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Texas Down Payment Assistance Programs

Purchasing a home in Texas requires a down payment. With the average home loan lender requiring a 20% down payment, buying a house can seem unrealistic for many.

Down payment assistance programs can help make homeownership in Texas a reality, even for those with lower incomes. While down payment assistance programs are available in most Texas cities and counties, buyers must meet certain eligibility requirements.

F5 Mortgage is a home loan lender that helps residents achieve their dreams of home ownership. We work with aspiring Texas home buyers, educating and assisting them in choosing the right assistance program.

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Benefits of Down Payment Assistance Programs in Texas

A down payment assistance program offers aspiring home buyers many benefits, including the following:

Affordable Closing Costs

Some down payment assistance programs offer more affordable closing costs.

Potential Tax Benefits

Many first-time homebuyer programs in Texas offer tax credits, making homeownership more affordable.

Lower monthly mortgage payments

The higher the down payment, the lower your monthly mortgage payment. Payment assistance programs can help buyers achieve more affordable payments.

Down Payment Assistanc

If you have little to no savings, you may feel like buying a home is inaccessible. The primary benefit of assistance programs is to provide potential buyers with down payment options

No Mortgage Insurance

Many lenders require private mortgage insurance for home buyers with less than a 20% down payment on their loan amount. Assistance programs can help some home buyers avoid a higher monthly mortgage payment due to this insurance requirement.

Why Apply for a Texas Down Payment Assistance Program with F5 Mortgage?

F5 Mortgage specializes in connecting home buyers with the right payment assistance program. Here are a few reasons why Texas home buyers choose us for their down payment needs:

Texas home buyers are all different. Your loan officer gets to know you and your unique financial situation to provide you with a personalized approach to mortgage lending.
A streamlined application process makes the buying process easier for everyone. Apply for down payment and closing assistance online, by phone, or via live chat.
We offer interested home buyers access to expert consultation, whether you have questions on down payment and closing cost requirements, second mortgage needs, or conventional loans.
F5 Mortgage is proud to offer Texas home buyers better loan terms and reduced fees, helping make homeownership a reality for everyone.
We offer a comprehensive approach to lending. Not only will your loan officer work with your realtor, but we will also ensure your offer is competitive to improve the chances of being accepted.

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Down Payment Assistance Programs in Texas

Texas has a few excellent down payment and closing cost assistance programs. Programs and eligibility vary, depending on where in Texas you want to buy, your credit score, the loan amount, and whether or not you’re a first-time home buyer.

Some programs only apply to a primary residence. Others may have maximum loan amount and minimum credit score requirements. Regardless of your needs, F5 Mortgage will help you select the right program in Texas for you.

Here are some of the available Texas programs that assist with down payments.

"Homes for Texas Heroes” Program

The Homes for Texas Heroes Program is available through the Texas State Affordable Housing Corporation (TSAHC Program) and provides down payment assistance to “hometown heroes,” which includes first responders, teachers, EMS personnel, nurses, correctional officers, public security officers, and veterans.

Eligibility for this program requires employment in one of the approved careers and a minimum 620 credit score. The program also limits income, which depends on the county in which you want to purchase. The program includes fixed-rate mortgage loans, mortgage interest tax credits, and down payment assistance.

"Home Sweet Texas” Home Loan Program

The Home Sweet Texas Home Loan Program is another TSAHC assistance option that helps low to moderate-income Texans purchase a home. The program offers 30-year fixed-rate mortgage loan options for buyers, as well as a maximum of 5% down payment assistance in the form of a second mortgage (with no monthly payments or interest).

A minimum of a 620 credit score is required to qualify for the Home Sweet Texas program, and income maximums vary, depending on the county.

My First Texas Home

The My First Texas Home program is available through the Texas Department of Housing and Community Affairs (TDHCA) and helps Texans purchase their first homes.

Qualified program beneficiaries can receive a 30-year mortgage loan and up to 5% down payment assistance interest-free. Assistance acquired through the My First Texas home program must be repaid if you sell, refinance, or pay off your mortgage loan.

Eligibility requirements include a 620 credit score and maximum income limits dependent on the county. Both first-time home buyers and those who haven’t owned a home in the last three years can apply for this down payment assistance program.

My Choice Texas Home

The My Choice Texas Home program, also available through the Texas Department of Housing and Community Affairs, offers low-rate mortgage loan options, plus up to 5% in down payment assistance in the form of a second loan.

The assistance loan offers buyers 0% interest and no monthly payment requirements. Borrowers must have at least a 620 credit score and meet income and purchase price limits to qualify.

The My Choice Texas Home program has higher income limits than the My First Texas Home program. It is available to first-time homebuyers and those who have owned a home previously.

Texas Mortgage Credit Certificate Program

The Texas Mortgage Credit Certificate Program is available to eligible first-time home buyers and offers mortgage interest tax credits (or MCCs). MCCs minimize tax liability through a 15% tax credit annually, helping to reduce mortgage interest obligations.

The Texas Mortgage Credit Certificate Program is no longer available as a standalone program. Instead, it’s only available to buyers who also apply for and are accepted for other Texas State Affordable Housing Corporation (TSAHC) down payment assistance programs.

Veterans Land Board Housing Assistance Program

The Veterans Land Board Housing Assistance Program (VHAP) is available to help veterans through low-interest loans that don’t require a down payment. Loans are typically structured between 15 and 30 years, with a maximum amount of $766,550. Veterans with a 30% or higher disability score may qualify for even lower interest rates

Down Payment Assistance Programs by Location

Austin

The Austin Down Payment Assistance program offers funds of up to $40,000 to help cover down payment or closing cost assistance. To qualify for the program, you must be a first-time home buyer within the last three years and fall within 80% of the area median family income, which depends on household number.

