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 September 2026·7 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 September 2026
Austin Down Payment Assistance Program
Administered by City of Austin Housing Department / Austin Housing Finance Corporation
Up to $40,000
Down payment and closing cost assistance from $15,000 up to $40,000 as a 0% interest deferred second lien with a 10-year affordability period (forgiven after 10 years; due on sale, refinance or transfer before then).
Income limit
Household income at or below 80% Median Family Income (income limit family: $106,800 (household of four))
Max home price$440,000
First-time buyer requiredYes
Special requirements: Must not have owned a home in the last three years (exceptions for displacement or divorce); home must be within Austin full-purpose city limits; HUD-approved homebuyer education required; mortgage from a participating lender
View official program page
Complete homebuyer education, obtain mortgage pre-approval from a participating lender, then apply through the Housing DepartmentVerified September 2026
Dallas Homebuyer Assistance Program (DHAP)
Administered by City of Dallas Housing & Homelessness Division (administered by BCL of Texas since May 1, 2026)
Up to $50,000 (up to $60,000 in High Opportunity Areas)
Down payment and closing cost assistance as a forgivable, deferred second lien with no interest and no monthly payments, prorated annually over the affordability period; amount based on need.
Income limit
Household income at or below 80% AMI for household size (City page); BCL of Texas notes some tiers from 50% to 120% AMI depending on circumstances (income limit family: $96,900 (household of four at 80% AMI, effective June 1, 2026))
First-time buyer requiredYes
Special requirements: Home within Dallas city limits; pre-approval from a DHAP-approved lender; executed purchase contract; homebuyer education certificate; home inspection and environmental review
View official program page
Complete BCL of Texas Readiness Check, submit intake application, attend eligibility session, then inspection and closingVerified September 2026
Fort Worth Homebuyer Assistance Program (HAP)
Administered by City of Fort Worth Neighborhood Services Department
Up to $25,000
Up to $25,000 toward down payment and closing costs as a forgivable loan; forgiven after 10 years of residency (5 years for smaller assistance amounts).
Income limit
Household income at or below 80% AMI adjusted for household size; HUD limits updated July 2026 (income limit family: $88,250 (household of four, 2026))
First-time buyer requiredYes
Special requirements: Must not have owned a home in the last three years (displaced homeowners may qualify); home within Fort Worth city limits; sales price cannot exceed 95% of area median sales price under HOME rules; 8-hour HUD-certified homebuyer education required
View official program page
Get pre-approved with a HAP-approved lender, complete homebuyer education, make an offer, and the lender submits the HAP application to the CityVerified September 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.
Special requirements: Must be employed in qualifying profession or be a veteran.
View official program page
Apply through TSAHC-approved lender with employment verification.Verified September 2026
Home Sweet Texas
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.
3% minimum down payment with no minimum borrower contribution; income at or below 80% AMI (2026 AMIs effective June 13, 2026); reduced, cancellable mortgage insurance; $2,500 credit for very low-income first-time buyers on loans purchased through February 28, 2027.
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.
