Down payment assistance, grants, forgivable loans, and tax credits available to Texas buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed July 2026·4 programs·6 federal programs
Administered by Texas Department of Housing and Community Affairs (TDHCA)
Up to 5% of loan amount
Down payment and closing cost assistance as a 0% interest second lien with no monthly payments (deferred-repayable or forgivable-term option), paired with a 30-year fixed TDHCA first mortgage.
Income limit
Income limits vary by county
Minimum credit score620
First-time buyer requiredYes
Special requirements: First-time buyer required (no ownership in past 3 years); waived for qualified veterans and targeted areas. Homebuyer education required. (Non-first-time buyers: see TDHCA's My Choice Texas Home.)
View official program page
Apply through a lender participating in The Texas Homebuyer Program.Verified July 2026
Homes for Texas Heroes
Administered by Texas State Affordable Housing Corporation (TSAHC)
Up to 5% of loan amount
Down payment assistance of 2-5% of the loan amount for teachers, police, firefighters, EMS, corrections officers, veterans, and nursing/allied-health faculty. Grant (with government loans) or 3-year deferred-forgivable second lien.
Administered by Texas State Affordable Housing Corporation (TSAHC)
Up to 5% of loan amount
Down payment and closing cost assistance of 2-5% of the loan amount, available to all homebuyers (not just first-time). Offered as a true grant (with FHA/VA/USDA loans) or a 3-year deferred-forgivable second lien (repaid only if you sell or refinance within 3 years).
Income limit
Income limits up to 115% AMI for targeted areas
Minimum credit score620
First-time buyer requiredNo
Special requirements: Available to repeat buyers too! Homebuyer education required.
Special low-interest mortgage rates for Texas veterans. Can be combined with VA loan benefits.
Income limit
No income limits for veterans
First-time buyer requiredNo
EligibilityVeterans only
Special requirements: Must be Texas veteran with honorable discharge. Extra rate discount for veterans with 30%+ VA disability rating. Loan limit $832,750.
Low down payment mortgage with reduced mortgage insurance. Allows income from non-borrower household members. A $2,500 credit for very-low-income borrowers (50% AMI or less) is available through early 2027 when at least one borrower is a first-time buyer.
Do I have to be a first-time homebuyer to qualify?
Most Texas programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Texas programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
