Texas First-Time Home Buyer Programs 2026: Get $10K-$40K in FREE Down Payment Assistance
Texas has some of the BEST first-time buyer programs in the country. Between TDHCA, TSAHC grants, and city programs, you can get 0,000-$40,000 in down payment help — some of it completely FREE. Here is every program, with eligibility requirements and how to apply.
Quick Answer: Best Texas First-Time Buyer Programs
Best overall: TSAHC Home Sweet Texas (5% DPA as FREE GRANT). Most flexible: TDHCA My Choice (repeat buyers welcome). Highest amount: Austin SMART Housing ($40K). Best for heroes: TSAHC Homes for Heroes (teachers, nurses, police). Most programs require 620+ credit and income below area limits. Compare Texas DPA lenders now →
All Texas DPA Programs Compared (2026)
| Program | DPA Amount | Type | Credit | Income Limit | First-Time? | Best For |
|---|---|---|---|---|---|---|
| TDHCA My First Texas Home | Up to 5% | Deferred 2nd lien | 620+ | $82K-$97K | Yes | Most Texans |
| TDHCA My Choice Texas Home | Up to 5% | Deferred 2nd lien | 620+ | $82K-$97K | No (repeat OK) | Repeat buyers |
| TSAHC Home Sweet Texas | Up to 5% | GRANT (free!) | 620+ | Varies | Yes | FREE money seekers |
| TSAHC Homes for Heroes | Up to 5% | GRANT (free!) | 620+ | Varies | No | Teachers, nurses, cops |
| Houston HOPE Program | Up to $30,000 | Forgivable loan | 640+ | 80% AMI | Yes | Houston buyers |
| Dallas DPA Program | Up to $20,000 | Forgivable loan | 620+ | 80% AMI | Yes | Dallas buyers |
| San Antonio DPA | Up to $15,000 | Forgivable loan | 620+ | 80% AMI | Yes | SA buyers |
| Austin SMART Housing | Up to $40,000 | Deferred loan | 620+ | MFI limits | Yes | Austin buyers |
Top 3 Texas Programs: Deep Dive
TSAHC Home Sweet Texas Program
This is the gold standard — up to 5% of your loan amount as a GRANT that never needs to be repaid. On a $250K home, that is $12,500 in free money. Combined with FHA's 3.5% down ($8,750), the grant covers your entire down payment plus $3,750 toward closing costs.
Requirements:
- • Credit score: 620+ (FHA), 640+ (conventional)
- • Income: below county limits
- • First-time buyer (no ownership in 3 years)
- • Homebuyer education course required
- • Must use TSAHC-approved lender
How to Apply:
- 1. Complete homebuyer education online ($75)
- 2. Find a TSAHC-approved lender
- 3. Get pre-approved for FHA or conventional
- 4. Lender applies for TSAHC DPA
- 5. Close on your home with $0 out of pocket!
TDHCA My First Texas Home
The most widely used Texas DPA program. Offers up to 5% of your loan as a 0% interest deferred second lien — no monthly payments on the DPA. You only repay when you sell, refinance, or move. Works with FHA, VA, and USDA loans.
City Programs: Houston, Dallas, Austin, San Antonio
Texas cities offer some of the most generous local DPA in the country. These can often be stacked with state programs for even more assistance.
| City | Max DPA | Type | Stackable? |
|---|---|---|---|
| Austin (SMART Housing) | $40,000 | Deferred loan | ✅ Yes |
| Houston (HOPE) | $30,000 | Forgivable (5yr) | ✅ Yes |
| Dallas | $20,000 | Forgivable | ✅ Yes |
| San Antonio | $15,000 | Forgivable | ✅ Yes |
| Fort Worth | $10,000 | Forgivable | ✅ Yes |
| El Paso | $7,500 | Grant | ✅ Yes |
Compare 5+ Lender Rates in 2 Minutes
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Get Pre-Approved + Texas DPA in One Step
Compare lenders approved for TDHCA/TSAHC programs. See your rate + DPA amount in 3 minutes. No credit impact.
Find Texas DPA Lenders →Real Example: Buy a $300K Home in Houston with $0 Down
| Item | Amount | Who Pays |
|---|---|---|
| Home Price | $300,000 | — |
| FHA Down Payment (3.5%) | $10,500 | TSAHC Grant covers! |
| TSAHC Grant (5%) | -$15,000 | FREE (grant) |
| Surplus After Down Payment | $4,500 | Goes to closing costs! |
| Closing Costs (est. 3%) | $9,000 | $4,500 from DPA surplus |
| YOUR Out of Pocket | $4,500 | Or negotiate seller credits! |
With seller concessions of $4,500: You buy a $300K home with literally $0 out of pocket. Monthly payment: ~$2,150 (principal + interest + MIP + taxes + insurance). Calculate your Texas monthly payment →
5-Step Action Plan: How to Get Texas DPA
Check Your Credit Score (Free)
Pull your reports from AnnualCreditReport.com. Need 620+ for most programs. If under 620, spend 2-3 months improving (pay down cards, dispute errors). Every 20 points = better rates.
Complete Homebuyer Education Course
Required by all Texas DPA programs. Available online through TDHCA or TSAHC-approved providers. Costs $75-$100. Takes 6-8 hours. You learn budgeting, mortgage process, and homeowner responsibilities.
Get Pre-Approved with a DPA-Approved Lender
Not all lenders participate in TDHCA/TSAHC programs. You MUST use an approved lender. Get pre-approved and ask them to run DPA eligibility at the same time. This confirms your rate + DPA amount.
Find Your Home Within Program Limits
Purchase price limits vary by county and program. Most Texas counties: $300K-$400K max. Austin/Dallas: higher limits. Work with a realtor who knows DPA programs — they can filter listings within your price range.
Close With $0-$5K Out of Pocket
Your lender handles the DPA application. TSAHC grants apply automatically at closing. TDHCA DPA is structured as a 0% second lien. Combined with seller concessions, many Texas buyers close with $0 out of pocket.
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Don't Leave FREE Money on the Table: Apply for Texas DPA Today
$10K-$40K in down payment assistance. Some programs are GRANTS (never repaid). Get pre-approved with a DPA-approved lender now.
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