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Texas First-Time Homebuyer Down Payment Assistance: 2026 Guide
Last Updated: November 1, 2026
Quick Summary
Texas first-time buyers can qualify for down payment assistance through statewide programs from TDHCA and TSAHC, which are open in every county. Most programs require income below a county-specific limit, a purchase price under a program cap, and homebuyer education before closing. Assistance may be a grant, a forgivable loan, or a deferred loan, and repayment terms vary by program.
- Statewide programs from TDHCA and TSAHC are available in every Texas county.
- Income limits and purchase price caps vary by county and household size.
- Check whether your assistance is a grant, forgivable loan, or deferred loan.
- Ask what triggers repayment, such as a sale, refinance, or moving out.
- Programs can pause or run out of funds, so confirm availability before you shop.
Table of Contents
- How Texas Down Payment Assistance Programs Work
- First-Time Home Buyer Requirements in Texas
- Statewide Options, Including TSAHC Down Payment Assistance
- Grants Versus Forgivable and Deferred Loans
- Down Payment Assistance Repayment Requirements
- How to Apply for Down Payment Assistance in Texas
- Booking Your Buyer Consultation With Martin Home Team
- Frequently Asked Questions
How Texas Down Payment Assistance Programs Work
Down payment assistance helps buyers cover the cash they need at closing. Texas has thousands of these programs across the country, and many are open to first-time buyers.
Most programs fall into a few types. Some give a grant you never repay. Others give a loan that is forgiven over time. A few add the assistance to your main mortgage as a second loan.
Here's where most buyers get tripped up: the assistance and the mortgage come as a package.
At Martin Home Team, we walk buyers through both sides of that trade-off before they pick a program.
First-Time Home Buyer Requirements in Texas
Each program sets its own rules, but most ask the same core questions: your income, the purchase price, your credit history, and whether you have owned a home recently. The gap in most guides is that they list the categories without the actual limits. Below is a program-by-program eligibility matrix you can use to self-qualify before you apply.
What "First-Time Buyer" Means in Practice
Most programs define a first-time buyer as someone who has not owned a primary residence in the previous three years. That definition is broader than it sounds: if you owned a home, sold it, and rented for three years, you may qualify again. Some programs also extend eligibility to buyers who have never owned a home, displaced homemakers, and single parents, regardless of the three-year rule. Confirm the definition for the specific program, because a program that uses a stricter definition can disqualify an otherwise eligible buyer.
Eligibility Matrix by Program Route
| Requirement | TDHCA My First Texas Home | TDHCA Texas First-Time Homebuyer | TSAHC Home Sweet Texas | TSAHC Homes for Texas Heroes |
|---|---|---|---|---|
| First-time buyer definition | No ownership in prior 3 years (with exceptions) | No ownership in prior 3 years (with exceptions) | Program-specific; confirm with administrator | Program-specific; confirm with administrator |
| Income limit | County-specific, by household size | County-specific, by household size | County-specific, by household size | County-specific, by household size |
| Purchase price cap | Program cap, varies by county | Program cap, varies by county | Program cap, varies by county | Program cap, varies by county |
| Credit score minimum | Set by program and lender | Set by program and lender | Set by program and lender | Set by program and lender |
| Homebuyer education | Required before closing | Required before closing | Required before closing | Required before closing |
| Occupancy | Primary residence | Primary residence | Primary residence | Primary residence |
| Eligible property types | Confirm with program | Confirm with program | Confirm with program | Confirm with program |
Income Limits and Purchase Price Caps
Income limits are set by county and household size, and they are based on area median income. A household of four in a higher-cost county will generally have a higher limit than the same household in a lower-cost county.
Because these figures change annually, do not rely on a number you saw in a guide last year. Pull the current limits directly from the program administrator and confirm the program still has funds available.
Credit Score and Mortgage Eligibility
Credit score minimums are set by the program and the lender, and the two are not always the same. A lender may approve a score that the program will not accept for assistance. Buyers with lower scores should ask about FHA-backed routes, which often carry more flexible credit requirements than conventional loans, and should confirm the program accepts FHA financing before applying.
Eligible Property Types and Occupancy
Most programs require the home to be your primary residence for a set period, and some restrict eligible property types, for example, excluding certain condominium projects or requiring the property to meet condition standards. Confirm both before you make an offer, because a property that does not meet program rules can disqualify the assistance even after the loan is approved.
Loan Options That Pair With Assistance
Assistance is not tied to a single loan type. FHA, VA, and conventional loans can all pair with down payment assistance, but not every program accepts every loan type.
For a full comparison of loan types and how they interact with assistance, see our guide on choosing a loan type for first-time buyers | /guides/first-time-buyer-loan-types.
Requirements change, so confirm current limits with the program administrator before you apply. The Texas Department of Housing and Community Affairs (TDHCA) publishes its program details on its official site, and that is the best place to check today's rules.
Statewide Options, Including TSAHC Down Payment Assistance
Statewide programs are usually the first place buyers look because they are available in every county and do not depend on a local program's funding cycle. The two main statewide administrators are the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC). Each runs more than one program, and the program you pick determines your mortgage type, your assistance amount, and your repayment terms.
TDHCA: My First Texas Home and the Texas First-Time Homebuyer Program
TDHCA's My First Texas Home pairs a 30-year fixed-rate mortgage with down payment and closing cost assistance. The assistance is structured as a deferred second lien, which means you do not make monthly payments on it; the balance comes due when you sell, refinance, or pay off the first mortgage.
