Texas Down Payment Assistance in 2026

Down payment assistance in Texas for 2026 comes mainly from two statewide agencies: the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC). Both can put up to 5% of your loan amount toward your down payment and closing costs, either as a grant you never repay or as a second lien that is forgiven or deferred. This guide explains each program, who qualifies, how grants differ from repayable loans, and how the assistance fits with FHA, VA, USDA, and conventional mortgages. Every dollar figure and percentage below is tied to an official source, listed at the end with the date we checked it.

A quick distinction before you start: TDHCA is the state housing agency, and TSAHC is a separate nonprofit. They run different programs with different rules and different income limits. Picking the wrong one, or assuming their terms are identical, is the most common mistake buyers make.

How Texas down payment assistance works in 2026

Texas assistance is not one product. Depending on which agency and option you pick, the money arrives as one of these:

• A grant. You never repay it. TSAHC offers this option on both of its programs.
• A deferred, forgivable second lien. No monthly payment. It is forgiven after three years if you still live in the home and stay current on your first mortgage. Sell or refinance inside that window and the unforgiven balance comes due. Both TSAHC and TDHCA offer a version of this.
• A deferred, repayable second lien. No monthly payment, but the full balance is due when you sell, refinance, pay off, or transfer the home. TDHCA offers this as its 30-year deferred option.

That last point matters. TDHCA structures its down payment help as a second lien with up to 5% of the loan amount, and you choose between a 3-year forgivable version and a 30-year deferred repayable version. The repayable version is not a gift. If you refinance your first mortgage, the assistance is due at or before closing. Plan for that before you treat the money as free.

TDHCA programs: My First Texas Home and My Choice Texas Home

TDHCA runs two homebuyer programs through “The Texas Homebuyer Program.” Both pair a 30-year fixed-rate first mortgage with down payment and closing cost assistance worth up to 5% of the loan amount.

My First Texas Home is for first-time buyers. TDHCA defines a first-time buyer as someone who has not owned and occupied a home as a primary residence in the past three years. The first-time rule is waived for qualified veterans and for buyers in designated targeted areas.

My Choice Texas Home carries no first-time requirement, so repeat buyers can use it. The assistance amount and structure match My First Texas Home.

For both programs the assistance comes as a second lien, and you choose the structure:

• 3-year deferred forgivable second lien: no monthly payment, fully forgiven 36 months after the note date if you are current on the first mortgage and the home is still your primary residence. It becomes due in full on sale, refinance, transfer, or payoff before that point.
• 30-year deferred repayable second lien: no monthly payment, but the full balance is owed when you sell, refinance, pay off, or transfer title.

The minimum credit score for TDHCA programs is 620. Buyers must complete a homebuyer education course before closing and use an approved lender. TDHCA’s lender line is 1-800-792-1119.

Texas Mortgage Credit Certificate (MCC) through TDHCA

An MCC is not cash for your down payment. It is a federal income tax credit equal to a set percentage of the mortgage interest you pay each year, for as long as you keep the loan and live in the home. You claim it every year at tax time, which lowers your federal tax bill and can improve your qualifying income with some lenders.

The exact MCC credit rate is set per bond issue and can change, so confirm the current rate and any annual dollar cap with TDHCA or your lender before you rely on a specific number. The MCC generally requires first-time buyer status, with the same veteran and targeted-area exceptions that apply to My First Texas Home.

TSAHC programs: Homes for Texas Heroes and Home Sweet Texas Home

TSAHC runs two down payment assistance programs. Both provide a fixed-rate first mortgage plus down payment assistance of up to 5% of the loan amount, and on both you choose how to take the help:

• A grant that is never repaid, or
• A deferred forgivable second lien that only has to be repaid if you sell or refinance within three years.

Neither TSAHC program requires you to be a first-time buyer. The minimum credit score for both is 620, per TSAHC’s program pages.

Homes for Texas Heroes is for people in specific public-service jobs. TSAHC’s eligible “hero” professions include:

• Public school educators (teachers, teacher aides, school librarians, counselors, and nurses)
• Police officers and public security officers
• Firefighters and EMS personnel
• Corrections officers and juvenile corrections officers
• Veterans and active-duty military
• Nursing faculty and allied health faculty

Home Sweet Texas Home is for low-to-moderate-income Texas buyers in any occupation who do not qualify under the Heroes program. Eligibility is based on income limits that vary by county and household size.

