In Texas in 2026, first-time buyers can access 3% to 5% of their loan amount in down payment assistance — sometimes as a grant they never have to pay back. The programs exist, the money is there, and most of the people who would qualify have no idea any of this is available.
I talk to buyers every week who have been saving for years trying to hit a 20% down payment. They're exhausted. And almost none of them know they could have been in a home two years ago.
Here's what's actually available in Texas right now, who qualifies, and how to use it.
The Two Main Texas DPA Programs
Two state-level organizations run most of the down payment assistance in Texas: TDHCA (Texas Department of Housing and Community Affairs) and TSAHC (Texas State Affordable Housing Corporation). Different programs, different structures — but both are real.
My First Texas Home (TDHCA)
This is a 30-year fixed mortgage with a second loan for up to 5% of the loan amount. The second loan is deferred — no monthly payment, 0% interest. You repay it when you sell or refinance. So you're not getting free money exactly, but you're getting an interest-free loan that doesn't affect your monthly payment at all.
Who it's for: first-time buyers (or anyone who hasn't owned a primary residence in the past 3 years), income limits apply by county, minimum 620 credit score, paired with FHA, VA, USDA, or conventional loan.
TSAHC: Homes for Texas Heroes + Home Sweet Texas
TSAHC runs two programs. Heroes is for teachers, firefighters, law enforcement, correctional officers, veterans, EMS, and nurses. Home Sweet Texas is open to everyone.
The structure is different from TDHCA: you can choose between a grant (3–5% of the loan amount, no repayment ever) or a deferred second lien at 0% interest. If you take the grant, your first mortgage rate will be slightly higher — you're trading a better rate for free money. If you take the second lien, you get the better rate but you'll repay the DPA amount later.
Which is better? Depends on how long you plan to stay in the home. I run both scenarios for every client before they decide.
Local Programs in Austin
Travis County and the City of Austin periodically open local DPA funds. These are smaller — often $10,000–$40,000 per household — but they can stack on top of state programs. They have income limits, tend to be geographically targeted (certain zip codes or neighborhoods), and go fast when they open.
Williamson County also has DPA funds for buyers in Round Rock, Georgetown, Cedar Park, and Leander. Hays County has programs for buyers in Kyle, Buda, and San Marcos.
These local funds aren't always active. I keep current on what's open and will flag it if something applies to your situation. Check our Austin down payment assistance guide for a full breakdown of local programs.
How the Math Works on a Real Austin Purchase
Let's say you're buying a $350,000 home in Pflugerville. FHA loan, 3.5% down payment required — that's $12,250. With the TSAHC Home Sweet Texas grant at 5%, you'd receive $17,500. That covers your entire down payment and puts money toward closing costs.
Your out-of-pocket cash drops from $12,250+ closing costs to potentially zero on the down payment, depending on how closing costs are structured.
That's not a hypothetical. That's math I run for buyers every week.
The catch: your interest rate will be slightly higher than market when using a DPA grant. In March 2026, a typical TSAHC-paired FHA rate might be 0.25%–0.50% above what a standalone FHA rate would be. On a $337,750 loan (after 3.5% down), that's roughly $60–$120/month more. For most buyers who don't have $12,000 sitting in savings, that trade-off makes complete sense.
Who Qualifies in 2026
The basics across most programs:
- Credit score: 620 minimum for most programs. Some work with 580+ on FHA.
- Income limits: Vary by county and program. Austin/Travis County limits are higher than rural areas. Most programs are designed for moderate-income buyers — not just low-income.
- Purchase price limits: Most programs cap eligible home prices around $400,000–$450,000 in Austin metro. Limits vary.
- Occupancy: Must be your primary residence. No investment properties.
- First-time buyer (sometimes): Required for some programs, not all. If you've owned before but not in the last 3 years, you may still qualify.
- Homebuyer education: Most programs require a HUD-approved homebuyer education course. It's online, takes a few hours, and costs around $75. Worth it.
The one thing people get wrong: they assume they make too much to qualify. Income limits for Travis County DPA programs are higher than most people expect — often $90,000–$120,000 for a single buyer, more for households with multiple people. Run the numbers before you assume you're out.
What to Do Right Now
Spring is the most competitive buying season in Austin. If you're planning to buy this year, getting pre-approved now — even before you've found a home — gives you three things:
- You know exactly what you can afford. DPA programs have purchase price caps. Knowing your budget upfront keeps you from falling in love with a home that doesn't qualify.
- You move fast when you find the right place. Austin inventory moves quickly. Pre-approved buyers can make offers the same day.
- You lock in the program before it runs out. Local DPA funds close when they run out of money. I've seen Travis County programs exhaust their funds within weeks of opening.
The first-time buyer guide walks through the full process. For FHA loan details — which is the most common loan type paired with DPA — see the FHA loan page.
If you're ready to see what you qualify for, start your pre-approval here. I review it same day and reach out within 24 hours. No pressure, no obligation — just real numbers.
FAQ: Down Payment Assistance Texas 2026
What down payment assistance programs are available in Texas in 2026?
The main options are the TDHCA My First Texas Home program (up to 5% as a deferred 0% loan), the TSAHC Homes for Texas Heroes program (3–5% grant for qualifying professionals), and the TSAHC Home Sweet Texas program (open to all buyers, grant or deferred lien). Travis County, City of Austin, and other local governments run additional DPA funds that open periodically. See the full list on the Austin DPA programs page.
Do I have to be a first-time buyer to get down payment assistance in Texas?
Not always. The My Choice Texas Home program and the TSAHC Heroes program are open to repeat buyers who meet the eligibility criteria. My First Texas Home requires that you haven't owned a primary residence in the past 3 years. If you owned a home years ago but have been renting since, you may still qualify.
How much down payment assistance can I get in Texas?
Most programs offer 3%–5% of the loan amount. On a $350,000 purchase with an FHA loan ($338,750 loan amount), 5% equals roughly $16,900. That covers the entire FHA minimum down payment of 3.5% ($12,250) and leaves money toward closing costs.
What credit score do I need for Texas down payment assistance?
620 is the floor for most programs. Some work with 580+ when paired with FHA. The higher your score, the better your rate — so it's worth spending a few months improving your credit before applying if you're close to a threshold. Use the credit score guide for practical steps.
Can I use down payment assistance with an FHA loan in Texas?
Yes — most Texas DPA programs are specifically designed to pair with FHA loans. FHA's 3.5% minimum down payment is fully coverable with a 3.5%+ DPA grant. You'll still need funds for closing costs, but some programs assist with those too. As a broker with 40+ lender relationships, I match each client to the right program and loan combination.
Are Texas down payment assistance programs free money?
Some are, some aren't. TSAHC grants are true grants — no repayment. The TDHCA second lien is deferred at 0% interest — no monthly payment, no interest, but you repay the principal when you sell or refinance. Local programs vary: some are forgivable after 5–10 years, others are deferred loans. I go through the details with every client before recommending a path.
Bottom line: if you've been putting off buying a home because you don't have a big down payment, Texas has programs that can solve that problem. The hard part isn't finding the money — it's knowing where to look and making sure you apply before the funds run out.
I can run this analysis for you in one conversation. No obligation. Just reach out.
Talk soon,
Adam Styer
Adam Styer | Mortgage Solutions LP
NMLS# 513013 | (512) 956-6010