Quick Answer
Yes. Texas has several down payment assistance (DPA) programs, and if you qualify, one of them can cover part or all of your down payment, and sometimes part of your closing costs too. The common statewide programs are run through TSAHC and TDHCA, and San Antonio and Bexar County run local programs as well. DPA is usually structured as a forgivable grant or second lien that is forgiven over time, typically if you stay in the home for the required period, or in some cases as a repayable loan. Which program fits you comes down to your income, your credit score, your purchase price, and whether you qualify as a first-time buyer, so let's walk through all of it below.
The best DPA program in Texas depends on your situation. For most buyers, the Texas State Affordable Housing Corporation (TSAHC) offers the best combination of grant money, flexible credit requirements, and wide availability.
For public servants (teachers, first responders, military), the Homes for Texas Heroes program provides additional benefits. In San Antonio, the city's homebuyer assistance programs and HBA programs stack with state programs. Veterans using VA loans can combine zero-down with DPA for closing costs.
There is no single "best" program. The right one is the one you qualify for that maximizes your benefit.
How Down Payment Assistance Works
DPA rarely sits on its own. It is almost always paired with a normal first mortgage, usually a 30 year fixed, most often an FHA or conventional loan. That first mortgage carries most of the purchase, and the DPA covers part or all of your down payment on top of it. You generally still need some cash for closing costs and a qualifying credit score, and many programs want to see a score around 620.
Here is the part nobody says loudly enough: DPA is not free money for everyone. It comes in three basic shapes, and the shape decides what it really costs you.
Grant
Given to you and never repaid, as long as you meet the eligibility and stay in the home for the required period.
Forgivable loan
A second lien that is forgiven over time, typically if you keep living in the home for the program's required number of years.
Repayable loan
A loan you eventually pay back, sometimes with interest, usually when you sell or refinance down the road.
So before you pick a program, ask your lender one direct question: is this a grant, a forgivable loan, or a repayable loan? The answer changes what it costs you. And if you are wondering whether you can buy at all with little or no cash saved, start with how buying a home with no money down really works.
Texas DPA Programs at a Glance
These are the programs most first-time buyers in Greater San Antonio and the Texas Hill Country actually use. Amounts, income limits, and availability change and vary by county and by current funding, so treat everything below as an up-to range, not a promise.
| Program | Type | Coverage (up to) |
|---|---|---|
| TSAHC, My First Texas Home Statewide | Grant or deferred, forgivable second lien | About 5% of loan amount |
| TDHCA, My Choice Texas Home Statewide | Forgivable DPA for eligible buyers | About 5% of loan amount |
| Neighborhood Housing Services of San Antonio San Antonio | Local DPA | Roughly $12,000 - $20,000 |
| Bexar County program Bexar County | Local DPA | Roughly $20,000 |
| City of San Antonio (HIP, HOPE, FRHAP) San Antonio | Local DPA | Amounts vary; availability can pause |
Terms change, so treat every figure here as an up-to range and confirm the current number with a lender approved for the program when you apply. Rates and amounts above are current per TSAHC and TDHCA as published, and availability for the City of San Antonio programs can pause depending on funding.
Top Texas DPA Programs Ranked
Texas offers several well-funded down payment assistance programs. Here is how they compare:
1. TSAHC Grant Program
Up to 5% as free money. No repayment required. Compatible with FHA, conventional, and USDA loans. Widely available across Texas. This is the go-to program for most buyers.
2. TSAHC Second Lien
0% interest, deferred, forgiven over time. Offers a higher assistance amount than the grant option. Forgiven after a set number of years if you stay in the home.
3. My First Texas Home
Below-market interest rates plus DPA assistance. Designed for first-time buyers and those buying in targeted areas. Combines a lower rate with down payment help.
4. City of San Antonio Programs
Local assistance for qualifying San Antonio homebuyers. Income limits vary by household size. Can stack with state and federal programs for maximum benefit.
5. HBA of San Antonio
Home Builders Association programs that combine homebuyer education with down payment assistance. Great for new construction buyers.
6. TDHCA Programs
Texas Department of Housing and Community Affairs offers statewide options with various income limits and purchase price caps.
Patriot Pro Tip
Nearly every DPA program requires a homebuyer education course before you close, and it is a cheap one. Do it early in your process, not the week before closing, so the certificate is already on file when your lender is ready for it. A tiny missed requirement like that is exactly the kind of thing that stalls a closing at the last minute.
