A down payment assistance (DPA) program in Texas is a program that helps homebuyers cover part or all of the money needed upfront to buy a home, such as the down payment and sometimes closing costs. These programs are designed to make homeownership more accessible, especially for first-time buyers or buyers with moderate incomes.

1. What Down Payment Assistance Actually Is

A down payment assistance program provides extra funds that help cover the down payment on a mortgage. Instead of the buyer bringing all the cash to closing, the program contributes part of it.

In Texas, the assistance is usually 1%–5% of the loan amount.

Example:

-Home price: $300,000

-Loan amount: $290,000

-5% assistance = $14,500 toward down payment or closing costs.

2. Where the Programs Come From

Most Texas programs are run by state housing agencies such as:

-Texas Department of Housing and Community Affairs (TDHCA)

-Texas State Affordable Housing Corporation (TSAHC)

These agencies work with approved lenders across the state to provide the assistance. Buyers don’t apply directly to the state — they apply through a participating lender when getting a mortgage.

3. How the Money Is Given

Down payment assistance usually comes in one of three forms:

Grant (best option)

-Free money that does not have to be repaid.

Forgivable second loan

-A second loan with 0% interest.

-If the buyer lives in the home for a certain period (often 3–5 years), the loan is forgiven.

Deferred second loan

-No payments required while you live there.

-Paid back only if you sell, refinance, or move.

4. Typical Requirements

Most Texas programs have some eligibility rules:

-Minimum credit score limits

-Income limits based on the county or program

-Purchase price limits

-Must be a primary residence

-Often requires a homebuyer education course

Some programs require you to be a first-time buyer, but others allow repeat buyers.

5. Example Texas Programs

Common statewide programs include:

-My First Texas Home – for first-time buyers

-My Choice Texas Home – allows repeat buyers

Local programs in cities or counties or lenders may also offer larger assistance amounts.

To see if you qualify for Down Payment Assistance, complete the information to the right on this page to receive more information.