Down payment assistance programs in Texas, what San Antonio buyers need to know in 2026

One of the biggest myths in home buying is that you need a large pile of cash saved before you can even think about making an offer.

The truth? Many San Antonio buyers purchase their first home with far less out of pocket than they expected, sometimes nothing at all. Down payment assistance programs exist specifically to bridge the gap between where buyers are today and where they need to be to close on a home. And most people who qualify for them have no idea they exist.

This blog breaks down what DPA programs are, which ones are available in Texas, who qualifies, and how they work alongside the loan programs you're already considering.

What is down payment assistance?

Down Payment Assistance, or DPA, refers to programs that help home buyers cover their down payment, closing costs, or both. They're offered through state housing agencies, local governments, nonprofit organizations, and some lenders, and they're specifically designed for buyers who meet certain income and purchase price thresholds.

DPA comes in a few forms:

- Grants: money that doesn't have to be repaid, ever. These are the best-case scenarios, and they do exist.
- Forgivable loans: a second loan that is forgiven (written off) after you stay in the home for a set period, typically 3–5 years.
- Deferred loans: a second loan with no monthly payment, due only when you sell, refinance, or pay off the first mortgage.
- Low-interest second loans: a second loan with a small monthly payment that you repay alongside your first mortgage.

The right type depends on your situation, your loan program, and which funds are available at the time you're ready to buy. Your loan officer will help you identify what's actually accessible when the time comes.

Texas DPA programs to know

My First Texas Home (MFTH)

Offered through the Texas Department of Housing and Community Affairs (TDHCA), My First Texas Home provides a 30-year fixed-rate mortgage paired with down payment and closing cost assistance of up to 5% of the loan amount.

Key details:
- Available to first-time buyers and veterans (veterans don't need to be first-time buyers)
- Subject to income limits based on county and household size
- Purchase price limits apply
- Works with FHA, VA, USDA, and Conventional loan programs
- Requires a minimum credit score (typically 620+)
- Buyers must complete an approved homebuyer education course

This is one of the most widely used DPA programs in Texas and a strong starting point for many San Antonio buyers.

Texas Mortgage Credit Certificate (MCC)

Also administered through TDHCA, the MCC is a federal tax credit, not a loan, that allows eligible buyers to claim a percentage of their mortgage interest paid each year as a dollar-for-dollar reduction in their federal income tax liability.

This isn't cash upfront, but it meaningfully lowers the real cost of homeownership over time. It can also be layered with other assistance programs, which makes it a powerful combination for buyers who qualify.

Home Sweet Texas

Another TDHCA program, Home Sweet Texas, offers down payment assistance of up to 5% and is available to buyers who do not meet the first-time buyer requirement of MFTH. If you've owned a home before but currently don't, you may still be eligible.

### Local and lender-specific programs

Beyond state-level programs, San Antonio buyers may have access to assistance through:

- City of San Antonio programs: the city occasionally offers homebuyer assistance for buyers purchasing within city limits. Program availability and funding levels change, so it's worth asking us to check current status.
- Bexar County: county-level programs sometimes run alongside city and state offerings.
- Lender-specific grants: some national lenders and the Federal Home Loan Bank system offer grants to qualifying buyers. At TLP Mortgage, we stay current on what's available and will match you with programs you actually qualify for.

Who qualifies for DPA in Texas?

Eligibility varies by program, but the most common requirements include:

Income limits: Most programs cap eligibility based on your area median income (AMI). In Bexar County, the income limits are set for household size, a single buyer qualifies at a different threshold than a family of four. These limits are updated periodically, so the best way to know is to ask.

Purchase price limits: Programs typically cap the maximum home price. In the San Antonio metro, these limits are generally workable for the price range most first-time buyers are shopping in, but it's worth confirming before you fall in love with a specific property.

Credit score minimums: Most DPA programs require a minimum score in the 620–640 range when paired with conventional loans and sometimes lower when paired with FHA.

Owner-occupancy: All DPA programs require you to live in the home as your primary residence. They cannot be used for investment properties or vacation homes.

