Signature Solution
The Down Payment Is Smaller Than You Think.
Texas has grant and second-lien programs that can cover most or all of a down payment, and many buyers who qualify never hear about them because the lender they called does not offer them.
Down Payment Assistance: What You Need to Know
The single most common reason people delay buying is the belief that they need 20% down. In Texas, between statewide programs through TSAHC and TDHCA, city and county programs, and lender-funded assistance, a meaningful share of buyers can get into a home with a fraction of that — sometimes with almost nothing out of pocket beyond earnest money and inspections.
Who This Is For
- First-time buyers, defined by most programs as not having owned a home in the past three years
- Teachers, first responders, veterans, and healthcare workers, who often qualify for dedicated programs
- Households earning at or below the program income limits for their county
- Repeat buyers in designated target areas, where the first-time requirement is frequently waived
- Buyers who have solid income and credit but have not accumulated a large down payment
How It Works
Your Down Payment Assistance Roadmap
No mystery steps, no waiting a week to hear back. Here is exactly how the process runs from first call to closing table.
- 1
Check income and purchase price limits
Nearly every program has a household income cap and a maximum purchase price that vary by county. Williamson and Travis County limits differ, so we check your specific target area first.
- 2
Match the program to your loan
Some assistance pairs best with FHA, some with conventional. We compare the total monthly cost of each combination rather than just the assistance amount.
- 3
Complete required homebuyer education
Most programs require a certified homebuyer education course. It is typically online, takes a few hours, and genuinely helps first-time buyers. I send you the approved provider list.
- 4
Reserve the funds and close
Assistance is reserved when you go under contract, so timing matters. Funds arrive at closing and are applied to your down payment and eligible closing costs.
Key Benefits
Why Borrowers Choose This Program
Grants that never have to be repaid
TSAHC offers grant assistance typically calculated as a percentage of the loan amount. A grant is not a loan — there is no lien, no payment, and no repayment obligation.
Forgivable second liens
Some programs provide a second lien at 0% interest with no monthly payment that is forgiven entirely after you occupy the home for a set period, commonly three years.
Deferred and repayable seconds
Other structures defer repayment until you sell or refinance. These often carry larger assistance amounts, which can be the right trade if you plan to stay in the home long term.
Assistance stacks with your main loan
Down payment assistance layers on top of FHA, conventional, VA, or USDA financing. You are not choosing between a good loan and assistance — you are combining them.
Program Types
Four Structures, Four Different Obligations
The word “assistance” covers very different arrangements. Knowing which one you are getting matters more than the dollar amount.
Grants
Funds you never repay. No lien is placed on the property and there is no monthly payment. Typically calculated as a percentage of the loan amount and applied at closing.
Forgivable second liens
A zero-interest second lien with no payment that is forgiven entirely once you have occupied the home for a set period, commonly three years. Sell early and a prorated amount may be due.
Deferred second liens
No monthly payment, but the balance is repaid when you sell, refinance, or pay off the first mortgage. Often provides larger assistance amounts than a grant.
Repayable second liens
A small amortizing second lien with a modest monthly payment. Less common, but useful when the assistance amount is large and the terms are favorable.
Texas Programs
What’s Available Where You’re Buying
Program terms, income limits, and funding availability change periodically. Everything below is verified against the current program guidelines before we rely on it for your file.
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TSAHC — Homes for Texas Heroes
Dedicated to teachers, first responders, corrections officers, veterans, and healthcare workers. Provides grant or deferred second lien assistance alongside a fixed-rate first mortgage.
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TSAHC — Home Sweet Texas
Open to buyers who meet income limits regardless of profession. Same assistance structures as Homes for Texas Heroes, with income caps set by county and household size.
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TDHCA — My First Texas Home
A statewide program for first-time buyers and qualified veterans, pairing a low-rate first mortgage with down payment and closing cost assistance.
