How to apply for down payment assistance programs when buying a home in Texas
At TLP Mortgage, we help guide Texas homebuyers through down payment assistance (DPA) programs every day. The good news is that many buyers qualify for more help than they realize.
Here’s how the process usually works:
Step 1: Connect with a Participating Lender
Not every lender offers the same down payment assistance programs. The first step is working with a lender, like TLP Mortgage, that has access to Texas DPA programs such as:
TDHCA (Texas Department of Housing & Community Affairs)
TSAHC (Texas State Affordable Housing Corporation)
SETH 5 Star Texas Advantage
Local city and county programs
Hero and Veteran programs
These programs can often be paired with:
FHA loans
VA loans
USDA loans
Conventional loans
Step 2: Complete a Pre-Approval
Your loan officer will review:
Income
Credit
Employment
Debt-to-income ratio
Estimated purchase price
Many Texas DPA programs have:
Income limits
Minimum credit score requirements
Purchase price limits
Primary residence requirements
Step 3: Match You with the Right Program
Different programs fit different buyers.
Some examples include:
Homes for Texas Heroes — designed for teachers, veterans, police officers, firefighters, EMS, and other public service professionals
My First Texas Home — for many first-time buyers and eligible veterans
My Choice Texas Home — available even for some repeat buyers
SETH 5 Star Program — offers assistance options that may be forgivable after a few years
Assistance may come in the form of:
A grant (does not require repayment)
A forgivable second lien
A deferred second mortgage
Step 4: Complete a Homebuyer Education Course
Many programs require a short homebuyer education class before closing. These are often available online and help explain:
Budgeting
Mortgage payments
Homeownership responsibilities
The loan process
Step 5: Find Your Home & Finalize the Loan
Once you’re under contract:
Your loan officer submits the DPA request
The program reviews eligibility
Assistance funds are applied toward your down payment and/or closing costs at closing
In many cases, buyers can purchase a home with significantly less out-of-pocket than expected.
At TLP Mortgage, we help buyers understand:
Which programs they may qualify for
How much assistance may be available
Whether grant or forgivable options make the most sense
How to combine DPA with FHA, VA, USDA, or Conventional financing
You don’t have to figure out all the acronyms and program rules alone. We are here to help.
