Down payment grants are funds that help you cover your down payment and closing costs without requiring repayment. They are essentially free money for qualified buyers.
TSAHC offers grants up to 5% of the loan amount in many Texas counties. TDHCA offers DPA up to 5% through My First Texas Home. Some city programs offer additional assistance.
Grants typically require you to stay in the home for a certain period (usually 3-5 years) and may be forgivable over that period.
TSAHC Grant Details
TSAHC grants: up to 5% of the loan amount, available as a forgivable grant (reduces yearly if you stay in the home). No repayment needed after the forgiveness period. Available with FHA, VA, USDA, and Conventional loans.
TDHCA Grants
TDHCA My First Texas Home: DPA up to 5% as a forgivable loan (forgiven after 3 years). Combined with below-market interest rates. Must use a participating TDHCA-approved lender.
City Programs
San Antonio offers the Homeownership Incentive Program and other local assistance. Austin offers the Down Payment Assistance program. Check with your local housing authority for current offerings.
Employer Programs
Some employers offer down payment assistance as an employee benefit. Check with your HR department. Teachers and first responders may qualify for specialized programs.
Eligibility
Most grants require: first-time buyer status (or no homeownership in 3 years), income within limits, completion of homebuyer education, and purchase of a primary residence within price limits.
Application Process
To apply: find a lender approved to offer the grant program, complete homebuyer education, submit your application through the lender. Grants are typically reserved on a first-come, first-served basis.