LoanWiseCompare mortgages
Back to Top 10 Lists
Top 10 List•4 min read

Top 10 Down Payment Assistance Lenders in Texas

A comprehensive ranking of the 10 best down payment assistance lenders in Texas, comparing state agencies, housing finance corporations, and specialized mortgage lenders to help homebuyers access grants and forgivable loans up to $50,000 for their home purchase.

LoanWise Editorial Team

Top 10 Down Payment Assistance Lenders in Texas

Texas stands as one of the nation's most active housing markets, with diverse homebuying opportunities spanning from Houston's energy corridor to Austin's tech hub and Dallas-Fort Worth's expansive metropolitan area. However, the state's robust economy and population growth have also driven home prices higher, making down payment requirements a significant barrier for many qualified buyers seeking to enter homeownership.

Down payment assistance (DPA) lenders serve a critical role in bridging this affordability gap by providing grants, forgivable loans, and deferred second liens that can cover 3-5% of a home's purchase price or more. These specialized programs work alongside traditional mortgage financing, enabling buyers to secure FHA, VA, USDA, and conventional loans with minimal out-of-pocket cash requirements. Texas offers particularly robust DPA options through state agencies, regional housing finance corporations, and municipal programs.

This ranking evaluates the top 10 down payment assistance lenders based on maximum assistance amounts, geographic coverage, loan type compatibility, eligibility flexibility, and program accessibility. The analysis considers both direct DPA providers like state housing agencies and specialized mortgage lenders who excel at integrating multiple assistance programs into streamlined homebuying processes across Texas markets.

#1

Texas State Affordable Housing Corporation (TSAHC)

Texas statewide down payment assistance via grants and forgivable second liens

Max Assistance

Up to 5% of loan amount

Eligibility

First-time & repeat buyers statewide

Min Credit Score

620

Eligible Loans

FHA, VA, USDA, Conventional

TSAHC is the leading DPA provider in Texas, offering grants and deferred second liens up to 5% of the loan amount, available with FHA, VA, USDA, and conventional loans for both first-time and repeat buyers.
#2

Texas Department of Housing and Community Affairs (TDHCA)

State agency with My First Texas Home & My Choice Texas Home DPA programs

Max Assistance

Up to 5% of loan amount

Loan Types

Conventional, FHA, VA, USDA

Programs

2 main DPA programs: My First Texas Home, My Choice Texas Home

Min Credit Score

620

TDHCA delivers up to 5% DPA via deferred second liens for low-interest 30-year mortgages, with specialized programs for both first-time and repeat buyers statewide.
#3

Southeast Texas Housing Finance Corporation (SETH)

5 Star Texas Advantage DPA program with up to 5% forgivable loans

Max Assistance

Up to 5% forgivable

Eligible Loans

FHA, VA, USDA, Conventional

Geography

Statewide (excludes select areas)

Forgiveness

Option, as per program

SETH provides the 5 Star Texas Advantage Program, delivering up to 5% forgivable second loans for down payment and closing cost assistance, available with FHA, VA, USDA, and conventional loans regionally.
4
#4

Harris County Housing Finance Corporation (HCHFC)

Targeted Harris County DPA with forgivable loan options

Max Assistance

Up to $23,800

Eligible Area

Harris County

Forgivable Period

Subject to occupancy

Paired Loans

TDHCA; SETH

HCHFC provides targeted DPA and forgivable loan programs for moderate-income buyers in Harris County, intended to minimize out-of-pocket costs when paired with TDHCA mortgages.
5
#5

Austin Housing Finance Corporation (AHFC)

Up to $40,000 DPA for Austin’s qualified first-time buyers

Max Assistance

Up to $40,000

Eligibility

First-time buyers in Austin city

Forgivable

Yes, per residency term

AHFC supports income-qualified buyers in Austin city limits with up to $40,000 in forgivable down payment assistance, enhancing access for local households.
6
#6

Federal Home Loan Bank of Dallas (FHLB Dallas)

Up to $25,000 DPA via HELP program through member lenders

Max Assistance

Up to $25,000

Service Area

Texas statewide (via network lenders)

AMI Requirement

80% AMI or below

Homebuyer Contribution

$500 minimum

FHLB Dallas provides the HELP program for Texas buyers, offering up to $25,000 per buyer via members’ lender networks, requiring homebuyer counseling and buyer financial participation.
7
#7

The Texas Mortgage Pros

Statewide mortgage lender specializing in DPA program pairings

Coverage

Statewide Texas

Program Pairings

TSAHC, TDHCA, and local DPA

Eligible Mortgages

FHA, VA, Conventional

The Texas Mortgage Pros actively integrates TSAHC and TDHCA down payment assistance with FHA, VA, and conventional mortgage lending, offering prequalification and application support statewide.
8
#8

City of Tyler

Tyler-focused DPA: up to $50,000 for first-time buyers

Max Assistance

Up to $50,000

Eligibility

First-time buyers at ≤80% AMI

Property Location

Within Tyler city limits

The City of Tyler offers one of the state’s largest municipal down payment assistance grants (up to $50,000) to first-time buyers under 80% AMI, accessible via local lender partnerships.
9
#9

Jefferson Bank

San Antonio mortgage lender with state and federal DPA leverage

Service Area

San Antonio & Bexar County

DPA Support

TDHCA, TSAHC, and local DPA

Jefferson Bank streamlines down payment assistance in San Antonio, connecting buyers to major state and federal programs alongside efficient conventional and government-backed mortgage closings.
10
#10

Own Up (Texas Program Specialists)

Tech-powered prequalification for Texas DPA programs

Coverage

Statewide Texas

Program Access

TDHCA, TSAHC, others

Digital Tools

Online prequalification and counseling matchmaking

Own Up connects Texas homebuyers to DPA programs like My First Texas Home, streamlining access to up to 5% assistance through approved lenders and technology-enabled prequalification.

●Conclusion

When selecting among these top-ranked down payment assistance lenders, geographic eligibility and assistance amounts should be primary considerations. Statewide programs like TSAHC and TDHCA offer broad accessibility with up to 5% assistance, while municipal programs in Austin ($40,000 maximum) and Tyler ($50,000 maximum) provide substantially higher assistance amounts for buyers in specific cities. Harris County residents benefit from targeted programs offering up to $23,800 in forgivable assistance.

Buyers should evaluate program stackability, forgiveness terms, and lender integration capabilities when comparing options. Several programs can be combined for maximum benefit, while forgiveness features reduce long-term repayment obligations. Specialized mortgage lenders like The Texas Mortgage Pros and Jefferson Bank excel at navigating multiple DPA programs simultaneously, while technology platforms like Own Up streamline the discovery and application process.

Consider your specific homebuying timeline, credit profile (most programs require 620+ credit scores), and income limitations when selecting DPA programs. Working with experienced lenders who actively participate in multiple assistance programs often yields better outcomes than attempting to navigate state and local bureaucracies independently. Compare assistance amounts, forgiveness terms, and closing timeframes across multiple options to optimize your Texas homebuying strategy.

Keywords:Mortgage