Down Payment Assistance in Texas: Programs and How They Work

If saving a down payment is what's keeping you from buying, down payment assistance Texas programs are worth a close look. They are real, they are run by state agencies, and they come with rules you need to understand before you build a plan around them. I'm a mortgage broker, so I'm not the one who runs these programs. What I can do is explain how they work in general, point you to the official pages, and help you figure out how a program fits into your loan. Here is what I've confirmed on the official sites, and what I'm leaving for you to check.

Down payment assistance, often shortened to DPA, is money that helps you cover your down payment and sometimes closing costs. It generally comes in a few forms:

Repayment rules vary by program, and that's the part to read closely. A grant that sounds simple can have a requirement tied to how long you stay, and a second loan can affect your options if you want to refinance later. If you want to read about how refinancing works with a second lien, my refinance guide is a starting point.

Is down payment assistance free money?

Sometimes. Texas programs describe assistance as a grant or a forgivable second lien, and TSAHC says its second lien is forgiven after three years if you don't sell, refinance, or move out of your home during that time. Always read the repayment rules.

Do I need to take a homebuyer education course?

TSAHC says buyers using its programs must complete an approved course. TDHCA lists a homebuyer education course as step two of its path. Ask your program which course it accepts.

Can I use any lender with these programs?

No. TSAHC says you apply through an approved participating lender, and TDHCA says you work with a TDHCA-approved loan officer. Ask your loan officer if they participate.

What are the income limits?

Limits vary by county and household size and they change. Check the program page for the current figure, or ask me and I'll help you find it.

Does DPA work with an FHA loan?

Some programs pair with government-backed loans. TSAHC lists credit score minimums for government loans, but eligibility depends on the specific program, so check the program page and confirm with your loan officer.