Down Payment Assistance

Down payment assistance is often the difference between “someday” and an actual closing date. We work directly with TDHCA and TSAHC programs available to qualifying Texas buyers, structuring the assistance alongside your primary loan so you understand exactly what’s a grant, what’s a second lien, and what it will cost you — before you’re under contract.

How qualification actually works. Assistance programs layer on top of a first-lien loan (most often FHA or conventional) rather than replacing it — the program typically provides a set percentage of the loan amount, structured as either a forgivable grant or a second-lien loan with its own interest rate and term. Eligibility is usually built around three things: a maximum household income tied to the area median income for the county, a maximum purchase price, and — for many but not all programs — first-time buyer status. Most programs also require a homebuyer education course, completed before closing, as a standard condition.

What commonly disqualifies a buyer or a property. Household income above the program’s limit is the most common disqualifier, and that limit is set at the county level, so the same buyer can qualify in one county and not another. A purchase price above the program’s cap, or a property that isn’t the buyer’s primary residence, will also rule out most assistance programs — they aren’t built for investment purchases. Skipping the homebuyer education requirement, or completing it after closing instead of before, can hold up funding even when everything else qualifies.

How it compares to saving a full down payment yourself. Without assistance, an FHA purchase still requires 3.5% down from the buyer’s own funds or a gift. Down payment assistance can cover some or all of that amount, which is often the difference between a buyer with steady income and no path to closing, and a buyer who closes on a timeline measured in months rather than years. The tradeoff, if the assistance is structured as a second-lien loan rather than a grant, is a second monthly obligation or a repayment condition — which is exactly why understanding the specific program’s terms before signing matters more than the size of the assistance itself.