Down Payment Assistance
Down Payment Assistance in Texas (2026)
Texas homebuyers can get down payment assistance through the Texas Department of Housing and Community Affairs (TDHCA); the amount is set as a share of the loan or price rather than a single dollar figure. Texas has 2 state DPA programs total.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The My First Texas Home down payment assistance caps the home purchase price at $566,354 — check that cap against homes you're considering, and the county income limit below.
Primary Program: My First Texas Home down payment assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
- Administering Agency
- Texas Department of Housing and Community Affairs (TDHCA)
- Purchase Price Cap
- $566,354
Additional Texas DPA Programs
TSAHC 3-year Deferred Forgivable Second Lien
Forgivable LoanForgiven over time if you remain in the home as your primary residence (the home you actually live in, not a rental or second home).
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
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Full Calculator →Texas Assistance Programs, Term by Term
TDHCA My First Texas Home (MFTH) — down payment assistance second lien
deferred second (Texas Department of Housing and Community Affairs, retrieved 2026-09-14)
- Assistance
- Down payment and closing cost assistance in an amount up to 5% of the mortgage loan (daily Rate Notice sets which 2%-5% tiers are available).
- Repayment
- Borrower chooses: (a) 30-year deferred repayable second lien — 0% interest, no required monthly payments, due upon sale, refinance, transfer, payoff of 1st lien or no longer primary residence; or (b) 3-year deferred forgivable second lien — 0% interest, forgiven at the 3-year anniversary of the note if current on the first lien and still primary residence; due on sale, refinance, transfer or payoff before then.
- Income limit
- County limits effective July 13, 2026 (household incl. non-purchasing spouse): balance of state $101,500 (1-2 persons) / $116,725 (3+); targeted areas $121,800 / $142,100; e.g. Austin-Round Rock-San Marcos MSA $134,400 / $154,560.
- Purchase price limit
- 1-unit: $566,354 non-targeted / $692,211 targeted (balance of state), higher in some areas (e.g. Austin MSA $598,019 / $730,912), effective July 13, 2026.
- First-time buyer rule
- Yes — exclusive to first-time homebuyers; certain exceptions in targeted areas and for qualified Veterans.
- Minimum credit score
- 620 minimum determining credit score (government and Fannie Mae HFA Preferred/Freddie Mac HFA Advantage).
- Homebuyer education
- All TDHCA Programs require each Homebuyer to complete a pre-purchase HUD Certified homebuyer training.
- First mortgage it pairs with
- TDHCA 30-year fixed first lien: FHA, VA, USDA (bond or combo) per the Rate Notice; FHA 203k not allowed.
TDHCA My Choice Texas Home (MCTH) — down payment assistance second lien
deferred second (Texas Department of Housing and Community Affairs, retrieved 2026-09-14)
- Assistance
- Down payment and closing cost assistance in an amount up to 5% of the mortgage loan.
- Repayment
- Same two options as MFTH: 30-year deferred repayable 0% second lien (due on sale/refinance/transfer/payoff) or 3-year deferred forgivable 0% second lien (forgiven at 3-year note anniversary if current and owner-occupied).
- Income limit
- My Choice Texas Home limits effective July 13, 2026 (standard 1003/credit qualifying income, any family size): FHA/VA/USDA 170% AMFI — $172,550 for counties not listed, higher in listed areas (e.g. Austin-Round Rock-San Marcos MSA $228,480); conventional HFA Preferred/HFA Advantage split into 80%-and-below and over-80% AMFI county limits.
- Purchase price limit
- No Purchase Price Limits Apply (Follow Agency Guidelines).
- First-time buyer rule
- No — there is no First-Time Homebuyer Requirement on My Choice Texas Home.
- Minimum credit score
- 620 minimum determining credit score.
- Homebuyer education
- All TDHCA Programs require each Homebuyer to complete a pre-purchase HUD Certified homebuyer training.
- First mortgage it pairs with
- TDHCA 30-year fixed first lien: FHA, VA, USDA, Fannie Mae HFA Preferred or Freddie Mac HFA Advantage conventional.
Texas Mortgage Credit Certificate (TXMCC) — TDHCA
MCC (Texas Department of Housing and Community Affairs, retrieved 2026-09-14)
- Assistance
- Tax credit equal to the MCC credit rate times annual mortgage interest paid; the 9/14/2026 Rate Notice lists a 15% MCC Credit Rate for the MFTH + MCC combo (rates set on the daily Rate Notice).
- Repayment
- Not a loan; non-refundable federal tax credit. Refinance allowed (DPA repayment triggered; MCC reissuance available).
