Down Payment Assistance Programs in Texas & San Antonio: 2026 Guide
Saving enough money for a down payment and closing costs can be one of the biggest obstacles between a homebuyer and homeownership.
But here's something many Texas buyers don't realize:
You may not have to cover all of those upfront costs on your own.
Texas offers several down payment and homebuyer assistance programs designed to help qualified buyers with some of the upfront costs of purchasing a home. San Antonio buyers may also have access to local assistance programs depending on where the property is located and whether current program requirements are met.
At TLP Mortgage, we help buyers understand which programs may be available, how they work with different mortgage options, and—most importantly—whether using assistance makes financial sense for their individual situation.
Last reviewed: August 2026
Quick Answer: What Down Payment Assistance Is Available in Texas?
Qualified Texas homebuyers may have access to down payment and/or closing-cost assistance through state and local programs.
Programs can include assistance offered through organizations such as:
Texas Department of Housing and Community Affairs (TDHCA)
Texas State Affordable Housing Corporation (TSAHC)
Southeast Texas Housing Finance Corporation (SETH)
Local homebuyer assistance programs
City of San Antonio homeownership programs
Availability, funding, assistance amounts, mortgage rates, credit requirements, income limits, purchase-price limits, repayment requirements, and other guidelines can change.
That's why buyers should verify current program requirements before making financial decisions based on an advertised assistance amount.
What Is Down Payment Assistance?
Down payment assistance, often called DPA, helps qualified buyers cover certain upfront expenses associated with purchasing a home.
Depending on the program, assistance may be structured as a:
Grant
Forgivable second mortgage
Deferred-payment second mortgage
Repayable second mortgage
Other approved form of homebuyer assistance
Some programs may allow eligible assistance to be used toward both the down payment and certain closing costs.
The important thing to understand is that not all assistance works the same way.
Before choosing a program, ask:
Does the assistance have to be repaid?
Is there a forgiveness period?
What happens if I sell or refinance?
Does the program affect my mortgage interest rate?
How much cash will I still need at closing?
Those questions can be just as important as the amount of assistance being offered.
Texas Down Payment Assistance Programs
Texas homebuyers have several programs worth exploring. Here are some of the major organizations and programs you may encounter.
Texas Department of Housing and Community Affairs (TDHCA)
The Texas Department of Housing and Community Affairs offers homebuyer programs designed to help eligible Texans purchase a primary residence.
One of the programs buyers may encounter is My First Texas Home, which can combine an eligible mortgage with down payment and closing-cost assistance for qualified borrowers.
Depending on current program guidelines, requirements can involve factors such as:
Income
Purchase price
Credit qualifications
Property eligibility
Homebuyer status
Completion of approved homebuyer education
Certain programs may provide additional opportunities for eligible first-time homebuyers and veterans.
Because TDHCA program terms and available mortgage options can change, we recommend reviewing current guidelines based on your specific transaction rather than relying on an old assistance amount or interest rate found online.
Texas State Affordable Housing Corporation (TSAHC)
The Texas State Affordable Housing Corporation is another major source of homebuyer assistance in Texas.
Programs available through TSAHC may provide eligible borrowers with mortgage financing paired with down payment assistance.
Depending on current guidelines, TSAHC programs may be available to both first-time and repeat homebuyers, although additional benefits or programs may have separate requirements.
Eligibility can depend on factors such as:
Income
Credit qualifications
Property location
Mortgage type
Purchase price
Homebuyer education
Other program requirements
TSAHC also offers programs that may provide additional opportunities for certain professions or qualified homebuyers.
SETH 5 Star Texas Advantage Program
The Southeast Texas Housing Finance Corporation (SETH) administers homebuyer assistance programs that may be available to qualified Texas buyers purchasing in eligible areas.
Depending on current program guidelines, assistance may be available toward eligible down payment and/or closing costs.
As with other DPA options, requirements may involve:
Property location
Income
Credit
Mortgage program
Homebuyer education
Other eligibility requirements
Not every Texas property is necessarily eligible, so location should be verified before relying on the program.
Down Payment Assistance in San Antonio
San Antonio buyers may have another layer of opportunity: local homebuyer assistance.
City of San Antonio Homeownership Incentive Program
The City of San Antonio has offered homeownership assistance through its Homeownership Incentive Program (HIP).
HIP is designed to help eligible homebuyers with certain costs associated with purchasing a home within qualifying areas.
Assistance and eligibility can depend on current city guidelines, including factors such as:
Household income
Property location
Home purchase price
Buyer contribution
Property eligibility
Occupancy
Available program funding
Other city requirements
Because local program funding and guidelines can change, buyers should confirm that assistance is currently available and that the property qualifies.
What's the Difference Between Texas DPA and San Antonio DPA?
This is where things can become confusing.
Some assistance programs are statewide, while others are limited to specific cities, counties, or geographic areas.
A buyer purchasing a home in San Antonio may have different options than someone purchasing in Boerne, New Braunfels, Seguin, or another Texas community.
That's why the property address matters when evaluating homebuyer assistance.
You don't simply qualify for “Texas DPA.”
You qualify for a specific program based on the program's current requirements and your individual transaction.
Do You Have to Be a First-Time Homebuyer?
Not necessarily.
