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Down Payment Assistance in Texas: Programs, Limits and How to Apply

In Texas, two state agencies offer down payment assistance. The Texas State Affordable Housing Corporation (TSAHC) offers up to 5% of the loan amount through Home Sweet Texas as a grant or a second lien. The Texas Department of Housing and Community Affairs (TDHCA) offers 2% to 5% of the loan amount, funding permitting, as a zero-interest second lien. Both are used through a participating lender.

Facts read from the agency pages on October 15, 2026. Programs, limits and funding change, so confirm with the agency and a participating lender before you rely on a figure.

Who runs down payment assistance in Texas?

Which Texas programs offer down payment help?

TSAHC Home Sweet Texas Home Loan Program

Administered by TSAHC.

What it offers: Down payment and closing cost assistance of up to 5% of the loan amount. TSAHC's guidelines (revised September 9, 2026) let the borrower choose 2%, 3%, 4% or 5%. It also offers a lower-rate option with no assistance that can be combined with a Mortgage Credit Certificate (MCC), a federal tax credit of 15% of annual mortgage interest.
Repayment: You choose among a grant that never has to be repaid (government loans only), a second lien forgiven after three years if you do not sell, refinance or move out, or a 30-year repayable second lien (government loans only, available with bond-funded assistance and 4% or 5% when available), repaid on sale, transfer, payoff or refinance of the first mortgage.
Works with: Fixed-rate FHA, VA, USDA and conventional (Fannie Mae HFA Preferred or Freddie Mac HFA Advantage) loans. The grant is not available with the conventional options.
Who qualifies: A minimum credit score of 620 for government loans and 640 for conventional loans. The three-year first-time buyer rule applies only to bond-funded assistance or the MCC, and it does not apply in targeted areas or to qualified veterans. At least one borrower must complete a homebuyer education course before closing. The home must be your primary residence.
Availability: TSAHC's guidelines say the assistance product may or may not be available at the time of lock. The standalone MCC has been discontinued. No pause or out-of-funds notice was found.

TSAHC Homes for Texas Heroes

Administered by TSAHC.

What it offers: The same assistance as Home Sweet Texas, up to 5% of the loan amount, with higher income limits and a free MCC when combined with assistance, according to TSAHC.
Repayment: Grant or forgivable second lien as described for Home Sweet Texas.
Works with: Government and conventional loans through a participating lender.
Who qualifies: Educators, police officers, firefighters, EMS, county jailers, correctional officers and military veterans. The minimum credit score is 620 on government loans and 640 on conventional loans. The home must be your primary residence.
Availability: The program page states no pause or closure.

TDHCA My First Texas Home

Administered by TDHCA.

What it offers: 2% to 5% of the total loan amount, funding permitting, as a zero-interest second lien.
Repayment: Two options: a 30-year deferred repayable loan with no required monthly payments, due on sale, refinance, transfer or payoff of the first mortgage, or a 3-year deferred forgivable loan, fully forgivable after 36 months if you are current on the first mortgage and the property remains your principal residence.
Works with: A 30-year fixed-rate FHA, VA or USDA loan through a TDHCA approved loan officer.
Who qualifies: A minimum middle credit score of 620. You must be a first-time buyer (not owned a primary residence in the last three years), with exceptions in targeted areas and for qualified veterans. All borrowers must complete a HUD-certified homebuyer education course, and the home must be your principal residence within 60 days of closing.
Availability: TDHCA describes the amounts as funding permitting. No pause or out-of-funds notice was found.

TDHCA My Choice Texas Home

Administered by TDHCA.

What it offers: 2% to 5% of the total loan amount, funding permitting, as a zero-interest second lien with the same two repayment options as My First Texas Home.
Repayment: A 30-year deferred repayable loan or a 3-year deferred forgivable loan, as for My First Texas Home.
Works with: 30-year fixed-rate FHA, VA, USDA, Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans.
Who qualifies: A minimum middle credit score of 620. TDHCA says there is no first-time buyer requirement, so first-time buyers, repeat buyers and qualified veterans are eligible. All borrowers must complete a HUD-certified homebuyer education course.
Availability: TDHCA describes the amounts as funding permitting. No pause or out-of-funds notice was found.

What are the income and price limits in Texas?

Each limit below is the range the agency published, as of the date shown.

Limit	Range	In effect	Source
Household income limits, TDHCA My First Texas Home (100% of area median family income for one to two persons, 115% for three or more)	$101,500 (one to two persons) to $170,240 (three or more persons), set by county	Income limits effective July 13, 2026	TDHCA income and purchase price limits (PDF)
Household income limit, TSAHC Home Sweet Texas (150% of area median income column)	$152,250 to $218,880, set by county. Expanded limits are available in targeted areas.	Table dated June 13, 2026 and July 9, 2026	TSAHC combined income and purchase price limits (PDF)
Purchase price limit, non-targeted areas (TSAHC table)	$566,354.70 to $850,703.40, set by county. Targeted-area limits start at $692,211.30.	Table dated June 13, 2026 and July 9, 2026	TSAHC combined income and purchase price limits (PDF)

How do I apply for down payment assistance in Texas?

For TSAHC programs, start with TSAHC's Path Finder Quiz, then apply through a TSAHC-approved participating lender. TSAHC's phone number is 877-508-4611.
For TDHCA programs, take the Eligibility Quick Check on the TDHCA homebuyer site and get connected with a TDHCA approved loan officer. TDHCA's phone number is 1-800-792-1119.
Complete a homebuyer education course. TSAHC requires at least one borrower to finish one before closing, and TDHCA requires a HUD-certified course for all borrowers.
Ask your lender which assistance option is available when you lock your rate, and which county and income limits apply to your home.

Can I combine Texas assistance with gift funds or employer help?

Gift funds

TSAHC's guidelines allow additional subsidy programs, provided the subsidy funds are not attached to the first mortgage as a gift or a second lien. TDHCA says it does not allow excess cash back to the borrower, including gift funds. The agency pages we read do not address personal gift funds from family. Ask your lender how your gift is documented.

Employer help

Neither TSAHC nor TDHCA addresses employer assistance on the pages we read. Ask your lender before you rely on it.

Other assistance

TSAHC's guidelines say second lien assistance from other sources may be permitted in certain cases, and that an MCC is available with the no-assistance option or non-bond assistance but not with bond-funded assistance. In some areas, local housing finance corporations provide gift funds that must be used with a TDHCA assistance product, subject to availability. TDHCA suggests asking your loan officer whether additional funds are available in your county or city.

Gift rules also depend on your loan type. See what cash to close includes for how down payment and closing costs add up, and the down payment assistance guide for how gifts, employer help and assistance can fit together.

Which sources does this page rely on?

Every figure above comes from the agency pages below.

Source	Date
TSAHC Home Sweet Texas Home Loan Program	No page date shown, read October 15, 2026
TSAHC DPA and MCC guidelines (PDF)	Revised September 9, 2026, read October 15, 2026
TSAHC Homes for Texas Heroes	No page date shown, read October 15, 2026
TSAHC combined income and purchase price limits (PDF)	Dated June 13, 2026 and July 9, 2026, read October 15, 2026
TDHCA homebuyer programs	No page date shown, read October 15, 2026
TDHCA income and purchase price limits (PDF)	Effective July 13, 2026, read October 15, 2026

Frequently asked questions

How much down payment assistance can I get in Texas?

TSAHC offers up to 5% of the loan amount, and its guidelines let the borrower choose 2%, 3%, 4% or 5%. TDHCA offers 2% to 5% of the total loan amount, funding permitting.

Do I have to be a first-time buyer in Texas?

It depends on the program. TSAHC applies the three-year first-time buyer rule only to bond-funded assistance or the MCC, and not in targeted areas or for qualified veterans. TDHCA's My First Texas Home requires it, with exceptions for targeted areas and qualified veterans, and My Choice Texas Home has no first-time buyer requirement.

What credit score do I need for Texas down payment assistance?

TSAHC requires 620 for government loans and 640 for conventional loans. TDHCA requires a minimum middle credit score of 620.

Do I have to pay back Texas down payment assistance?

It depends on the option. TSAHC's grant never has to be repaid, and its three-year forgivable second lien is forgiven if you do not sell, refinance or move out. TDHCA offers a 30-year deferred repayable loan or a 3-year forgivable loan. A repayable loan is due on sale, refinance, transfer or payoff of the first mortgage.

Do I need a homebuyer class in Texas?

Yes. TSAHC requires at least one borrower to complete a homebuyer education course before closing, and TDHCA requires a HUD-certified course for all borrowers.

Down payment assistance in other states

Back to the down payment assistance guide.

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Disclosure: This content is for informational purposes only and does not constitute financial, legal, mortgage, or tax advice. Program rules vary by lender, location and loan. Dreamfund is not affiliated with any housing agency named here. Consult a licensed mortgage professional for guidance specific to your situation. Dream Fund AI LLC does not guarantee any savings outcome, loan approval, or home purchase result.