There are several Down Payment Assistance programs in Texas, so please contact us to see the options in your area. Below are a couple of the most popular programs...
TSAHC Programs
The Texas State Affordable Housing Corporation (TSAHC) offers the Home Sweet Texas and Homes for Texas Heroes Programs to help low and moderate-income homebuyers, including teachers, veterans, police officers, corrections officers, and firefighters, purchase a home anywhere in Texas.
TSAHC offers several loan types, interest rates, and Down Payment Assistance (DPA)* options.
- DPA is available as a grant or 3-year deferred forgivable second lien loan.
- You do not need to be a first-time homebuyer to use our DPA programs.
- You can use TSAHC’s DPA to purchase a home, even if you’ve been a homeowner before.
- Homebuyers may purchase a home anywhere in Texas using TSAHC programs.
- Closing a loan using TSAHC programs doesn't take any longer than a traditional mortgage loan.
Two types of assistance are available:
- Fixed-Rate Loans with Down Payment Assistance (DPA)
- Several rate, loan, and DPA options available
- DPA can be up to 5% of the loan amount
- DPA provided as a grant or 3-year second lien loan
Mortgage Credit Certificates (MCC)
- A special tax credit that reduces your federal income taxes every year
- Save thousands of dollars over the life of the loan
- Only for first-time homebuyers or those who have not owned a home in the last three years
- Can be used with TSAHC’s DPA
*First lien interest rates may be higher when using a DPA second. Closings costs and fees may still apply.
SETH 5 Star Texas Advantage Program
The SETH 5 Star Program provides eligible homebuyers several options for a loan program that meets their needs. The program provides down payment and closing cost assistance* when purchasing a home.
The maximum Assistance is 5% and is based on the final loan amount. Grants are provided for Conventional loans with no repayment or recapture. Other options provide assistance as a Community Second, completely forgiven after 3 years. There are no monthly payments for the assistance provided with either option. The program also provides a 30 year fixed FHA, VA, USDA, or Conventional mortgage loan.
This program is available in Texas but outside of Travis County and the city limits of El Paso, McKinney and Grand Prairie.
Buyers must be income limits (see below) and will be required to complete the SETH on-line Homebuyer Education Course.
- No First Time Homebuyer Requirement
- Minimum credit score of 640
- Maximum Sales Price: $484,350
- Meet Program Income Limits
*First lien interest rates may be higher when using a DPA second. Closings costs and fees may still apply.
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