Many borrowers want to know how down payment help works in Texas. They are concerned that a small amount saved may influence their Texas home loan review. This guide explains what lenders may look for so you can move forward with confidence.
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How Does Down Payment Assistance Work in Texas?
SHORT ANSWER
Texas runs 2 statewide down payment assistance programs, and both offer up to 5% of the loan amount toward the down payment and closing costs. My First Texas Home covers first-time buyers and qualified veterans, and My Choice Texas Home is open to repeat buyers too. Both require a 620 credit score and a completed homebuyer education course.Smart Loan Savings Educational Content
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| Texas Down Payment Assistance and Home Loan Factor | Rule or Amount |
|---|---|
| Texas statewide down payment assistance amount | Up to 5% of the loan amount |
| What Texas down payment assistance can be used for | Down payment and closing costs |
| Name of the Texas first-time buyer assistance program | My First Texas Home |
| Who qualifies for My First Texas Home | First-time homebuyers and qualified veterans |
| Name of the Texas repeat buyer assistance program | My Choice Texas Home |
| Who qualifies for My Choice Texas Home | First-time buyers, repeat buyers, and veterans |
| Income limits on My Choice Texas Home | Higher than My First Texas Home |
| Minimum credit score for Texas down payment assistance | 620 on both programs |
| Texas assistance income and purchase price limits | Set by county |
| Homebuyer education for Texas down payment assistance | Required on every program |
| Extra Texas assistance beyond the statewide programs | Local housing finance corporation and city funds in certain regions |
| What extra local Texas funds can cover | Supplementing the down payment or covering more closing costs |
| Who submits Texas assistance with your loan file | An approved loan officer for the state housing agency |
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| Texas Assistance Element | What It Means for Your Home Loan File |
|---|---|
| The 2 Statewide Programs and What They Offer | Texas runs 2 statewide assistance programs through its housing agency, and both offer up to 5% of the loan amount toward the down payment and closing costs. Assistance from a state housing agency is commonly written as a deferred second mortgage rather than a grant, and Texas publishes the specific terms for each program. Beyond the state programs, the agency partners with local housing finance corporations and city programs in certain regions. Those funds can be layered on top to supplement the down payment or cover additional closing costs. Whether extra local money exists depends on the county or city you are buying in. |
| Being Over the Income Limit Is Not the End | Being over the income limit for the first-time program does not end the conversation. My First Texas Home is built for first-time buyers and qualified veterans. My Choice Texas Home is open to repeat buyers too, and it carries higher income limits. A buyer told they earn too much for the first program may still fit the second at the same 5% assistance level. Educators, police officers, firefighters, emergency medical services personnel, county jailers, correctional officers, and veterans have a third path through a separate state entity, covered in our Texas Home Loan Grants for Teachers and Heroes guide, where the help can be taken as a grant that is not repaid. Both statewide programs use a 620 minimum credit score, and our Mortgage Credit Score Requirements guide explains the score ranges each loan program looks for. |
| What Assistance Does Not Solve | Assistance solves the money you need at closing. It does not change what you owe every month afterward. Texas property tax is the heaviest part of that monthly figure in many counties, since the state has no income tax and property tax carries the load. A buyer using assistance also inherits a reset appraisal cap, so the first tax bill can exceed the seller’s. Our Texas property tax guide covers the $140,000 homestead exemption filing, the 10% cap and when it starts for a new owner, and why the seller’s bill is not yours. |
| The Insurance Piece of the Same Payment | Homeowners insurance is the other piece of the same monthly payment, and it has to be in force before the loan can close. A buyer using assistance is often working with a tight cash position, which makes an insurance delay more costly. On the Texas coast the picture is more complicated, since wind and hail is a separate policy and coastal coverage depends on a windstorm certificate. Our Texas home insurance guide covers what the loan requires, the flood zone determination on every file, and the coverage a standard policy leaves out. |