Homebuyer education: Most programs require completion of an approved homebuyer education course, typically done online in a few hours. It's genuinely useful, not just a checkbox.

Can you combine DPA with different loan types?

Yes, and this is where the strategy gets interesting.

DPA + FHA: One of the most common combinations. FHA's 3.5% down requirement pairs naturally with assistance programs that cover exactly that amount. Some programs will cover both the down payment and closing costs, bringing your out-of-pocket costs very close to zero.

DPA + Conventional: Conventional loans paired with DPA can eliminate or reduce PMI (private mortgage insurance) depending on how the assistance is structured. This can lower your monthly payment meaningfully compared to a standard low-down-payment conventional loan.

DPA + VA: VA loans already require zero down, so DPA for VA buyers is typically applied toward closing costs, which can otherwise catch veterans off guard. If you're using a VA loan, pairing it with closing cost assistance is worth exploring.

DPA + USDA: USDA loans are available for eligible properties in certain areas outside of dense urban centers. Combined with DPA, they can be a powerful option for buyers open to communities just outside San Antonio's core.

The key is that not all DPA programs are compatible with all loan types. Knowing which combinations are available, and which actually make financial sense for your situation, is exactly what a good mortgage strategist will help you sort through.

What DPA does not do

It's worth being clear about what these programs don't change:

DPA does not replace the need to qualify for the underlying mortgage. You still need to meet income, credit, and DTI requirements for the loan program you're using. Assistance helps with the cash to close; it doesn't bypass the qualification process.

DPA also typically cannot be combined with certain seller concession arrangements, so your contract terms matter. Your loan officer and realtor should be in communication about this from the start.

And finally, DPA programs have limited funding. Some are replenished regularly; others run out and go on pause. The best time to ask about them is early, before you're under contract and on a deadline.

Closing costs: the number buyers forget to plan for

Even with down payment assistance, closing costs catch a lot of first-time buyers off guard. Here's what to expect.

Closing costs typically range from 2–5% of the loan amount and cover a collection of fees and prepaid expenses:

Cost item & Typical range

-Loan origination fee | 0.5–1% of loan amount
-Appraisal | $400–$700
-Title insurance (lender's policy) | $400–$900
-Title insurance (owner's policy) | $400–$1,000+
-Homeowners insurance (prepaid) | $1,000–$2,000
-Property tax escrow (2–3 months) | Varies by home price
-Recording fees | $50–$200
-Survey | $400–$700

On a $300,000 loan in Texas, you might be looking at $6,000–$12,000 in closing costs. That's a meaningful number, but there are ways to manage it.

Seller concessions. In the right market conditions, you can negotiate for the seller to contribute toward your closing costs. In a buyer's market, this is easier. In a competitive situation, it may cost you the house. Your realtor will advise on when to ask and when not to.

DPA for closing costs. As noted above, many assistance programs cover closing costs in addition to the down payment. This is one of the most effective ways to reduce what you bring to the table on closing day.

Rolling costs into the loan. In some cases, particularly with VA loans, certain costs can be financed into the loan amount rather than paid at closing.

Your Loan Estimate will lay out every fee clearly. We'll walk through it with you line by line so nothing is a surprise.


Down payment assistance isn't a secret program for people in extreme hardship. It's a set of well-funded tools designed for working families and individuals who are financially stable but need a bridge to homeownership. A lot of San Antonio buyers, teachers, nurses, veterans, young professionals, and first responders qualify and never find out because nobody told them.

We tell them.

If you're wondering whether you qualify for DPA, the answer requires about 15 minutes of conversation and a look at your income and the home price you're targeting. We'll tell you exactly what's available and what makes sense for you.

No pressure. No sales pitch. Just a straight answer.
Ready to find out what you qualify for?

We're local, we're licensed in Texas, and we know these programs inside and out.



*TLP Mortgage is a DBA of Pilgrim Mortgage® | NMLS #225091 | Branch NMLS #2786297 | Equal Housing Lender | Licensed in Texas. Down payment assistance program availability, eligibility requirements, and funding levels are subject to change. This content is for educational purposes and does not constitute financial advice. Loan qualification is subject to credit approval, income verification, and program guidelines.*