The biggest myth in homebuying is that you need 20% down. The second biggest? That down payment assistance is only for people who don't make any money.
Both are wrong. And that second myth costs Texas families thousands every month in rent they shouldn't be paying.
Here are five real DPA programs I use with clients every week — with who actually qualifies for each.
1. TSAHC (Texas State Affordable Housing Corporation)
What it is: A grant or deferred second loan covering 3-5% of your mortgage amount.
Who qualifies:
- Income up to 115% of area median (roughly $90-110K for a household of 3-4 in most Texas metros)
- Credit score 620+
- Can be a first-time or repeat buyer (that surprises people)
The catch: You have to complete a short homebuyer education course. Usually takes about 8 hours online. Worth it.
2. Chenoa Fund
What it is: A second mortgage that covers the entire 3.5% FHA down payment. Some versions are forgivable after 36 months.
Who qualifies:
- Must use an FHA loan
- Credit score 620+
- No first-time buyer requirement
- No income limits on some Chenoa programs
Why I love it: It stacks. You can use Chenoa for the down payment AND get seller concessions for closing costs. That's how we close deals with almost nothing out of pocket.
3. Cardinal Elite
What it is: Up to 5% DPA on a conventional loan (yes, conventional — not FHA).
Who qualifies:
- Credit score 660+
- Primary residence only
Why it matters: Going conventional instead of FHA means no monthly PMI after you hit 20% equity and no lifetime mortgage insurance. For buyers who'll be in their home 5+ years, the math usually beats FHA.
4. My First Texas Home
What it is: A Texas Department of Housing program that pairs with FHA, VA, or USDA loans. Covers 3-5% of the loan amount.
Who qualifies:
- Must be a first-time buyer (or not have owned in the past 3 years)
- Meet income limits (varies by county and household size)
- Home must be in Texas
Best for: Folks buying in Austin, Dallas, Houston, or San Antonio metro areas where prices are up but incomes are still moderate.
5. Local City and County Programs
This is the one most buyers miss completely. Almost every Texas city of any size has its own DPA program — they just don't advertise them well.
A few examples:
- City of Austin — up to $40,000 in assistance for qualified buyers
- Travis County HBA Program — up to $10,000
- Hays County / San Marcos — varies by year, usually $5-10K
- Fort Worth, Houston, San Antonio — all have dedicated programs
These are the ones you need a broker to navigate. Most loan officers don't touch them because the paperwork is more complex. We do.
How to Actually Use These
Here's how it usually works when a client reaches out to us:
- Pre-qualification call (30 minutes, free) — we look at your income, credit, location, and goals
- Program matching — we show you the 2-3 DPA programs you likely qualify for, with real monthly payment numbers
- Pre-approval — usually within 48 hours
- House shopping — with a pre-approval letter that knows exactly which programs you're using
- Close — our average is 18 days
We've closed loans for teachers, nurses, Uber drivers, small business owners, and recent college grads. The common thread isn't income — it's finding the right program.
One Honest Caveat
DPA programs change. Funding runs out. Some of the specifics in this article will be different six months from now. That's why talking to an actual human broker matters — we track which programs are live, funded, and actually processing applications that week.
If you've been renting and telling yourself you can't afford to buy yet, get a real opinion before you resign another lease.