Texas First-Time Homebuyer Programs in 2026: Free Money You Probably Don’t Know About
Here’s something most Texas homebuyers never find out until it’s too late: the state of Texas offers over 75 down payment assistance programs in 2026 — and many of them give you money you never have to pay back.
If you’ve been sitting on the sidelines because you don’t think you have enough saved for a down payment, this post is for you. We’re going to break down every major program available to Plano, Frisco, McKinney, Allen, and DFW area buyers — in plain English — so you know exactly what’s on the table before you make your next move.
What Is Down Payment Assistance — And Do I Qualify?
Down payment assistance (DPA) is exactly what it sounds like: funding provided by the lender, state, county, or city programs to help cover your down payment and sometimes your closing costs too.
There are three main types of DPA in Texas:
- Grants — Free money that never has to be repaid. Programs like the Homeownership Across Texas (HAT) program offer grants of 1%–5% of the loan amount.
- Forgivable second liens — A second mortgage that is forgiven after you live in the home for a set period, typically 3–5 years. If you stay, you owe nothing.
- Deferred second loans — A second mortgage with no monthly payments, due only when you sell or refinance.
Who qualifies? This is where most buyers are surprised. You don’t need to be low-income, and in many cases you don’t even need to be a first-time buyer. Here are the basic requirements most programs share:
- Credit score of 580–640 or higher (varies by program)
- For state, county, or city programs, Income below the program limit for your county (limits are often higher than you expect)
- For most lender programs, there is no income limit or first-time homebuyer requirement
- The home must be your primary residence
- Completion of a HUD-approved homebuyer education course (available online, typically 4–8 hours)
And here’s the definition of “first-time homebuyer” that trips people up: in Texas, you qualify as a first-time homebuyer if you haven’t owned a home as your primary residence in the past 3 years. Owned a condo in 2020 but have been renting since 2022? You qualify in 2026.
The Major Texas Statewide Programs
1. My First Texas Home (TDHCA)
Offered by the Texas Department of Housing and Community Affairs, this program provides a 30-year, low-interest mortgage with up to 5% of the loan amount toward your down payment and closing costs — structured as a forgivable second lien.
- Minimum credit score: 620
- Available to: Veterans and first-time homebuyers
- Works with: FHA, VA, and USDA loans
- Bonus: Veterans can stack this with zero-down VA financing and skip mortgage insurance entirely
On a $330,000 home (Texas median price as of March 2026), 5% DPA equals $16,500 toward your down payment — enough to cover your entire down payment on an FHA loan.
2. My Choice Texas Home (TDHCA)
The same terms as My First Texas Home — but open to repeat buyers too, and with higher income limits. If you’ve owned a home before, this is your program.
3. Homes for Texas Heroes (TSAHC)
If you work in public service, this one’s made for you. The Texas State Affordable Housing Corporation offers low-interest mortgages and 3%–5% in down payment assistance for:
- Teachers and school staff
- Firefighters and EMS personnel
- Police and correctional officers
- Veterans and active military
- Nurses and allied health professionals
Assistance comes as a grant (no repayment required) or a forgivable second lien. This program is one of the most generous and most underutilized in the state.
4. Home Sweet Texas Home Loan (TSAHC)
The same structure as Homes for Texas Heroes, but available to all low- and moderate-income buyers — not just public service workers. Requires a minimum 620 credit score.
5. Homeownership Across Texas (HAT) Grant
This program provides 5% of the loan amount as a grant for VA, FHA, or USDA loans — and 3% for conventional loans. Unlike many programs, there is no first-time buyer requirement and no repayment or recapture period. It’s one of the cleanest assistance options available.
6. Lender Programs
The Richard Wooward Team has access to more lenders than any other mortgage company in business today. Many lenders have downpayment assistance programs with lower credit score requirements and no income limits. I cover these on my First-Time Home Buyer Programs page.
DFW-Specific Programs Worth Knowing
Beyond the statewide programs, several North Texas cities run their own assistance programs — and some are remarkably generous:
Fort Worth Homebuyer Assistance Program (HAP) Up to $25,000 in assistance for down payment and closing costs. Household income must be at or below 80% of area median income.
