Down payment assistance, without the fog.
Texas runs real, funded programs that cover part of a down payment, and almost nobody explains how they interact with builder incentives. Here’s who runs them, how the money actually works, the new-construction catch, and the order to do things in.
State-level help, two front doors.
Home Sweet Texas & Homes for Texas Heroes
Run by the Texas State Affordable Housing Corporation. Assistance comes as either a grant (never repaid) or a deferred forgivable second lien (repaid only if you sell or refinance within 3 years). Minimum 620 credit score; open to first-time and repeat buyers; income limits apply. “Heroes” covers teachers and school staff, police, firefighters/EMS, corrections, veterans and active military, and nursing/allied-health faculty; Home Sweet Texas covers everyone else. Eligible first-timers can add a Mortgage Credit Certificate, a federal tax credit on mortgage interest. (tsahc.org, retrieved Jul 20, 2026, amounts and income limits change; confirm current terms)
My First Texas Home
The state housing department’s program: a 30-year loan paired with down-payment/closing-cost assistance structured as a deferred second lien, plus MCC options. Aimed at first-time buyers (and veterans), with income and purchase-price limits that vary by county. Both programs work only through approved lender networks, that detail matters more than any percentage, as the next section explains. (tdhca.texas.gov, verify current rates, amounts, and county limits before planning around them)
The choice nobody at the sales office will frame for you.
Builder incentives usually require the builder’s lender. DPA usually requires an approved lender.
Most advertised builder incentives, the “below-market rate,” the “$15K toward closing”, are conditioned on using the builder’s affiliated lender. State DPA flows only through each program’s approved lender list. Sometimes a builder’s lender is on the list; often it isn’t. Which means many buyers face a real either/or: the builder’s incentive package, or the state’s assistance, priced side by side, not assumed.
Make both sides write it down, then compare totals.
Get the builder’s full offer in writing through their lender. Separately, get a DPA-approved lender to price the same house with assistance applied. Compare cash to close and total monthly payment, not the headline sizes. A $20K incentive tied to a higher rate can lose to a smaller grant on a cheaper loan, and vice versa. The True-Cost Calculator holds the comparison still; the Leverage Report tells you what the builder’s offer is really worth first.
The 5-step DPA path.
Take the program quiz first
TSAHC’s online eligibility quiz takes minutes and tells you which program (and whether Heroes applies). Check TDHCA’s county income/price limits for your target area.
Talk to an approved lender before touring
Assistance is arranged through the lender, not applied for separately. Walking into a model home already DPA-qualified changes the conversation.
Builder-lender package vs. DPA package
Same house, two written quotes: cash to close and monthly, side by side. This is the step almost everyone skips, it’s worth thousands.
Know your forgiveness terms
A deferred-forgivable second that clears after 3 years is very different from a repayable second if you might sell or refi early. Ask for the exact terms in writing.
MCC + assistance + incentives
Some combinations stack; many don’t. Only your lender can confirm a specific stack, get the final structure on the loan estimate, not in conversation.
What DPA doesn’t fix
Assistance covers down payment, not payment size. A $3,000 budget still obeys the tax-rate math, the district can matter more than the assistance.
Program facts researched Jul 20, 2026 from tsahc.org and tdhca.texas.gov; amounts, rates, and income limits change and are deliberately not quoted here, confirm current terms with the program and an approved lender. This guide is education, not lending or legal advice. Want a human to walk your specific numbers? The free strategy call is with the Seider Realty Team, the buyer-representation side of this platform, disclosed on every page.
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