Texas Down Payment Assistance
Access up to 5% of your loan amount through TDHCA programs with 0% interest deferred loans
Up to 5%
Down payment and closing cost assistance based on loan amount
0% Interest
Deferred loan with no interest and no monthly payments
Multiple Loan Types
Works with FHA, VA, USDA, and conventional loans
Texas Department of Housing Programs
The Texas Department of Housing and Community Affairs (TDHCA) offers two primary down payment assistance programs to help Texas homebuyers achieve homeownership.
The **My First Texas Home** program is designed specifically for first-time homebuyers in Texas. It provides up to **5% of the loan amount** in down payment and closing cost assistance, making homeownership more accessible for those purchasing their first home.
Program Features
Up to 5% Assistance
Based on your loan amount, can be used for down payment and closing costs
0% Interest Deferred Loan
No monthly payments; repaid only when you sell, refinance, or pay off your mortgage
Below-Market Interest Rates
30-year fixed-rate mortgage with competitive rates below market average
Multiple Loan Options
Available with FHA, VA, and USDA loan programs
Who Qualifies?
- •First-time homebuyers – Haven't owned a home in the past 3 years
- •Income limits apply – Based on county and household size
- •Primary residence – Must be your main home, not investment property
- •Homebuyer education – Complete approved homebuyer education course
The **My Choice Texas Home** program extends beyond first-time buyers, offering up to **5% of the loan amount** for down payment and closing costs. This program is ideal for buyers interested in conventional loans or those who don't qualify as first-time buyers.
Program Features
Up to 5% Assistance
Down payment and closing cost assistance based on loan amount
Not Just for First-Timers
Available to repeat homebuyers and those with previous homeownership
Conventional & Government Loans
Works with Fannie Mae HFA Preferred conventional loans, FHA, VA, and USDA
0% Interest Deferred
Same no-interest, no-payment structure as My First Texas Home
Key Difference: My Choice Texas Home is available to both first-time and repeat buyers, making it more flexible than My First Texas Home. However, income limits and other eligibility requirements still apply.
The **Mortgage Credit Certificate (MCC)** program offers a dollar-for-dollar reduction in your federal income taxes. This isn't down payment assistance, but it increases your take-home pay by reducing your tax liability, making your mortgage more affordable.
How MCCs Work
An MCC converts a portion of the mortgage interest you pay each year into a **tax credit** (not a deduction). This credit directly reduces the amount of federal income tax you owe, putting more money in your pocket each month.
Example:
If you pay $10,000 in mortgage interest annually and have a 30% MCC, you receive a $3,000 tax credit. This could increase your monthly take-home pay by $250, making your mortgage payment more affordable.
Who Qualifies?
- •First-time homebuyers and veterans
- •Can be combined with My First Texas Home or My Choice Texas Home programs
- •Income and purchase price limits apply
Contact a TDHCA-Approved Lender
Work with a licensed Texas mortgage broker (like us!) who participates in TDHCA programs and can guide you through the application process.
Complete Homebuyer Education
Take an approved homebuyer education course (available online or in-person). This is required for both My First and My Choice programs.
Get Pre-Approved
Complete your mortgage pre-approval to confirm eligibility and determine how much assistance you qualify for.
Apply for DPA with Your Mortgage
Your lender submits your TDHCA assistance application alongside your primary mortgage application.
Close on Your Texas Home
The down payment assistance funds are applied at closing, reducing your out-of-pocket costs.
Ready to Access Texas DPA?
Get pre-approved in 24 hours and discover how much down payment assistance you qualify for.
NMLS #1767357 • Licensed in Texas • Free Consultation • No Obligation