Down Payment Assistance Guide

Down payment assistance can turn a plan that feels out of reach into a plan that works, because it directly lowers the cash you need at closing. On a $300,000 home, FHA's 3.5% down is $10,500 on top of closing costs, and assistance plus seller concessions can cover most of that. Here is how the programs work and how to know which one fits you.

The Three Shapes of Assistance

Every program is one of three shapes. A grant never has to be repaid. A forgivable second lien is a real second mortgage forgiven after you stay in the home a few years, usually 3 to 10. A deferred loan is repaid only when you sell, refinance, or pay off the first mortgage. My grant vs loan answer explains the differences that matter if you sell early.

The trade you need to see before you sign: most programs fund the assistance by charging a higher rate on the first mortgage. On a $300,000 loan, each quarter-percent of rate costs roughly $45 to $50 a month, so the question is whether the assistance you keep today is worth that monthly cost over the years you own the home. For a buyer with little cash, the answer is almost always yes.

What Programs Expect From You

Two filters decide most eligibility. First, income: programs use area median income for your county and household size, and TSAHC's Home Sweet Texas limits reach 150% of area median income while Homes for Texas Heroes reach 170%. Second, credit: most programs require a 620 to 640 minimum, and higher scores unlock better pricing on the underlying loan. Many programs also add a homebuyer education course and a first-time buyer definition.

Where to Start

Get pre-approved first, then match your approval to a program's first mortgage requirements, then apply for the assistance with your lender. The DPA application steps answer lays out the order in plain English, and my Texas DPA 2026 guide and Home Sweet Texas deep dive go deeper on the statewide options. For the grants and limits at a glance, see the mortgage down payment assistance page, and the Ask Patrick DPA category answers the follow-up questions buyers ask most.

Want help picking the program that actually fits your income and credit? Book a free discovery call or call me at 210-317-6514. I run your numbers and match you to the assistance you can use.

Contact Patrick to learn which programs you may qualify for.