How to Choose the Right DPA Program
Consider these factors when choosing a DPA program:
- How much assistance you need (some programs cap at fixed dollar amounts, others at a percentage of the loan)
- Your credit score (some programs require 640+, others work with 580 or lower)
- Your income level (each program has different income limits, typically 80-115% of area median income)
- Whether you are a first-time buyer (some programs require first-time status, others allow repeat buyers)
- What loan type you are using (FHA, conventional, VA, USDA each has different DPA compatibility)
- Whether you qualify for profession-based programs (Homes for Texas Heroes for teachers, first responders, and military)
A lender experienced with multiple DPA programs can help you find the best combination for your specific situation.
DPA Stacking for Maximum Benefit
In Texas, you can often combine a federal loan program with a state DPA program and a local assistance program. This layered approach can reduce your total out-of-pocket to nearly zero.
Example: FHA loan + TSAHC grant + San Antonio city assistance. Each layer covers a different piece of your upfront costs. The FHA loan covers the mortgage with a low 3.5% down payment. The TSAHC grant covers your down payment. San Antonio city assistance covers your closing costs.
Not every combination works together. Some programs have rules against layering, while others are designed to be combined. You need a lender who understands the stacking rules for each program so you don't run into problems at underwriting.
What a 5% Program Does on a Real Purchase
Here is the short version of how DPA changes the math, using a $300,000 purchase with an FHA loan at the usual 3.5% down payment. These are illustrative numbers, not a quote, and your real figures come from your actual loan and program.
A Worked Example
Illustrative numbers to show the idea. Your program amounts are confirmed at application.
At 5% of a $300,000 loan you get about $15,000 in DPA, which fully covers the $10,500 down payment and leaves room to soften your closing costs. You still need cash for closing costs, prepaids, and reserves, but a 5% program can take your entire down payment off the table. Not sure how much cash you really need to set aside before you start? See how much money you need for a down payment.
Real Cost Comparison
Here is the difference DPA makes on a $300,000 home:
Without DPA
- Down payment (3.5%)$10,500
- Closing costs$9,000
- Prepaids & reserves$5,500
- Total cash needed$25,000
With DPA Stacking
- Down payment (3.5%)$10,500
- DPA grant covers-$10,500
- Closing costs$9,000
- City assistance covers-$7,000
- Prepaids & reserves$5,500
- Seller credit-$3,000
- Total out-of-pocket$3,000-$5,000
That is a potential savings of $20,000 or more in cash you get to keep in your pocket. This is why every buyer should explore DPA options before assuming they need a huge pile of cash. I explain the best programs available in my video on 0% down payment programs in Texas.
Homes for Texas Heroes
If you are a teacher, nurse, first responder, or military member, the Homes for Texas Heroes program offers some of the best DPA terms in the state. It provides down payment assistance up to 5% of the loan amount with flexible repayment terms. Combined with your professional discount programs, this is often the best option for qualifying buyers.
Veterans and VA Loan DPA Options
Veterans using a VA loan already have a zero-down payment option. But that does not mean DPA is irrelevant. Closing costs still need to be covered. DPA programs can help with closing costs, prepaids, and reserves, making a VA loan even more affordable. In San Antonio, where military families make up a large share of buyers, combining VA loans with Texas DPA programs is a proven strategy.
Common DPA Eligibility Requirements
Most Texas DPA programs share these basic requirements:
- Income at or below area median income limits (typically 80-115% of AMI, which in San Antonio means household income up to roughly $90,000-$120,000 depending on household size)
- Minimum credit score of 580-640 (varies by program)
- Completion of a homebuyer education course (most programs require this before closing)
- Occupancy as your primary residence (no investment properties)
- Purchase price within program limits (typically under $350,000-$450,000 depending on county)
Reality Bites
Not every buyer or every property qualifies. Income limits, first-time buyer rules, property eligibility, and purchase-price caps all apply, and each program draws its own line. DPA stacked on top of a low-down-payment loan like an FHA 3.5% can sometimes cover your entire down payment, but do not expect it to wipe out every cost. You will still need funds for closing costs and reserves, and the lender will still want to see them.
A Word of Caution
Program amounts, income limits, and availability change, and they vary by county and by current funding. Every figure on this page is an up-to range, not a guarantee. Confirm the current details with a lender approved for the program before you plan around them. And be wary of anyone who charges you to apply for DPA, which is normally free for the buyer. You should not pay a fee to apply for a program that is otherwise free.
The Bottom Line
The best down payment assistance program in Texas is the one you qualify for that gives you the most benefit. For most buyers, TSAHC is the starting point thanks to its generous grant options and wide availability through approved lenders. But the real magic happens when you stack state, local, and federal programs together. That is how you get into a home with minimal cash out of pocket.