Texas: Down Payment Assistance Programs

Texas is a big state and navigating all of the possible homebuyer programs for down payment assistance can feel overwhelming. In this guide, we’ll walk you through a few statewide options for down payment and closing cost assistance as well as the plethora of locally focused programs. If you’re a homebuyer that needs help bridging the gap between the savings you have and the home you want, there are options available.

Types of Home Loan Down Payment Assistance Programs

Both first-time and repeat home buyers in Texas can access down payment assistance programs in two forms: grants and second mortgages. The grants do not need to be repaid, regardless of how long the homebuyer stays in the home. Second mortgages are typically structured as no-interest and deferred loans that are forgiven after the homebuyer has lived at the property for a specified period of time (e.g. five years). If homebuyers cease to use their home as their primary residence before their residency requirement expires, they could be required to repay part or all of the assistance they were granted.

Eligibility Requirements for Texas Down Payment Assistance Programs

Each down payment assistance program requires applicants to meet financial and property location eligibility requirements. The financial requirements include annual income thresholds, most of which require homebuyers to earn a maximum of 80% of the area's median income, and to have liquid assets below a certain threshold (e.g. $25,000). Most programs also require the homebuyer to contribute some of their own money toward the purchase of the home.

In terms of location eligibility, the statewide down payment assistance programs in Texas can be used to purchase any home in the state. The locally-sponsored down payment assistance programs require that homebuyers purchase homes within specific jurisdictions, such as the city or county.

Statewide Texas Down Payment Assistance Programs

Texas has four statewide down payment assistance programs: Homes for Texas Heroes, Home Sweet Texas, My First Texas Home, and My Choice Texas Home. Homebuyers that have a credit score of at least 620 and meet the income limits for their county are eligible to apply. Homes must be located in Texas and meet the property type eligibility requirement for the specific program. Assistance is offered in the form of a grant or second mortgage.

Homes for Texas Heroes and Home Sweet Texas

Key Features:

• Assistance amount: 2-5% of first mortgage amount.
• Applicants for the “Homes for Texas Heroes” must be public servants like veterans, public school teachers and staff, police officers, etc.
• The property’s purchase price must not exceed the maximum allowed for its location.

My First Texas Home

Key Features:

• Assistance amount: up to 5% of the mortgage amount.
• For first-time homebuyers and veterans.
• Applicants must be pre-approved for a first mortgage through an approved lender.
• The home’s purchase price must be equal to or below the purchase price limit that the program has set for the county in which it’s located.

My Choice Texas Home

Key Features:

• Assistance amount: Up to 5% of the mortgage amount.
• Any homebuyer that meets financial eligibility requirements qualifies for this program.
• Property purchase price must be equal to or below program limits.
• Homebuyers must apply for this program through an approved lender.

West Texas Down Payment Assistance Programs

There are four down payment assistance programs in West Texas, all of which are locally-sponsored. To qualify for these programs, you must be buying a home within one of their city limits. This home must also serve as your primary residence. Homebuyers will be required to complete a homebuyer’s education course and contribute some of their own money toward the purchase of the home.

Midland Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $15,000.
• Applicants must be first-time homebuyers, Midland residents for at least 30 days, U.S. citizens, and have no outstanding government debts or obligations.
• Homebuyers’ must meet HUD income guidelines for the number of people in their household.

Odessa Homebuyer Assistance Program

Key Features:

• Up to $20,000 in down payment assistance and $4,000 in closing cost assistance for new construction.
• Up to $10,000 in down payment and $3,500 in closing cost assistance for existing construction.
• Homebuyers must have a minimum credit score of 580 and meet HUD’s annual income limits.
• The purchase price for a home that’s new construction can’t exceed 95% of the maximum allowed by HUD.
• The purchase price for a home that’s existing construction can’t exceed $270,632.
• This is a no-interest, deferred payment second mortgage.

