Down payment assistance in Texas

How does down payment assistance work in Texas?

Most help is a second lien, not cash. Some is forgiven over time, some is repaid when you sell or refinance, and a few programs give true grants. City programs usually require income at or below 80% of the area median. You must also be a first-time buyer and buy inside city limits. Most also require homebuyer education and an approved lender.

What statewide help is available?

TDHCA's My First Texas Home and My Choice Texas Home offer 2% to 5% of the loan amount, funding permitting. TSAHC's Homes for Texas Heroes and Home Sweet Texas offer up to 5%. It comes as a grant or as a second lien that is forgiven or repaid. Rules are on the first-time home buyer programs in Texas page.

What does the City of Dallas offer?

The Dallas Homebuyer Assistance Program (DHAP) gives up to $60,000 in High Opportunity Areas. Elsewhere in Dallas, it gives up to $50,000. Since May 1, 2026, Business and Community Lenders of Texas has run it for the city. Income must be at or below 80% of the area median, and the city lists a $342,000 maximum purchase price.

DHAP is an interest-free, forgivable deferred second lien with no monthly payments. You start with a readiness check and need a DHAP-approved lender and a purchase contract. The city's Anti-Displacement program is also still open. It is for residents who have lived in Dallas at least ten years. The Targeted Occupations extension has spent its funding.

What do Fort Worth and Tarrant County offer?

Fort Worth's Homebuyer Assistance Program gives up to $25,000 to first-time buyers inside city limits. Income must be at or below 80% of the area median. It is a forgivable loan, and you must use a city-approved lender.

Tarrant County's program is run by Housing Channel. It gives up to $50,000 for homes outside the Fort Worth, Arlington and Grand Prairie city limits. The home must also be outside the flood plain. It is a 0% deferred loan forgiven after a 10- to 20-year affordability period. Arlington's own program was paused when checked.

Which other DFW cities have help open?

Grand Prairie's Buying Power Program gives up to $7,500 as a grant with no monthly payments, for existing homes priced up to $350,000. Irving offers a 0% deferred forgivable loan for first-time buyers at or below 80% of the area median. Mesquite covers half of the down payment and closing costs, up to $10,000, as a deferred forgivable loan.

Garland Housing Finance Corporation pairs a Mortgage Credit Certificate with a $10,000 second lien. You repay this loan; it is not forgiven. Frisco offers up to $10,000 in forgivable loans. A household needs an adult who works full time for the City of Frisco or Frisco ISD.

In McKinney, the McKinney Housing Finance Corporation adds a $5,000 gift to TDHCA's My First Texas Home. This depends on available funds. Dallas County's UPCAP offers a deferred loan in twelve participating suburbs and unincorporated areas. Its posted details date from 2023, so confirm current terms.

Which programs were closed or not found?

Denton's Homebuyer Assistance Program has spent its funds and is not taking applications. Arlington's program was paused. Plano's housing pages list a homebuyer education class but no purchase assistance program. No active city program was found for Carrollton or Lewisville. No countywide program was found for Collin or Denton County.

How do I use assistance when I make an offer?

Choose a lender approved for the program before you shop, since most city programs will not work otherwise. Local programs can add inspections and approvals, so build time into your contract. Check payments with the mortgage calculator and search homes for sale that fit the price limits.

Mariela Lovo Ol is a REALTOR®, not a lender, and does not approve or fund assistance. Contact Mariela to plan an offer around your program's timeline.

Programs change and funding can run out. Before you sign, check the amounts, limits and funds with the program office and a lender who works with the program.