- Income limit
- Uses the combined MFTH/MCC table: balance of state $101,500 (1-2 persons) / $116,725 (3+), targeted $121,800 / $142,100, effective July 13, 2026.
- Purchase price limit
- $566,354 non-targeted / $692,211 targeted 1-unit (balance of state), effective July 13, 2026.
- First-time buyer rule
- Available to Veterans and First Time Homebuyers.
- Minimum credit score
- No minimum credit score requirement with the stand-alone option (620 when combined with a TDHCA first lien).
- Homebuyer education
- All TDHCA Programs require each Homebuyer to complete a pre-purchase HUD Certified homebuyer training.
- First mortgage it pairs with
- Stand-alone (with a non-TDHCA first lien; cannot be combined with an outside DPA programme, FHA 203k or temporary buy-downs) or as a combo with My First Texas Home.
TSAHC DPA Grant (Homes for Texas Heroes / Home Sweet Texas)
grant (Texas State Affordable Housing Corporation, retrieved 2026-09-14)
- Assistance
- Borrower chooses 2%, 3%, 4%, or 5% of the total loan amount.
- Repayment
- Grant assistance does not need to be repaid after six months from the first lien mortgage loan closing date; no second lien.
- Income limit
- Non-Bond DPA (government and above-80% AMFI conventional): county limits of 150% AMI for Home Sweet Texas and 170% AMI for Homes for Texas Heroes (2026 table, effective June 13, 2026; Heroes 170% effective July 9, 2026), e.g. Anderson County $152,250 / $172,550; Travis County $201,600 / $228,480. Income counted is qualifying mortgagor income only (no MCC). Bond DPA 30-year lien: 80% AMFI and below borrowers only.
- Purchase price limit
- For Non-Bond DPA (no MCC), there are no purchase price limits; Bond DPA and MCC loans are subject to purchase price limits.
- First-time buyer rule
- Non-Bond DPA: not required. Bond DPA or MCC: no ownership interest in a principal residence during the preceding three years (waived in Targeted Areas and for Qualified Veterans).
- Minimum credit score
- Minimum 620 credit score
- Homebuyer education
- At least one borrower must complete an in-person or online home buyer education course prior to closing.
- First mortgage it pairs with
- Government loans only (FHA, VA, USDA-RHS), Non-Bond or Bond; not available for HFA conventional options. Homes for Texas Heroes covers eligible professions (educators, police/public security, firefighters/EMS, veterans/active military, corrections, nursing/allied health faculty); Home Sweet Texas for other low/moderate-income buyers.
TSAHC 3-year Deferred Forgivable Second Lien
forgivable second (Texas State Affordable Housing Corporation, retrieved 2026-09-14)
- Assistance
- Borrower chooses 2%, 3%, 4%, or 5% of the total loan amount.
- Repayment
- 0% interest, no monthly payments; forgiven, in full, upon maturity (third anniversary of the Note); repayable in full during the 3-year term upon sale, transfer, refinance, first-lien payoff, failure to occupy or other default.
- Income limit
- Non-Bond DPA (government and above-80% AMFI conventional): county limits of 150% AMI for Home Sweet Texas and 170% AMI for Homes for Texas Heroes (2026 table, effective June 13, 2026; Heroes 170% effective July 9, 2026), e.g. Anderson County $152,250 / $172,550; Travis County $201,600 / $228,480. Income counted is qualifying mortgagor income only (no MCC). Bond DPA 30-year lien: 80% AMFI and below borrowers only.
- Purchase price limit
- No purchase price limits for Non-Bond DPA without an MCC; Bond DPA/MCC loans subject to limits.
- First-time buyer rule
- Non-Bond DPA: not required. Bond DPA or MCC: 3-year no-ownership rule (waived in Targeted Areas and for Qualified Veterans).
- Minimum credit score
- Minimum 620 credit score for government loans and 640 for HFA Conventional loans
- Homebuyer education
- At least one borrower must complete an in-person or online home buyer education course prior to closing; the 3-year Deferred Forgivable 2nd Lien educational video is also required.
- First mortgage it pairs with
- Available with all loan types: FHA, VA, USDA-RHS and HFA conventional (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage).
TSAHC 30-year Deferred Repayable Second Lien (Bond DPA)
deferred second (Texas State Affordable Housing Corporation, retrieved 2026-09-14)
- Assistance
- Two assistance levels: 4% (when available) or 5% (when available) of the total loan amount.
