Repeat Buyer Gets $17,000 in DPA with My Choice Texas Home

Deal Summary

Detail	Value
Borrower	38-year-old IT project manager, previous homeowner
Property	3BR/2BA single-family home in Round Rock, TX
Purchase Price	$340,000
DPA Program	My Choice Texas Home (TDHCA)
DPA Amount	$17,000 (5% of loan amount, deferred second lien)
Loan Type	Conventional 30-year fixed
Credit Score	705
Household Income	$95,000
Closing Timeline	30 days

The Challenge: A Repeat Buyer Who Needed DPA

Our client had owned a home before. He purchased a condo in his late twenties, lived in it for five years, and sold it when he relocated from Houston to the Austin metro area for a new position. After the sale, he rented an apartment in Round Rock for two years while he settled into his new job and got a feel for the local neighborhoods.

When he was ready to buy again, he ran into a familiar obstacle: the down payment. His previous home sale had generated modest equity, but most of it had gone toward paying off a car loan and covering moving expenses. He had about $8,000 in savings, which was not enough for a conventional down payment on the $340,000 homes he was looking at in the Round Rock area.

He began researching Texas down payment assistance programs online, but nearly every article he found focused on first-time buyers. He assumed he was out of luck. As a previous homeowner, he figured DPA programs were off the table for him.

That assumption was wrong. When he contacted the Cook Brothers Mortgage Team at Cornerstone First Mortgage, we introduced him to a program he had not heard of: My Choice Texas Home.

Why My Choice Texas Home Was the Right Program

The My Choice Texas Home program, administered by TDHCA, is specifically designed to fill the gap that many repeat buyers fall into. Here is why it was the ideal fit for our client.

It is open to repeat buyers. Unlike TDHCA's My First Texas Home program, which requires the buyer to not have owned a home in the past three years, My Choice Texas Home has no first-time buyer requirement. Whether you owned a home last year or ten years ago, you are eligible. This was the critical factor for our client, who had sold his condo just two years prior.

It provides up to 5% in DPA. The program offered him up to 5% of the loan amount in down payment and closing cost assistance. On his $340,000 purchase, that translated to $17,000 — more than enough to cover both his down payment and a significant portion of his closing costs.

His income qualified. At $95,000 for a single-person household, he was within the income limits for Williamson County (where Round Rock is located). Many buyers earning in the $80,000 to $100,000+ range are surprised to learn they still qualify. The income ceilings for Texas DPA programs are based on Area Median Family Income and are often higher than people expect.

His credit score was solid. With a 705 credit score, he qualified easily for a conventional loan. The conventional loan with 3% down was the most efficient path because it minimized the down payment requirement and allowed the 5% DPA to cover both the down payment and closing costs with room to spare.

My Choice Texas Home vs. My First Texas Home: What Is the Difference?

Many Texas buyers are confused about the difference between TDHCA's two programs. Here is a clear breakdown.

Feature	My First Texas Home	My Choice Texas Home
Buyer type	First-time buyers only (no ownership in past 3 years)	First-time AND repeat buyers
DPA amount	Up to 5% of loan amount	Up to 5% of loan amount
DPA structure	Forgivable second lien (forgiven after ~3 years)	Deferred second lien (repaid on sale/refi/payoff)
Interest on second lien	0%	0%
Monthly payments on DPA	None	None
Loan types	FHA, VA, USDA	FHA, VA, Conventional
Mortgage rate	Competitive 30-year fixed	Competitive 30-year fixed

The biggest differences are the buyer eligibility and the DPA repayment terms. My First Texas Home requires first-time buyer status and offers a forgivable second lien (the DPA is forgiven after three years). My Choice Texas Home welcomes all buyers but provides the DPA as a deferred second lien, meaning it must be repaid when you sell, refinance, or pay off the first mortgage.

For our client, the deferred lien structure was perfectly acceptable. He planned to live in the home for at least seven to ten years, and when he eventually sold, the $17,000 second lien would simply be paid off from the sale proceeds. Given the equity he expected to build over that period, the repayment was not a concern.

The important takeaway is this: if you have owned a home before and think you cannot get DPA, you are likely wrong. My Choice Texas Home exists specifically for buyers like you.

