Homes for Texas Heroes takes applications all year: up to 5% of the loan amount, paid toward your down payment and closing.(800) 555-0100Run the 2-minute check
Down payment assistance in Texas: every program (2026)
Texas buyers can pick from two statewide agencies, TSAHC and TDHCA, plus city, county and employer programs in the biggest metros. Most statewide help is worth up to 5% of the loan amount; some city programs go much higher.
Statewide help comes from two separate agencies. TSAHC runs Homes for Texas Heroes and Home Sweet Texas; TDHCA runs My First Texas Home and My Choice Texas Home. You pick one agency's first mortgage, and its assistance comes with it. City and county programs, mostly funded with federal HOME, CDBG or disaster-recovery money, sit on top of that in places like Dallas, Fort Worth, San Antonio, Austin and El Paso, and they usually carry their own income limit, price cap and homebuyer class.
Several big local programs are out of money right now. Houston's main Homebuyer Assistance Program has exhausted its funds and is not taking applications; Harris County's regular DAP has reached capacity for buyers not affected by Hurricane Beryl or the 2024 derecho; Dallas's Targeted Occupations program has spent its current funding; Arlington's program is paused; and Denton's has spent its funds. Each card below shows who qualifies, how much, whether it is a grant or a loan, and a status badge. Where a program has its own page, the name links to a fuller guide.
Free printable: the Texas buyer's checklist. Papers, steps, programs and the questions to ask, all in one packet. Get the checklist
Short on time? The program matcher trims this list down to what fits your county, your job and your situation. Every entry was checked against the program's own documents; here's how.
Homes for Texas Heroes Home Loan Program
Homes for Texas Heroes is a year-round program from the Texas State Affordable Housing Corporation (TSAHC). It pairs a 30-year fixed-rate mortgage with up to 5% of the loan amount for down payment and closing costs, either as a grant you never repay or as a loan forgiven after 3 years. First-time buyers can also add a Mortgage Credit Certificate, a federal tax credit. The details · Am I eligible?
Texas State Affordable Housing Corporation (TSAHC)
Meant for
Low- and moderate-income households in any occupation; first-time and repeat buyers (some options/targeted areas have different rules). Fallback for buyers who don't fit a Heroes job category.
How much
Up to 5% of the loan amount for down payment and closing costs
Kind of help
Grant, nothing to repay
Income cap
Varies by county and household size; TSAHC describes moderate income as up to 150-170% of area median income (lender confirms exact limit)
First-timers only?
No
Pairs with the state program?
no - same TSAHC loan platform; a buyer uses either Heroes or Home Sweet Texas
DPA is a grant or a second lien forgiven after 3 years. 620 min credit (government loans) / 640 (conventional). Homebuyer education required. No-DPA rate-only option also offered. First-time buyers can add the TSAHC MCC.
Texas Department of Housing and Community Affairs (TDHCA)
Meant for
First-time buyers; exceptions for qualified veterans and buyers in targeted areas
How much
0%, 3%, 4% or 5% of loan amount as down payment assistance
Kind of help
Loan due when you sell or refinance
Income cap
County limits, e.g. Houston-area non-targeted $104,000 (1-2 people) / $119,600 (3+); Dallas HMFA $121,100 / $139,265; Austin MSA $134,400 / $154,560 (eff. July 13, 2026)
Price cap
$566,354 non-targeted in most counties; $589,596 Dallas/Fort Worth HMFA; $598,019 Austin MSA (eff. July 13, 2026)
First-timers only?
Yes
Pairs with the state program?
no - separate state first-mortgage program; choose TDHCA or TSAHC
Nov 6, 2026 rate notice: DPA is a 30-year deferred, repayable, 0% non-amortizing second lien with FHA/VA/USDA first loans (e.g. 6.875% rate at 5% DPA). HUD-approved homebuyer education required. Local HFC gift funds can stack in some areas (see partnership entry).
First-time and repeat buyers (no first-time requirement)
How much
2%, 3%, 4% or 5% of loan amount
Kind of help
Loan due when you sell or refinance
First-timers only?
No
Pairs with the state program?
no - separate state program
Nov 6, 2026 rate notice offers two DPA options: a 30-year deferred repayable 0% second lien or a 3-year deferred forgivable 0% second lien. FHA/VA/USDA and Fannie Mae/Freddie Mac conventional first loans. Not eligible for most local HFC gift-fund add-ons.
TDHCA + local Housing Finance Corporation partnerships (gift funds)
Money can run out
TDHCA with local HFCs
Meant for
TDHCA buyers in partner HFC service areas (Harris County HFC, City of Houston HFC, City of Dallas HFC, Fort Bend County HFC, Tarrant County HFC, Southeast Texas HFC, Capital Area HFC, Denton County HFC, City of El Paso HFC, Travis County HFC, Grand Prairie HFC, Cameron County HFC, Arlington HFC, Rowlett HFC, McKinney HFC, North Central Texas HFC and others)
How much
Extra gift funds in some areas, e.g. $1,000 (Harris County HFC area) or $5,000 (McKinney)
Kind of help
Grant, nothing to repay
Income cap
TDHCA county limits
Price cap
TDHCA county limits
First-timers only?