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TDHCA — Texas Mortgage Credit Certificate
Not down payment assistance, but a federal tax credit on a portion of the mortgage interest you pay each year for as long as you keep the loan. It can often be combined with other assistance.
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City and county programs
Several jurisdictions in the Austin metro operate their own assistance programs with local income and purchase price limits. Availability and funding change frequently, so we verify at the time you are shopping.
Assistance funds get reserved, not requested
Most programs require the lender to reserve funds when you go under contract, and some run out of allocation before the year does. That is the single most common reason eligible buyers miss out. If assistance is part of your plan, we set it up before you start writing offers, not after.
At a Glance
The Numbers, Plainly
Guidelines shown are general and current as of publication. Program availability varies by state, property, and borrower eligibility, and all loans are subject to full underwriting approval.
- Typical assistance amount
- 3%–5% of the loan amount, higher on some programs
- Statewide Texas programs
- TSAHC Homes for Texas Heroes and Home Sweet Texas; TDHCA My First Texas Home
- Local programs
- City and county programs available in parts of the Austin metro
- First-time requirement
- Common, but waived in target areas and for veterans on many programs
- Income limits
- Set by county and household size
- Education required
- Yes, certified homebuyer education course on most programs
Myths & Misconceptions
Things People Believe That Cost Them Money
Down payment assistance is only for very low incomes.
Income limits are often well above the local median — many two-income households qualify. Assuming you earn too much without checking is the most common way buyers miss out.
You have to be a first-time buyer.
Frequently, but not always. Target-area purchases and veteran-focused programs commonly waive it, and the standard definition is simply not having owned in three years.
Sellers will not accept offers using assistance.
A well-documented offer with a lender who knows the program closes on the same timeline as any other. Problems come from lenders unfamiliar with the reservation and funding process.
Client Experience
“Jason made the mortgage process incredibly easy and was always available to answer our questions.”
First-Time Buyer
Hutto, TX
Testimonials reflect individual experiences. Results vary and are not a guarantee of future outcomes.
Not sure this is your program?
That is what the free strategy call is for. Twenty minutes, no obligation, and you leave knowing which financing path actually fits your situation.
Book a Free Strategy CallStacking
How Assistance Layers On Top of Your Loan
Assistance is not a loan type. It sits on top of a first mortgage, and the combination determines your total monthly cost.
FHA + assistance
The most common pairing. FHA already requires only 3.5% down, so assistance often covers the entire down payment and part of the closing costs. Credit-flexible and widely available.
Conventional + assistance
Works well for buyers with stronger credit who want mortgage insurance that eventually cancels. Requires 3% to 5% down, much of which assistance can cover.
VA + assistance
VA already requires nothing down, so assistance is typically applied to closing costs and prepaid items instead — which can bring your cash to close close to zero.
Questions
Down Payment Assistance FAQs
Statewide, TSAHC runs Homes for Texas Heroes and Home Sweet Texas, and TDHCA runs My First Texas Home along with a mortgage credit certificate program. Several Austin-metro cities and counties operate their own programs, and some lender-funded assistance exists as well. Program terms and funding availability change, so we verify current details before you rely on any of it.
It depends on the structure. Grants are never repaid. Forgivable seconds are erased after an occupancy period, commonly three years. Deferred seconds are repaid when you sell or refinance. I tell you exactly which one you are getting before you sign.
They vary by county and household size and are updated periodically. In much of the Austin metro the limits are higher than most people expect. Send me your household income and target county and I will check the current figures.
Yes. FHA plus down payment assistance is one of the most common combinations, because FHA already has a low 3.5% requirement and assistance can cover most or all of it.
Sometimes yes, sometimes no. Assistance programs occasionally carry a marginally higher rate in exchange for the funds. If the assistance is what makes buying possible now rather than in three years, it usually wins. I run both scenarios so you can see the difference.
Let’s Solve Your Mortgage Situation.
Apply online in about 12 minutes, or grab a free 20-minute strategy call. Either way, you’ll leave knowing more than you do right now.