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Down Payment Assistance Programs
Thousands of dollars in grants and forgivable loans — find out what you qualify for.
Overview
Down payment assistance (DPA) programs help homebuyers bridge the gap between their savings and the down payment required to purchase a home. These programs — offered by state agencies, local governments, and nonprofit organizations — provide grants, forgivable loans, and low-interest second mortgages to qualified buyers. At Fidelity Mortgage Credit Services, we actively match our clients with every DPA program they qualify for, putting thousands of dollars back in your pocket.
Key Benefits
- ◎ Grants that never need to be repaid
- ◎ Forgivable second mortgages that disappear after 5-10 years
- ◎ Low-interest deferred payment loans
- ◎ Stack multiple assistance programs for maximum savings
- ◎ Available for first-time and repeat buyers in many programs
- ◎ Can be combined with FHA, VA, USDA, and conventional loans
Types of Down Payment Assistance
Down payment assistance comes in several forms: Grants are free money that never needs to be repaid. Forgivable loans are forgiven after you live in the home for a specified period, typically 5-10 years. Deferred payment loans don’t require monthly payments and are repaid when you sell, refinance, or pay off your first mortgage. Low-interest loans offer below-market rates on a second mortgage used for your down payment.
Texas Down Payment Assistance Programs
Texas offers some of the most generous DPA programs in the nation. The Texas State Affordable Housing Corporation (TSAHC) provides grants of up to 5% of the loan amount for teachers, first responders, veterans, and low-to-moderate income buyers. The Texas Department of Housing and Community Affairs (TDHCA) My First Texas Home program offers up to 5% in down payment and closing cost assistance as a forgivable second lien.
Who Qualifies for Down Payment Assistance?
Qualification varies by program but generally considers household income (typically at or below 80-120% of area median income), purchase price limits, credit score minimums (usually 620-660), and first-time buyer status (though many Texas programs are available to repeat buyers). Homebuyer education courses are required by most programs and can be completed online in a few hours.
How We Maximize Your Assistance
Unlike banks that offer a single DPA option (if any), we analyze your profile against dozens of available programs to find the maximum assistance you qualify for. In many cases, buyers can combine DPA programs with lender credits to achieve a true zero-out-of-pocket purchase. We handle all the paperwork and coordination — you just show up to closing.
Frequently Asked Questions
Common questions about down payment assistance
Do I have to pay back down payment assistance?
It depends on the program. Grants never need to be repaid. Forgivable loans are forgiven after a set period (typically 5-10 years) as long as you remain in the home. Deferred loans are repaid when you sell or refinance. We’ll clearly explain the terms of every program you qualify for.
Can I use DPA with any type of mortgage?
Most DPA programs work with FHA, VA, USDA, and conventional loans. Some are specific to certain loan types. We match you with programs that work with your chosen loan product to maximize your total benefit.
Is down payment assistance only for first-time buyers?
Many programs are available to first-time buyers only, but the definition of “first-time buyer” is broader than most people think — you qualify if you haven’t owned a home in the past 3 years. Additionally, several Texas programs — including TSAHC’s Home Sweet Texas — are available to all buyers regardless of prior homeownership.
How much down payment assistance can I receive?
The amount varies by program, income, and purchase price. In Texas, grants typically range from 3-5% of the loan amount. On a $300,000 purchase, that’s $9,000-$15,000 — which can cover your entire down payment. Combined programs can sometimes yield even more.
Will DPA slow down my closing?
When handled correctly, DPA adds minimal time to the closing process. We are experienced with all major Texas DPA programs and know exactly what documentation and timelines to expect. Most DPA purchases close in the same timeframe as standard loans.
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