Finding help for a down payment can feel like hunting for a needle in a haystack. The good news is Texas offers a handful of solid options that can shave thousands off your upfront cost. Below are the five programs that consistently help buyers move forward, and a quick guide to pick the right one for you.
Table of Contents
- 1. Robbie English, REALTOR, Broker
- 2. My First Texas Home — For first‑time buyers and veterans
- 3. Houston HAP — A forgivable loan in Houston
- 4. TSAHC Homes for Texas Heroes — Occupation‑based assistance
- 5. My Choice Texas Home — For buyers without a first‑time requirement
- Frequently Asked Questions
- Conclusion
1. Robbie English, REALTOR, Broker
I’m Robbie English, a licensed broker serving Austin and the surrounding Hill Country. I work with buyers every day, guiding them through the maze of state and local assistance programs.
My role isn’t a program itself, but I act as the bridge between you and the resources that fit your situation. I know which lenders accept the My First Texas Home grant, which lenders can bundle a Mortgage Credit Certificate, and how to keep your paperwork on track.
Because I’m on the ground, I can point out hidden eligibility tricks, like qualifying as a veteran even if you’ve owned a home before, or using a county‑specific forgivable loan that many buyers miss. I also help you avoid pitfalls such as missing the homebuyer‑education deadline, which can stall an otherwise approved grant.
When you work with me, you get a single point of contact who knows the ins and outs of every major Texas assistance program. That saves time, cuts stress, and often uncovers extra dollars you didn’t think were available.
For a deeper look at Austin‑area assistance, on Down Payment Assistance Programs for Austin‑Area First‑Time Buyers.
2. My First Texas Home — For first‑time buyers and veterans
The My First Texas Home program is the state’s most flexible option for newcomers and veterans. It offers 2%‑5% of the loan amount toward down payment and closing costs, plus a 30‑year second lien that carries 0% interest.
Buyers can pick a 2%, 3%, 4% or full 5% assistance level. The second lien can be forgiven after three years of occupancy, meaning you never pay it back if you stay put. If you move sooner, you only repay the portion that remains.
Veterans also get to combine this aid with a Mortgage Credit Certificate, which gives a 15% credit on the interest you pay each year. That can lower your tax bill dramatically.
The program works statewide, so you’re not limited to a single city. It accepts single‑family homes, condos, and even duplexes with some exceptions.
Eligibility hinges on a three‑year “first‑time” rule or veteran status, a minimum credit score of 620, and meeting income limits set by the Texas Department of Housing and Community Affairs.
3. Home Sweet Texas — An option for eligible repeat buyers
Home Sweet Texas is open to repeat buyers who are purchasing a primary residence. That makes it a program worth reviewing if you have owned a home before and are now considering another primary-residence purchase in Texas.
Because eligibility depends on the program’s requirements and your individual circumstances, review the current guidelines before assuming you qualify. A repeat buyer should confirm that the planned property will be used as a primary residence and that the purchase fits the program’s rules.
It is also helpful to compare this option with other down-payment-assistance programs available for your situation. The most suitable choice can depend on whether you are a first-time or repeat buyer, the type of property you plan to purchase, and the requirements that apply at the time of your application.
Before moving forward, discuss the program with a participating lender or housing professional who can explain the current eligibility requirements and how the assistance may fit into your purchase. Ask what documentation is needed and how the program interacts with your mortgage financing.
For more details on how down-payment assistance works, see the Wikipedia overview of down‑payment assistance.
4. TSAHC Homes for Texas Heroes — Occupation‑based assistance
Homes for Texas Heroes is TSAHC’s occupation‑focused track. It serves teachers, first responders, nurses, and veterans.
The program offers a grant that can cover up to 5% of the purchase price, plus a below‑market mortgage rate that can shave hundreds off your monthly payment.
Eligibility requires proof of employment in a qualifying occupation and meeting income limits that range from 80% to 120% of Area Median Income, depending on the county.
Like some down payment assistance grants, there’s no repayment required if you stay in the home for the required period, usually three years. If you leave early, the grant remains a gift; the only repayment you might face is on any secondary loan you chose.
The program also lets you add a Mortgage Credit Certificate for an extra tax credit on interest.
A common snag is the limited funding pool, applications are accepted on a rolling basis, and once the pool is full for a county, you have to wait for the next round.
5. My Choice Texas Home — For buyers without a first‑time requirement
My Choice Texas Home opens assistance to anyone who meets income and credit criteria, even if you’ve owned a home before.
The program provides a second‑mortgage loan of up to 5% of the loan amount. The loan can be structured as a forgivable loan (forgiven after three years) or a low‑interest second lien that you repay over the life of the first mortgage.
Because it isn’t limited to first‑time buyers, repeat investors can also tap this resource, provided they qualify for the income limits.
Key features include:
- Statewide availability.
- Minimum credit score of 620 for FHA, VA, USDA, and conventional loans.
- Homebuyer education may be required.
- Purchase price caps that vary by county.
One drawback is that the program’s funding can be sporadic; some counties report longer wait times between award cycles.
Below is a quick comparison of the major program attributes:
When you compare the rows, you can see which program lines up with your home‑ownership timeline and budget.
Frequently Asked Questions
What is down payment assistance in Texas?
Down payment assistance in Texas is a set of state, city, or nonprofit programs that give eligible buyers money to cover part of the down payment or closing costs. The aid can be a grant (no repayment) or a forgivable loan that is forgiven after you live in the home for a set period. Understanding the different sources of down payments in real estate can also help you compare assistance with savings, gifts, and other permitted funds.
Can I combine more than one program?
Yes, many buyers stack a state grant with a city forgivable loan and still qualify for a Mortgage Credit Certificate. Each program has its own income and purchase‑price limits, so you’ll need to run the numbers to make sure you stay under the combined caps.
Do I have to be a first‑time buyer?
No. Programs like My Choice Texas Home and some city loans welcome repeat buyers as long as you meet the income and credit guidelines. First‑time‑buyer programs usually have the highest assistance percentages, though.
What happens if I sell before the forgiveness period ends?
If you sell or refinance before the loan is forgiven, you typically repay the remaining balance of the second lien, often on a prorated basis. Grants, however, never need to be repaid.
How do I start the application process?
Begin with an online eligibility quiz on the program’s website, then contact a participating lender. You’ll also need to complete a homebuyer‑education course before closing.
Are there any income limits?
Most programs set limits between 80% and 125% of the Area Median Income (AMI). The exact figure depends on the county and the specific program you’re applying for.
Conclusion
If you need help sorting through the options, I recommend starting with the My First Texas Home program for its flexibility, then checking the TSAHC grants for extra cash that never needs to be paid back. To see how these programs fit your specific numbers, grab my free home‑buyer budgeting worksheet on the What Is the Minimum Down Payment to Buy a Home? page and schedule a quick chat.