Statewide

• My First Texas Home, Texas Department of Housing and Community Affairs (TDHCA)
  A 30-year fixed FHA, VA or USDA loan for first-time buyers. Veterans and buyers in targeted areas can qualify even if they owned before. It adds 2%–5% of the loan as a second lien (a second loan on the home) at 0%. That second lien is either repaid later or forgiven after 3 years. It depends on available funds. You need a 620 credit score or higher. Income and price limits apply.
• My Choice Texas Home, Texas Department of Housing and Community Affairs (TDHCA)
  You do not have to be a first-time buyer. It pairs an FHA, VA, USDA or conventional 30-year fixed loan with 2%–5% of the loan as a second lien at 0%. The second lien is either repaid later or forgiven after 3 years. You need a 620 credit score or higher. There are no price limits and no recapture tax.
• Texas Mortgage Credit Certificate, Texas Department of Housing and Community Affairs (TDHCA)
  Cuts your federal income tax dollar for dollar. It is for first-time buyers and veterans. You can use it with a TDHCA loan or on its own. On its own, there is no minimum credit score. TDHCA notes supplies are limited.
• Homes for Texas Heroes, Texas State Affordable Housing Corporation (TSAHC)
  Up to 5% of the loan for down payment and closing costs. It comes as a grant, as a second lien forgiven after three years, or as a second lien you repay later. It is for eligible educators, police, firefighters, EMS, corrections officers, nursing and allied health faculty, veterans and active military.
• Home Sweet Texas Home Loan Program, Texas State Affordable Housing Corporation (TSAHC)
  Up to 5% of the loan for down payment and closing costs. It comes in the same forms as Homes for Texas Heroes: a grant, a forgivable loan or a loan you repay. It is for buyers outside the hero jobs.

City of Dallas

• Dallas Homebuyer Assistance Program (DHAP), Business and Community Lenders of Texas, for the City of Dallas
  Up to $60,000 in High Opportunity Areas and up to $50,000 elsewhere in Dallas. It is a second lien with no interest. You pay nothing now, and it can be forgiven. Your income must be at or below 80% of the area median. The top price is $342,000. You need a DHAP-approved lender and purchase contract.
• Anti-Displacement Homebuyer Assistance Program, City of Dallas
  Up to $50,000 for residents who have lived in Dallas at least ten years, with income from 50% to 120% of the area median. Limited funding for designated target areas.

City of Fort Worth

• Homebuyer Assistance Program (HAP), City of Fort Worth Neighborhood Services
  Up to $25,000 for down payment and closing costs. It is for first-time buyers inside Fort Worth city limits. Your income must be at or below 80% of the area median. It is a forgivable loan. You need a city-approved lender.

Tarrant County

• Tarrant County Homebuyer Assistance Program, Housing Channel, for Tarrant County
  Up to $50,000 for first-time buyers at or below 80% of the area median. The home must be in Tarrant County, outside Fort Worth, Arlington and Grand Prairie, and outside the flood plain. It is a 0% loan with no payments. It is forgiven after a 10- to 20-year affordability period (the time you must keep the home).

City of Grand Prairie

• Buying Power Program, City of Grand Prairie Housing and Neighborhood Services
  Up to $7,500 as a grant with no monthly payments. It is for first-time buyers with low to moderate income. The home must be an existing home in Grand Prairie priced up to $350,000. First come, first served.

City of Irving

• Homebuyer Down Payment Assistance Program, City of Irving Housing & Redevelopment
  A 0% loan with no payments for down payment and closing costs on a home in Irving. It can be forgiven. It is for buyers who have not owned a home in three years. Your income must be at or below 80% of the area median. You need a city-approved lender.

City of Mesquite

• Down Payment Assistance Program (DPAP), City of Mesquite Housing and Community Services
  Pays 50% of the down payment and closing costs, up to $10,000. It is a forgivable loan with no payments, for a home in Mesquite. It is for first-time buyers at or below 80% of the area median. You take an 8-hour homebuyer class. You put in at least 1% of the price.

City of Garland

• MCC with Down Payment Assistance, Garland Housing Finance Corporation
  A Mortgage Credit Certificate worth 30% of your yearly mortgage interest, up to $2,000 a year. It adds a $10,000 second lien that is not forgiven. You repay it when the loan ends or when you sell, transfer or refinance. For homes in Garland. It depends on available funds.

City of Frisco

• Down Payment Assistance Program, City of Frisco
  Forgivable loans up to $10,000 for buying in Frisco. Someone in the household must be an adult who has worked full time for the City of Frisco or Frisco ISD for at least six months. It is for first-time buyers, with some exceptions. Income and price limits apply.

City of McKinney

• McKinney HFC gift funds with My First Texas Home, McKinney Housing Finance Corporation with TDHCA
  A $5,000 gift, no repayment, added to TDHCA's My First Texas Home for homes in the City of McKinney. Subject to availability, first come, first served; income limits follow My First Texas Home.

Dallas County

• Upfront Cost Assistance Program (UPCAP), Dallas County Home Loan Counseling Center
  A loan with no payments for down payment and closing costs. It is for first-time buyers in twelve participating Dallas County cities or unincorporated areas. The posted information letter (July 2023) lists up to $7,500. Confirm the current terms with the county.

