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.
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.
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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, offering up to 5% of the loan amount in down payment and closing cost assistance. This assistance comes as a deferred loan that is forgiven after 3 years of owner-occupation, meaning buyers don’t need to repay it unless they sell or refinance their home before the 3-year mark.
Eligibility: Must be a first-time homebuyer (have not owned a home in the past 3 years). Must meet income and property limits. Must have at least a 620 credit score.
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 (up to $2,000 per year). This credit directly reduces the amount of federal tax owed.
Eligibility: Must be a first-time homebuyer. Income and home sales price limits apply. Homebuyers eligible for TSAHC’s Homes for Texas Heroes program receive the MCC at no cost.
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 have a minimum credit score of 620, meet income limits, and be in an eligible profession.
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 a grant or a deferred second lien, including a 3-year forgivable option. 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 and property value limits. Be approved for a mortgage through a Texas Homebuyer Program-approved 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 Harris County. Requires a homebuyer course and debt-to-income compliance.
Travis County Down Payment Assistance Program
Travis County Down Payment Assistance 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 meet income limits. Homebuyer education required for first-time buyers. No refinancing or manufactured homes allowed.
Bexar County Down Payment Assistance Program
Bexar County Down Payment Assistance offers up to $20,000 in down payment and closing cost assistance to eligible first-time homebuyers in Bexar County. Assistance is provided as a repayable second mortgage, with the amount based on need and coordinated with your lender.
Eligibility: Must be a first-time homebuyer purchasing in Bexar County 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.
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.
Houston Homebuyer Assistance Program (HAP)
The Houston Homebuyer Assistance Program offers up to $50,000 in down payment assistance for first-time homebuyers within the city limits. The assistance is provided as a deferred, 0% interest loan that is forgiven after 5 years of owner occupancy.
Eligibility: Must be a first-time homebuyer, a U.S. citizen or permanent resident, and earn no more than 80% of the area median income. Home must be within the Houston city limits and be taxed by the City. 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 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 as a 0% interest, forgivable second loan for eligible first-time homebuyers purchasing within Dallas city limits. Assistance amount depends on the location.
Eligibility: Must be a first-time homebuyer with income ≤ 80% of AMI, a U.S. citizen or permanent resident, and purchasing a home in Dallas. Requires lender approval and completion of a homebuyer education course.
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 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.
Other Statewide, County, and City Programs
Below are some extra programs that weren't included in the main sections above.
Statewide Programs
Chenoa Fund (Nationwide program available in Texas)
County Programs
City Programs
Additional Programs
Texas Veterans Land Board (VLB) (For Veterans and Active Military)
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.
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.
