If you’re a first-time homebuyer in Texas, you’re probably aware that saving for a down payment is one of the biggest hurdles to homeownership. The good news is that Texas offers a variety of down payment assistance programs to help you make that dream of homeownership a reality. Whether you’re looking for help with a low down payment or need assistance with closing costs, these programs are designed to ease the financial burden and make purchasing your first home more affordable.
In this post, we’ll dive into the down payment assistance programs available in Texas for 2025, discuss who qualifies for them, and explain how AZM Lending can guide you through the process to secure the best financing options.
Overview of Down Payment Assistance in Texas
In 2025, Texas remains one of the most affordable states for homebuyers, but rising home prices still make it challenging for many, particularly first-time buyers and low-to-moderate-income families. Fortunately, there are numerous down payment assistance (DPA) programs designed to bridge the gap and make homeownership more accessible. These programs can help buyers cover a portion of the down payment or closing costs, making it easier to enter the housing market.
The Texas Department of Housing and Community Affairs (TDHCA) works with local lenders to offer a variety of assistance programs, with each one tailored to specific buyer needs. Additionally, many counties and cities have local programs to provide extra support. The state’s focus is on helping first-time homebuyers, veterans, and low-income buyers get into homes with as little financial strain as possible.
Key Programs in Texas
Here are some of the most popular down payment assistance programs available in Texas in 2025:
Texas First Time Homebuyer Program (My First Texas Home)
The Texas First Time Homebuyer Program is designed to help first-time buyers with down payment and closing cost assistance. With this program, you may be eligible for up to 5% of the home’s purchase price in assistance. The program also offers a competitive interest rate and may allow you to combine it with other state or local grants.
- Assistance Offered: Up to 5% of the loan amount
- Eligibility: First-time homebuyers, veterans, or those who haven’t owned a home in the last 3 years
- Benefits: Low interest rates, reduced mortgage insurance costs
My First Texas Home Program
In addition to down payment assistance, the My First Texas Home Program offers special benefits for first-time buyers, including reduced mortgage insurance rates. This program provides both a 30-year fixed-rate mortgage and down payment assistance, making it ideal for buyers who need help covering the upfront costs of a home purchase.
- Assistance Offered: Up to 5% of the loan amount for down payment and closing costs
- Eligibility: First-time buyers or buyers who haven’t owned a home in the last 3 years, income limits apply
- Benefits: Competitive interest rates and additional financial assistance
Texas Homebuyer Down Payment Assistance Program (TDHCA)
The Texas Homebuyer Down Payment Assistance Program provides additional funding for low- to moderate-income homebuyers. This program is available to homebuyers purchasing a primary residence, and it covers both the down payment and closing costs. The assistance comes in the form of a deferred-payment loan that is forgiven after a certain number of years.
- Assistance Offered: Varies based on county and income level, typically around $10,000
- Eligibility: Low-to-moderate income buyers
- Benefits: Forgivable loan after 5 years, income limits vary by county
Local Programs and Grants
In addition to state-funded programs, many cities and counties in Texas offer their own down payment assistance programs. For example, Houston, Dallas, and San Antonio each have local initiatives that provide financial assistance to homebuyers. These programs often provide additional benefits such as low-interest rates or grants for closing costs.
- Assistance Offered: Varies by city or county, typically up to $10,000
- Eligibility: Varies by location, generally for first-time buyers and low-income families
- Benefits: Financial aid for both down payment and closing costs
Eligibility and Benefits
Eligibility for these programs generally depends on factors like your income, credit score, and whether you’re a first-time homebuyer. In Texas, first-time homebuyers are often defined as someone who hasn’t owned a home in the past three years. Some programs may also have income limits based on household size or the county in which you’re purchasing.
Key benefits include:
- Lower Down Payments: Assistance programs can provide a significant portion of the down payment, reducing the amount of money you need to save before purchasing a home.
- Lower Interest Rates: Many programs offer competitive or reduced interest rates, making homeownership more affordable.
- Reduced Closing Costs: Some programs also offer help with closing costs, which can be a significant barrier to homeownership.
- Forgivable Loans: Certain programs, such as the TDHCA Homebuyer Assistance Program, offer forgivable loans that do not need to be repaid if you stay in the home for a set period.
How AZM Lending Helps
Navigating down payment assistance programs can be overwhelming, but AZM Lending is here to help. Our team is experienced in working with Texas’ down payment assistance programs and can help you determine which one is the best fit for your financial situation. Whether you’re a first-time homebuyer or need assistance with closing costs, AZM Lending can guide you through the entire process—from securing pre-approval to closing on your home.
What AZM Lending Can Do for You:
- Assist with Program Selection: We’ll help you determine which down payment assistance program you qualify for and how to maximize its benefits.
- Competitive Loan Options: We offer a wide range of mortgage solutions, including FHA loans, conventional loans, and VA loans, to help you get the best rate possible.
- Local Expertise: With deep knowledge of the Texas housing market, AZM Lending can provide advice tailored to your specific needs.
If you’re ready to take advantage of Texas’ down payment assistance programs, contact AZM Lending today to learn more about your options and start your path to homeownership!
