- Up to 5% assistance for down payment and closing costs
- Requires minimum credit score (often 620+)
- Designed mainly for first-time buyers
- Can be deferred or forgiven depending on structure
3. SETH 5 Star Texas Advantage Program
- Up to 5% assistance
- Available in many Texas counties
- Can be paired with FHA loans
- Offers grant and forgivable options
4. Homeownership Across Texas (HAT)
- Up to 5%–6% assistance depending on loan type
- No strict first-time buyer requirement in some cases
- Can apply to FHA, VA, and conventional loans
Local City & County Programs
Many cities in Texas offer their own additional help:
- Dallas Homebuyer Assistance Program
- Fort Worth Homebuyer Assistance Program
- Austin DPA programs (up to $40K in some cases)
- Houston area assistance programs
- Various county-based housing finance programs
These often stack with statewide programs depending on eligibility.
Who Qualifies?
Most programs consider:
- Income limits (based on area median income)
- Credit score (often 620+ minimum)
- Occupancy (must be primary residence)
- First-time buyer status (for some programs only)
👉 Many buyers are surprised they do qualify even if they think they earn too much.
Important Things to Know
- Assistance may require staying in the home for a set period
- Some programs require repayment if you move early
- Funds can run out or have limited availability
- You must work with an approved lender
Why These Programs Matter in Today’s Market
With rising home prices across areas like Collin County and nearby suburbs:
- Saving 3%–5% upfront can be a major barrier
- DPA programs reduce time needed to buy
- They help buyers compete in competitive markets
- They make new construction more accessible
Final Thoughts
Down payment assistance in Texas is one of the strongest tools available for buyers today. Whether you’re purchasing your first home or trying to preserve cash for moving costs, these programs can significantly reduce your upfront financial burden.
Thinking About Buying a Home in Texas?
If you’re exploring homeownership, the right loan and assistance program can make a big difference in what you can afford—and how quickly you can buy.