TSAHC also offers a Mortgage Credit Certificate. TSAHC’s current rules pair the MCC with one of its down payment programs rather than offering it stand-alone, and Texas Heroes who combine an MCC with down payment assistance get the MCC at no extra cost (a stated saving of $500). TDHCA’s MCC remains available on its own programs.

Program comparison

Amounts and percentages confirmed against tdhca.texas.gov and tsahc.org on June 20, 2026. Income and purchase-price limits change by county and by date; confirm current limit sheets before applying.

Who qualifies for Texas down payment assistance

Credit score. The minimum is 620 for both TDHCA and TSAHC programs. Individual lenders may add their own stricter overlays, so a lender may ask for more than 620.

Income limits. Both agencies cap household income, and the caps vary by county and household size. TDHCA and TSAHC publish separate limit sheets, and they change on their own schedules through the year. TSAHC’s combined income and purchase-price limits took effect June 13, 2026. Always pull the live limit sheet for your county rather than relying on last year’s figures.

Purchase price limits. TDHCA and TSAHC also set maximum purchase prices that vary by county. Check the current sheet for your area.

Homebuyer education. Both agencies require you to finish a homebuyer education course before closing. Courses are commonly offered online, take a few hours, and produce a certificate that lenders need on file.

Occupancy. You must use the home as your primary residence. These programs do not fund investment properties or second homes, and moving out, renting, refinancing, or paying off the first lien early can trigger repayment of the assistance.

How the assistance works with each loan type

Down payment assistance covers your down payment and closing costs. It does not pay your mortgage insurance, and it does not change the underlying loan rules.

FHA + DPA

FHA loans require 3.5% down with a credit score of 580 or higher, and the down payment assistance can cover that 3.5%. FHA charges an upfront mortgage insurance premium of 1.75% of the loan and an annual premium collected monthly. On most FHA loans today that annual premium stays for the life of the loan. Most Texas counties sit at or near the FHA floor for loan limits (see the federal limits section below), so the FHA limit rarely constrains a typical Texas purchase.

VA + DPA

VA loans require zero down and charge no monthly mortgage insurance, so buyers usually apply down payment assistance toward closing costs instead. VA loans do charge a one-time funding fee, which for 2026 is unchanged:

• First use, 0% down: 2.15%
• Subsequent use, 0% down: 3.3%
• 5% or more down: 1.5%
• 10% or more down: 1.25%
• Exempt for veterans with a VA service-connected disability rating of 10% or more

USDA + DPA

USDA loans allow zero down in eligible rural and many suburban areas and cap income at roughly 115% of area median income. Not every TDHCA or TSAHC program pairs with a USDA first mortgage, so confirm compatibility with your lender before you commit.

Conventional + DPA

Conventional options like Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down for eligible buyers. Below 20% equity you pay private mortgage insurance (PMI), but conventional PMI can be cancelled once you reach 78% loan-to-value, unlike most FHA premiums. Conventional often works best for buyers with stronger credit.

2026 federal loan limits Texas buyers should know

These federal numbers set the ceiling on how much you can borrow with conforming and FHA loans. They took effect for 2026:

• Conforming loan limit, one unit (baseline): $832,750, effective January 1, 2026 (FHFA).
• Conforming high-cost ceiling, one unit: $1,249,125 (FHFA).
• FHA floor, one unit (low-cost areas): $541,287 (HUD). Most Texas counties sit at or near this floor.
• FHA ceiling, one unit (high-cost areas): $1,249,125 (HUD).

Because most Texas counties are FHA “floor” counties, the FHA limit for a single-family home across much of the state is the floor figure above, not the high-cost ceiling. A few higher-cost metro counties sit above the floor: for 2026 the one-unit FHA limit is $571,550 in Travis County (Austin) and $563,500 in Collin County (part of the Dallas area). Confirm your county’s exact figure on the HUD FHA mortgage limits lookup.

How to apply, step by step

1. Decide grant versus deferred loan. A grant never has to be repaid; a deferred or forgivable second lien can come due if you sell or refinance early.
2. Check the income and purchase-price limit for your county. Use the live TDHCA or TSAHC limit sheet.
3. Finish homebuyer education. Both agencies require it before closing.
4. Find an approved lender. Not every lender participates. TDHCA’s line is 1-800-792-1119; TSAHC has an online eligibility quiz that routes you to a participating lender.
5. Get pre-approved and layer the assistance. Your lender applies for the first mortgage and the down payment assistance together, and adds an MCC if you qualify.
6. Budget for the cash you still need. Earnest money, the inspection, and any closing costs the assistance does not cover come out of pocket. Use a closing-cost calculator to estimate the gap.
7. Close. Grant funds are applied at closing; second-lien assistance comes with its own loan documents to sign.

