Low Down Payment Loan Options & Texas Homebuyer Assistance Programs
Homeownership is more accessible than many people think, especially when you take advantage of low down payment loans and local assistance programs. Whether you're buying your first home or returning to the market, there are options that require as little as 0% down.
National Low Down Payment Programs
1. FHA Loans
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Minimum 3.5% down payment with a 580+ credit score
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Allows for higher debt-to-income ratios
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Seller concessions up to 6%
2. VA Loans (for eligible veterans, active-duty service members, and surviving spouses)
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0% down payment required
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No private mortgage insurance (PMI)
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Flexible credit and income guidelines
3. USDA Loans (for rural and suburban areas)
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0% down payment required
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Income limits apply based on location and family size
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Property must be located in an eligible USDA area (Check eligibility)
4. Conventional 97 Loans
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3% down payment
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First-time homebuyers only
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Must meet income and credit requirements
5. HomeReady/Home Possible Loans (by Fannie Mae & Freddie Mac)
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3% down for qualified borrowers
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Income limits may apply
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Reduced PMI costs and homeownership education required
Texas Statewide Down Payment Assistance Programs
1. Texas State Affordable Housing Corporation (TSAHC)
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3–5% down payment assistance as a grant or forgivable second lien
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Available to first-time and repeat homebuyers
2. Texas Department of Housing & Community Affairs (TDHCA) – My First Texas Home
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Down payment and closing cost assistance
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30-year fixed-rate mortgage options
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Income and home price limits apply
3. Homes for Texas Heroes Program (TSAHC)
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Specifically for teachers, police officers, firefighters, EMS personnel, and corrections officers
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Includes grants and deferred forgivable second loans
4. MCC (Mortgage Credit Certificate) Program
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Provides a federal tax credit up to $2,000 per year
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Can be combined with DPA programs
County and City-Based Assistance in Texas
Harris County Down Payment Assistance Program
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Up to $23,800 in assistance
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Must purchase in unincorporated Harris County
City of Houston – Homebuyer Assistance Program (HAP)
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Up to $50,000 in assistance depending on location and income
City of Dallas – Mortgage Assistance Program
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Up to $50,000 in assistance
City of San Antonio – Homeownership Incentive Program (HIP)
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Assistance varies based on income
City of Austin – DPA Program
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Up to $40,000 for eligible buyers
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Should You Explore Down Payment Assistance?
Absolutely. These programs can significantly reduce the upfront cost of homeownership. Whether you qualify for a national loan with a low down payment or combine that with local assistance, you're one step closer to owning a home.
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Not sure where to begin? Book a free consultation with our team. We’ll walk you through all options available based on your situation and location.