Down Payment Assistance Programs in Texas: A Complete 2026 Guide
By Neda | Houses by Neda at Real Broker | Frisco • Prosper • Celina
If you’re dreaming of buying your first home in North Texas but the down payment feels like an impossible hurdle, I have good news: you might not need to save as much as you think. Texas has some of the most generous down payment assistance programs in the country, and many buyers in Frisco, Prosper, and Celina qualify without even realizing it.
In this guide, I’ll break down every major program available to Texas homebuyers in 2025—from statewide options to DFW-specific grants—so you can figure out which ones might work for you.
✨ Quick stat: The average Texas home price is around $335,000. A 3% down payment on that is roughly $10,000. Many of these programs can cover that entirely.
Statewide Programs: Your Biggest Opportunities
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My First Texas Home (TDHCA) https://welcomehome.tdhca.texas.gov
Administered by the Texas Department of Housing and Community Affairs, this is Texas’s flagship first-time buyer program. Here’s what it offers:
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Up to 5% of the loan amount for down payment and closing costs
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30-year fixed-rate mortgage at competitive rates
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Assistance comes as a 3-year forgivable second lien (stay 3 years and you never repay it) or a 30-year deferred loan
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Works with FHA, VA, USDA, and conventional loans
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Minimum credit score: 620
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Must complete a homebuyer education course (free through TDHCA)
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Can be combined with a Mortgage Credit Certificate (MCC) for annual tax savings
✨ Neda’s Tip: The MCC is the hidden gem here. It gives you a dollar-for-dollar federal tax credit on a portion of your mortgage interest—every single year. Most agents don’t even mention it.
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My Choice Texas Home (TDHCA) | https://welcomehome.tdhca.texas.gov/programs
This is the sister program to My First Texas Home, but with one big difference: you don’t have to be a first-time buyer. If you’ve owned a home before, you can still qualify. Same great benefits—up to 5% assistance, fixed rates, and multiple loan types.
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Homes for Texas Heroes (TSAHC) https://www.tsahc.org/homebuyers-renters/first-time-home-buyer-grants
The Texas State Affordable Housing Corporation created this program for professionals who serve Texas communities. If you’re a teacher, firefighter, EMS worker, police officer, correctional officer, or veteran, this one’s for you.
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Down payment assistance as a grant (never repaid) or 3-year forgivable second lien
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30-year fixed-rate mortgage
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Minimum credit score: 620
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Eligible for MCC tax credit (free for Heroes program participants)
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Home Sweet Texas (TSAHC) https://www.tsahc.org/homebuyers-renters/home-sweet-texas-home-loan-program
Not in a “hero” profession? No problem. Home Sweet Texas offers the same assistance structure for all Texas homebuyers with low to moderate incomes. Both first-time and repeat buyers can apply.
✨ How to check: Take TSAHC’s free online Eligibility Quiz at tsahc.org. It takes just a few minutes and tells you exactly which programs you qualify for.
DFW-Area Local Programs
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Dallas Homebuyer Assistance Program (DHAP) https://dallascityhall.com/departments/housing-neighborhood-revitalization/Pages/Dallas-Homebuyer-Assistance-Program-DHAP.aspx
If you’re purchasing within Dallas city limits, this is one of the most generous local programs in the state:
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Up to $60,000 in high-opportunity areas (up to $50,000 in other Dallas areas)
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Forgivable deferred second lien
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Income must be at or below 80% of Area Median Income
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Housing payment cannot exceed 35% of monthly gross income
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Fort Worth Homebuyer Assistance Program (HAP) https://www.fortworthtexas.gov/departments/neighborhoods/services/hap
Fort Worth offers up to $25,000 in mortgage assistance for income-eligible first-time homebuyers purchasing within city limits. Funds are structured as a no-interest, deferred, forgivable loan.
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Arlington Homebuyer Assistance Program (AHAP) https://www.arlingtontx.gov/Government/Departments/Department-Directory/Grants-Management/Quality-Housing-Resources
Arlington provides up to $20,000 in down payment assistance for qualified first-time buyers whose household income doesn’t exceed 80% of the area median income.
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Denton Homebuyers Assistance Program https://www.cityofdenton.com/177/Homebuyer-Resources
The City of Denton offers up to $50,000 in down payment and closing cost assistance for income-eligible first-time homebuyers purchasing within Denton city limits.
Quick Comparison: Which Program Is Right for You?
| Program | Assistance | Who Qualifies | Repayment | Min. Credit Score |
| My First Texas Home | Up to 5% of loan | First-time buyers & vets | Forgivable after 3 yrs or 30-yr deferred | 620 |
| My Choice Texas Home | Up to 5% of loan | All buyers | Forgivable after 3 yrs or 30-yr deferred | 620 |
| Homes for TX Heroes | Grant or forgivable lien | Teachers, first responders, vets | Grant = no repayment | 620 |
| Home Sweet Texas | Grant or forgivable lien | Low-to-moderate income | Grant = no repayment | 620 |
| Dallas DHAP | Up to $60,000 | Low-to-mod income, Dallas limits | Forgivable deferred loan | Per lender |
| Fort Worth HAP | Up to $25,000 | First-time, FW limits | Forgivable deferred loan | Per lender |
How to Get Started: Your Action Plan
- Check your credit score. Most programs require a minimum of 620. If you’re below that, a few months of focused effort can get you there.
- Take the eligibility quizzes. Both TSAHC and TDHCA have free online tools that tell you in minutes what you qualify for.
- Connect with an approved lender. Not all lenders participate in these programs. I work with lenders who specialize in DPA programs and can guide you to the right fit.
- Complete a homebuyer education course. Required for most programs and it’s a genuinely helpful step. TDHCA even offers a free one.
- Work with an agent who knows DPA inside and out. Programs have deadlines, funding limits, and specific paperwork. Having someone in your corner who’s navigated this before makes a huge difference.