City and county programs

Several Texas cities run their own down payment assistance, funded largely through federal HOME dollars, including programs in Houston, Dallas, and San Antonio. These local programs usually target first-time buyers under 80% of area median income and often require you to buy inside the city limits and stay for a set number of years. Funding levels and dollar caps change yearly and run out mid-year, so contact the administering city agency directly for current amounts and availability rather than relying on a published figure.

Mistakes to avoid

• Don’t assume every program is “free money.” TSAHC grants are never repaid, but TDHCA’s 30-year option is a repayable second lien, and even forgivable seconds claw back if you sell or refinance inside three years.
• Don’t rely on last year’s limits. Income and purchase-price caps change by county and by date; TSAHC’s limits changed June 13, 2026.
• Don’t skip the occupancy rule. These are primary-residence programs. Renting the home out or refinancing early can trigger repayment.
• Don’t confuse TDHCA with TSAHC. They are different organizations with different programs and limits.
• Don’t forget mortgage insurance. Assistance covers the down payment, not FHA MIP or conventional PMI, which still show up in your monthly payment if you put down less than 20%.

Frequently asked questions

Is Texas down payment assistance a grant or a loan?

It depends on the source and the option you choose. TSAHC lets you take the help as a grant you never repay or as a second lien forgiven after three years. TDHCA offers a 3-year forgivable second lien or a 30-year deferred repayable second lien. With the repayable option, the balance is due when you sell, refinance, or pay off the home.

How much down payment help can I get in Texas?

Both TDHCA and TSAHC provide up to 5% of your loan amount toward the down payment and closing costs. You may also be able to add a Mortgage Credit Certificate for an annual federal tax credit, and some buyers can layer a local city program on top, subject to each program’s rules.

Do I have to be a first-time buyer in Texas?

Not always. My First Texas Home and the MCC require first-time status, waived for veterans and buyers in targeted areas. My Choice Texas Home and both TSAHC programs have no first-time requirement, so repeat buyers can qualify.

What credit score do I need for down payment assistance in Texas?

The minimum is 620 for both TDHCA and TSAHC programs. Lenders can add stricter requirements of their own, so confirm with a participating lender.

Do I have to pay the assistance back?

Grants are never repaid. A forgivable second lien is forgiven after its term (three years for TSAHC and TDHCA’s forgivable option) if you keep the home as your primary residence; sell or refinance early and the unforgiven portion is due. TDHCA’s 30-year deferred option is repayable and comes due on sale, refinance, or payoff.

Can I combine state and local programs?

Often yes. You may be able to stack a TDHCA or TSAHC program with a city program if your lender participates in both and the combined assistance stays within each program’s limits. Ask your approved lender about layering for your specific city.

By the AskDoss Mortgage Editorial Team. Reviewed for accuracy against official TDHCA, TSAHC, FHFA, and HUD sources on July 8, 2026. This article is general information, not personalized mortgage, tax, or legal advice. Program terms, income limits, and loan limits change; confirm current details with the administering agency or a participating lender before you apply.

Related AskDoss guides

• national down payment assistance guide
• California DPA programs
• Florida Hometown Heroes and other programs
• Georgia down payment assistance
• Arizona down payment help
• Colorado assistance programs
• North Carolina DPA programs
• estimate Texas closing costs
• how much house you can afford in Texas
• 2026 FHA loan requirements
• USDA zero-down loans in rural Texas

Sources

• FHFA, 2026 Conforming Loan Limit Values: https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026 (accessed June 20, 2026)
• HUD, HUD No. 25-145 (2026 FHA loan limits): https://www.hud.gov/news/hud-no-25-145 (accessed June 20, 2026)
• TDHCA, The Texas Homebuyer Program: https://www.tdhca.texas.gov/ and https://welcomehome.tdhca.texas.gov/ (accessed June 20, 2026)
• TSAHC, Loans and Down Payment Assistance: https://www.tsahc.org/homebuyers-renters/loans-down-payment-assistance (accessed June 20, 2026)
• TSAHC, Homes for Texas Heroes: https://www.tsahc.org/homebuyers-renters/homes-for-texas-heroes-program (accessed June 20, 2026)
• TSAHC, Income & Purchase Price Limits eff. June 13, 2026 (accessed June 20, 2026)
• U.S. Department of Veterans Affairs, VA funding fee: https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/ (accessed June 20, 2026)