Dallas Homebuyer Assistance Program (DHAP) Provides assistance based on financial need for buyers purchasing within Dallas city limits.
Tarrant County DFW-specific grants available up to $50,000 for qualifying buyers in Tarrant County.
The key: city and county programs often go higher than statewide programs — but they get less attention. Always ask your loan officer to check what’s available in your specific zip code, not just at the state level.
Can I Stack Multiple Programs?
Yes — and this is where working with an experienced mortgage broker really pays off.
Here’s an example of what stacking looks like for a DFW first-time buyer:
- My First Texas Home → 5% down payment assistance ($16,500 on a $330K home)
- Homes for Texas Heroes (if eligible) → additional grant funds
- FHA Loan → 3.5% minimum down payment, already covered by DPA
- Result → purchase a home with little to nothing out of pocket
The key is knowing which programs can be combined and which lenders are approved to offer them. Not every mortgage company participates — but we do.
What About Closing Costs?
Down payment is only part of the equation. Closing costs in Texas typically run 2%–5% of the purchase price — that’s $6,600–$16,500 on a $330,000 home.
The good news: many DPA programs cover closing costs too. And beyond that, there are three other strategies we use regularly:
- Seller concessions — In today’s buyer-friendly DFW market (homes sitting 60+ days on average), sellers are motivated. Asking them to cover closing costs is a real and common negotiation.
- Lender credits — We can structure your loan so the lender covers some or all of your closing costs in exchange for a slightly higher rate.
- Program stacking — Combining a statewide grant with a local city program can cover both your down payment and closing costs entirely.
The Real Cost of Waiting
Here’s what the math looks like if you wait 12 months hoping to save more:
Assume a $330,000 home in Plano today with a 6.5% rate and DPA covering your down payment:
- Monthly payment: approximately $2,087 (principal + interest)
- Equity built in year one: approximately $4,200
If home prices in DFW increase just 3% over the next year:
- Same home costs $339,900 — $9,900 more
- Down payment required increases
- 12 months of rent paid — likely $1,800–$2,400/month with no equity return
The buyers who act in a balanced market consistently build more wealth than those who wait for perfect conditions.
How to Get Started — Today
Here’s the simple 4-step process:
Step 1: Check your credit score Pull a free report at AnnualCreditReport.com. If your score is below 620, call us — we can often help you improve it by 20–40 points in 60–90 days with targeted strategies.
Step 2: Call us for a free DPA eligibility review In a 15-minute call, we can tell you which programs you qualify for, how much assistance you could receive, and what your real out-of-pocket cost looks like.
Step 3: Complete your homebuyer education course Most programs require it. We’ll point you to the right online course — it takes about 4–8 hours and can be done on your schedule.
Step 4: Get pre-approved We’ll shop your file across 180+ lenders to find the best rate and the right DPA program combination for your situation. Pre-approval takes 24–48 hours.
The Bottom Line
Texas offers some of the most generous first-time homebuyer assistance in the country — and most buyers never take advantage of it because they don’t know it exists, or they assume they won’t qualify.
With the right combination of programs, DFW buyers in 2026 can realistically purchase a home with little to no money out of pocket — and walk into closing with equity, stability, and a payment that beats their current rent.
Don’t leave free money on the table.
Call Richard Woodward and the team today at (214) 945-1066 or visit my Get Started Page to find out exactly which programs you qualify for — at no cost and no obligation.
Frequently Asked Questions: Texas First-Time Homebuyer Programs
Q: Do I have to be a first-time homebuyer to qualify for down payment assistance in Texas? Not always. Several programs — including My Choice Texas Home, the HAT Grant, and some city-level programs — are open to repeat buyers. In Texas, the official definition of “first-time homebuyer” is anyone who has not owned a home as their primary residence in the past 3 years. If you owned a home before but have been renting since 2022, you likely qualify in 2026.
Q: How much down payment assistance can I get in Texas? It depends on the program and your location. Statewide programs like My First Texas Home and TSAHC offer up to 5% of the loan amount — that’s $16,500 on a $330,000 home. City and county programs can go higher: Fort Worth’s HAP offers up to $25,000, and Tarrant County grants go up to $50,000. In some cases, stacking multiple programs can cover your entire down payment and closing costs.
Q: Do I have to pay back down payment assistance in Texas? It depends on the type of assistance. Grants (like the HAT program) never have to be repaid. Forgivable second liens are forgiven after you live in the home for a set period — typically 3–5 years. Deferred second loans are repaid only when you sell or refinance. We’ll walk you through which type is best for your situation.
Q: What credit score do I need to qualify for Texas homebuyer assistance programs? Most Texas DPA programs require a minimum credit score of 620–640. FHA loans, which pair well with most assistance programs, require a minimum of 580. If your score is below 620, call us — we regularly help buyers improve their scores by 20–40 points in 60–90 days before applying.
Q: Can I use down payment assistance with an FHA, VA, or USDA loan? Yes. Most Texas DPA programs are designed to work alongside FHA, VA, and USDA loans. In fact, veterans can stack the My First Texas Home 5% assistance with zero-down VA financing — meaning no down payment and no mortgage insurance. This is one of the most powerful combinations available to Texas buyers today.
Q: Are there income limits for Texas homebuyer assistance programs? Yes, most programs have income limits tied to the area median income (AMI) for your county. However, the limits are often higher than buyers expect — many moderate-income households qualify, including teachers, healthcare workers, and self-employed buyers. The best way to find out is to call us for a free eligibility check.
Q: What is the Homes for Texas Heroes program? Homes for Texas Heroes is a TSAHC program that offers low-interest mortgages and 3%–5% in down payment assistance specifically for public service workers — including teachers, firefighters, police officers, nurses, veterans, and corrections officers. Assistance comes as a grant or forgivable second lien. It is one of the most generous and most underused programs in the state.
Q: How long does it take to get approved for a Texas DPA program? The timeline is similar to a standard mortgage — typically 30–45 days from application to closing. The key is working with a lender who is already approved to offer these programs. Not every mortgage company participates. Our team at Nexa Mortgage is fully approved for TDHCA, TSAHC, and most major city programs, which means we can move quickly on your behalf.
Q: Can I use down payment assistance to buy a home in Plano, Frisco, or McKinney? Yes. Both statewide programs (TDHCA and TSAHC) and several DFW-specific programs are available across Collin County, Denton County, and Tarrant County — covering Plano, Frisco, McKinney, Allen, Prosper, and surrounding communities. The specific programs and amounts available depend on your income, the purchase price, and the city. Call us and we’ll map out exactly what’s available in your target zip code.
Q: What is a HUD-approved homebuyer education course and do I really need it? Most Texas DPA programs require you to complete a HUD-approved homebuyer education course before closing. These are available online, take approximately 4–8 hours to complete, and can be done on your own schedule. The cost ranges from free to $99 depending on the provider. We’ll point you to the right one and make sure it’s completed before your closing date.
Q: I’m self-employed. Can I still qualify for first-time homebuyer programs in Texas? Yes, though the documentation requirements are stricter. Self-employed buyers typically need two years of tax returns, a year-to-date profit and loss statement, and bank statements. If you’ve been self-employed for less than two years, plan for additional scrutiny — but it’s not automatic disqualification. We work with self-employed buyers regularly and know which lenders are most flexible on documentation.
Q: What’s the difference between TDHCA and TSAHC programs? Both are Texas state agencies offering down payment assistance, but they serve slightly different audiences. TDHCA (Texas Department of Housing and Community Affairs) administers My First Texas Home (for first-time buyers and veterans) and My Choice Texas Home (for all buyers). TSAHC (Texas State Affordable Housing Corporation) offers the Homes for Texas Heroes program (for public service workers) and the Home Sweet Texas Home program (for all moderate-income buyers). Many buyers are eligible for programs from both agencies — we’ll compare your options side by side.
Q: How do I find out which programs I qualify for? The fastest way is to call us directly at (214) 945-1066. In about 15 minutes, we can review your income, credit, and target purchase price and tell you exactly which programs you’re eligible for, how much assistance you could receive, and what your realistic out-of-pocket cost looks like. There’s no cost and no obligation.
Richard Woodward | NMLS #217454 | Nexa Mortgage | Plano, Texas Serving buyers across Texas, Colorado, Oklahoma, and Kentucky