Yes
Pairs with the state program?
no - only with TDHCA My First Texas Home (and, for some HFCs, Combo/No-DPA); not with My Choice
Most partnerships only route TDHCA loans and DPA through that area. Gift-fund flyers checked: Harris County HFC and McKinney HFC (both dated May 27, 2025), first-come, first-served.
Income-qualified first-time buyers purchasing in Houston city limits
How much
Up to $75,000
Kind of help
Loan that is forgiven over time
Income cap
80% AMI (~$83,200 for a family of 4, eff. June 1, 2026)
First-timers only?
Yes
Fine print
0% forgivable loan secured by a lien, forgiven after 8 years in the home (partial repayment if you leave early); home must pay City of Houston taxes; HUD-approved homebuyer education; US citizen or permanent resident; pre-approval letters valid 3 months
HCD: 'Due to the exhaustion of available program funds, we are no longer accepting or processing additional applications.' Re-opens when funding is replenished. Assistance suspended in the Fifth Ward/Kashmere Gardens EPA sampling zone.
Income-qualified buyers choosing a home in the City of Houston that meets HCLT criteria
How much
Up to $150,000 in financial assistance grants
Kind of help
Grant, nothing to repay
Fine print
Land placed in trust under a ground lease; buyer contributes at least $70,000 (usually a mortgage), more at higher incomes; housing costs 28-33% of income; resale price capped (initial price + 1.25%/year); must use a licensed realtor
Shared-equity land trust model. Income limits not published on the pages read.
Harris County Down Payment Assistance Program (DAP)
Not taking applications
Harris County (unincorporated)
Meant for
First-time buyers affected by Hurricane Beryl/Derecho (other applicants no longer accepted)
How much
Up to $40,000 forgivable second lien
Kind of help
Loan that is forgiven over time
Income cap
80% AMI (~$83,200 for a family of 4, June 2026)
Price cap
$285,000 existing / $296,000 new construction
First-timers only?
Yes
Fine print
580 min credit; 39%/42% DTI caps; $1,000 minimum buyer contribution; liquid assets $30,000 max; 8-hour HUD homebuyer course; qualified census tract; not in a flood hazard area; primary residence for 5 or 10 years; apply through participating lenders
Closed to non-affected buyers: 'the program has already reached maximum capacity.' Still accepting Beryl/Derecho-affected households.
Households affected by Hurricane Beryl / the May 2024 derecho
How much
Up to 45% of the home price (price reduction, down payment, closing costs, rate buydown)
Kind of help
Loan that is forgiven over time
Income cap
80% AMI (~$83,200 for a family of 4, May 2026)
Fine print
620 min credit; lender prequalification; 8-hour HUD homebuyer class for each applicant; 39% housing / 42% total DTI caps; US citizen or permanent resident
Pre-application online. Disaster-recovery program, so storm impact is required.
Low- and moderate-income buyers purchasing within Dallas city limits
How much
Up to $60,000 in High Opportunity Areas; up to $50,000 elsewhere (based on need)
Kind of help
Loan due when you sell or refinance
Income cap
80% AMI (~$96,900 for a family of 4, eff. June 1, 2026)
Price cap
$342,000 existing or new construction
Fine print
DHAP-approved lender; homebuyer education from a DHAP provider; housing payment no more than 35% of gross income; must appraise at 100% of price; US citizen, permanent resident or eligible immigration status
BCL: funding is subject to availability. Repayment/forgiveness terms are in the DHAP manual (not confirmed). City page: https://dallascityhall.com/departments/housing-and-homelessness/Pages/Dallas-Homebuyer-Assistance-Program-DHAP.aspx
First-time buyers (no ownership in 3 years) purchasing in Fort Worth city limits
How much
Up to $25,000 (down payment + closing costs; closing-cost help up to 3% of loan amount within the cap)
Kind of help
Loan that is forgiven over time
Income cap
80% AMI ($88,250 for a family of 4, updated June 2026)
Price cap
$309,000 existing / $329,000 new construction (guidelines, as of June 15, 2024)
First-timers only?
Yes
Fine print
0% deferred loan; 620 min credit; HUD-certified homebuyer education; minimum contribution $1,000 or 2% of price, whichever is less; 2 months reserves; inspection and environmental review
Affordability 5 years (up to $14,999) or 10 years ($15,000-$25,000) per Sept 2026 guidelines; page overview says 5 years. Acceptance 'depends on the availability of funds.'
First-time buyers purchasing a primary residence in San Antonio city limits
How much
$1,000 to $30,000 (based on need)
Kind of help
Loan that is forgiven over time
Income cap
$80,500 for a family of 4 (2026)
Price cap
$260,000 existing / $284,000 new construction
First-timers only?
Yes
Fine print
0% second lien, no payments; $1,000-$15,000 forgiven over 5 years, $15,001-$30,000 over 10 years; 8-hour HUD homebuyer class; $500 minimum earnest money; property review and inspection
First-come, first-served, subject to fund availability.
