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El Paso Down Payment Assistance: 2026 Programs & Income Limits

Texas down payment assistance (DPA) helps homebuyers cover their down payment and closing costs through state programs (TSAHC, TDHCA) and the federal MCC tax credit. Eligible Texas buyers can combine $25,000–$110,000+ in assistance depending on county, occupation, and household income. Most programs require 620+ FICO and HUD-approved homebuyer education.

By Tyler AllenTyler Allen Reviewed by Byron Davis, NMLS #621780Byron Davis, NMLS #621780 2,339 words · ~11 min read
Up to ~5%Of the loan amount that may go toward your down payment and closing costs
~$123,500Income the El Paso County TSAHC limit may reach (non-targeted, any household size)
~$544,232Price limit, rarely a constraint at El Paso prices
~620Credit score most El Paso buyers start from

El Paso is one of the most affordable major cities in Texas, and that single fact reshapes how down payment assistance works in the Sun City. In pricier metros, buyers worry about clearing the program’s purchase-price limit. Here, home prices sit so far below that ceiling that the cap rarely comes up at all. The questions that actually decide things are your income and your credit, and the statewide programs are built to meet buyers right where most El Pasoans land.

Tucked against the Franklin Mountains where Texas meets New Mexico and Ciudad Juarez, El Paso anchors a binational region of more than a million people, with Fort Bliss, UTEP, and a deep border-trade economy driving it. A lot of first-time home buyers in El Paso assume help with a down payment is out of reach, or only for very low incomes. For most of them, that assumption is simply wrong, and checking takes only a couple of minutes. Here is the full 2026 picture.

What El Paso buyers get wrong about down payment help

The reasons buyers here pass on assistance tend not to survive a closer look:

  • “Assistance is only for very low incomes.” Not so. The El Paso County TSAHC income limit may reach approximately $123,500 at any household size, which clears most local households comfortably.
  • “It is only for first-time buyers.” For most programs it is not. TSAHC’s Home Sweet Texas and TDHCA’s My Choice Texas Home both welcome repeat buyers, though El Paso also has strong first-time-buyer options.
  • “I need 20% down or perfect credit.” Neither. Assistance pairs with FHA at 3.5% down and conventional at 3% down, and most programs start around a 620 score.
  • “My home will not qualify.” In El Paso it almost certainly does on price, since local homes sit well under the program limit.

Which of these applies to you depends on your income against the El Paso County limits and your credit. It takes a couple of minutes to find out, and for many El Paso renters the answer is sooner than they expected.

What down payment assistance in El Paso actually is

Down payment assistance in El Paso is money that covers your down payment and usually part of your closing costs, so you bring less cash to the table. It comes mostly from two statewide agencies rather than the city: the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA).

Each may provide up to about 5% of your loan amount, offered as a grant or a forgivable second lien, depending on the option you pick. The assistance attaches to a normal first mortgage, FHA, conventional, VA, or USDA, so the underlying loan is ordinary. Our Texas down payment assistance hub covers how the statewide help works in depth.

El Paso city and county down payment assistance, and how we fit

The City of El Paso has at times run its own homebuyer assistance for income-eligible buyers inside the city, with its own rules and funding cycles, and El Paso County has offered help in unincorporated areas. These local programs can be worth asking about if your income is on the lower end, but they tend to be limited and tied to available funding.

To be straight with you: ShopDPA does not administer any City of El Paso or El Paso County program, and for most buyers the statewide path is more dependable. The help that is open year-round, available in larger amounts, and usable by repeat buyers comes from the statewide TSAHC and TDHCA programs, which is where the licensed lenders in our network connect qualified El Paso County buyers. Any local program is education here, not the engine.

El Paso down payment assistance income limits (2026)

Income limits are measured against the area median. The figures below show approximately how high the limits may reach for non-targeted areas in El Paso County. Read them as “up to” guides; a participating lender confirms your exact number.

Program (El Paso County) Household of 1–2 Household of 3+
TSAHC Home Sweet Texas / Homes for Texas Heroes Up to ~$123,500 Up to ~$123,500
TDHCA My First Texas Home Up to ~$98,800 Up to ~$113,620
TDHCA My Choice Texas Home Up to ~$123,930 Up to ~$123,930
Source: TSAHC lender income and guideline limits and TDHCA lender resources, non-targeted El Paso-area figures. Limits are set by household size and may change.