| How Assistance Affects Borrowing Later | The assistance affects what happens later, not only at closing. A second lien recorded for down payment assistance counts against the 80% ceiling Texas puts on borrowing against your home, so it reduces the equity you can tap in the future. Texas measures that ceiling against every lien on the property. A homeowner who used assistance and later wants a cash-out refinance runs into that math. Our Texas home equity loan guide covers the 80% limit, the waiting periods, and the constitutional rules on borrowing against a Texas home. |
| You Do Not Apply to the Agency Yourself | You do not apply to the state housing agency yourself. Every Texas program runs through an approved loan officer, and the assistance is submitted with your loan file rather than as a separate application you file on your own. The homebuyer education course is the one piece you complete yourself, and it is required on every program. Asking early about local funds matters too, since availability depends on the county or city. The broader picture of a home loan in this state sits on our Texas mortgage guide. |
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| What Lenders Check | How Texas Assistance Rules Affect Your Loan File |
|---|---|
| Minimum Credit Score | Both statewide programs use a minimum credit score of 620. A score below that moves the file to a different program. |
| Income and Purchase Price Limits | Both the household income limit and the purchase price limit are set by county. My Choice Texas Home carries higher income limits, so a buyer over the limit on one program may still fit the other. |
| First-Time or Repeat Buyer Status | My First Texas Home is for first-time buyers and qualified veterans. My Choice Texas Home is open to repeat buyers as well, which is the path for someone who has owned before. |
| Homebuyer Education | A completed homebuyer education course is required on every Texas program. It takes scheduling time, so starting it early keeps it off the critical path to closing. |
| Local Funds in Your County | Local housing finance corporations and city programs provide additional funds in certain regions. Whether any apply depends on the county or city the home sits in. |
| Sources Used on This Page | Texas Department of Housing and Community Affairs, Homebuyer Assistance Programs | Texas Department of Housing and Community Affairs, WelcomeHome program pages |
| Texas Department of Housing and Community Affairs program terms, income limits, purchase price limits, and interest rates are set by the agency and are subject to change. This page is provided for educational purposes only. Smart Loan Savings Educational Content | |
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| Main Loan Types | Primary Income & Target Qualification Fit |
|---|---|
| Conventional Loans | Standard W-2 income with strong credit profiles. |
| FHA Loans | Flexible down payments and lower credit score requirements. |
| VA Loans | Exclusive 100% financing for military veterans and families. |
| Jumbo Mortgages | High-balance luxury financing exceeding standard loan limits. |
| DSCR Loans | Real estate investor solutions qualifying purely on property cash flow. |
| HELOC Options | Borrowers leveraging existing home equity for flexible cash lines. |
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|---|---|
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ADDITIONAL GUIDANCE
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| People Also Ask | Why These Questions Matter |
|---|---|
| How much down payment assistance can you get in Texas? | Texas offers up to 5% of the loan amount toward the down payment and closing costs through 2 statewide programs. Additional local funds may be available in certain counties and cities. Income and purchase price limits apply and are set by county. |
| What credit score do you need for Texas down payment assistance? | Both Texas statewide assistance programs use a minimum credit score of 620. A completed homebuyer education course is also required on every program. Income and purchase price limits apply on top of the credit score requirement. |
| Can repeat buyers get down payment assistance in Texas? | My Choice Texas Home is open to first-time buyers, repeat buyers, and veterans. It offers the same 5% assistance and carries higher income limits than the first-time program. The minimum credit score is 620. |
| Explore Our Learning Center | What You’ll Find Inside |
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| Mortgage Basics Guide | Simple explanations of core terms like principal, interest, escrow, and PMI |
| Income and Employment Requirements | How income, self-employment, bonuses, and job gaps affect your approval |
| Credit & Approval | Credit score requirements, how to improve your score, and how lenders approve a file |
| Homebuying Tips | Preparing for a mortgage, choosing the right program, and avoiding common mistakes |
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| Refinance Guides | Rate-and-term, cash-out, and streamline refinance options explained plainly |
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