State Housing Finance Agency Programs 2026: Free DPA + Below-Market Rates in All 50 States
Every US state runs a housing finance agency (HFA) that lends below market — typically 0.25-0.50% cheaper — and throws in $5,000-$150,000 in down payment assistance. Most buyers have never heard of their state HFA. Here is how they all work, the 5 universal eligibility rules, and your state's guide.
Your State Probably Owes You $10K+
HFA-approved lenders can check every state program you qualify for in one application. Soft pull, no obligation.
The 5 Universal HFA Requirements (Every State)
1. First-time buyer — no home in past 3 years
The standard definition. Waived in most states for veterans and buyers purchasing in federally "targeted areas" (lower-income census tracts). If you owned before but not in 3 years — you count as first-time again.
2. Income limits — 80-140% of area median income
Ranges from ~$90K in rural counties to $280K+ in San Francisco/NYC. Crucially, most states count only the BORROWER's income — not the whole household. A spouse who doesn't go on the loan doesn't count against the cap.
3. Credit score — 620-660 minimum
640 is the most common floor. Some states go to 620 on FHA. Higher scores unlock the lowest HFA rate tier — a 740 vs 640 can be worth 0.25%.
4. Primary residence only
No investors, no second homes. You must move in within 60 days and stay — renting it out early can trigger DPA repayment.
5. Homebuyer education — HUD-approved course
4-8 hours online, $25-$100, valid 1-2 years. Do it BEFORE applying — it is the #1 reason HFA files stall.
State HFA Programs — Deep-Dive Guides
| State / Agency | Flagship Program | Rate From | Guide |
|---|---|---|---|
| California CalHFA • income ~$153K-$287K | Dream For All — up to 20% DPA ($150K) | 5.875% | CalHFA Guide → |
| Texas TDHCA • income ~Varies by county | My First Texas Home — 5% DPA + MCC $2K/yr | 5.875% | TDHCA Guide → |
| Texas TSAHC • income ~Varies by county | Home Sweet Texas — 5% NON-repayable grant | 6.50% | TSAHC Guide → |
| Ohio OHFA • income ~~$140K+ | Your Choice! DPA — up to 5%, Heroes 6.00% | 6.00% | OHFA Guide → |
| Tennessee THDA • income ~~$120K avg | Great Choice — $6K-$15K DPA | 6.25% | THDA Guide → |
| New York SONYMA • income ~$100K-$160K | Achieving the Dream — 3% down, below-market | 5.90% | SONYMA Guide → |
| Maryland MMP • income ~Varies | 1st Time Advantage — $6K+ DPA loans | 6.10% | MMP Guide → |
Rates as of October 1, 2026 — HFA rates update weekly. All 50 states have an HFA; guides for remaining states (Florida HFC, Georgia Dream, PHFA Pennsylvania, MSHDA Michigan, IHDA Illinois, WSHFC Washington, VHDA Virginia, NC Housing) publish as funding opens.
The 3 Types of DPA (Know What You're Signing)
🎁 Grant — never repaid
TSAHC Texas, several FL/GA county programs. Free money — the best kind. Usually capped at 3-5% of loan.
⏸️ Deferred 0% second — repaid on sale/refi
CalHFA MyHome, THDA Great Choice. No monthly payment, no interest — you repay the principal only when you sell, refinance, or pay off.
📈 Shared appreciation — repay + % of gains
CalHFA Dream For All (up to 20%!). Biggest DPA amounts but you share appreciation at exit. Still a deal — it got you into the home.
FHA 3.5% + HFA DPA = $0 Out of Pocket
The classic stack: FHA first mortgage + state DPA second covering the 3.5% down AND closing costs. Approved lenders run the whole stack in one file.
Get Pre-Approved (HFA Lender) →How to Actually Get HFA Money (Step-by-Step)
- Take the homebuyer course NOW — HUD-approved, online, ~$75. Certificate valid 1-2 years.
- Check your county's income limit — limits are per-county, not statewide. A $95K salary disqualifies you in rural TX but qualifies easily in SF.
- Apply ONLY through HFA-approved lenders — the state doesn't take applications directly. Not every lender is approved; ask upfront.
- Reserve the DPA at rate lock — DPA pools deplete; your lender locks funds with the state when you lock the rate.
- Close in 30-45 days — HFAs add ~5-10 days vs conventional for state compliance review.