Neighborhood Services of City of Abilene

Key Features:

• Assistance amount: $5,000 for down payment and closing costs.
• Must be a first-time homebuyer and have been a resident of Abilene for at least six months.
• Applicants must meet HUD income limits.
• Applicants must complete 10 hours of community service.

San Angelo Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $15,000 or 15% of the home’s appraised value, whichever is less.
• Homebuyers must meet program annual income limits.
• Homebuyers can’t have a felony conviction in the last five years.
• Homebuyers must not owe outstanding taxes.
• Homes can have a maximum sale price of between $209,000 and $266,000.
• This is a no-interest, deferred loan that’s forgiven once the homebuyer has lived in the home for five years.

San Angelo Affordable Housing Assistance Program

Key Features:

• Assistance amount: up to $50,000 in gap reduction and mortgage buydown assistance.
• Must be a first-time homebuyer.
• Must have been a San Angelo resident for at least one year, or currently employed with a local San Angelo business, the City of San Angelo, Tom Green County, or the San Angelo Independent School District.
• Annual income can’t exceed 80% of the area median income.
• Must purchase a newly constructed home in a targeted revitalization area.
• The home purchase price can’t exceed 95% of HUD’s maximum allowable price.
• Must be approved for a first mortgage of at least $60,000.
• This is a no-interest, deferred 30-year second mortgage.

North Texas Down Payment Assistance Programs

For homebuyers looking to purchase in North Texas, there are locally sponsored down payment assistance programs. Each of these programs require that the home be located within the sponsoring city limits and some have applicant residency requirements. The homes must serve as the homebuyers primary residences.

All borrowers will be required to complete a homebuyer education course and contribute some of their own funds to the home purchase.

Arlington Homebuyer Assistance Program

Key Features:

• Assistance Amount: up to $20,000.
• For first-time homebuyers, those who haven’t owned a home in the last three years, or homebuyers from a federally declared disaster area.
• Homebuyers must meet annual income limit requirements.
• Homebuyers’ liquid assets can’t exceed $15,000 at the time of closing.
• Homebuyers must meet continuous employment requirements.
• Homes can have a maximum sale price between $290,000 and $305,000.
• This is a no-interest, deferred payment second mortgage.

Dallas Homebuyer Assistance Progra (DHAP)

Key Features:

• Assistance amount: more than $40,000.
• Homebuyers must be U.S. citizens or legal permanent residents of the United States who have lived in Dallas for at least 10 years.
• Homebuyers must have an annual income that is between 60% and 80% of the area median income.
• Homebuyers must work in professions like education, protective services, healthcare, and libraries.
• Homes can have a maximum purchase price between $228,000 and $246,000.
• Homebuyers can apply for the program through an approved lender.
• This is a no-interest, deferred, forgivable second mortgage.

Denton Homebuyer Assistance Program

Key Features:

• There are two options for assistance: up to $14,900 or up to $50,000.
• Eligible homebuyers are: first-time homebuyers, those who haven’t purchased a home in the last three years, or those that meet other eligibility requirements.
• All homebuyers must be U.S. citizens or legal U.S. residents.
• Homebuyers must have an annual income that doesn’t exceed 80% of the area median income and a maximum of $20,000 in liquid assets.
• Homebuyers must apply for the program through a participating lender.
• Homebuyers must also use a participating realtor to find their home.
• Both assistance options come in the form of a no-interest, deferred, and forgivable loan.

Fort Worth Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $25,000.
• Eligible applicants include: first-time homebuyers, those who haven’t owned a home in the last three years, or those that meet other eligibility requirements.
• Homebuyers must meet HUD’s income limit requirements.
• Homes can have a maximum sales price between $290,000 and $305,000.
• Homebuyers must apply for the program through an approved lender,
• This is a no-interest, deferred, and forgivable loan.

Frisco Down Payment Assistance Program

Key Features:

• Assistance amount: up to $10,000.
• Eligible applicants are first-time homebuyers who have also been employees of the City of Frisco or the Frisco Independent School District for at least six months.
• The homebuyers’ annual income can’t exceed $131,989.
• Homes can have a maximum purchase price of $531,300.
• Homebuyers can apply for the program on the city website once they receive their first mortgage prequalification letter.
• This is a no-interest, deferred, and forgivable loan with a five-year term.

