Current down payment assistance guidelines, updated from one source.
The current program figures below are refreshed from Lendmire’s down payment assistance standards source at each visit, so the options shown for Texas are the options in force.
Of the purchase price
Up to this share of the price can come from assistance: the largest option reaches closing costs as well as the down payment, while the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
This covers the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.
On the forgivable and repayable options
No income cap on the forgivable and repayable options: earn what you earn. The nothing-to-repay option is the one exception, opening at or below 140% of area median income or through a qualifying category.
Credit score to start
The score that opens the nothing-to-repay option; the forgivable options start a step higher and the repayable options higher still. Two-borrower files may use a blended score on the second-lien options.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Texas · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Program figures are refreshed from one guideline source and change when it changes. The nothing-to-repay option is not offered in every state; the forgivable and repayable options are second liens; no option combines with another assistance program; all are for owner-occupied primary residences. The rate in the calculator is an editable market benchmark, not a quote, and the payment shown is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is the broker, not the lender, and is not affiliated with FHA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
The first-time home buyer programs work the same way in Texas as anywhere in the footprint: a government first lien, an assistance option sized as a percentage of the price, and a set of rules about credit, units, and eligibility that decide which option fits.
For the program overview, see Lendmire’s down payment assistance program; for the first lien, the FHA loan program.
Assistance covers the FHA down payment
In Texas, the assistance attaches to the first lien at closing and covers the buyer’s required investment; on the larger option, what remains after the minimum investment goes toward closing costs.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Texas cover the same minimum investment and differ in what the buyer owes afterward, and a fourth, the refinance-cost option, serves an existing FHA loan.
Credit floors, mortgage programs, and unit counts
Credit decides which options are open; the first lien decides which options attach; the property’s unit count and type decide which option carries it. The options table shows all three side by side.
Eligibility without a first-time-buyer rule
Eligibility is broader than most buyers expect: repeat buyers qualify, income limits apply only to the nothing-to-repay option, and the categories that open it include first responders, educators, medical personnel, civil servants, and military.
This is the whole test: the price sets the minimum investment, the option covers it, and the larger option leaves room for closing costs. The tool below applies it to your numbers and adds the FHA payment estimate.
Where Texas’ first-time and moderate-income buyers shop — and how the assistance fits.
Texas’ renter share, median home value, and median household income frame the gap the assistance closes; the figures here are statewide context, not underwriting inputs.
Statewide figures provide general market context, not an appraisal or an income calculation. The higher the median value, the larger the minimum investment in dollars; that is why the assistance is sized as a percentage of the price rather than a fixed sum, and why the larger option matters more in expensive markets.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Texas’ renters live — market by market.
Lendmire tracks these Texas markets for down payment assistance; each carries a city guide with its own Census figures, submarkets, and assistance sizer.
Houston
Roughly 538,885 Houston households rent, about 58% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $277,800, median household income near $64,813, population near 2.33M.
Dallas
In Dallas, about 58% of households rent — near 307,300 renter households — and the metropolitan market there sees a steady flow of assisted first purchases. Census context: median value near $320,700, median household income near $70,518, population near 1.31M.
San Antonio
Roughly 265,201 San Antonio households rent, about 48% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $235,700, median household income near $65,056, population near 1.48M.
Austin
Roughly 257,933 Austin households rent, about 57% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $555,300, median household income near $93,658, population near 980K.
Fort Worth
Roughly 147,054 Fort Worth households rent, about 43% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $303,000, median household income near $79,507, population near 963K.
El Paso
El Paso ranks sixth by renter households among Lendmire’s Texas markets — roughly 96,177, about 39% of households — a metropolitan market where the down payment is the hurdle for a large share of would-be buyers. Census context: median value near $184,500, median household income near $59,745, population near 680K.
These are Census patterns, not program terms. The option for any Texas file comes from the credit tier, the first lien, the property, and the category.
Four ways Texas buyers put down payment assistance to work.
The same assistance serves several purposes in Texas; four of the most common are below.
Cover the costs of an FHA refinance
The refinance-cost option in Texas is for an existing FHA loan, not a streamline, and not a loan that already carries assistance; it is sized on the lesser of balance or value.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Texas, the forgivable and repayable options pair with a no-down-payment first lien (the separate closing-cost option is FHA only); HUD-184 first liens pair the same way.
Cover closing costs too on the larger option
When the minimum investment is covered but closing costs and prepaids remain the hurdle, the repayable option in Texas reaches both; the balance above the minimum investment goes toward the closing.
Buy a first home with the down payment covered
The most common Texas file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.
Size the assistance on a Texas price before requesting a quote.
This tool applies the program to a Texas scenario: the price sets the minimum investment, the option and your cash set the down payment, and the FHA loan, mortgage insurance, and payment follow at the benchmark rate shown. Every field is editable; the rate is a market reference, not a quote.
Texas FHA payment with assistance
A Texas scenario to start from — adjust the price, the option, your own cash, the term, and the rate to see the assistance and the payment.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $285,000 price near Texas’ median owner-occupied home value, the strongest assistance option offered in Texas applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Texas (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
Down payment assistance is one of the ways a Texas buyer covers the minimum investment; each has a different cost after closing.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for a Texas buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For a Texas buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
USDA and HUD-184 first liens pair with the forgivable options and the ten-year repayable option on a Texas file; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers — Lendmire places the Texas file where it reads best.
What to prepare for a Texas scenario review.
What a down payment assistance review usually starts with.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
Beyond the credit tier and the first lien, a handful of details decide which option a Texas buyer can use — or whether the assistance attaches at all.
