In 2026, the average home price in Texas is just over $300,000, which is lower than the national average of $366,000 for existing homes, according to Zillow.
Texas offers a range of down payment assistance (DPA) programs to help qualified buyers cover these costs. Whether you're purchasing in a major metro area or a smaller town, there may be programs that can make your path to homeownership easier.
This guide highlights some of the most accessible and widely used DPA programs in the state. While it may not include every option, we'll keep it updated as new programs and opportunities emerge.
Down Payment Assistance Programs by City
Many Texas cities also offer their own DPA programs to help first-time homebuyers purchase a home within city limits. Below are some of the top city-specific programs to consider.
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Houston Homebuyer Assistance Program (HAP)
The Houston Homebuyer Assistance Program offers up to $75,000 in down payment assistance for first-time homebuyers within the city limits. The assistance is provided as a deferred, 0% interest loan. Buyers receiving up to $50,000 must occupy the home as their principal residence for 5 years for the loan to be fully forgiven, while buyers receiving between $50,000.01 and $75,000 must occupy it for 8 years.
Eligibility: Must be a first-time homebuyer, a U.S. citizen or permanent resident, and purchase an eligible home within the City of Houston. Household income is generally limited to 80% of AMI for CDBG-funded assistance and up to 120% of AMI for certain TIRZ-funded assistance. Requires lender pre-approval and a homebuyer education course.
San Antonio Homeownership Incentive Program (HIP)
The San Antonio Homeownership Incentive Program offers 0% interest, no-payment second loans to assist with down payment and closing costs for homes within San Antonio city limits.
The HIP 80 program offers $1,000 to $30,000 for households earning up to 80% of the area median income. Assistance of up to $15,000 is forgivable over 5 years, while amounts between $15,001 and $30,000 are forgivable over 10 years.
The HIP 120 program offers up to $15,000 for households earning up to 120% of the area median income, with 75% forgivable over 10 years and 25% perpetual.
Eligibility: Must qualify for a first mortgage, purchase within San Antonio city limits, complete a HUD-approved 8-hour homebuyer class, and make a $500 earnest money deposit. Income and purchase price limits apply.
Dallas Homebuyer Assistance Program (DHAP)
The Dallas Homebuyer Assistance Program offers up to $60,000 in down payment and closing cost assistance for eligible buyers purchasing in designated High Opportunity Areas and up to $50,000 elsewhere within Dallas. Assistance is provided as a 0% interest, forgivable second loan.
Eligibility: Property must be within Dallas city limits. Household income is generally limited to 80% of AMI, although some funding sources may allow households earning up to 120% of AMI. Buyers must qualify for an acceptable first mortgage, occupy the property as their primary residence, and complete required homebuyer education. DHAP is not restricted to first-time homebuyers.
Austin Down Payment Assistance Program
Austin Down Payment Assistance offers up to $40,000 in assistance for down payment and closing costs for eligible first-time homebuyers purchasing within the Austin city limits. Assistance may include pre-paid expenses. The home sales price cannot exceed $440,000.
The website does not make clear how the assistance is structured: a grant, a forgivable loan, or a repayable loan. For more information, call one of the approved lenders listed under the Application Process pull-down menu.
Eligibility: Must be a first-time homebuyer with income ≤ 80% AMI, and purchase a single-family home or condo within Austin’s Full Purpose city limits. Requires completion of a homebuyer education course and mortgage approval from a participating lender.
Fort Worth Homebuyer Assistance Program (HAP)
The Fort Worth Homebuyer Assistance Program offers up to $25,000 in payment- and interest-free assistance for down payment and closing costs. To have the assistance fully forgiven, buyers receiving up to $14,999 must occupy the home as their principal residence for at least 5 years, while buyers receiving $15,000 to $25,000 must occupy it for 10 years.
Eligibility: Must be a first-time homebuyer or generally have not owned a home during the previous 3 years, purchase within Fort Worth city limits, and have household income within program limits. Buyers must qualify through a HAP-approved lender, complete an 8-hour HUD-certified homebuyer education course, and meet the program’s borrower contribution and other underwriting requirements.
Welcome Home El Paso Downpayment Grant Program
The Welcome Home El Paso Downpayment Grant Program offers qualifying buyers a grant of up to 5% of the principal loan amount to help with down payment and closing costs on a home within El Paso city limits. The program is offered through the El Paso Housing Finance Corporation and participating mortgage lenders.
Eligibility: Must purchase an eligible home within El Paso city limits, meet current program income and mortgage requirements, and obtain financing through a participating lender.
Down Payment Assistance Programs by County
Texas is home to a variety of county-specific down payment assistance programs that can provide significant financial support to qualifying homebuyers. Below are some notable programs from various counties in Texas.
Harris County Down Payment Assistance Program (DAP)
The Harris County Down Payment Assistance Program provides first-time homebuyers up to $40,000 in forgivable down payment and closing cost assistance via a second lien, repayable only if the home is sold, rented, refinanced, or transferred before either 5 or 10 years (depending on the amount of assistance) have passed.
Eligibility: Must be a first-time homebuyer with a minimum 580 credit score, and meet income limits. Home must be in an eligible unincorporated area of Harris County. Requires a homebuyer course, a minimum $1,000 buyer contribution, a front-end ratio no higher than 39%, and a back-end DTI no higher than 42%. Current purchase price limits apply.
Hill Country Home Down Payment Assistance Program
Travis County Down Payment Assistance is now offered as the Hill Country Home Down Payment Assistance Program. It offers 4%, 5%, or 6% down payment and closing cost assistance as a 0% interest, 10-year forgivable, deferred second mortgage. Eligible buyers also receive a competitive 30-year fixed-rate loan for homes in Travis County, including Austin.
