Down Payment Assistance Programs in Texas: 2026 Guide
Texas offers numerous down payment assistance programs providing grants and forgivable loans to help first-time and repeat buyers overcome the biggest barrier to homeownership.
Understanding Down Payment Assistance
Down payment assistance (DPA) programs help qualified buyers with funds for down payment and closing costs. These programs make homeownership accessible to those who have stable income but limited savings.
Benefits of DPA Programs
- Reduce or eliminate down payment requirement
- Help cover closing costs
- Many programs offer forgivable loans
- Can be combined with FHA, VA, USDA, or conventional loans
- Make homeownership affordable sooner
My First Texas Home Program
The My First Texas Home program is the largest statewide DPA program, administered by the Texas State Affordable Housing Corporation.
Program Benefits
- Up to 5% of loan amount in down payment assistance
- Forgivable loan (forgiven after 5 years of occupancy)
- Can be used with FHA, VA, USDA, or conventional loans
- Below-market interest rates available
- Available statewide
Eligibility Requirements
- Must be first-time homebuyer (no ownership in past 3 years)
- Income limits apply based on county and household size
- Must complete homebuyer education course
- Minimum 640 credit score typically required
- Property must be primary residence
Types of Down Payment Assistance
Grants
- No repayment required
- Free money for qualified buyers
- Usually smaller amounts
- May have occupancy requirements
Forgivable Loans
- Forgiven after 5-15 years typically
- Must occupy home for full term
- Largest assistance amounts
- Most common DPA type
Frequently Asked Questions
Do I have to pay back down payment assistance?
It depends on the program. Grants do not require repayment. Forgivable loans are forgiven if you meet occupancy requirements (typically 5-15 years).
How much down payment assistance can I get?
Amounts vary from $2,500 to $30,000 or more. Most programs offer 3-5% of the purchase price. My First Texas Home offers up to 5% of the loan amount.
Ready to Explore Down Payment Assistance?
Ken Harmon specializes in down payment assistance programs throughout Texas. Let us help you find programs you qualify for and maximize your homebuying power.
Get pre-approved with DPA today and see how much you can afford.