Use these checks to keep the Texas file clean and fundable.
Settle the option, the first lien, the property’s eligibility, and the category before the appraisal is ordered; a Texas file that clears these reads cleanly.
- Know the option: confirm the option is offered in the state.
- Confirm the category: identify the category that opens the nothing-to-repay option.
- Do not stack: check the first lien’s specialty programs against the option.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Texas, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
For a Texas buyer, the category question is worth answering early: a buyer inside the income limit or in a qualifying occupation reaches the nothing-to-repay option; a buyer outside every category uses the forgivable or repayable second liens, which carry no income limit.
No stacking with other assistance
No option may be combined with another down payment assistance program in Texas, and the nothing-to-repay and forgivable options do not combine with a high-balance first lien; one assistance option, one first lien, one closing.
Property type and unit count select the option
The property itself can move a Texas file: a fourplex, a single-width manufactured home, or an unapproved condominium project each changes which option can attach, so the address is read before the option is promised.
The mortgage and the county loan limit
In Texas, the first-lien program is chosen with the property: USDA where the address is eligible, HUD-184 where the buyer qualifies, FHA everywhere. The county loan limit then decides whether a larger first lien can still carry an assistance option.
From a Texas pre-approval to keys with the assistance in place.
The process for a Texas purchase with assistance is deliberate, because the details around the assistance are what stall closings.
Pick the option
Every Texas file starts with the option and the first lien; the category, the homebuyer education course and the property rules are then settled around them, in that order.
Get the mortgage approved
Lendmire packages the Texas file for the first lien first, because the assistance follows its approval; the option’s floor and the first lien’s rules both have to clear.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
Final underwriting reads the whole Texas file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.
A brokerage that pairs the assistance to the loan.
Pairing the right assistance to the right first lien for a Texas buyer means knowing which option the credit opens, which the property allows, and what each costs to carry — before the contract is signed.
The option, matched to the buyer
Lendmire reads the options offered in Texas against a Texas buyer’s credit, first lien, property, and category before anything is ordered, and names the fit by cost to carry.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Texas property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.
The right wholesale program
A Texas file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.
Trusted by first-time buyers & families alike.
Texas down payment assistance FAQs
Plain answers to the questions Texas buyers ask most about down payment assistance, before you request a review. Every file is underwritten individually; nothing here is a commitment.
Do I have to be a first-time homebuyer?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
For most of the options, no. The forgivable and repayable second liens carry no income limit at all. The nothing-to-repay option is the one that looks at income, and even there a qualifying occupation, a first purchase, or an underserved census tract opens it as an alternative to the income test.
What first-time home buyer programs are available in Texas?
Think of it as one program with several ways to receive the help: forgiven at closing, forgiven after a run of on-time payments, or repaid over time. The options table on this page shows exactly which ones are offered in Texas and what each costs to carry.
Do I have to pay the assistance back?
For a Texas buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
Lower than most buyers expect: the entry floor for a Texas buyer sits in the low six hundreds, with the second-lien options a step or two higher. Two-borrower files may qualify on a blended score on the second lien when the higher earner has the higher score.
Which mortgages can the assistance be used with?
The nothing-to-repay option pairs only with FHA; the forgivable and repayable second liens pair with FHA, USDA, and HUD-184, the closing-cost repayable option with FHA only. The property and the buyer decide which first lien fits.
What is the rate on the mortgage and on the assistance?
A scenario review produces the actual terms; the calculator here shows an estimate at a benchmark rate you can change, with the assistance sized on the price you enter.
Can the assistance cover closing costs too?
Yes, on the repayable options: the larger repayable option covers the minimum investment and a further share of the price for closing costs and prepaid items. The nothing-to-repay and forgivable options cover the minimum investment only.
What is the repayable option and when does it make sense?
It is a loan — the repayable options are the only purchase options with a payment — in exchange for covering the most. A Texas buyer chooses it for the closing-cost coverage or the high-balance pairing.
Can I combine this with another assistance program?
No. One assistance program per Texas file. The nothing-to-repay and forgivable options also do not combine with a high-balance first lien, and the nothing-to-repay option not with certain FHA specialty programs.
The down payment is the hurdle. The option clears it.
A first read of a Texas assistance scenario takes a few minutes and commits you to nothing; the option, the category, and the property rules are explained before anything is ordered.
This guide covers Texas — for the program overview and the options, see Lendmire’s down payment assistance program.
All Texas city guides (85): Abilene · Allen · Amarillo · Arlington · Austin · Baytown · Beaumont · Brownsville · Bryan · Burleson · Carrollton · Cedar Park · Celina · College Station · Conroe · Corpus Christi · Dallas · Denison · Denton · DeSoto · Eagle Pass · Edinburg · El Paso · Euless · Flower Mound · Fort Worth · Fredericksburg · Frisco · Fulshear · Galveston · Garland · Georgetown · Grand Prairie · Grapevine · Harlingen · Houston · Irving · Killeen · Kyle · Laredo · League City · Leander · Lewisville · Little Elm · Longview · Lubbock · Mansfield · Marfa · McAllen · McKinney · Mesquite · Midland · Mission · Missouri City · New Braunfels · North Richland Hills · Odessa · Pasadena · Pearland · Pflugerville · Pharr · Plano · Port Aransas · Port Arthur · Richardson · Rockwall · Round Rock · Rowlett · San Angelo · San Antonio · San Marcos · Sherman · South Padre Island · Sugar Land · Temple · Texarkana · Texas City · The Woodlands · Tyler · Victoria · Waco · Waxahachie · Wichita Falls · Wimberley · Wylie
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans