LOAN PROGRAM · TEXAS
Down payment assistance.
Cut your cash to close.
The down payment is the wall between most Texas renters and their first home — and there are state and local programs built specifically to knock it down. DPA comes from the State of Texas (TSAHC, TDHCA) and select cities and counties, including Houston, as grants that never have to be repaid or as second mortgages forgiven after a residency period. Stacked with FHA or Conventional financing, the right program can bring your out-of-pocket cost close to zero.
How the programs work
DPA covers part of your down payment and closing costs through one of two structures: outright grants with no repayment, or second mortgages that are forgiven after you live in the home for a set period. Most programs target first-time buyers or households below an income limit, though some are open to any buyer.
The assistance layers on top of a standard first mortgage — FHA at 3.5% down or Conventional starting at 3% down for first-time buyers — which is why the combined stack can take out-of-pocket cost close to zero.
The stacks that work in Texas
Which combination fits depends on credit, income, location, and how much cash you have:
- FHA (3.5% down, low credit floor) paired with a Texas DPA program covering the down payment — the most common first-time-buyer stack
- Conventional 97 (3% down) for stronger credit profiles that want faster PMI removal
- HomeReady / Home Possible — Fannie and Freddie programs with reduced PMI for income-qualifying buyers
- Gift funds from family, allowed on top for down payment and closing costs
What to watch
Every program has its own income limits, purchase-price caps, and residency requirements, and they change. Two constraints we flag early: state DPA programs require SSN-eligible borrowers (they generally don't pair with ITIN loans), and forgivable seconds have a residency clock — sell too early and part of the assistance is repayable.
We check your eligibility across TSAHC, TDHCA, and the city and county programs in your market as part of the pre-qualification — there's no separate application to figure out on your own, and no cost to check.
FAQ
Common questions.
- Is down payment assistance free money?
- Some of it, yes. Grants never have to be repaid. Forgivable second mortgages are forgiven after you live in the home for a set residency period — sell before the clock runs out and part is repayable.
- Do I have to be a first-time buyer?
- Most programs target first-time buyers or households under an income limit, but some are open to any qualifying buyer. We check which programs your file fits during pre-qualification.
- Can DPA cover my whole down payment?
- Often, yes — stacked with FHA's 3.5% down or a 3%-down Conventional loan, assistance can bring out-of-pocket cost close to zero. Closing costs can also be covered by some programs and by family gift funds.
- Does using DPA make my offer weaker?
- Not when the file is underwritten properly. Every Closewiser pre-qualification letter is backed by real underwriting — credit, income, DTI, and cash to close verified — regardless of whether DPA is in the stack.
- Which Texas programs do you work with?
- TSAHC and TDHCA at the state level, plus city and county programs including Houston's. Eligibility rules and funding availability change, so we verify the current program list against your file at pre-qualification.
See what you qualify for.
Three minutes, no credit pull, no commitment. We respond the same business day — in English or Korean.