Quick Answer
Texas has some of the most buyer-friendly DPA programs in the country. Statewide programs offer 5% grants or forgivable loans starting at a 620 credit score. Major cities add $25,000 to $60,000 in local assistance. The biggest advantage: Texas's best programs (TSAHC, SETH) do not require first-time buyer status. Even repeat buyers qualify for 5% grants. And there is no state income tax eating into your paycheck.
If you are buying your first home in Texas, you are in one of the best states in the country to do it. Affordable housing, strong job markets, and a deep network of down payment assistance programs make Texas a standout for first-time buyers.
But here is what most people miss: Texas's best DPA programs are not limited to first-time buyers. The programs marketed as "first-time home buyer" programs through TDHCA are often not your strongest option. The TSAHC and SETH programs, which offer identical 5% grants, are open to anyone regardless of ownership history.
This guide breaks down every major statewide and local program, explains which ones actually require first-time status, and helps you figure out which combination puts the most money in your pocket.
Texas's Best-Kept Secret: First-Time Status Often Not Required
In most states, the best DPA programs are locked behind first-time buyer requirements. Texas is different. Three of the four major statewide programs are open to repeat buyers:
Programs That Do NOT Require First-Time Status
- TSAHC Home Sweet Texas . 5% grant, 620 credit score
- TSAHC Homes for Texas Heroes . 5% grant, for military/teachers/first responders/nurses
- TDHCA My Choice Texas Home . 5% deferred or 3-year forgivable, 620 credit
- SETH 5 Star . 5% grant or forgivable, 640 credit
Program That DOES Require First-Time Status
- TDHCA My First Texas Home . 5% deferred or 3-year forgivable, 620 credit. Veterans are exempt from the first-time requirement.
The practical takeaway: if you are a first-time buyer, you have access to every program in the state. But even if you have owned before, you can still get 5% grants through TSAHC or SETH. Do not assume you are disqualified.
What Counts as a "First-Time Home Buyer" in Texas?
For programs that do require it (TDHCA My First Texas Home), the definition is standard:
First-Time Home Buyer = No ownership in 3 years
You have not owned and occupied a home as your primary residence in the past three years. If you owned a home 4+ years ago, you qualify again. Veterans are exempt from this requirement on TDHCA programs.
Keep in mind that for the majority of Texas programs, this definition does not apply because they are open to all buyers.
Texas Statewide DPA Programs Compared
All five major statewide programs offer 5% assistance. The differences come down to eligibility, assistance type, and geographic restrictions.
| Program | Amount | Type | Credit | First-Time? | Notes |
|---|---|---|---|---|---|
| TSAHC Home Sweet Texas | 5% | Grant | 620 | No | Open to all buyers |
| TSAHC Heroes | 5% | Grant | 620 | No | Military, teachers, first responders, nurses |
| TDHCA My First Texas Home | 5% | Deferred / Forgivable | 620 | Yes | Veterans exempt from first-time req |
| TDHCA My Choice Texas Home | 5% | Deferred / Forgivable | 620 | No | Same terms, no first-time req |
| SETH 5 Star | 5% | Grant / Forgivable | 640 | No | Excludes Travis County and El Paso |
All five programs pair with FHA, VA, USDA, and conventional loans. All can be combined with the Mortgage Credit Certificate (MCC) tax credit for an additional $2,000 per year off your federal taxes.
How Much Assistance Can You Get?
At 5% of the loan amount, here is what the statewide programs look like at typical Texas home prices:
| Metro Area | Median Price | 5% Grant | 3.5% FHA Down | Left for Closing Costs |
|---|---|---|---|---|
| San Antonio | $280,000 | $14,000 | $9,800 | $4,200 |
| Houston | $340,000 | $17,000 | $11,900 | $5,100 |
| Dallas | $380,000 | $19,000 | $13,300 | $5,700 |
| Austin | $475,000 | $23,750 | $16,625 | $7,125 |
Notice that 5% exceeds the 3.5% FHA minimum down payment in every case. The extra covers a significant portion of your closing costs, meaning many Texas buyers can get into a home with very little cash out of pocket.
City and Local DPA Programs
Texas's major cities operate their own DPA programs that can be used alongside or instead of statewide options. These tend to offer larger dollar amounts but with tighter income limits and specific geographic requirements.
Houston HAP
Up to $50,000 in assistance for eligible buyers
Dallas DHAP
$50,000 to $60,000 for buyers in Dallas city limits
San Antonio HIP
Up to $30,000 in down payment and closing cost help
Austin City DPA
Up to $40,000 for qualifying Austin buyers
Fort Worth HAP offers up to $25,000 for buyers purchasing within city limits. Several smaller cities and counties run their own programs as well. Use our Texas DPA directory to find every program available in your area.
Important Note for Austin Buyers
SETH 5 Star excludes Travis County (Austin) and El Paso. If you are buying in Austin, focus on TSAHC, TDHCA, and the Austin city program instead. You still have strong options, but SETH is not available to you.
The MCC Tax Credit: An Extra $2,000 Per Year
Texas buyers who use TSAHC or TDHCA programs can also receive a Mortgage Credit Certificate (MCC). This is a federal tax credit, not a deduction, that reduces your tax bill by up to $2,000 per year for the life of the loan.
Over a 10-year period, that is $20,000 in tax savings on top of your down payment assistance. The MCC effectively lowers your monthly housing cost because it increases your take-home pay.