Eligibility: Minimum 640 credit score, max 45% DTI ratio, and qualifying income no higher than 140% of AMI. The current program purchase-price limit is $364,452. Homebuyer education required for first-time buyers. The program is not limited to first-time homebuyers. No refinancing or manufactured homes allowed.
Bexar County Down Payment Assistance Program
Bexar County Down Payment Assistance offers up to $12,000 in down payment and closing cost assistance to eligible first-time homebuyers in Bexar County and surrounding areas. Assistance is provided as a deferred second lien, with the amount based on need and coordinated with your lender.
Eligibility: Must be a first-time homebuyer purchasing in Bexar County or an eligible surrounding area with a minimum credit score of 580. Must be a U.S. citizen or permanent resident, meet income limits, and obtain a first mortgage through a participating lender. Completion of a homebuyer education class is required.
Tarrant County Homebuyer Assistance Program
The Tarrant County Homebuyer Assistance Program offers eligible first-time buyers up to $50,000 toward down payment and closing costs. Assistance is provided as a zero-interest deferred loan that is forgivable after the applicable 10- to 20-year affordability period.
Eligibility: Must be a qualifying low- or moderate-income first-time homebuyer purchasing in Tarrant County outside the city limits of Fort Worth, Arlington, and Grand Prairie. Buyers must meet program income and underwriting requirements, contribute at least $1,500 toward the purchase, maintain required reserves, and complete approved homebuyer education.
Statewide Down Payment Assistance Programs
There are several programs available across Texas to assist homebuyers with down payments. These programs are open to buyers statewide and can offer a range of financial help, from grants to deferred loans. Below are some of the top statewide programs to consider.
My First Texas Home Program
The My First Texas Home Program is a popular choice for first-time homebuyers, pairing a 30-year mortgage with down payment and closing cost assistance. Current TDHCA options include a 30-year deferred repayable second lien, while buyers combining My First Texas Home with a Mortgage Credit Certificate may also have access to a 3-year deferred forgivable second-lien option. Assistance levels vary by current loan option.
Eligibility: Must generally be a first-time homebuyer, although exceptions are available to some qualified veterans and buyers in targeted areas. Income and property limits apply. Buyers must complete approved homebuyer education and meet the requirements of the selected mortgage option.
Texas Mortgage Credit Certificate (MCC) Program
The Texas Mortgage Credit Certificate Program offers a federal tax credit for first-time homebuyers, worth up to 15% of the annual mortgage interest paid. This credit directly reduces the amount of federal tax owed.
Eligibility: Must be a first-time homebuyer. Income and home sales price limits apply. TSAHC currently offers the MCC in combination with its down payment assistance program rather than as a stand-alone product.
Homes for Texas Heroes Program
The Homes for Texas Heroes Program offers down payment assistance and home loans to eligible community heroes, including educators, first responders, corrections officers, and veterans. Assistance is available as a grant or a deferred forgivable second lien.
Eligibility: Must work in an eligible profession and meet the current TSAHC income, credit, and mortgage requirements for the selected loan option.
My Choice Texas Home Program
The My Choice Texas Home Program offers up to 5% of the loan amount in down payment and closing cost assistance, available as either a 3-year deferred forgivable second lien or a 30-year deferred repayable second lien. Homebuyers also receive a 30-year fixed-rate mortgage with low interest rates.
Eligibility: Have a minimum credit score of 620. Meet the program’s income limits. There is no first-time homebuyer requirement or program maximum purchase price. Be approved for a mortgage through a Texas Homebuyer Program-approved lender.
Other Statewide, County, and City Programs
Below are some extra programs that weren't included in the main sections above.
Statewide Programs
- Home Sweet Texas Home Loan Program (TSAHC)
- SETH 5 Star Texas Advantage Program
- TDHCA Additional Grant Down Payment Assistance
- Chenoa Fund (Nationwide program available in Texas)
County Programs
City Programs
- Abilene First-Time Homebuyer Program
- Houston Harvey Homebuyer Assistance Program 2.0
- El Paso Mi Casa Homebuyer Grant Program
- College Station Down Payment Assistance Program
- Irving Downpayment Assistance Program
- Grand Prairie Buying Power Program
Low Down Payment Mortgage Options
Not all types of mortgages share the same minimum down payment requirement. Most first-time homebuyers can expect to need a down payment of 3% to 3.5%, although some zero-down payment loan programs do exist.
- Conventional: Conventional loans are the most common type of mortgage out there. First-time and lower-income borrowers can purchase with just 3% down, while all others should plan to put down 5%.
- FHA: Backed by the Federal Housing Administration, FHA loans are easier to qualify for than conventional mortgages and require a 3.5% down payment for borrowers with a credit score of 580 or higher.
- VA: Eligible service members and veterans can qualify for a VA loan with no ongoing mortgage insurance costs and zero down payment required.
- USDA: USDA loans can be used to purchase properties in agency-designated rural communities with lower annual fees than FHA loans and a 0% down payment.
Check with the DPA program you're applying with to find out which types of mortgages they allow, as not all programs work with all mortgage options.
What Is AMI?
Many down payment assistance programs restrict eligibility to applicants whose income falls within a set range of the area median income (AMI) for the property they're planning to purchase.
For example, if the AMI where you're looking to buy is $113,500 and a program has a limit of 120% AMI, you could earn as much as $136,200 and still qualify.
You can find your local AMI with the Fannie Mae AMI Lookup Tool.
Finding Down Payment Assistance in Texas
As one of the fastest-growing states in the country, Texas offers several down payment assistance programs that can help make homeownership more achievable. Experiment with our loan calculators to find what works for you and stay up to date with current mortgage rates to make the smartest financial decision. Be sure to check eligibility requirements and consult with an approved lender to take full advantage of the available assistance.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
