FOR BUYERS - DOWN PAYMENT ASSISTANCE
Down Payment Assistance Programs
State and local programs that can cover thousands toward your down payment — and how to know if you qualify.
IN THIS GUIDE
1.
TDHCA — My First Texas Home
This is Texas’s flagship down payment assistance program, and it can cover up to 5% of your loan amount toward your down payment or closing costs. On a $300,000 home, that’s up to $15,000 — structured as a zero-interest second loan you don’t pay back monthly, deferred until you sell, refinance, or pay off the home. Most participating lenders require a minimum 620 credit score, and you’ll need to complete a HUD-approved homebuyer education course before closing.
You generally need to be a first-time buyer — meaning you haven’t owned a home in the past three years — though veterans are exempt from that rule. Income and purchase price limits apply and vary by county and household size, so the number that matters isn’t a statewide figure you’ll find in a quick search — it’s the one specific to your household and where you’re buying.
2.
TSAHC — Homes for Texas Heroes
If you’re a teacher, firefighter, EMS worker, police officer, correctional officer, or veteran, this program was built with you in mind. It offers up to 5% of your loan amount for down payment or closing costs, and you get to choose the form it takes: a grant you never repay, or a second lien loan that’s forgiven entirely if you stay in the home for three years without refinancing.
Beyond your profession, you’ll need a 620 credit score, income and purchase price within program limits for your county, and a completed homebuyer education course before closing. It works alongside FHA, VA, USDA, or conventional loans — so it’s less a separate loan and more an add-on that makes whichever loan fits you a little easier to afford.
3.
City & county grants near Austin
Beyond the state-level programs, Austin buyers have local options too. The City of Austin’s Down Payment Assistance Program can provide up to $40,000 as a 0% interest, deferred second lien — forgiven over time, not something you’re stuck repaying monthly. Travis County’s Hill Country Home DPA program is separate and stackable, offering 4–6% of your loan amount as another 0% interest loan, forgivable after 10 years if you stay in the home.
Because these are funded by the city and county rather than the state, eligibility and funding availability can shift — some run first-come, first-served until money for the year runs out. That’s exactly the kind of detail worth checking on now rather than after you’ve found a house you love, since timing can be the difference between qualifying and missing the window.
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4.
Who qualifies (income & limits)
Every program above has its own income ceiling, and they’re not identical — some cap around 80% of the area median income, others stretch to 115% or higher depending on the program and household size. The same goes for purchase price limits, which vary by county and can rule out some of Austin’s pricier ZIP codes even for buyers who qualify on income. Credit score minimums generally land in the 620–640 range across these programs, and nearly all require a HUD-approved homebuyer education course before closing.
The honest answer to “do I qualify” is: it depends on which program, your household size, and where you’re buying — not a single number you can Google and apply to yourself. That’s the kind of thing worth running through with someone who knows which programs are actually available right now versus which ones sound good on paper but have exhausted their funding.
5.
How to apply, step by step
Months 1-2: Get the full picture. Pull your reports from all three burears at AnnualCreditReport.com and ready them line by line. Dispute anything wrong: incorrect balances, accounts that aren’t yours, outdate negative items. This is the foundation everything else builds on, so don’t skip it even if your score already looks decent.
Months 3-4: Attack utilization. Focus extra payments on paying down credit card balances, aiming for under 30% of each limit (ideally closer to 10% if you can swing it). This is where youll likey see the fastest score movement, since it updates as soon as your balances report, not months later like dispute resolutions can take.
Months 5-6: Get real numbers, not guesses. Once your reports are clean and your utilization is down, talk to a lender about where you actually stand. This is the point to reach out and figure which loan program fits your situation, so you’re walking into house-hunting with an exact number.
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