Best Texas Down Payment Assistance Programs in 2026, Ranked
A side-by-side ranking of Texas DPA programs — from TDHCA and TSAHC to SETH and city programs — so you can find the right fit for your credit, income, and county.
The best Texas down payment assistance program in 2026
For most first-time buyers in Texas, the best down payment assistance program is TDHCA My First Texas Home. It provides up to 5% of the loan amount on FHA, VA, USDA, or conventional financing, works in all 254 counties, and in select counties can stack an additional local gift on top. Buyers who are not first-time buyers usually do best with TDHCA My Choice Texas Home or TSAHC Home Sweet Texas, while teachers, veterans, and first responders should compare TSAHC Homes for Texas Heroes. The rankings below explain each program, who it fits, and what to watch out for.
All state programs deliver 2%–5% of your loan amount, with no fixed dollar cap and no minimum loan size. Credit floors start around 620, debt-to-income follows automated underwriting, and homebuyer education is required before closing. For the full program reference, see our Texas DPA programs overview.
Ranked for the most common buyer scenario. Your best match may differ by credit, income, and county.
1
My First Texas Home
Top pick
TDHCA · Texas Department of Housing and Community Affairs
The flagship statewide first-time buyer program. It pairs a competitive 30-year fixed FHA, VA, USDA, or conventional first mortgage with down payment and closing-cost assistance delivered as a second lien.
Assistance
Up to 5% of the loan amount
Min credit
620+
First-time?
Required
Structure
Second lien offered as a 3-year forgivable option or a 30-year deferred option, at 0% interest per TDHCA.
Best for
Most first-time Texas buyers who want the maximum 5% assistance across every major loan type — and, in select counties, the ability to stack an extra Housing Finance Corporation gift on top.
Watch-outs
Genuine first-time-buyer restriction (no ownership interest in a primary residence in the last three years, with targeted-area and veteran exceptions). Income and purchase-price limits apply by county, and homebuyer education is required before closing.
First-time requirement: Required (or buying in a targeted area / a qualified veteran)
TDHCA · Texas Department of Housing and Community Affairs
TDHCA's companion program that drops the first-time-buyer requirement while keeping the same assistance structure as My First Texas Home.
Assistance
Up to 5% of the loan amount
Min credit
620+
First-time?
Not required
Structure
Second lien offered as a 3-year forgivable option or a 30-year deferred option, at 0% interest per TDHCA.
Best for
Non-first-time buyers who still want the full 5% TDHCA assistance — for example, a homeowner selling and buying again, or anyone who owned a home in the past three years.
Watch-outs
Income and purchase-price limits still apply by county, and homebuyer education is required. The optional stackable HFC gift is generally tied to My First Texas Home, not My Choice.
First-time requirement: Not required — repeat and move-up buyers qualify
TSAHC · Texas State Affordable Housing Corporation
TSAHC's flagship program for the general public, notable for offering assistance as an outright grant that never has to be repaid — or, alternatively, as a forgivable second lien.
Assistance
Up to 5% of the loan amount
Min credit
620+ (TSAHC conventional loans typically 640+)
First-time?
Not required
Structure
Grant (non-repayable) OR a 3-year forgivable second lien at 0% interest, per TSAHC.
Best for
Buyers who want the lowest practical credit floor plus a true grant option, and who are not first-time buyers. TSAHC does not impose a universal first-time requirement, so repeat buyers can qualify.
Watch-outs
Income limits vary by county and household size, and the grant vs. forgivable choice can affect the interest rate on the first mortgage. Homebuyer education is required.
First-time requirement: Not required — a key TSAHC differentiator
TSAHC · Texas State Affordable Housing Corporation
TSAHC's program reserved for Texans in public-service and hero occupations, with the same grant-or-forgivable structure as Home Sweet Texas.
Assistance
3–5% of the loan amount
Min credit
620+ (TSAHC conventional loans typically 640+)
First-time?
Not required
Structure
Grant (non-repayable) OR a 3-year forgivable second lien at 0% interest, per TSAHC.
Best for
Teachers, veterans, police officers, firefighters, EMS, corrections officers, and other eligible public servants — the "heroes" lane. Not a first-time buyer? Still eligible.
Watch-outs
You must work in a qualifying hero occupation to use this specific program; buyers who do not qualify should look at Home Sweet Texas instead. Income limits and homebuyer education apply.