- Repayment
- 0% interest, no monthly payments; repayable in full upon maturity (thirtieth anniversary of the Note), sale, transfer, refinance, first-lien payoff, failure to occupy or other default.
- Income limit
- Bond DPA 30-year Repayable 2nd Lien is for 80% AMFI and below borrowers only; family income of all household members on the deed of trust counts (county limits in TSAHC's Income and Purchase Price Limits PDF).
- Purchase price limit
- Subject to TSAHC maximum purchase price limits (Bond DPA).
- First-time buyer rule
- Yes (Bond DPA): no ownership interest in a principal residence during the preceding three years, except Targeted Areas and Qualified Veterans.
- Minimum credit score
- Minimum 620 credit score for governmental loans
- Homebuyer education
- At least one borrower must complete an in-person or online home buyer education course prior to closing.
- First mortgage it pairs with
- Available with governmental loans (USDA, FHA, VA); cannot be combined with an MCC.
TSAHC Mortgage Credit Certificate (MCC)
MCC (Texas State Affordable Housing Corporation, retrieved 2026-09-14)
- Assistance
- Tax credit equal to the mortgage credit rate on the MCC (15%) multiplied by the annual interest paid.
- Repayment
- Not a loan; possible federal recapture tax if sold within nine years.
- Income limit
- MCC-specific county income limits (family income of all owners incl. non-purchasing spouse) in TSAHC's Income and Purchase Price Limits PDF; not transcribed.
- Purchase price limit
- Subject to TSAHC MCC purchase price limits (not transcribed).
- First-time buyer rule
- Yes — first-time home buyers (3-year rule), except Targeted Areas and Qualified Veterans.
- Minimum credit score
- No separate MCC minimum per TSAHC programme page; the paired loan's 620/640 minimums apply.
- Homebuyer education
- At least one borrower must complete home buyer education; MCC educational video required if applicable.
- First mortgage it pairs with
- Stand-alone MCC discontinued indefinitely; only available combined with No DPA or Non-Bond DPA (not with Bond DPA). Free for Homes for Texas Heroes borrowers.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Texas
Recording fees
County clerk real property records filing fee: $5.00 for the first page and $4.00 for each additional page (Local Gov't Code § 118.011(a)(2)). The county clerk may also set a records management and preservation fee of not more than $10 (§ 118.011(b)(2)); other add-on fees may apply. (Texas Legislative Council, retrieved 2026-09-14)
Texas Department of Housing and Community Affairs (TDHCA): My First Texas Home (TDHCA Homebuyer Program)
My First Texas Home (TDHCA Homebuyer Program) is the first-mortgage programme run by Texas Department of Housing and Community Affairs (TDHCA). (Texas Department of Housing and Community Affairs, retrieved 2026-09-14) Its purchase-price limit is $566,354 (1-unit, non-targeted, balance of state (effective July 13, 2026). Varies by area: e.g. $598,019 Austin-Round Rock-San Marcos MSA, $589,596 Dallas and Fort Worth-Arlington HMFAs; targeted areas higher (e.g. $692,211 balance of state).), so a $305,000 home is within it. (Texas Department of Housing and Community Affairs, retrieved 2026-09-14) The income limit is $101,500 (1-2 persons, non-targeted, balance of state (100% AMFI); $116,725 for 3+ persons. Higher in listed metros, e.g. Austin MSA $134,400 / $154,560; Dallas HMFA $121,100 / $139,265; Houston HMFA $104,000 / $119,600 (effective July 13, 2026).). (Texas Department of Housing and Community Affairs, retrieved 2026-09-14) Down payment help comes through TDHCA Down Payment Assistance (second lien with My First Texas Home / My Choice Texas Home): 2%, 3%, 4% or 5% options, as a 30-year deferred repayable second lien or a 3-year deferred forgivable second lien. (Texas Department of Housing and Community Affairs, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Texas?
Texas's primary DPA program is the My First Texas Home down payment assistance, administered by the Texas Department of Housing and Community Affairs (TDHCA). It is structured as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then. Additional programs include TSAHC 3-year Deferred Forgivable Second Lien.
Do I have to repay Texas down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Can I combine Texas DPA with other assistance programs?
Texas's state DPA may have restrictions on combining with other assistance programs. Verify stacking rules with an approved lender before applying.
What are the income limits for Texas down payment assistance?
The My First Texas Home down payment assistance does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Texas Department of Housing and Community Affairs (TDHCA) website for current limits in your area.
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What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Texas Department of Housing and Community Affairs (TDHCA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Texas for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about My First Texas Home down payment assistance when you apply.