TSAHC applies one income limit at any household size, while TDHCA brackets by household. My Choice Texas Home may reach about $123,930 for conventional loans, or about $167,960 on FHA, VA, and USDA loans, which covers most El Paso households. Because local prices sit comfortably under the cap, income and credit are usually the only real questions.

TSAHC programs for El Paso buyers

TSAHC is the program many El Paso buyers use. TSAHC’s down payment assistance may provide up to about 5% of the loan amount, structured three ways: a no-assistance option (first mortgage plus an optional MCC, often at the lowest rate), a grant you never repay, or a three-year forgivable second lien.

  • Home Sweet Texas is the general track. If your El Paso County income fits the limit, you may qualify regardless of profession or whether you have owned before.
  • Homes for Texas Heroes serves teachers, police officers, firefighters, EMS, corrections officers, nursing faculty, and veterans. El Paso ISD, Socorro ISD, and Ysleta ISD staff, the city’s first responders, and the area’s many veterans fit here. See our Homes for Texas Heroes guide for the full occupation list.

Not every lender is approved to offer TSAHC programs, which is one reason working with a participating lender in our network matters. TSAHC publishes its full program terms on its homebuyer pages.

TDHCA programs for first-time home buyers in El Paso

TDHCA runs the other statewide track, and for many first-time El Paso buyers it is the entry point:

  • My First Texas Home is for first-time buyers (no ownership in the last three years) and qualified veterans, pairing a competitive first mortgage with assistance at the lower income limits above.
  • My Choice Texas Home removes the first-time requirement and lifts the income ceiling, which fits repeat buyers and dual-income households.

Both live on TDHCA’s homebuyer site. For most El Paso County households there is usually a fit between the two agencies; the work is picking the right one, which the eligibility step handles. Our guide to TSAHC and how it differs from TDHCA lays out the comparison.

The MCC tax credit for El Paso buyers

A Mortgage Credit Certificate is one of the best benefits for a first-time home buyer in El Paso to know about. An MCC is a federal tax credit under IRS Form 8396 that may return up to 15% of the mortgage interest you pay each year, with no annual cap, taken straight off your federal tax bill. A credit lowers what you owe dollar for dollar, which is stronger than a deduction.

The real benefit depends on your loan amount, your rate, and your federal tax liability, so it is an “up to” figure rather than a flat promise. On an El Paso-sized loan it may add up to a steady yearly benefit, and it continues as long as you keep the loan and live in the home. TSAHC issues the MCC for qualifying first-time buyers, and our Texas MCC guide walks through the math.

How El Paso DPA works with FHA, VA, USDA, and conventional loans

Assistance is not its own loan type. It rides on top of a standard first mortgage, and the right base loan depends on your credit, your cash, and what you are buying. In El Paso, FHA and conventional financing are both common, and with Fort Bliss nearby, VA loans see heavy use too.

How Texas DPA pairs with each loan type

Loan type Min down Min credit DPA pairing benefit
FHA 3.5% 580 (TSAHC overlay: 620) DPA may cover much of down + closing → out-of-pocket often drops below $1,000
VA 0% 620 (TSAHC overlay) DPA may cover closing costs; funding fee waived for 10%+ disabled vets
USDA 0% 620 (TSAHC overlay) Rural areas only; DPA may cover closing costs; income caps lower
Conventional 3% 640-680 typical HFA Advantage / HFA Preferred reduces MI; better long-term economics with 680+ credit
TSAHC and TDHCA both require 620+ FICO regardless of underlying loan-type minimums.

Source: tsahc.org, FHA Handbook 4000.1, VA Lenders Handbook M26-7

The rural edges of El Paso County can fall in USDA-eligible areas, worth checking outside the city core since USDA allows zero down. Veterans have their own path: beyond a VA home loan, the Texas Veterans Land Board offers below-market loan options for Texas veterans. Our Texas VA loan guide covers the veteran path in detail.

TSAHC vs TDHCA: which El Paso program fits?

The two agencies overlap, so here is how they compare at a glance for an El Paso County household.