A regional housing finance corporation program offering both government (FHA/VA/USDA) and conventional options with flexible repeat-buyer eligibility.
Assistance
3–5% of the note amount
Min credit
640+
First-time?
Not required
Structure
3-year forgivable second lien OR a 30-year deferred second lien at 0% interest, depending on option, per SETH.
Best for
Repeat buyers (and buyers who currently own another property) who want a second option beyond TDHCA and TSAHC, on either government or conventional financing.
Watch-outs
Geographic exclusions apply — SETH is not available in Travis County, El Paso, Grand Prairie, or McKinney. The 640 credit floor is slightly higher than the 620 TDHCA/TSAHC minimum.
First-time requirement: Not required — can even own other property
Local HFCs · Municipal & county housing finance corporations
Several Texas metros run their own homebuyer-assistance programs, typically as larger fixed-dollar forgivable loans aimed at lower-income buyers inside city limits. These can sometimes layer with or substitute for a state program.
Assistance
Fixed-dollar amounts set by each city (see notes)
Min credit
Varies by city (typically per first-mortgage underwriting)
First-time?
Usually
Structure
Usually 0% deferred or forgivable second loans that forgive over a residency period, per each city agency.
Best for
Lower-income buyers purchasing inside a participating city, where the local program may exceed the state 5% — by metro: Houston (HAP), Dallas (DHAP), San Antonio (HIP).
Watch-outs
City programs carry strict income caps (often ≤80% AMI), city-limit and purchase-price boundaries, funding that can run out, and their own homebuyer-education rules. Program administration can change — e.g. Dallas DHAP is administered by BCL of Texas as of 2026.
First-time requirement: Usually required; varies by program
Assistance is 2%–5% of the loan amount with no fixed dollar cap on state programs.
Comparison of Texas down payment assistance programs by assistance amount, structure, credit floor, first-time requirement, and income limit
Program
Provider
Assistance
Forgivable vs. deferred
Credit floor
First-time?
Income limit
My First Texas Home
TDHCA
Up to 5% of loan (no $ cap)
Forgivable (3-yr) or deferred (30-yr)
620
Yes
By county — see TDHCA limits
My Choice Texas Home
TDHCA
Up to 5% of loan (no $ cap)
Forgivable (3-yr) or deferred (30-yr)
620
No
By county — see TDHCA limits
Home Sweet Texas
TSAHC
Up to 5% of loan (no $ cap)
Grant or forgivable (3-yr)
620
No
By county/household — see TSAHC limits
Homes for Texas Heroes
TSAHC
3–5% of loan (no $ cap)
Grant or forgivable (3-yr)
620
No
By county/household — see TSAHC limits
SETH 5 Star
SETH
3–5% of note
Forgivable (3-yr) or deferred (30-yr)
640
No
Per SETH rate sheet
City programs (HAP / DHAP / HIP)
Local
Fixed $ (varies by city)
Deferred or forgivable
Varies
Usually yes
Often ≤80% AMI
Income limits vary by county and household size and are set by each agency (TDHCA, TSAHC, SETH) or city. Figures reflect program mechanics only, not an offer of credit.
How to choose the right Texas DPA program
1
Start with whether you are a first-time buyer
If you have not owned a primary residence in the past three years, My First Texas Home unlocks the full 5% plus stackable local gifts in some counties. If you have owned recently, focus on My Choice Texas Home, TSAHC, or SETH — none of which require first-time status.
2
Check your credit score against the floor
Around 620 opens TDHCA and TSAHC (TSAHC conventional often 640). SETH generally needs 640. A lower score narrows your options, so pull your credit early.
3
Match your occupation to the Heroes lane
Teachers, veterans, police, firefighters, EMS, and corrections officers should compare TSAHC Homes for Texas Heroes, which is built specifically for public servants.
4
Decide grant vs. forgivable vs. deferred
TSAHC offers a true grant that never repays. TDHCA and SETH use forgivable or deferred second liens. The structure you pick can affect the first-mortgage rate, so weigh both.
5
Layer in your metro
If you are buying inside Houston, Dallas, or San Antonio and your income is modest, a city program (HAP, DHAP, HIP) may provide a larger fixed-dollar amount than the state percentage — sometimes in combination with a state program.
Not sure which lane fits? Our DPA calculator and the eligibility quiz below can narrow it to a shortlist in a couple of minutes.
