Quick Answer
Texas has several real DPA options: TDHCA's My First Texas Home offers up to 5% as a forgivable loan, SETH 5-Star offers similar assistance, TSAHC runs Homes for Texas Heroes for teachers and first responders, and local cities add their own funds. All of them pair with FHA, VA, USDA, or conventional loans and carry income limits. The right one depends on your loan type, county, and household size. Ask Patrick how Texas down payment assistance programs would work for you.
The money problem for most Texas buyers is the pile of cash you need at closing, and down payment assistance exists to shrink it. Texas has real programs at the state and local level, and together they can cover a big share of your down payment and closing costs, Patriot Nation.
The headline players are TDHCA My First Texas Home, which provides up to 5% of the purchase price as a 0% interest forgivable loan, and SETH 5-Star, which offers similar assistance. TSAHC runs Homes for Texas Heroes for teachers and first responders, and cities like San Antonio add their own local funds.
Every program carries income limits, purchase price limits, and loan type requirements, and some funding runs out during the year. The right program for you depends on your loan type, your county, and your household size, so the match is the whole game.
TDHCA My First Texas Home
My First Texas Home is the statewide program run by the Texas Department of Housing and Community Affairs. It provides up to 5% of the purchase price as a 0% interest forgivable loan for first-time homebuyers, and it works with FHA, VA, USDA, or conventional financing. Income limits apply based on your county and household size, and the assistance is forgiven after 3 years of occupancy.
The meaning: this is the program most Texas buyers hear about first, because it works statewide and the assistance is a true forgivable loan, not a monthly bill on top of your mortgage.
The money consequence: 5% of the purchase price is real cash. On a $300,000 home that is $15,000 of help that does not accrue interest and disappears after three years in the home.
The real-world play: the program pairs with the loan you already qualify for, and the homebuyer education requirement is part of the deal. Get the education done early so the assistance is ready when your offer is.
SETH 5-Star Program
SETH, the SouthEast Texas Housing Finance Corporation, runs the 5-Star program, which provides up to 5% assistance for eligible buyers. It works with FHA, VA, USDA, and conventional loans, and the assistance is structured as a forgivable loan with a 3-year occupancy requirement. Income and purchase price limits apply.
The meaning: SETH 5-Star is the same breed of help as My First Texas Home, a forgivable second that rewards you for staying in the home.
The money consequence: up to 5% of the purchase price as a 0% interest forgivable loan keeps cash in your pocket at closing and never turns into a monthly payment.
The real-world consequence: the program serves specific regions, so the eligibility map decides who gets in. Confirm the service area before you build your plan around it.
TSAHC Homes for Texas Heroes
The Texas State Affordable Housing Corporation runs Homes for Texas Heroes, which provides down payment assistance for teachers, first responders, and other public servants. The program pairs with FHA, VA, USDA, and conventional loans and carries income and purchase price limits tied to the county.
The meaning: this program targets the people Texas relies on, and the assistance is designed to make homeownership reachable for them.
The money consequence: the assistance amount and terms vary by county and loan type, so the number that matters is the one for your zip code and your household.
The real-world play: if you qualify by profession, this can be the best program on the board, because fewer applicants fit the profile and the funding can last longer.
Local and City Programs
Cities and counties across Texas run their own down payment assistance programs with local funding. San Antonio, Bexar County, and other municipalities offer targeted help that can sometimes exceed state program amounts, but they come with stricter limits on income, location, and household size.
The meaning: local programs are where the biggest dollar amounts can hide, and they are also where the rules get the most specific.
The money consequence: a local program can cover more of your cash to close than a state program, but only if your address and income fit the map.
The real-world consequence: local funding runs on cycles and can pause or exhaust mid-year, so check the current status before you plan around it.
Which Program Is Best for You?
The best program depends on your loan type, your location, and your budget. My First Texas Home works statewide and is a strong first look for first-time buyers. SETH 5-Star serves specific regions. Local programs can offer more money with tighter limits. Work with a loan officer who knows all the options so you can stack the right one onto your loan.
The meaning: there is no single best program, only the best program for your county, your income, and your loan type.
The money consequence: picking the wrong program can leave thousands on the table, and skipping the eligibility check can cost you the whole assistance.
The real-world play: tell your loan officer your address and your goals, and let them run the match. That is how you keep your cash to close low and make it a great one.
Ask Patrick about Texas down payment assistance programs
Get a straight answer on Texas down payment assistance programs and whether you qualify.