TSAHC vs TDHCA — Texas state DPA programs at a glance

Program detail TSAHC TDHCA
First-time-buyer required? No (Heroes); Yes/No (HSTH) Yes (MFTH); No (MCTH)
Income limit By county, any household size (up to ~$167,250) By county and household size; My Choice is higher
DPA structure Grant OR 3-year deferred forgivable second lien (36 months) 30-year deferred (repayable) OR 3-year deferred forgivable second lien
Typical DPA % 3% / 4% / 5% of loan amount Up to 5% of mortgage amount
Min credit score 620 (lender overlays may apply) 620 (lender overlays may apply)
Loan types accepted FHA, VA, USDA, Conventional FHA, VA, USDA, Conventional
MCC pairing allowed? Yes (TSAHC MCC) Yes with MFTH; NOT with MCTH
Recapture tax (§143)? May apply; reimbursement program available May apply; reimbursement program available
MCC = Mortgage Credit Certificate. One MCC per loan, ever. TDHCA MCTH does not allow MCC pairing.

Source: tsahc.org + welcomehome.tdhca.texas.gov

For most El Paso buyers the choice comes down to two questions: are you a first-time buyer, and where does your income sit against each limit? With so many first-time and military buyers here, the My First Texas Home and Heroes paths see heavy use. A participating lender can compare both on your real numbers.

Where you buy in El Paso changes the picture

Because most of El Paso falls well under the price limit, where you buy is less about clearing the cap and more about the home and neighborhood you want.

  • The Lower Valley, Central, and Northeast neighborhoods hold many affordable homes well under the limit, ideal for first-time buyers.
  • The Eastside near Fort Bliss offers newer family homes popular with military and civilian buyers, nearly all under the cap.
  • The Westside toward the Franklin Mountains and Upper Valley runs higher, though most homes still fit; a lender can confirm a specific property.

Buyers comparing the region sometimes look at Socorro, Horizon City, and the Mission Valley, which share the same El Paso County limits. Our Texas down payment assistance hub covers the statewide programs that reach all of them.

El Paso schools and the Homes for Texas Heroes program

El Paso is served by several districts, with El Paso ISD at the center alongside Socorro ISD, Ysleta ISD, and Canutillo ISD. Add UTEP, the medical center, and Fort Bliss, and the area is full of people whose jobs qualify them for the Homes for Texas Heroes program.

Teachers, aides, counselors, librarians, and school nurses across those districts qualify, as do El Paso’s police officers, firefighters, EMS, and the region’s many veterans. The Heroes program offers the same assistance as Home Sweet Texas, framed for your profession, with no first-time-buyer requirement. Our Texas teacher home loan guide explains how district employment verification works.

Credit score requirements for El Paso DPA

Most TSAHC and TDHCA programs start around a 620 credit score. That is well short of “perfect,” and it surprises buyers who assumed assistance demanded a spotless file. Your score shapes your interest rate and which assistance option fits, but 620 is the number to aim for, and some loan types flex around it depending on the rest of your application.

If you are under 620 right now, treat it as a timeline rather than a closed door. A participating lender or a HUD-approved housing counselor can usually point to the few specific moves that may lift your score into range, which is encouraging for first-time El Paso buyers building credit.

Homebuyer education for El Paso buyers

Most assistance programs require a short homebuyer education course before you close. It covers budgeting, the loan process, and what to expect at closing, and buyers who take it tend to do better over the long run. You can find a HUD-approved counselor through the CFPB’s housing counselor tool, and your lender confirms which specific course your program accepts.

Recapture tax for El Paso DPA buyers (IRS §143)

Some TSAHC and TDHCA bond-backed programs carry a federal recapture provision under IRS §143. A recapture tax may apply only if all three of these happen together: you sell within nine years, your income at sale is significantly above the program limits, and you realize a capital gain. If any one of those is not true, there is generally nothing to recapture.

Very few buyers ever owe it, and both agencies offer reimbursement programs that may cover a recapture tax if it is ever triggered. The mechanics live on IRS Form 8828. We mention it for honesty, not alarm; a participating lender explains how it applies to the program you choose.

Step by step: from form to closing day in El Paso

  1. Check where you stand. Spend a couple of minutes on the eligibility step so we understand your income, location, and goals.
  2. Connect with a participating lender. We introduce you to a licensed mortgage professional in our network who is approved to offer TSAHC and TDHCA programs in the El Paso area.
  3. Get pre-qualified and pick your program. Your lender checks your income against the El Paso County limits, reviews your credit, and helps you choose the assistance option that fits.
  4. Finish homebuyer education. Complete the short HUD-approved course your program requires, online or in person.
  5. Shop, offer, and close. House-hunt across El Paso with your assistance lined up and bring far less cash to closing than you expected.

