The down payment is the biggest obstacle for most first-time homebuyers in North Texas — but it doesn’t have to be. Texas has some of the most generous down payment assistance (DPA) programs in the country, and many buyers who think they can’t afford a home discover they actually qualify.
Texas State Affordable Housing Corporation (TSAHC)
Homes for Texas Heroes
For teachers, firefighters, police, corrections officers, EMS, veterans, and nurses. Offers 3–5% of the loan amount as a grant (never repaid) or second lien. Works with FHA, VA, USDA, and conventional loans. Income limits apply — generally up to $97,000–$112,000 depending on county. Available across Collin County, Denton County, and Grayson County.
Home Sweet Texas
For all Texas homebuyers who meet income limits. Same structure as Heroes — 3–5% grant or second lien. If you don’t qualify as a “hero,” this program covers you.
Texas Department of Housing and Community Affairs (TDHCA)
TDHCA’s My First Texas Home program offers 30-year fixed-rate mortgages with below-market interest rates plus up to 5% of the loan amount in DPA for down payment and closing costs. Available for first-time buyers and veterans.
Local Programs Worth Knowing
| Program | Area | Benefit |
|---|---|---|
| City of McKinney DPA | McKinney, TX | Up to $10,000 forgivable loan |
| Collin County Housing | Collin County | DPA for income-qualified buyers |
| National Homebuyers Fund | Statewide | Up to 5% DPA grant |
Common Eligibility Requirements
- First-time homebuyer (or not owned a home in 3 years) — some programs waive this for veterans
- Income at or below program limits (varies by county)
- Minimum credit score — typically 620–640
- Primary residence only
- Completion of a homebuyer education course (usually free online)
Can DPA Be Combined with Other Programs?
Yes — in many cases. A veteran buying in Celina, TX might use a VA loan (0% down) plus TSAHC’s Heroes grant to cover all closing costs. Stacking programs requires a lender who knows the guidelines and is approved for these programs — I am, and I help North Texas buyers navigate these combinations every day.
Ready to Take the Next Step?
Get a free, no-obligation pre-approval in about 15 minutes. I’ll show you exactly what you qualify for in North Texas.
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Homewood Mortgage, LLC | NMLS #294974 | Wayne Wallace NMLS #745186 | Licensed in Texas | This is not a commitment to lend. Loan approval subject to credit, income, and property qualification. Programs, rates, and terms subject to change without notice.