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Frequently asked questions
Common questions about the best Texas down payment assistance programs.
What is the best down payment assistance program in Texas?
For most first-time buyers, TDHCA My First Texas Home is the best all-around option because it offers up to 5% of the loan amount on FHA, VA, USDA, or conventional financing and, in some counties, can stack an extra Housing Finance Corporation gift. Buyers who are not first-time buyers usually get the most value from TDHCA My Choice Texas Home or TSAHC Home Sweet Texas, and teachers, veterans, and first responders should compare TSAHC Homes for Texas Heroes. The truly best program depends on your credit score, county, income, and whether you have owned a home in the last three years.
How much down payment assistance can I get in Texas?
Texas state programs provide 2% to 5% of your loan amount in assistance. Because it is calculated as a percentage of the loan, there is no fixed dollar cap and no minimum loan size — a larger loan simply earns proportionally more assistance. Some city programs instead offer fixed-dollar forgivable loans that can be larger for lower-income buyers inside city limits.
Do I have to be a first-time buyer to get Texas down payment assistance?
No. Only TDHCA My First Texas Home carries a first-time-buyer requirement. TDHCA My Choice Texas Home, both TSAHC programs (Home Sweet Texas and Homes for Texas Heroes), and SETH all allow repeat buyers — and TSAHC does not impose a universal first-time requirement, which is a key differentiator. SETH even allows buyers who currently own another property.
What credit score do I need for Texas down payment assistance?
A credit score around 620 is the typical floor for TDHCA and TSAHC programs, though TSAHC conventional loans often require 640. SETH programs generally require 640. Your actual approval also depends on debt-to-income, which follows the automated underwriting (AUS) findings on your file rather than a fixed ratio.
Do you have to repay Texas down payment assistance?
It depends on the structure you choose. TSAHC offers a grant option that never has to be repaid. TDHCA, SETH, and the forgivable versions of TSAHC provide the assistance as a second lien that is forgiven over three years (or deferred with no monthly payment) — so as long as you meet the program terms, you typically do not repay it out of pocket. City programs are usually forgivable over a required residency period.
Can I combine Texas DPA with local gift funds?
In select Texas counties, buyers using TDHCA My First Texas Home can layer an additional Housing Finance Corporation (HFC) gift on top of their state assistance. Availability and amounts are set by each HFC and depend on the county you buy in. Stackable gift funds apply to the down payment and cannot be returned to you as cash.
Which Texas DPA program is best for teachers and first responders?
TSAHC Homes for Texas Heroes is built specifically for public servants — teachers, veterans, police officers, firefighters, EMS, and corrections officers. It offers 3–5% of the loan amount as a grant or forgivable second lien, does not require you to be a first-time buyer, and uses the same roughly 620 credit floor as other TSAHC programs.
What is the income limit for Texas down payment assistance?
Income limits vary by program, county, and household size, so there is no single statewide number. TDHCA and TSAHC publish county-level limits, SETH uses its own rate sheet, and city programs are often capped at or below 80% of area median income. A loan originator can confirm the exact limit for your county and household.
Can I use down payment assistance with an FHA, VA, or USDA loan?
Yes. TDHCA and TSAHC programs work with FHA, VA, USDA, and conventional first mortgages. SETH offers both government (FHA/VA/USDA) and conventional options. The assistance is layered on top of whichever first mortgage you qualify for.
How do I apply for Texas down payment assistance?
You apply through an approved participating lender rather than directly with the state agency. The lender confirms your eligibility, matches you to the right program for your county and profile, and completes the required homebuyer-education step. You can start by checking your eligibility with our quick quiz or by contacting our team.
Find your best-fit Texas DPA program
Compare all the programs above against your credit, income, and county — or take the quiz for a personalized shortlist.
Program rankings are editorial and reflect common buyer scenarios; the best program for you depends on your individual eligibility. Programs subject to underwriting approval and eligibility requirements. Not all borrowers will qualify for all programs. Assistance amounts, income limits, and terms are set by TDHCA, TSAHC, SETH, and city agencies and are subject to change without notice. Income limits vary by county and household size. Cornerstone First Mortgage LLC, NMLS #173855. Not affiliated with, endorsed by, or sponsored by TDHCA, TSAHC, SETH, or any government agency. Last updated July 2026.