Some Texas programs are designed specifically for first-time homebuyers, while others may also be available to qualified repeat buyers.
Even the definition of a first-time homebuyer can be different from what many people expect.
For certain programs, someone who hasn't owned a principal residence during a specified previous period may potentially meet the program's first-time homebuyer definition.
Veterans may also receive different treatment under certain program guidelines.
Don't automatically assume you're ineligible because you've owned a home before.
How Much Down Payment Assistance Can I Get in Texas?
It depends entirely on the program and your qualifications.
You may see advertisements online promoting a specific dollar amount or percentage of assistance.
Be careful with those numbers.
Program funding, assistance levels, mortgage rates, guidelines, and eligibility requirements can change.
Instead of beginning with:
“What's the most assistance I can get?”
we recommend starting with:
“Which programs do I qualify for, and which financing option makes the most sense overall?”
More assistance doesn't automatically mean a better mortgage.
Is Down Payment Assistance Free Money?
Not always.
Some assistance may be structured as a grant, while other programs may involve a second mortgage.
That second mortgage could potentially be:
Forgivable after meeting applicable requirements.
Deferred, meaning repayment may not be required until a future event such as selling or refinancing.
Repayable according to established terms.
Before accepting assistance, make sure you understand exactly what happens if you:
Sell the home
Refinance
Move
Pay off the first mortgage
Stop occupying the property as required
A good DPA conversation should explain what happens today AND what could happen later.
Can Down Payment Assistance Help With Closing Costs?
Depending on the program, eligible assistance may potentially be applied toward down payment requirements, certain closing costs, or a combination of the two.
This can be especially important because many buyers prepare for the down payment without realizing they'll also need to plan for closing costs and prepaid expenses.
Your TLP Mortgage advisor can help estimate your total cash-to-close requirement and show you how eligible assistance, seller contributions, lender credits, deposits, and your own funds could affect that number.
What Credit Score Do I Need for Texas Down Payment Assistance?
There isn't one credit score requirement that applies to every Texas DPA program.
Credit requirements can vary based on the assistance program, mortgage program, lender requirements, and other factors.
That's why we don't recommend assuming you're eligible—or ineligible—based on a credit-score requirement you found in an older article.
Have your current situation reviewed instead.
How Do I Know Which Down Payment Assistance Program Is Best?
This is where working with a mortgage professional who understands DPA can make a difference.
At TLP Mortgage, we don't want to simply find the program advertising the biggest assistance number.
We want to compare the complete financing picture.
That includes:
Assistance amount
Cash needed at closing
Mortgage interest rate
Monthly payment
Repayment or forgiveness requirements
Loan program
Potential seller contributions
Long-term cost
Your homeownership goals
For example, Buyer A may benefit tremendously from assistance because it allows them to purchase while maintaining emergency savings.
Buyer B may have enough money for the down payment and discover that another mortgage option without assistance provides a better long-term financial outcome.
Both can be good decisions.
The goal is finding the right strategy for the individual buyer.
Frequently Asked Questions About Texas DPA Programs
Are there down payment assistance programs for first-time buyers in San Antonio?
Yes. Qualified San Antonio homebuyers may have access to state and local assistance programs, subject to current eligibility requirements, property location, funding availability, and program guidelines.
Can repeat homebuyers qualify for down payment assistance?
Potentially. Some Texas assistance programs may be available to qualified repeat buyers. First-time homebuyer requirements vary by program.
Can I combine down payment assistance with an FHA loan?
Certain DPA programs may be compatible with FHA financing when the borrower and transaction meet the requirements of both programs.
Can I use down payment assistance with a conventional mortgage?
Potentially. Some Texas assistance programs may be paired with eligible conventional financing.
Can I use down payment assistance with a VA loan?
Potentially, depending on the assistance program and transaction. Because eligible VA borrowers may already have access to a no-down-payment option, it's important to evaluate what the assistance would be used for and whether it provides a meaningful financial benefit.
Do down payment assistance programs run out of money?
Some programs are subject to funding availability. Assistance can also change or become unavailable, which is why current program status should be verified when you're preparing to purchase.
Where can I find current Texas down payment assistance requirements?
Official program administrators are the best source for current program rules. Your TLP Mortgage loan advisor can also help you identify programs that may apply to your situation and review current requirements with you.
You May Be Closer to Homeownership Than You Think
Don't let an assumption about the down payment stop you from exploring your options.
You don't necessarily need 20% down.
You don't necessarily have to be a first-time homebuyer to receive assistance.
And you don't have to figure out every Texas homebuyer program on your own.
At TLP Mortgage, we help buyers throughout San Antonio and Texas understand their mortgage and homebuyer assistance options.
We'll look at your finances, your goals, where you plan to purchase, and the programs currently available—and help you understand the numbers before you make a decision.
Thinking about buying a home in San Antonio or elsewhere in Texas? Connect with a TLP Mortgage loan advisor and let's find out what programs may be available to you.
Last reviewed: August 2026. Down payment assistance programs, funding, mortgage products, assistance amounts, interest rates, income limits, purchase-price limits, credit requirements, repayment terms, geographic requirements, and eligibility guidelines are subject to change and availability. Not all borrowers or properties will qualify. This information is provided for educational purposes and is not a commitment to lend.
