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 $10,000-$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 |
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.
Related Texas Guides
Meet Sarah
Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.
EXPERTISE:
KEY ACHIEVEMENT:
Helped 2,500+ veterans secure home loans
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.
Get Pre-Approved + Texas DPA →