How the Numbers Worked

Here is the detailed financial breakdown of our client's transaction.

Down payment. A conventional loan with 3% down on a $340,000 purchase required a down payment of $10,200. The My Choice Texas Home DPA of $17,000 covered this entirely, with $6,800 remaining.

Closing costs. His estimated closing costs, including title fees, lender fees, prepaid taxes, prepaid insurance, and recording fees, totaled approximately $9,500. The remaining $6,800 from the DPA was applied directly toward these costs, leaving a gap of about $2,700.

Personal savings. With $8,000 in personal savings, he covered the remaining $2,700 in closing costs plus his earnest money deposit and inspection fees. He walked away from closing with money still in the bank.

Monthly payment. His conventional mortgage payment, including principal, interest, taxes, insurance, and private mortgage insurance (PMI), came to approximately $2,340 per month. This was comparable to his rent for a smaller apartment, but now he was building equity, earning tax deductions on mortgage interest, and living in a larger home with a yard.

The entire transaction closed in 30 days from the date of his purchase contract. Our team submitted the TDHCA reservation request within 48 hours of his application, and the DPA funds were confirmed well before his closing date.

What Happens to the Deferred Second Lien?

Because My Choice Texas Home uses a deferred second lien (not a forgivable one), the $17,000 remains on the property title as a subordinate mortgage. Here is what that means in practice.

No monthly payments. The second lien carries a 0% interest rate and requires zero monthly payments. It does not affect the borrower's monthly budget or debt-to-income ratio after closing.

No interest accruing. The balance remains at $17,000 for the life of the lien. It does not grow over time.

Repayment triggers. The second lien becomes due in full when the borrower sells the home, refinances the primary mortgage, or pays off the primary mortgage. For most borrowers, this means the DPA is repaid from sale proceeds when they eventually sell the home.

Practical impact. For a buyer who plans to stay in the home for five, ten, or fifteen years, the deferred second lien is a minor consideration. Home values in the Austin metro area have appreciated consistently over time, and the equity built through mortgage payments and appreciation will far exceed the $17,000 repayment amount. Our client viewed it as an interest-free loan that helped him buy his home years sooner than he could have on his own.

Key Takeaways for Repeat Buyers

If you have owned a home before and thought DPA was only for first-time buyers, this case study should change your perspective. Here are the key lessons.

Repeat buyers have options. My Choice Texas Home is open to all buyers regardless of ownership history. You do not need to be a first-time buyer, and there is no waiting period after selling a previous home. If you meet the income, credit, and purchase price requirements, you can qualify.

The deferred second lien is a smart tool, not a burden. Yes, you will eventually repay the $17,000 when you sell or refinance. But you repay it with no interest, and in the meantime, you are living in your home, building equity, and benefiting from appreciation. It is an interest-free loan that accelerates your homeownership timeline.

Income limits are higher than most people think. Our client earned $95,000 and qualified without issue. The income ceilings for TDHCA programs are based on Area Median Family Income and adjust by county and household size. In many Texas metro areas, households earning six figures can still qualify. Do not assume you are over the limit until you have checked.

An experienced DPA lender makes the difference. Our client found us because his own research had led him to a dead end — he could not find a program for repeat buyers on his own. At Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855), we work with every major Texas DPA program daily and know exactly which programs fit each buyer's situation. If one program does not work, we have others to consider.

You do not need a large savings account. With $8,000 in savings and $17,000 in DPA, our client closed on a $340,000 home in one of the fastest-growing metros in the country. The DPA covered his down payment and the majority of his closing costs. His personal savings covered the small remaining balance.

Check Your Eligibility

Are you a repeat buyer wondering if you qualify for My Choice Texas Home or another Texas down payment assistance program? Check your eligibility today using our free online quiz. In a few minutes, you will see which programs are available to you based on your income, credit, and buying history.

You can also call us directly. Reach Tanner Cook at 480-420-4918 or Zac Cook at 480-406-2016 to discuss your situation with a DPA specialist at Cook Brothers Mortgage Team at Cornerstone First Mortgage.

Tanner Cook is a licensed mortgage loan originator (NMLS #2090424). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.