The Texas First-Time Homebuyer Program is TDHCA's other main route and offers down payment and closing cost help as a percentage of the loan amount. The trade-off buyers need to understand is the interest rate: TDHCA programs are priced slightly above the current market rate, as the Texas Real Estate Research Center at Texas A&M University notes.
Both TDHCA routes generally require:
- A household income below the program's county-specific limit
- A purchase price below the program's cap
- A minimum credit score set by the program and the lender
- Completion of a homebuyer education course before closing
- A participating lender approved by TDHCA
TSAHC: Home Sweet Texas and Homes for Texas Heroes
TSAHC offers 30-year fixed-rate mortgages with down payment assistance of up to 5% of the loan amount.
TSAHC assistance is typically structured as a grant or a deferred second lien depending on the program and the lender, so confirm which structure applies to your file before you sign. The 5% cap is a ceiling, not a guarantee, the actual amount depends on your loan size, income, and the program's current funding.
How the Statewide Routes Compare
| Program Route | Administrator | Assistance Structure | What to Verify |
|---|---|---|---|
| My First Texas Home | TDHCA | Deferred second lien plus 30-year fixed mortgage | County income limit, purchase price cap, participating lender list |
| Texas First-Time Homebuyer Program | TDHCA | Percentage-based down payment and closing cost help | Current rate versus market, repayment trigger |
| Home Sweet Texas | TSAHC | Up to 5% assistance with fixed-rate mortgage | Whether assistance is a grant or deferred lien |
| Homes for Texas Heroes | TSAHC | Up to 5% assistance for public-service professions | Profession eligibility, lender participation |
What the Table Does Not Tell You
A comparison table hides the two things that decide whether a program actually works for you: the county income limit and the purchase price cap. Both vary by county and household size, and both change annually. A buyer in a higher-cost county may qualify for a larger assistance amount than a buyer with the same income in a lower-cost county. Before you shop, pull the current limits for your county from TDHCA and TSAHC directly, and confirm the program still has funds available, statewide programs can pause or exhaust allocations.
For a deeper walkthrough of how these structures affect your monthly payment, see our guide on how down payment assistance affects your monthly payment | /guides/down-payment-assistance-monthly-payment.
Grants Versus Forgivable and Deferred Loans
Assistance usually comes in one of three forms, and each one works differently.
Grants do not need to be repaid. They are the simplest option, but they often come with tight income or funding limits.
Forgivable loans are forgiven if you stay in the home for a set period. Leave early and you may owe part or all of the amount.
Deferred loans do not require monthly payments. You repay the balance when you sell, refinance, or pay off the main mortgage.
Ask one question for every program: "What happens if I sell in year two?" The answer tells you a lot about the real cost.
Down Payment Assistance Repayment Requirements
Repayment rules decide whether assistance is a gift or a debt. Some programs require nothing back. Others require repayment if you move out, sell, or refinance within a set window.
Watch out: many buyers assume "assistance" means free money. A forgivable loan with a five-year term can become a bill if you relocate in year three. Always get the repayment schedule in writing before you sign the purchase contract.
Key questions to ask your lender:
- How long must I live in the home?
- Is the assistance forgiven gradually or all at once?
- What triggers repayment, such as a sale or refinance?
- Does the second loan carry interest?
How to Apply for Down Payment Assistance in Texas
Applying for assistance is easier when you do it in the right order. Most buyers follow this path:
- Check your eligibility against income, price, and residency limits.
- Find a participating lender approved for the program you want.
- Complete homebuyer education if the program requires it.
- Get pre-approved for your mortgage with the assistance included.
- Make an offer on a home that meets the purchase price cap.
- Close on the loan and confirm how the assistance is repaid.
Start early. Program funds can run out, and some programs have application windows. Checking your options before you shop puts you in a stronger position.
Booking Your Buyer Consultation With Martin Home Team
Choosing the right program takes more than reading a rate sheet. It depends on your income, your timeline, and how long you plan to stay in the home. Our team at Martin Home Team helps first-time buyers in North Dallas compare programs, run the numbers, and understand the repayment terms before they sign anything.
Book a buyer consultation with Martin Home Team to review which assistance options fit your situation. Our 4 Step Buyer Blueprint gives you a clear plan from pre-approval to closing.
Frequently Asked Questions
Do you have to repay down payment assistance?
It depends on the program structure. Some Texas assistance is provided as a grant that does not need to be repaid, while other assistance is a second mortgage, forgivable loan or deferred loan. Forgivable loans are typically cleared after the buyer stays in the home for a set period, and deferred loans are generally repaid when the home is sold, refinanced or no longer the primary residence. Read the promissory note and lien terms before closing so you know exactly what you owe and when.
What are the requirements for first-time home buyers in Texas?
Most Texas programs require that buyers have not owned a principal residence in the past three years, that the home be a primary residence, and that household income and purchase price fall within program limits. Buyers usually need to complete an approved homebuyer education course and use a participating lender. Credit score minimums and loan type requirements vary by program, so confirm the specific rules with the program administrator or your lender before you apply.
How do you apply for down payment assistance in Texas?
Start by confirming which programs you qualify for and whether funding is still available. Get pre-approved by a participating lender, since most assistance is delivered alongside a first mortgage. Complete any required homebuyer education, then submit the assistance application with your loan file. Funding is often first-come, first-served, so applying early in your search can matter.