Common questions

How much down payment assistance can I get in Dallas?

The City of Dallas DHAP gives up to $60,000 in High Opportunity Areas. Elsewhere in the city, it gives up to $50,000. Income must be at or below 80% of the area median. Business and Community Lenders of Texas runs the program for the city.

Does Fort Worth have down payment assistance?

Yes. Fort Worth's Homebuyer Assistance Program gives up to $25,000 to first-time buyers inside city limits. Income must be at or below 80% of the area median. You must use a city-approved lender.

Can I combine city and state assistance in Texas?

Sometimes. Some city programs are designed to pair with TDHCA loans, while others restrict combining sources. Ask a lender approved for both programs to confirm.

What if my city has no program?

You can still use statewide help from TDHCA or TSAHC, and county programs may cover your area. Tarrant County and Dallas County each run programs for areas outside their larger cities.

How much house can I afford? Contact

Sources

1. Primary Mortgage Market Survey (PMMS), Freddie Mac (read 2026-09-24)
2. Loan Estimate explainer, Consumer Financial Protection Bureau (read 2026-09-24)
3. What is a Loan Estimate?, Consumer Financial Protection Bureau (read 2026-09-24)
4. What's a lock-in or a rate lock?, Consumer Financial Protection Bureau (read 2026-09-24)
5. What is the difference between a mortgage interest rate and an APR?, Consumer Financial Protection Bureau (read 2026-09-24)
6. Property Tax, Texas Comptroller of Public Accounts (read 2026-09-24)
7. Programs — The Texas Homebuyer Program, Texas Department of Housing and Community Affairs (read 2026-09-24)
8. My First Texas Home Program Matrix (published August 17, 2026), Texas Department of Housing and Community Affairs (read 2026-09-24)
9. My Choice Texas Home Program Matrix (published August 17, 2026), Texas Department of Housing and Community Affairs (read 2026-09-24)
10. Texas Mortgage Credit Certificate Program, Texas Department of Housing and Community Affairs (read 2026-09-24)
11. Homebuyer Programs, Texas State Affordable Housing Corporation (read 2026-09-24)
12. Loans and Down Payment Assistance, Texas State Affordable Housing Corporation (read 2026-09-24)
13. 42 U.S. Code § 12704 — Definitions (first-time homebuyer), Legal Information Institute, Cornell Law School (read 2026-09-24)
14. Loans (FHA), U.S. Department of Housing and Urban Development (read 2026-09-24)
15. VA-backed purchase loan, U.S. Department of Veterans Affairs (read 2026-09-24)
16. Single Family Housing Guaranteed Loan Program, USDA Rural Development (read 2026-09-24)
17. Dallas Homebuyer Assistance Program (DHAP), City of Dallas, Housing & Homelessness Division (read 2026-09-24)
18. Dallas Homebuyer Assistance Program (DHAP), Business and Community Lenders of Texas (read 2026-09-24)
19. Homebuyer Assistance Program, City of Fort Worth (read 2026-09-24)
20. Down Payment Assistance (program list and status), Housing Channel (read 2026-09-24)
21. Tarrant County Housing Assistance Program, Housing Channel (read 2026-09-24)
22. HOME Investment Partnership Program, Tarrant County Community Development and Housing Department (read 2026-09-24)
23. MCC with Down Payment Assistance, Garland Housing Finance Corporation (read 2026-09-24)
24. Buying Power Program, City of Grand Prairie, Housing and Neighborhood Services (read 2026-09-24)
25. Homebuyer Down Payment Assistance Program, City of Irving, Housing & Redevelopment (read 2026-09-24)
26. Down Payment Assistance Program, City of Mesquite (read 2026-09-24)
27. Down Payment Assistance Program, City of Frisco (read 2026-09-24)
28. Homebuyer Assistance, City of McKinney (read 2026-09-24)
29. Home Loan Counseling Center, Dallas County Health and Human Services (read 2026-09-24)
30. Upfront Cost Assistance Program (UPCAP) Information Letter, 7/1/2023, Dallas County Home Loan Counseling Center (read 2026-09-24)
31. Homebuyer Resources, City of Denton (read 2026-09-24)
32. First Time Homebuyers Education Class, City of Plano (read 2026-09-24)

For illustration only. This is not a loan offer, a commitment to lend, or an advertisement of credit terms. Actual rates, payments and eligibility depend on your lender, credit, and the property. Talk to a licensed loan officer for a quote.