Down Payment Path

Down Payment Assistance Programs in Texas

Texas offers a variety of programs to assist homebuyers with down payments and closing costs. These initiatives are designed to support both first-time and repeat buyers, making homeownership more attainable across the Lone Star State.

My First Texas Home Program

The My First Texas Home Program, offered by the Texas Department of Housing and Community Affairs (TDHCA), provides down payment and closing cost assistance for eligible buyers.

  • Offers up to 5% of the loan amount as assistance.
  • Funds are available as a deferred forgivable second loan.
  • Pairs with fixed-rate mortgage options, including FHA, VA, and USDA loans.
  • Available to buyers meeting income and purchase price limits.

Texas State Affordable Housing Corporation (TSAHC) Programs

The TSAHC Programs provide flexible down payment assistance options for a wide range of buyers.

  • Offers up to 5% of the loan amount for down payment and closing costs.
  • Assistance is available as a forgivable grant or repayable loan, depending on the option selected.
  • Open to first-time and repeat buyers, with targeted benefits for educators, healthcare workers, and public service professionals.
  • Pairs with fixed-rate mortgage products.

Homes for Texas Heroes Program

The Homes for Texas Heroes Program is designed to provide additional support for public service workers.

  • Includes teachers, firefighters, police officers, EMS workers, and veterans.
  • Offers up to 5% of the loan amount in down payment assistance.
  • Provides competitive interest rates on 30-year fixed mortgages.

USDA Rural Development Loans

For buyers in rural areas of Texas, the USDA Rural Development Loan offers affordable financing without a down payment requirement.

  • Available to low- and moderate-income buyers in USDA-eligible rural areas.
  • Features competitive interest rates and flexible credit requirements.
  • Can be combined with state programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides long-term tax benefits to reduce the cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Pairs with TDHCA mortgage products and down payment assistance programs.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Many cities and counties in Texas offer additional resources to help buyers with upfront costs.

  • Programs in areas like Houston, Dallas, Austin, and San Antonio often include grants or low-interest loans for down payments and closing costs.
  • Some initiatives target revitalization zones or offer benefits for public service workers and low-income households.
  • Eligibility criteria and assistance amounts vary by location.

Texas’ down payment assistance programs are tailored to reduce financial barriers and make homeownership achievable for a diverse range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Lone Star State.