Is There Down Payment Help for First-Time Buyers in Texas?
The short answer
Yes. Texas has down payment assistance for first-time buyers, mainly through statewide housing programs and some city and county programs. Help usually comes as a grant or a second loan that may be forgivable or repaid when you sell or refinance. Each program has its own income limits, price limits, credit rules and homebuyer education requirement.
The main types of help
- Grants: money toward your down payment or closing costs that typically does not have to be repaid if you follow the program rules.
- Forgivable second loans: a small second mortgage, often with no monthly payment, forgiven after you live in the home for a set number of years.
- Deferred second loans: no monthly payment, but repaid when you sell, refinance or pay off the first mortgage.
- Local programs: some North Texas cities and counties run their own programs, sometimes for specific neighborhoods or professions.
Who usually qualifies
- Buyers under the program's income limit, which depends on county and household size
- Homes under the program's price limit
- Buyers who meet a minimum credit score and complete a homebuyer education course
- Buyers who will live in the home as their main residence
Heads up: "first-time buyer" often means you have not owned a home in the last three years, so a past owner may still count. Some programs are also open to repeat buyers or specific groups such as teachers, first responders and veterans.
The trade-offs to know
Assistance can come with a slightly higher interest rate or extra fees on the first mortgage, and funds can run out. The right question is not just "how much help?" but "what does the whole package cost me over time?"
Frequently asked questions
Can I combine assistance with an FHA or VA loan?
Many programs pair with FHA, VA, USDA or conventional loans. Rules vary by program.
How do I find out what I qualify for?
Start with your household income, target price and county. We can check current programs and compare them with a no-assistance option.
Also read the minimum down payment in Texas, call (469) 414-5554, or visit our Texas branch.
By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not a commitment to lend or financial advice. Programs, rates and guidelines vary and change.
