What Texas down payment assistance programs are available in 2025?

Key programs include My First Texas Home (TDHCA) with up to 5% DPA, Home Sweet Texas for low-moderate income buyers, My Choice Texas Home for repeat buyers, and Homes for Texas Heroes for teachers, nurses, first responders and veterans through TSAHC.

Do I have to pay back Texas down payment assistance?

It depends on the program. TSAHC's grant option never requires repayment. TDHCA programs often come as a forgivable second lien, if you stay in the home for 3 years, the balance is forgiven and you owe nothing back.

Who qualifies for Homes for Texas Heroes?

Homes for Texas Heroes is for K-12 teachers and administrators, nurses and nursing faculty, police and correctional officers, firefighters and EMS personnel, veterans, and active-duty military.

Texas Down Payment Assistance Programs 2025 | TDHCA · TSAHC

What Is DPA?

Money You Don't Have to Pay Back

Texas down payment assistance programs are funded by state housing agencies, not private lenders. The goal is to make homeownership accessible for working Texans who have good income and can afford a mortgage payment, but haven't had time to save a large down payment.

The assistance comes in two forms: a grant (never repaid) or a forgivable second lien (forgiven after 3 years if you stay in the home). Either way, it covers your down payment, your closing costs, or both.

These programs pair with an FHA, VA, USDA, or conventional mortgage, your DPA assistance sits on top of your main loan, handled entirely behind the scenes. You close on one day, get your keys, and move in.

At a Glance

Up to 5%

of loan amount toward down payment

repayment required on grant option

major programs available in Texas

The Programs

Texas DPA Programs Explained

1st

My First Texas Home

TDHCA · For first-time buyers · Up to 5% DPA

▾

The flagship Texas program. My First Texas Home offers a 30-year, below-market-rate mortgage bundled with up to 5% of the loan amount in down payment and closing cost assistance. The assistance is a forgivable second lien, stay in the home for 3 years and the balance is completely forgiven.

Who qualifiesFirst-time buyers or buyers who haven't owned in 3 years

Assistance amountUp to 5% of loan amount

RepaymentForgivable after 3 years

Income limitsYes, varies by county and household size

Loan typesFHA, VA, USDA, Conventional

Homebuyer edRequired (free online options available)

HST

Home Sweet Texas

TDHCA · Low-to-moderate income · Up to 5% DPA

▾

Very similar to My First Texas Home, but with income limits calibrated for low-to-moderate income buyers. Also offers up to 5% in down payment and closing cost assistance as a forgivable second lien. Available to both first-time and repeat buyers in some cases.

Income focusLow to moderate income households

Assistance amountUp to 5% of loan amount

RepaymentForgivable after 3 years

Loan typesFHA, VA, USDA, Conventional

MCH

My Choice Texas Home

TDHCA · First-time AND repeat buyers · Up to 5% DPA

▾

My Choice Texas Home is the repeat-buyer-friendly version of TDHCA's lineup. If you've owned a home before, you still qualify here. Same structure, up to 5% DPA, 30-year low-rate mortgage, forgivable lien, just without the first-time buyer restriction.

Who qualifiesFirst-time AND repeat buyers

Assistance amountUp to 5% of loan amount

RepaymentForgivable after 3 years

Loan typesFHA, VA, USDA, Conventional

★

Homes for Texas Heroes

TSAHC · Teachers · Nurses · First Responders · Veterans

▾

TSAHC's flagship program is designed specifically for the people who serve Texas communities. Up to 5% in down payment assistance, available as either a grant (zero repayment) or a forgivable second lien. The grant option makes this one of the strongest programs available, no second lien, no three-year waiting period.

Who Qualifies as a Texas Hero

K-12 Teachers

School Librarians

School Counselors

School Nurses

Nursing Faculty

Police Officers

Correctional Officers

Firefighters

EMS Personnel

Veterans

Active-Duty Military

Assistance typeGrant (no repayment) or forgivable lien

Assistance amountUp to 5% of loan amount

Loan typesFHA, VA, USDA, Conventional

Admin byTSAHC, Texas State Affordable Housing Corp.

Common Questions

DPA Questions, Answered

Do I have to be a first-time buyer to qualify?

Not for all programs. My Choice Texas Home and some TSAHC programs are open to repeat buyers. "First-time buyer" for TDHCA purposes means you haven't owned a principal residence in the last three years, so even if you've owned before, you may still qualify.

What happens if I sell or refinance before 3 years?

If you have a forgivable second lien (not a grant), selling or refinancing before the 3-year mark typically requires repayment of the outstanding assistance balance. The balance decreases over time. If you received a grant, there's no repayment under any circumstances.

Does DPA affect my interest rate?

DPA programs typically come bundled with the lender's rate for that program, it's often slightly above the lowest available market rate, but still competitive, especially given that you're receiving 3–5% in cash assistance. The net benefit almost always outweighs the marginal rate difference.

How do I apply for Texas DPA?

You don't apply directly to TDHCA or TSAHC, you apply through a participating lender (like me). I submit your full file and handle the DPA layer on your behalf. Start with a pre-approval so we know which programs you qualify for before you start shopping.

Money You Don't Have to Pay Back

Texas DPA Programs Explained

My First Texas Home

Home Sweet Texas

My Choice Texas Home

Homes for Texas Heroes

DPA Questions, Answered

Find Out What You Qualify For