How Much Down Payment Do You Need to Buy a House in Texas? (2026)

Many Texans believe they need a large down payment, perfect credit, or years of savings before they can buy a home. In reality, many qualified buyers are surprised to learn they may be able to purchase sooner — and with less money — than they expected.

Through Texas down payment assistance programs, eligible buyers may access funds that help cover down payment and closing costs, reducing the cash needed to buy a home. At ShopDPA, our goal is simple: help Texas homebuyers understand their options, compare available programs, and connect with experienced mortgage professionals who can help determine which path may make the most sense.

What Is Down Payment Assistance?

Down payment assistance, often called DPA, refers to programs designed to help qualified homebuyers reduce upfront out-of-pocket costs. Depending on the program, assistance may be a grant that generally does not require repayment, a 3-year deferred forgivable loan that may be forgiven after satisfying program requirements, or a 30-year deferred repayable loan that typically carries 0% interest and no monthly payment. These programs can help buyers who have stable income and qualify for a mortgage but may not want to use all of their savings on the down payment and closing costs. For a full breakdown, see grants vs. forgivable loans vs. deferred loans.

How Much Money Do You Need to Buy a House in Texas?

This is one of the most common questions buyers ask. The answer depends on the purchase price, your credit profile, the loan program selected, available down payment assistance, closing costs, property taxes, and homeowners insurance. Many buyers are surprised to learn the amount they need may be significantly less than they originally expected.

Conventional example. A first-time buyer purchasing a $400,000 home with conventional financing may only need 3% down, or about $12,000. Depending on the program selected, a qualified buyer may be eligible for assistance equal to up to 5% of the loan amount — on a loan near $388,000, roughly $19,400 — in some situations enough to cover the entire minimum down payment while also helping with eligible closing costs.

FHA example. A buyer purchasing the same $400,000 home with FHA financing may only need about 3.5%, or $14,000. On an FHA loan near $386,000, a qualified buyer receiving 5% assistance could potentially receive around $19,300. This is one reason many buyers are surprised to learn they may need less money to buy a home than they expected.

Who Offers Texas Down Payment Assistance Programs?

Many statewide assistance programs are available through TSAHC and TDHCA. TSAHC offers Homes for Texas Heroes and Home Sweet Texas, with assistance available as a grant or forgivable second lien. TDHCA offers My First Texas Home and My Choice Texas Home, with assistance available as forgivable or deferred repayable, plus grant gift funds in certain counties. See our TDHCA program guide for the full picture.

Do I Qualify for Down Payment Assistance?

Many buyers assume they won’t qualify before ever reviewing the actual guidelines. The truth is that program requirements are often more flexible than buyers expect. While guidelines vary, many Texas down payment assistance programs generally require a minimum 620 FICO, primary-residence occupancy, household income within applicable program limits, completion of any required homebuyer education, and eligibility for an FHA, VA, USDA, or conventional mortgage.

Minimum Credit Score Requirements

Many Texas down payment assistance programs require a minimum 620 FICO. Many buyers are surprised to learn that TSAHC and TDHCA program rates are generally not priced the same way as traditional risk-based mortgage pricing — once a borrower meets the minimum program credit requirements, the program interest rate is often the same whether the borrower has a 620 or an 800 credit score. While higher scores may provide additional options outside the program, perfect credit is generally not required.

Income Limits May Be Higher Than You Think

One of the biggest misconceptions is that down payment assistance is only for low-income households. In reality, some program income limits are significantly higher than buyers expect. Under certain TDHCA My Choice Texas Home options, a buyer purchasing in the Austin area (Travis County) may qualify with household income as high as approximately $227,460 in non-targeted areas, depending on loan type and current guidelines. By comparison, certain TSAHC Home Sweet Texas income limits in non-targeted areas may reach approximately $167,250. Many middle-income families are surprised to learn they may still qualify. Confirm the current figure for your county with a participating lender.

You May Not Need to Be a First-Time Homebuyer

While some programs are designed for first-time buyers, others may allow repeat buyers to qualify. Certain TSAHC and TDHCA programs may be available even if you currently own a home or have owned one before.

What About Mortgage Credit Certificates (MCC)?

Certain first-time buyers may also qualify for a Mortgage Credit Certificate, commonly referred to as an MCC. An MCC may provide an annual federal tax credit that can potentially reduce your overall federal tax liability while you own the home. Eligibility requirements, income limits, and purchase price limits apply, and for qualified buyers, combining available homebuyer benefits can create substantial long-term savings.

Common Myths About Texas Down Payment Assistance

“My income is too high.” Some income limits are significantly higher than buyers expect, and many middle-income families are surprised to learn they may still qualify.

“I need perfect credit.” Many programs require a minimum 620 FICO, and once you meet the minimum, the rate is often the same at 620 as at 800.

“I have to be a first-time homebuyer.” Not always — certain TSAHC and TDHCA programs may allow repeat buyers to qualify.

“I’ll have to pay everything back.” Not all assistance works the same way. Some programs offer grants; others offer forgivable assistance; some offer deferred repayment structures that typically carry no monthly payment and 0% interest.

“I need 20% down.” Many qualified buyers may purchase with substantially less than 20% down, especially when down payment assistance is available.

Frequently Asked Questions