Mesquite Down Payment Assistance Program

Key Features:

• Assistance amount: 50% of the required down payment, up to $10,000.
• Eligible applicants are: first-time homebuyers or those who haven’t owned a home in the last three years.
• Homebuyers must be a U.S. citizen, Citizen National, or Qualified Alien.
• Homebuyers annual income must be equal to or below 80% of the area median income.
• Homebuyers can apply for the assistance program once they’ve been prequalified for a first mortgage.
• This is a no-interest, deferred, and forgivable loan with a five-year term.

Plano First-Time Homebuyers Assistance Program

Key Features:

• This program offers two types of assistance: up to $10,000 or up to $55,000.
• Eligible applicants are: first-time homebuyers or homebuyers who haven't owned a home in the last three years.
• Homebuyers must have a minimum credit score of at least 620 and be U.S. citizens or permanent resident aliens.
• Homebuyers’ annual income must meet HUD income limits.
• Homebuyers’ cash assets can’t exceed $36,000, excluding retirement accounts.
• Homebuyers must have a clean credit history for the previous 12 months.
• Any judgments against homebuyers must be paid off.
• Homes must have a purchase price of $418,000 or less.
• Homebuyers can apply for the program through the website.
• Both forms of assistance are no-interest, deferred, and forgivable loans.

Wichita Falls First-Time Homebuyer Program

Key Features:

• Assistance amount: between $7,000 and $10,000.
• Eligible applicants include: first-time homebuyers, homebuyers that haven’t owned a home in three years, or those that meet other eligibility requirements.
• Homebuyers must also be U.S. citizens or legal residents.
• Homebuyers must meet maximum annual income requirements.
• Applicants’ cash assets can’t exceed $10,000.
• Homebuyers must have paid off any debts to the City of Wichita Falls.
• The home’s purchase price can’t exceed $209,000.
• Homebuyers can apply for the program with a participating lender.
• This is a no-interest, deferred, and forgivable second mortgage.

Tarrant Cares Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $20,000.
• Homebuyers must have an annual income that is at or below the HUD threshold for “moderate income” for their area.
• Homebuyers’ liquid assets can’t exceed $15,000.
• This is a no-interest, deferred, and forgivable loan.

Central Texas Homebuyer Assistance Programs

The homebuyer assistance programs in Central Texas are for first-time homebuyers or those who haven’t owned a home in the last three years. These programs require homes to be located within their respective city limits.

Each program requires borrowers to complete a homebuyer education course and contribute some of their own funds to the home purchase.

Austin Homebuyer Assistance Program

Key Features:

• The Austin Homebuyer Assistance Program offers assistance through two sub-programs: the Standard Down Payment Assistance (DPA) Program and the Shared Equity Down Payment Assistance (DPA) Program.
• The Standard DPA program offers up to $14,999 in assistance.
• The Shared Equity DPA program offers between $15,000 and $40,000 in assistance, not to exceed 30% of the sales price.
• Eligible applicants include: first-time homebuyers, those who haven’t owned a home in the last three years, or those that meet other eligibility requirements.
• Homebuyers must be U.S. citizens or legal U.S. residents.
• Homebuyers’ annual income should be equal to or below 80% of the area median income.
• The home’s sale price can’t exceed $614,054.
• Homebuyers must apply for this program through a participating lender.
• The Standard DPA loan is a no-interest, deferred, and forgivable second mortgage.
• The Shared Equity DPA loan is also a no-interest, deferred, and forgivable second mortgage. If the homebuyer sells their home prior to year 31, they will have to pay the program a percentage of the equity they earned in the sale.

Bryan Homebuyer Assistance Program

Key Features:

• Assistance amount: between $3,500 and $14,000.
• Homebuyers must be U.S. citizens or permanent legal residents and have been a resident of Bryan for at least five years.
• Homebuyers must have an annual income less than or equal to 80% of the area median income.
• Homebuyers must not have any outstanding government debts, and they must not have had a foreclosure in the past five years.
• Homes can have a purchase price of up to $235,000 if they are existing construction, and up to $251,000 if they are new construction.
• This is a no-interest, deferred, and forgivable second mortgage.

San Marcos Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $12,000.
• Eligible applicants include: First-time homebuyers, those who haven’t owned a home in the last three years, or those that meet other eligibility requirements.
• Homebuyers must have a household annual income that is less than or equal to 80% of the area median income.
• Interested homebuyers should contact city staff at 512-805-2644 for an initial assessment of eligibility.
• This is a no-interest, deferred, and forgivable loan.
• This program offers income-eligible first-time homebuyers in down payment and closing cost assistance.

Waco Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $25,000.
• Homebuyers must have an annual income equal to or less than 80% of the area median income.
• Homebuyers can apply for the program through the website.

East Texas Down Payment Assistance Programs

Homebuyers looking for down payment assistance to purchase a home in East Texas can find locally-sponsored programs that are available for first-time homebuyers and homebuyers who haven’t owned a home in the last three years. Beaumont and the City of Tyler extend eligibility to homebuyers that were displaced due to a legal separation or divorce.

All programs require homebuyers to complete a homebuyer education course, contribute some of their own funds to the purchase of the home, and to purchase a home within their respective city limits.

Beaumont Down Payment Assistance Program

Key Features:

• Assistance amount: up to $14,999.
• Homebuyers must have an annual income that is equal to or less than 80% of the area median income.
• Homes can have a maximum sales price of $150,000.
• Homebuyers can apply for assistance through the program’s website.
• This is a no-interest, deferred, and forgivable second mortgage.

Texarkana First-Time Homebuyers Assistance Program

Key Features:

• Assistance amount: up to half of the total down payment and closing costs required to purchase the home.
• Homebuyers must be U.S. citizens or legal resident aliens.
• Homebuyers must have a household annual income that is equal to or less than 80% of the area median income.
• Homebuyers can apply for the assistance program through the Department of Community Development and Grants.
• This is a no-interest, deferred, and forgivable loan.

City of Tyler First-Time Homebuyer’s Program

Key Features:

• Assistance amount: up to $50,000.
• Homebuyers must be U.S. citizens or legal resident aliens.
• Homebuyers must have an annual income that is equal to or less than 80% of the area median income.
• Homebuyers can’t have more than $15,000 in liquid assets.
• To apply for down payment assistance, homebuyers should get prequalified for a first mortgage loan, then contact a program specialist at 903-531-1303.
• This is a no-interest, deferred, and forgivable loan.

Upper Texas, Gulf Coast Down Payment Assistance Programs

Homebuyers looking for down payment assistance in the Upper Texas, Gulf Coast region, can find locally-sponsored programs for first-time homebuyers or those who haven’t owned a home in the last three years. Homebuyers must also be U.S. citizens or legal U.S. residents. Homebuyers’ annual income can’t exceed 80% of the area median income and the property being purchased must be located within the program’s respective city limits.

City of Baytown Homebuyer Assistance Program

Key Features:

• Assistance amount: up to 5% of the purchase price of home.
• Attached or detached single-family homes are eligible for this program.
• Homes can have a maximum sales price of $180,000.
• Homebuyers can apply for the program through the website.
• This is a no-interest, deferred, and forgivable loan.

Galveston Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $14,500.
• Homebuyers can apply for this program by submitting a complete application packet to the Grants and Housing Department.
• Homebuyers must secure a first mortgage through a participating lender.
• This is a no-interest, deferred, and forgivable second mortgage.

Houston Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $50,000.
• Homebuyers must have fewer than $30,000 in liquid assets.
• To apply for the program, homebuyers should call 832-394-6200 to receive their HAP number then complete the program application.
• This is a no-interest, deferred, and forgivable second mortgage loan.

Texas City First-Time Homebuyers Assistance Program

Key Features:

• Assistance amount: up to $7,500.
• Homebuyers must have been a Texas City resident for at least 12 months.
• Homebuyers that wish to apply for the program can do so through the website.

Harris County Down Payment Assistance Program

Key Features:

• Assistance amount: up to $23,800.
• Homebuyers must have a minimum credit score of 580.
• Homebuyers’ liquid assets that can’t exceed $15,000.
• Properties must be located in the unincorporated areas of Harris County.
• Homes can have a purchase price of up to $261,000 if they are existing construction, and up to $268,000 if they are new construction.
• Homebuyers can apply for the program through a participating lender.
• This is a no-interest, deferred, and forgivable loan.

South Texas Down Payment Assistance Programs

For a home to be eligible for down payment assistance through the South Texas programs, it must be located in the program’s respective city.

Corpus Christi Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $25,000 in down payment assistance and $10,000 in closing cost assistance.
• Must be a first-time homebuyer.
• Must have an annual income that either meets or is less than 80% of the area median income.
• The maximum home purchase price is between $173,000 and $238,000.
• Homebuyers should complete the intake form to get prescreened for the program.
• This is a no-interest, deferred, and forgivable loan.

Laredo Homebuyer Assistance Program

Key Features:

• Assistance amount: up to $30,000.
• Eligible homebuyers include: first-time homebuyers, single parents, or those that meet other eligibility requirements.
• Homebuyer’s annual income can’t exceed 80% of the area median income.
• Homebuyers must have been Laredo residents for at least six months, and have a two-year employment history.
• Homebuyers can apply for this program through their first mortgage lender.
• This is a no-interest, deferred, and forgivable loan.

San Antonio Homeownership Incentive Programs

Key Features:

• San Antonio offers down payment and closing cost assistance to first-time homebuyers through two programs: HIP 80 and HIP 120.
• HIP 80 is for homebuyers with annual incomes that total 80% of the area median income or less. It offers assistance of between $1,000 and $30,000.
• HIP 120 is for homebuyers with annual incomes that total between 81% and 120% of the area median income. It offers assistance of between $1,000 and $15,000.
• The purchase price limits for HIP 80 are: $244,000 for pre-owned homes and $257,000 for newly constructed homes.
• The purchase price limits for HIP 120 are: $283,200 for pre-owned homes and $301,200 for newly constructed homes.
• Homebuyers can apply for the program through their first mortgage lender.
• Both programs offer no-interest, deferred, and at least partially forgivable loans.

Homeownership Program for Employees (HOPE) of San Antonio

Key Features:

• Assistance amount: either $20,000 or $40,000.
• Full-time employees of the city of San Antonio who are U.S. citizens or legal U.S. residents and first-time homebuyers are eligible for this program.
• Homebuyers can apply for this program through a participating lender.
• This is a no-interest, deferred, and forgivable loan.

First Responders of San Antonio Homebuyers Assistance

Key Features:

• Assistance amount: between $7,500 and $15,000.
• This program is for first-time homebuyers who are also sworn police officers, firefighters, and cadets in San Antonio.
• Homebuyers can apply for this assistance through a participating lender.
• This is a no-interest, deferred, and forgivable loan.

City of Victoria Down Payment and Closing Cost Assistance

Key Features:

• Assistance amount: up to $5,000 in down payment assistance and up to $5,000 in closing cost assistance.
• Eligible applicants include: first-time homebuyers or those that meet other eligibility requirements.
• Homebuyers must have an annual income that is less than or equal to 80% of the area median income.
• Homebuyers must be U.S. citizens or permanent resident aliens.
• Once homebuyers receive mortgage pre-approval they can submit their application for assistance.
• This is a grant. It doesn’t need to be repaid.

The Bottom Line

Homebuyers in Texas have many statewide and local down payment assistance options. Homebuyers who are interested in participating in these programs should reach out to the programs directly to obtain the specifics of each program before making a decision to apply.