Texas Down Payment Assistance

Whether you're looking for a ranch lifestyle or love city life, Texas has something for everyone! However, rising real estate prices can make home ownership in Texas difficult. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. Such programs are offered by the Texas Department of Housing and Community Affairs, the South-East Texas Housing Finance Corporation, the Texas State Affordable Housing Corporation, and more!

If you're thinking about purchasing a home in Texas, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!

My First Texas Home

The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home Program to eligible applicants. This program is meant for first-time homebuyers, homebuyers who have not owned a house for three years or more, and veterans. It offers 30-year fixed-rate mortgages as well as down payment and closing cost assistance for as much as 5% of the mortgage amount.

A list of lenders who participate in this program can be found on the TDHCA’s website.

My First Texas Home can be combined with the Texas Mortgage Credit Certificate Program to allow first-time homebuyers to save on their federal income taxes.

In order to qualify for this program, individuals will have to meet specified income and purchase price limits and have a credit score of at least 620.

My Choice Texas Home

The Texas Department of Housing and Community Affairs (TDHCA) offers the My Choice Texas Home Program to eligible applicants. This program does not have a first-time homebuyer requirement.

It offers 30-year fixed rate mortgages as well as down payment and closing cost assistance for as much as 5% of the mortgage amount. Borrowers have the option of choosing either a government-backed or conventional mortgage. A list of lenders who participate in this program can be found on the TDHCA’s website.

In order to qualify for this program, individuals will have to meet specified income and purchase price limits and have a credit score of at least 620.

Hill Country Home Down Payment Assistance

The Travis County Housing Finance Corporation offers this Hill Country Home Down Payment Assistance for eligible borrowers with government-backed mortgages. The program offers a grant for as much as 5% of the mortgage to help with the down payment and cost of closing.

In order to qualify, an individual must meet a series of requirements, including a credit score no less than 640, a debt-to-income ratio no higher than 45%, and finishing a homebuyer education class.

Properties purchased using this program must fall within a specified purchase price, must be in Travis County, must be a primary residence, and cannot be a manufactured house.

5 Star Texas Advantage Program

This 5 Star Texas Advantage Program is offered by the South-East Texas Housing Finance Corporation (SETH). As much as 6% of the mortgage amount of a borrower is offered as a grant. In certain scenarios, borrowers may qualify for as much as 8%.

In order to qualify, borrowers must be income eligible, must be purchasing a house anywhere in Texas except for El Paso, Grand Prairie, or Travis County, and must complete approved SETH Homebuyer Education.

Home Star Program

This Home Star Program is offered by the South-East Texas Housing Finance Corporation (SETH). As much as 4% of the mortgage amount of a borrower is offered as a grant.

Applicants must be able to contribute at least 0.5% of the mortgage amount from their own assets. If the applicant has a credit score of 660 or higher, their maximum allowed debt-to-income (DTI) ratio is 50%, but if their credit score is lower than 660, their maximum allowed DTI is 45%.

In order to qualify, the applicant has to complete approved SETH Homebuyer Education and fall within specified income limits.

In order for the property to qualify, it must be used as a primary residence, be located in Texas (but not in El Paso, Grand Prairie, McKinney, or Travis County), and must fall within specified sales price limits (as of 2020, $250,200 for FHA, VA, or USDA mortgages and $320,400 for conventional mortgages).

Homeownership Across Texas

Homeownership Across Texas (HAT) is offered by the South-East Texas Housing Finance Corporation (SETH). As much as 5% of the mortgage amount (for FHA, VA, or USDA loans) or 3% of the mortgage amount (for conventional loans) is offered in the form of a grant.

Applicants must fall under specified income limits (which depend on location). Applicants must also have an approved mortgage from a participating lender. The mortgage must be fixed-rate; adjustable rate mortgages are not allowed.

In order for the property to qualify, it must be used as a primary residence and be located in Texas (but not in El Paso, Grand Prairie, McKinney, or Travis County).

Applicants also have to complete approved SETH Homebuyer Education.

Homes for Texas Heroes Program

The Homes for Texas Heroes Program, offered by the Texas State Affordable Housing Corporation, is meant to help ensure that people with certain professions that help the community can have the chance to own their own home.

This program is offered to allied health faculty members, corrections officers, county jailers, emergency medical services personnel, fire fighters, juvenile corrections officers, military veterans, nursing faculty members, peace officers, professional educators, and public security officers.

In addition to a fixed-rate 30-year mortgage, the Homes for Texas Heroes Program provides a grant of between 3% and 5% of the mortgage amount. This can be used to help with the closing costs and down payment.

Applicants must be working with a participating lender. Applicants do not have to be first-time homebuyers, but those who are can also apply for a Mortgage Credit Certificate (MCC) at the same time, saving $500.

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