Documents to have ready for pre-qualification

You do not need these to begin, but they speed things up once you connect with a lender:

  • Recent pay stubs (about 30 days) and the last two years of W-2s or tax returns
  • Two months of bank statements
  • A government-issued ID
  • Your DD-214 if you are using a VA loan or the Heroes/veteran track
  • A rough idea of your target El Paso neighborhoods and price range

El Paso down payment assistance: frequently asked questions

El Paso down payment assistance: frequently asked questions

How does down payment assistance work in El Paso, Texas?
For most El Paso buyers, assistance comes from TSAHC or TDHCA and may provide up to about 5% of the loan amount toward a down payment and closing costs, as a grant or a forgivable second lien. It attaches to a standard FHA, conventional, VA, or USDA first mortgage. A participating lender confirms the exact amount for your situation.
Are there first-time home buyer programs in El Paso?
Yes. TDHCA's My First Texas Home is built for first-time buyers (no ownership in the last three years) and qualified veterans, and it pairs well with a Mortgage Credit Certificate for an ongoing federal tax credit. TSAHC's Home Sweet Texas also serves first-time buyers, with no first-time requirement on most of its options. The eligibility step sorts out which fits you.
Is El Paso affordable enough to buy with down payment assistance?
Yes, and that is the local advantage. El Paso prices run well below the roughly $544,232 program price limit, so the cap almost never blocks a buyer. With assistance covering much of the down payment, the main questions become your income and your credit rather than the home price.
Who qualifies for down payment assistance in El Paso?
Qualified El Paso County buyers whose income fits the program limits, which may reach approximately $123,500 for TSAHC, with lower first-time tiers underneath, generally with a credit score around 620. Most programs do not require you to be a first-time buyer. The eligibility step sorts out which programs fit you.
How much down payment assistance can I get in El Paso?
Most TSAHC and TDHCA programs may provide up to about 5% of your loan amount. On an El Paso purchase, that can cover a 3% conventional or 3.5% FHA down payment with help left over for closing costs. The exact figure depends on your loan size and the program you choose.
Can soldiers and veterans at Fort Bliss use down payment assistance in El Paso?
Often yes. A VA loan already allows zero down for eligible service members and veterans, and TSAHC or TDHCA assistance can go toward closing costs. Veterans also qualify for the Homes for Texas Heroes program. A participating lender confirms your VA entitlement and how the pieces fit together.
What is the income limit for down payment assistance in El Paso in 2026?
In El Paso County, the TSAHC income limit may reach approximately $123,500 for a household of any size. TDHCA's My First Texas Home runs lower (up to about $113,620 for larger households), and My Choice Texas Home may reach about $123,930 on conventional loans or about $167,960 on FHA, VA, and USDA loans. A lender confirms your figure.
Does El Paso have its own down payment assistance program?
The City of El Paso and El Paso County have at times offered local homebuyer help for income-eligible buyers, with their own rules and funding cycles. ShopDPA does not administer those; the lenders in our network connect qualified buyers with the larger statewide TSAHC and TDHCA programs that provide the bulk of the down payment money year-round.
What credit score do I need for down payment assistance in El Paso?
Around 620 is the common starting point for TSAHC and TDHCA programs. If you are below that now, a participating lender or HUD-approved housing counselor can often map a short path to get there, which is common for first-time buyers building credit.
Do you have to pay back down payment assistance in El Paso?
It depends on the option. TSAHC and TDHCA offer grants that are never repaid and forgivable second liens that are cleared after you live in the home for a set period, often three years. A repayable second-lien option also exists. A participating lender explains which structure applies to the program you pick.

† ShopDPA is The Texas Down Payment Assistance Marketplace, a home loan and down payment assistance referral service. We are not a mortgage lender, mortgage broker, or loan officer, and we do not originate, fund, or service loans. We connect Texas homebuyers with licensed mortgage professionals and with down payment assistance programs. We are not affiliated with the City of El Paso, El Paso County, Fort Bliss, the U.S. Department of Defense, TSAHC, TDHCA, HUD, the IRS, the VA, or any government agency. Program terms, income limits, purchase-price limits, and tax-credit amounts are set by the applicable agency, lender, or insurer and may change; confirm current details with a participating licensed lender. Equal Housing Opportunity.

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