The MCC stacks with all Texas DPA programs. A first-time buyer in Houston could receive a $17,000 grant from TSAHC plus $2,000 per year from the MCC. That combination is hard to beat in any state.
Common Mistakes Texas Buyers Make
1. Assuming you need first-time buyer status
Most Texas DPA programs are open to repeat buyers. If a lender tells you that you do not qualify because you have owned before, get a second opinion from a broker who works with TSAHC and SETH.
2. Defaulting to TDHCA My First Texas Home without comparing
The "first-time home buyer" branding makes this program sound like the obvious choice. But TSAHC Home Sweet Texas offers the same 5% as a grant (not a deferred loan), often at competitive rates. Always compare both.
3. Not asking about the MCC tax credit
Many lenders do not mention the MCC unless you ask. An extra $2,000 per year in tax credits adds up fast. Make sure your lender is approved to issue MCCs through TSAHC or TDHCA.
4. Ignoring local city programs
If you are buying in Houston, Dallas, San Antonio, Austin, or Fort Worth, city-level programs can add $25,000 to $60,000 on top of statewide assistance. These programs have limited funding and run out, so apply early.
5. Working with a lender not approved for Texas DPA
Not every lender participates in TSAHC, TDHCA, and SETH programs. If your lender is not approved, they cannot offer these programs regardless of your eligibility. A mortgage broker with multiple approvals can compare all options.
Eligibility Requirements at a Glance
Here is what you need to qualify for the major statewide programs:
Credit Score
620 minimum for TSAHC and TDHCA programs. 640 minimum for SETH 5 Star. A 620 score opens up 80% of available options. If your score is 580 to 619, Chenoa Fund is the national fallback, accepting scores as low as 580 with no income limits and no first-time buyer requirement.
Income Limits
All statewide programs have county-specific income limits tied to Area Median Income (AMI). In most Texas metros, households earning up to $100,000 or more will qualify. Limits are higher in more expensive areas like Austin.
Purchase Price Limits
Each program sets maximum purchase prices by county. These are generous in most Texas markets and are typically well above median home prices.
Homebuyer Education
Most programs require completion of a HUD-approved homebuyer education course. These are available online and typically take 4 to 8 hours. Some are free.
Property Requirements
Primary residence only. The property must be in Texas. Single-family homes, townhomes, and condos typically qualify. Investment properties and second homes do not.
See Every Texas DPA Program You Qualify For
Enter your county, income, and target price to see all available programs with assistance amounts, credit requirements, and program types.
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Frequently Asked Questions
What DPA programs are available for first-time buyers in Texas?
Texas has five major statewide programs: TSAHC Home Sweet Texas (5% grant), TSAHC Homes for Texas Heroes (5% grant for qualifying professions), TDHCA My First Texas Home (5% deferred or forgivable), TDHCA My Choice Texas Home (same terms, no first-time requirement), and SETH 5 Star (5% grant or forgivable). Major cities add $25K to $60K in local assistance.
Do I have to be a first-time buyer to get DPA in Texas?
No. TSAHC Home Sweet Texas, TSAHC Heroes, TDHCA My Choice, and SETH 5 Star are all open to repeat buyers. Only TDHCA My First Texas Home requires first-time status, and veterans are exempt from that requirement.
How much assistance can I get?
Statewide programs offer 5% of the loan amount. On a $340,000 Houston home, that is $17,000. City programs add more: Houston HAP up to $50,000, Dallas DHAP $50,000 to $60,000, San Antonio HIP $30,000, Austin up to $40,000, Fort Worth $25,000.
What credit score do I need?
620 for TSAHC and TDHCA programs. 640 for SETH 5 Star. A 620 score opens most doors in Texas.
What counts as a first-time home buyer in Texas?
Someone who has not owned and occupied a primary residence in the past 3 years. Owned 4+ years ago? You qualify again. Veterans are exempt from this requirement on TDHCA programs.
Can I use DPA with an FHA loan?
Yes. All Texas statewide programs work with FHA, VA, USDA, and conventional loans. The 5% DPA more than covers the 3.5% FHA minimum, with the remainder going toward closing costs.
What is the MCC tax credit?
A federal tax credit of up to $2,000 per year for the life of the loan. Available through TSAHC and TDHCA programs. It stacks with DPA, effectively lowering your monthly housing cost by increasing your take-home pay.
Are there income limits for Texas DPA?
Yes, but they are generous. TSAHC, TDHCA, and SETH all have county-specific limits tied to AMI. In most metros, households earning up to $100,000 or more qualify. Check your specific county for exact limits.
Your Next Steps
Check programs in your area
Use our Texas DPA directory to see every statewide and local program available in your county. Takes 2 minutes.
Compare grant vs. forgivable vs. deferred
TSAHC grants require no repayment. TDHCA forgivable loans disappear after 3 years. Understand the trade-offs before you choose. Read our FHA + DPA guide for Texas for deeper detail.
Find an approved lender
Work with a lender or mortgage broker approved for TSAHC, TDHCA, and SETH programs. Not all lenders participate, and the one you choose determines which programs are available to you.
Find Every DPA Program You Qualify For
Enter your county, income, and target home price to see all available programs with assistance amounts and eligibility details.
Check My Eligibility →Free tool • No signup required • Instant results
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