Are you dreaming of owning a home in Texas but worried about the down payment? You're not alone.
The good news is that Texas Housing offers four different down payment assistance programs that can provide up to 5% of your home's purchase price to help with down payment and closing costs.
Our free calculator helps you quickly check if you might qualify for:
Simply enter your information below to see which programs you might be eligible for. It takes less than a minute!
Get answers to the most common questions about Texas down payment assistance programs to help guide your homebuying journey.
It depends on the program and option you choose. If you receive the assistance as a grant, there's no repayment required. If you choose the second lien option, it's typically forgiven after three years as long as you don't sell, refinance, or transfer ownership of the home during that period. Even with the second lien option, there are no monthly payments required.
Consider factors like assistance amount, repayment terms (grant vs. forgivable loan), interest rates, and long-term costs. For example, one program might offer a grant but have a slightly higher interest rate, while another might have a lower rate but require a three-year commitment. We'll help you compare the total costs and benefits of each option for your specific situation.
All Texas down payment assistance programs require a minimum credit score of 620. However, having a higher credit score may qualify you for better interest rates. Some lenders might have higher credit score requirements, so it's worth shopping around if your score is close to the minimum.
You can receive up to 5% of your loan amount, which can be used for both down payment and closing costs. For example, on a $300,000 home, you could receive up to $15,000 in assistance. The My Choice Texas Home Program offers flexible options of 2%, 3%, 4%, or 5% to match your needs.
A first-time homebuyer is someone who hasn't owned a home in the past three years. Even if you owned a home previously, you might still qualify as a first-time buyer if it's been more than three years. Additionally, programs like My Choice Texas Home don't require first-time buyer status at all.
Income limits vary by county and program, typically ranging from $75,000 to over $100,000 for a single-person household, with higher limits for larger families. These limits are regularly adjusted based on area median income. We can provide the exact income limits for your specific county and household size.
The home must be your primary residence and located in Texas. Eligible property types include single-family homes, townhouses, and condominiums that meet program standards. Manufactured homes may be eligible if they meet certain criteria. Investment properties and vacation homes are not eligible.
The process typically takes 30-45 days from application to closing, similar to a standard mortgage. However, timing can vary based on your documentation readiness and current program demand. We'll work with you to streamline the process and keep everything moving smoothly.
Yes, these programs can be used with conventional, FHA, VA, and USDA loans. However, you cannot combine multiple down payment assistance programs together. Veterans may want to compare the benefits of using VA loans with down payment assistance versus a standard VA loan to see which offers better terms.
You'll need proof of income (pay stubs, W-2s, tax returns), bank statements, credit reports, employment verification, and identification. For special programs like Homes for Texas Heroes, you'll also need documentation proving your eligible occupation. We'll provide you with a complete checklist based on your specific situation.
