Buyer guide · Texas

Stacking city and county help on top of Texas state programs

How Texas buyers layer city and county programs in Austin, Dallas, Fort Worth, San Antonio and El Paso with state help, the federal second-lien rules, and the mistakes that sink a file.

Bottom line:

Texas cities and counties often pay more than the state's 5%: up to $40,000 in Austin, $60,000 in parts of Dallas and $30,000 in San Antonio. But they come with low income caps, price limits and long affordability periods. Whether a city program can sit next to a TSAHC or TDHCA second depends on each program's rules and the federal loan's limits. Ask before you write an offer.

The state's 5% is often not the biggest check

A first-time buyer earning under 80% of area median income in a big Texas city may qualify for far more local money than state money. The catch is that local programs are narrow. They cap income, cap the price, often require that you stay for years, and run out of money without warning.

What's on the table in the major cities

Program	Up to	Income cap	Price cap	Status
City of Austin DPA	$40,000	80% MFI ($106,800, family of 4)	$440,000	Open
Hill Country Home (Travis County HFC)	4–6% of loan	140% AMI ($138,460)	$364,452	Open
Dallas DHAP	$60,000 (high-opportunity areas), $50,000 elsewhere	80% AMI	$342,000	Funding-dependent
Fort Worth HAP	$25,000	80% AMI ($88,250, family of 4)	$309,000 existing / $329,000 new	Funding-dependent
Tarrant County (Housing Channel)	$50,000	80% AMI	$309,000 / $329,000	Funding-dependent
San Antonio HIP 80	$1,000–$30,000	$80,500 (family of 4)	$260,000 / $284,000	Funding-dependent
San Antonio HIP 120	$1,000–$15,000	120% AMI	$301,700 / $332,800	Funding-dependent
El Paso Mi Casa	$20,000 grant	$90,600 / $105,340 (non-target)	Not listed	Open

Houston's city program and Harris County's DAP are closed to most buyers. Our full program list tracks status.

Read the fine print on time

Local money is usually a forgivable loan, not a grant, and the forgiveness schedule is the real price:

San Antonio HIP 80: $1,000 to $15,000 is forgiven over 5 years; $15,001 to $30,000 over 10 years.
San Antonio HIP 120: 75% is forgiven over 10 years and 25% is repaid when you sell, refinance or transfer.
Fort Worth HAP: the September 2026 guidelines set 5 years for awards up to $14,999 and 10 years for $15,000 to $25,000.
Hill Country Home: a 0% second forgiven over 10 years.
Austin DPA: an older city FAQ describes amounts under $15,000 as a 5-year forgivable loan and larger amounts as shared equity with a 10-year affordability period.

Shared equity means the city may take a share of your appreciation when you sell. Ask for the actual note before you count on the money.

Can city help sit next to state help?

Sometimes. It depends on three sets of rules.

1. The city program's own guidelines

Each program says what first mortgages it accepts and whether other liens are allowed. Hill Country Home, for example, runs on its own first mortgage menu (FHA, VA, USDA-RD or Freddie Mac HFA Advantage), so it works more like a state program than an add-on.

2. The state agency's rules

TDHCA has formal partnerships with local housing finance corporations. In some areas, those HFCs add gift money only to TDHCA's My First Texas Home: $1,000 from the Harris County HFC, or $5,000 from the McKinney HFC, while funds last. TDHCA's My Choice Texas Home is not eligible for most of those add-ons. TSAHC's Heroes and Home Sweet Texas run on their own platform; ask a TSAHC lender whether a city's second lien can be added on your file.

3. The federal loan's limits

FHA allows a second lien from a government entity if, among other rules, the second is disclosed at application, none of its costs are financed into the first mortgage, its payments are counted in your housing payment, you get no cash back beyond refunds of your own money, and there is no balloon within 10 years. On conventional loans, Fannie Mae's Community Seconds and Freddie Mac's Affordable Seconds allow combined financing up to 105% of value.

A layered example (illustrative figures)

A San Antonio first-time buyer under HIP 80's income cap buys a $250,000 existing home with FHA.

Item	Example
3.5% FHA down payment	$8,750
Closing costs and prepaids (example)	$9,000
Cash needed before help	$17,750
HIP 80 award (needs-based, example)	−$15,000
HIP minimum earnest money	$500 (credited back)
Left for the buyer	About $2,750

Whether a TDHCA second could also go on that file is a question for the lender and the city. Often one large local award is enough on its own.

Notice what the example doesn't show: the price cap. HIP 80 tops out at $260,000 for an existing home, so this buyer had little room to stretch. Local programs reward buyers who shop below the cap, not at it. If the house you want sits right at the limit, a repair request or an appraisal surprise can push the deal over and knock the award off the table.

First responders have their own local lane

San Antonio runs the First Responders Homebuyer Assistance Program for SAPD and SAFD employees, including cadets: up to $20,000 inside city limits, or $40,000 inside the CRAG area. It has no income or price limit. It is forgiven one-tenth a year over 10 years of continued city employment, and the city notes forgiven amounts are taxable income. A parallel HOPE program covers full-time civilian city employees.

Dallas's Targeted Occupations program, which covered educators, health workers, police and firefighters earning 80% to 120% of AMI, has spent its current funding. It's worth watching.

The mistakes that sink a stacked file

Buying outside the city line. City programs use the legal city boundary, not the mailing address.
Waiting to apply. First-come, first-served money can be gone in weeks.
Skipping the right class. Several programs, including San Antonio's HIP, require an 8-hour HUD-approved course. An online course for the state program may not count.
Picking a house that fails inspection. Fort Worth and San Antonio require their own property review.
Ignoring the payment cap. Dallas DHAP limits the housing payment to 35% of gross income.
Using a lender that isn't approved for the city program. Many keep their own lender list.

Start with the program that pays the most and fits your income, then ask what else can ride with it. To get a shortlist for your city, check your eligibility.

Readers also ask

Can I combine city down payment assistance with Homes for Texas Heroes?

It depends on the city program's rules and TSAHC's lender guidelines. Ask a TSAHC-approved lender and the city program before you write an offer. Many buyers find one large local award is enough.

Which Texas cities have down payment assistance open now?

As of November 2026, the City of Austin DPA, Travis County's Hill Country Home and El Paso's Mi Casa grant are listed as open. Dallas, Fort Worth, Tarrant County and San Antonio programs depend on available funds. Houston's city program is closed.

Do I have to pay back city down payment help in Texas?

Usually only if you sell, refinance or move out before the affordability period ends. San Antonio, Fort Worth and Travis County forgive their loans over 5 to 10 years, and some programs, like San Antonio HIP 120, keep a repayable share.

Is there down payment assistance for San Antonio police and firefighters?

Yes. San Antonio's First Responders Homebuyer Assistance Program offers SAPD and SAFD employees up to $20,000, or $40,000 in the CRAG area, forgiven over 10 years of city employment.

Free printable: the Texas buyer's checklist. Papers, steps, programs and the questions to ask, all in one packet. Get the checklist