First-time buyers (or no ownership in 3 years / displaced or divorced) buying a single-family home or condo
How much
Up to $40,000
Kind of help
Loan that is forgiven over time
Income cap
80% MFI ($106,800 for a family of 4)
Price cap
$440,000
First-timers only?
Yes
Fine print
Homebuyer education certificate; Housing-certified participating lender; covers down payment, closing costs and prepaids
Older city FAQ: under $15,000 is a 5-year forgivable loan; $15,000-$40,000 is shared-equity (10-year affordability, 30-year term). Austin city limits reach into Williamson and Hays counties.
Low- to moderate-income buyers; first-time and repeat
How much
4%, 5% or 6% of loan amount (net 4.5%, 3.5% or 2.5% after lender fee options)
Kind of help
Loan that is forgiven over time
Income cap
140% AMI ($138,460)
Price cap
$364,452
First-timers only?
No
Fine print
0% 10-year forgivable second; 30-year fixed FHA/VA/USDA-RD/Freddie Mac HFA Advantage; 640 min FICO; 45% max DTI; homebuyer education for first-time buyers; no manufactured homes
Up to $20,000 inside city limits; up to $40,000 inside the CRAG area
Kind of help
Loan that is forgiven over time
0% loan forgiven 1/10 per year of continued City employment over 10 years. No income or price limit. First-time (no ownership in 3 years). Must be a primary residence in city limits; buyers outside must relocate. Forgiven amounts are taxable income. Policy effective Oct 1, 2023: https://www.sa.gov/files/assets/main/v/1/nhsd/documents/fhrap-hope-policy.pdf
USDA Rural Development, Texas office. Home loans with no down payment in rural and many suburban areas that USDA marks eligible.
HUD Good Neighbor Next Door. Teachers, police, firefighters and EMTs can buy certain HUD-owned homes in revitalization areas for half the list price, then must live there for three years. HUD Good Neighbor Next Door (50% off HUD homes in revitalization areas for teachers, police, firefighters and EMTs) applies in Texas, but current Texas listings were not checked this session; search HUD Home Store filtered to Texas and GNND.
FHA county loan limits. An FHA loan takes 3.5% down if your credit score is 580 or better; the most you can borrow depends on the county.
Can you combine programs?
Not across the two state agencies: TSAHC and TDHCA each supply their own first mortgage, so a buyer uses Heroes or Home Sweet Texas or a TDHCA program, not two at once. Inside TSAHC, first-time buyers can add the TSAHC Mortgage Credit Certificate to Heroes assistance, and the MCC fee is waived when a Texas Hero takes both. Inside TDHCA, local Housing Finance Corporation gift funds, such as $1,000 in the Harris County HFC area or $5,000 in McKinney, can be added to My First Texas Home but not to My Choice Texas Home.
Layering a state program with a city HOME or CDBG program in Houston, Dallas, Fort Worth or San Antonio depends on each program's lien and lender rules; most city pages say outside assistance has to be disclosed and reviewed. A loan officer who offers both can tell you whether a particular pair works before you sign a contract.
Reader questions
Is there a down payment grant in Houston right now?
The City of Houston's main Homebuyer Assistance Program is closed until new funding arrives, and Harvey HbAP 2.0 has put new applications without a pre-approval on hold. The Houston Community Land Trust's Homebuyer Choice Program is open and offers up to $150,000 in grants for homes placed in its land trust. Statewide, TSAHC and TDHCA assistance is available in Houston too.
What is the biggest statewide program for teachers and first responders?
Homes for Texas Heroes from TSAHC. It offers up to 5% of the loan amount for down payment and closing costs, as a grant or as a loan forgiven after 3 years, on a 30-year fixed-rate mortgage. Buyers outside the hero job list can use Home Sweet Texas, which has the same assistance structure.
Do I have to be a first-time buyer?
Not for every program. Homes for Texas Heroes, Home Sweet Texas, TDHCA My Choice Texas Home and Travis County's Hill Country Home program accept repeat buyers. TDHCA My First Texas Home, both Mortgage Credit Certificates and most city programs require no home ownership in the past 3 years.
Is Texas down payment assistance free money?
Some is. TSAHC lets you choose a grant, El Paso's Mi Casa and Welcome Home programs are grants, and many city programs are forgiven over 5 to 10 years if you stay in the home. TDHCA My First Texas Home assistance, by contrast, is a 30-year deferred second loan that is repaid, under the November 2026 rate notice.
Is there help for Dallas buyers?
Yes. The Dallas Homebuyer Assistance Program offers up to $60,000 in High Opportunity Areas and up to $50,000 elsewhere for buyers up to 80% of area income, and the Anti-Displacement program offers up to $50,000 to residents of 10 years or more. Both depend on available funding.
Details summed up from each program's official pages as of November 2026. Money and rules shift, so confirm with the program or a lender that takes part.
Got it. You're signed up.
We'll reach out when it reopens. Curious what you could qualify for right now?
I'm Linda, and I answer the phones for this desk. See if you're eligible for down payment assistance in Texas. A few taps and you'll know where you stand.
