One of the biggest obstacles to homeownership is saving for a down payment. But many buyers don’t realize there are programs designed to help—especially in the Dallas-Fort Worth area. This guide covers the down payment assistance programs available to you and how to qualify.
Key Takeaways
- Down payment assistance (DPA) programs offer grants, forgivable loans, or deferred payment loans
- Texas and DFW-specific programs can provide $2,500 to $20,000+ in assistance
- Income limits typically cap at 80-120% of area median income ($100,000-$120,000 for many DFW programs)
- DPA can be combined with FHA, VA, conventional, and USDA loans
- Most programs require a homebuyer education course and have primary residence requirements
Types of Down Payment Assistance
1. Grants These don’t need to be repaid. They’re often funded by state or local housing agencies and are awarded based on income, location, or buyer status (first-time vs. repeat buyer).
2. Forgivable Loans These are second mortgages that are forgiven after you live in the home for a certain period (usually 5-10 years). If you sell or refinance before that time, you’ll need to repay the assistance.
3. Deferred Payment Loans These are zero-interest loans that don’t require monthly payments. They’re repaid when you sell, refinance, or pay off your primary mortgage.
4. Matched Savings Programs Some programs match the money you save for a down payment, effectively doubling your savings if you meet the requirements.
Programs Available in the DFW Area
Texas State Affordable Housing Corporation (TSAHC) Offers down payment assistance up to 5% of the loan amount for qualified buyers. This can be combined with conventional, FHA, VA, or USDA loans.
Texas Department of Housing and Community Affairs (TDHCA) Provides the My First Texas Home program, which includes down payment assistance and competitive interest rates for first-time buyers.
City of Dallas HOME Program Offers up to $20,000 in down payment and closing cost assistance for buyers purchasing in targeted Dallas neighborhoods. Income limits apply.
Tarrant County Housing Partnership Provides forgivable loans for down payment and closing costs for buyers in Fort Worth and surrounding areas.
Employer-Assisted Housing Programs Some large DFW employers (hospitals, universities, corporations) offer housing assistance as an employee benefit. Ask your HR department if this is available.
Want to see how down payment assistance affects your monthly payment? Try the mortgage calculator to run different scenarios.
Who Qualifies for Down Payment Assistance?
Eligibility varies by program, but common requirements include:
- Income limits: Most programs cap income at 80-120% of the area median income (AMI)
- First-time buyer status: Defined as not owning a home in the past 3 years (some programs allow exceptions)
- Credit score: Typically 620 or higher
- Homebuyer education: Many programs require completion of a HUD-approved homebuyer course
- Primary residence: The home must be your primary residence, not an investment property
How Much Assistance Can You Get?
Assistance amounts vary widely:
- Grants typically range from $2,500 to $7,500
- Forgivable loans can go up to 5% of the purchase price
- City-specific programs may offer $10,000 to $20,000 in high-need areas
In the DFW market, where median home prices are around $350,000, even $5,000 in assistance can make a significant difference.
What This Means for DFW Buyers
Dallas and Fort Worth have some of the most robust down payment assistance programs in Texas. If you’re buying in targeted revitalization areas or income-qualified neighborhoods, you may qualify for larger amounts.
Collin County (Plano, Frisco, McKinney) has fewer city-specific programs, but state programs like TSAHC and TDHCA are still available.
Can You Combine DPA with FHA or VA Loans?
Yes. Down payment assistance can often be layered with FHA, VA, conventional, and USDA loans. For example:
- FHA + DPA: 3.5% down from DPA funds, combined with FHA’s low credit requirements
- VA + DPA: Some veterans use DPA for closing costs even though VA loans require $0 down
- Conventional + DPA: Helps buyers reach the 5% down threshold for better rates
Common Misconceptions
“I make too much money.” Many programs have income limits around $100,000-$120,000 for a household, which covers a significant portion of DFW buyers.
“I’ve owned a home before, so I don’t qualify.” Some programs define “first-time buyer” as not owning a home in the past 3 years. Others have no first-time buyer requirement at all.
“The application process is too complicated.” Your lender handles most of the paperwork. You’ll need to provide income documentation and complete a homebuyer education course, but the process is straightforward.
Common Questions About Down Payment Assistance
Does DPA affect my interest rate? Some programs may add a small rate adjustment (typically 0.125%-0.25%), but many have no rate impact at all.
Can I use DPA for closing costs too? Yes, many programs allow assistance to be used for both down payment and closing costs.
What happens if I move before the forgiveness period ends? You’ll need to repay the forgivable loan amount. Some programs prorate the repayment based on how long you lived there.
Explore more homebuying guides on the blog or check the FAQ page for additional answers.
How to Get Started
If you’re interested in down payment assistance:
- Get pre-qualified to understand your budget
- Review available programs based on your income and location
- Complete a homebuyer education course (required by most programs)
- Work with a lender experienced in DPA to ensure smooth coordination
I work with DPA programs regularly and can walk you through which options you qualify for, how to apply, and how assistance affects your monthly payment.
Schedule a Discovery Call to explore down payment assistance options, or try the calculator to see how DPA affects your payment.
This article is for general education and is not financial advice. Program availability, requirements, and funding amounts are subject to change.