Corpus Christi

The city of Corpus Christi helps local buyers cover down payment needs with a 0% forgivable loan of between five and ten years, up to $25,000 in down payment assistance, and $10,000 to cover closing costs. This program is only available to those purchasing a home in Corpus Christi for up to $238,000.

Dallas

The Dallas Homebuyer Assistance Program (DHAP) helps low- to moderate-income buyers achieve homeownership in Dallas, Texas. The main program is available to those whose household income is at or below 80% of the Area Median Income. There are also purchase price limitations.

A second program, The Targeted Occupations Homebuyer Assistance Program, aims to assist buyers in select professions that have a direct impact on Dallas communities. This includes those in education, librarian services, healthcare, and protective services. However, the program is currently on hold until October 2024.

Houston

The Housing and Community Development Down Payment Assistance Program (DAP) offers financial assistance to qualifying Harris County residents. To qualify, borrowers must be first-time homebuyers within the last three years, have a minimum credit score of 580, and meet certain income qualifications.

An eight-hour homebuyer education course is also required for this program. Additionally, buyers must receive approval from approved mortgage lenders.

Who Qualifies for Down Payment Assistance in Texas?

Eligibility criteria and requirements for down payment assistance programs in Texas vary. Some of the most common criteria for these home buyer programs include the following:

Property Location: City-specific programs require buyers to purchase within the approved city limits.
Credit Score: Most programs have minimum credit score requirements. Many programs require at least a 620 credit score, but some allow lower scores.
Career Requirements: Certain programs require buyers to work in specific professions. For example, the Homes for Texas Heroes program is available to firefighters, nurses, EMS personnel, and teachers. Veterans programs usually require borrowers to have served active duty or be family members of an active-duty veteran.
Income Maximums: Down payment assistance programs are designed for moderate to low-income families, with many placing limits on income to qualify.
First-Time Homebuyer: First-time homebuyer programs are available to first-time buyers. However, many programs extend eligibility to those who haven’t owned within the last three years.
Price Limits: Some programs limit the maximum purchase price.
Educational Requirements: Many home buyer assistance programs require borrowers to complete a homeowner education course.

How to Apply for Down Payment Assistance in Texas

Ready to buy a home in Texas? Start the process of buying a home with down payment assistance with the following steps:

Contact F5 Mortgage to learn more about these programs and choose the best one for your income, buying location, and intended loan amount.
Submit your information for pre-approval so you can begin shopping for your dream home. Required documents include bank statements, W2s, income tax statements, debt information (including student loans, credit cards, and auto loan), and social security number (for credit check).
Complete any educational requirements. If required, your loan officer will provide instructions on meeting these educational requirements.
Choose a realtor to begin searching for your Texas home.
Place an offer once you find a home you want to purchase. Our lenders will complete the mortgage application process and finalize the down payment assistance if eligible.

How to Apply for Down Payment Assistance in Texas

Complete closing by meeting with your realtor, lender, and seller’s agent. Sign the required paperwork and collect the keys to your new home.

Prepare for Your Mortgage Application

Buying a home can be a lengthy process. Enjoy a smoother home-buying process by preparing for your mortgage application with the following steps:

Before applying, gather all the documentation you will need to qualify for a mortgage loan, including bank statements, proof of debt, and income.
Check your credit score to identify any areas of improvement before applying for a loan.
Aim for a low debt-to-income ratio to improve your chances of approval. This includes paying down debt, avoiding additional debt, and increasing income.
Maintain solid employment as most lenders require steady employment for at least one year.
Get to know the local housing market and current interest rates. F5 Mortgage can help secure the best interest rate.
Understand your budget and extra costs, like property taxes and homeowners insurance.
Explore available loans to identify what you may qualify for and what offers the best rates. This can speed up your mortgage application process as you know which one to apply for.

FAQs About Texas Down Payment Assistance

What is the income limit for down payment assistance in Texas?

Most Texas home buyer assistance programs are subject to income limits, which vary based on the county or city in which you plan to buy. In most cases, income limits are set at 80% of the area’s median income.

Does Texas offer a first-time home buyer program?

Yes, Texas offers a few excellent first-time homebuyer programs, which can help with down payment or closing cost requirements.

What is the income limit for the first Texas home program?

The current income limit for the First-Time Texas Home Buyer Program is between $74,500 and $101,600, depending on household size and the county where you plan to buy.

How does Texas DPA work?

Texas down payment assistance (DPA) program offerings depend on what you qualify for, but many are structured as 0% interest forgivable, five-year mortgage loans.

How much do you get from DPA in Texas?

The amount of down payment assistance Texas home buyers can receive depends on the program and the assistance needed. Standard DPA loans offer up to $14,9999 or 5%.

What credit score is needed to buy a house with no money down in Texas?

A minimum of at least a 620 credit score is typically required to purchase a home in Texas with no money down. However, some programs offer even lower credit score requirements.

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Down Payment Assistance Programs
in Other States We Serve

California

California provides several down payment assistance options through the California Housing Finance Agency (CalHFA). Programs like the MyHome Assistance Program offer up to 3.5% of the purchase price or appraised value to help with down payments and closing costs, supporting low- to moderate-income homebuyers in achieving their homeownership dreams.

Florida

Florida offers various down payment assistance programs, such as the Florida Assist Second Mortgage Program, providing up to $10,000 to help with down payments and closing costs. These programs aim to make homeownership more accessible and affordable for first-time buyers.

Michigan

Michigan’s State Housing Development Authority offers the MI Home Loan program, which includes down payment assistance of up to $7,500 for eligible first-time homebuyers. These funds can be used for down payments, closing costs, and prepaid expenses, making it easier to achieve homeownership.

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