The down payment is the biggest obstacle for most first-time buyers in the DFW area — and for many buyers in Garland, Rockwall, and Forney, the gap between what they have saved and what they need is smaller than they think. Texas has several statewide down payment assistance programs that are available in all three of these markets, and a local mortgage broker can often stack programs to get buyers to the closing table with very little out of pocket.
The Main DPA Programs Available Across East DFW
TSAHC — Texas State Affordable Housing Corporation
TSAHC runs two programs that are widely available to buyers in Garland, Rockwall, and Forney:
- Homes for Texas Heroes: For teachers, firefighters, police officers, correctional officers, EMS, veterans, and other public servants. Provides up to 5% of the loan amount as down payment and closing cost assistance.
- Home Sweet Texas: For all homebuyers — not just public servants or first-timers — who meet income and purchase price limits. Also provides up to 5% assistance.
The assistance can be structured as either a grant (never repaid) or a deferred second lien forgiven after 3 years. Most buyers take the grant option for simplicity. TSAHC programs pair with FHA, VA, USDA, and conventional loans.
For 2026, income limits in Dallas, Rockwall, and Kaufman Counties are approximately $115,500–$127,050 depending on household size and county. Purchase price caps are roughly $404,500 for non-targeted areas and higher for targeted census tracts.
TDHCA — My First Texas Home
The Texas Department of Housing and Community Affairs offers a below-market first mortgage paired with up to 5% down payment assistance at 0% interest, deferred for 30 years (forgiven if you stay in the home). This program is available to:
- First-time homebuyers (no ownership in the past 3 years)
- Veterans and active-duty military (no first-time buyer requirement)
TDHCA also requires completion of an approved homebuyer education course, which is typically completed online in 2–3 hours.
City of Garland Homebuyer Assistance
Garland occasionally runs its own local homebuyer assistance programs funded through federal Community Development Block Grant (CDBG) allocations. These programs have limited funding and are offered on a first-come, first-served basis — availability changes year to year. Ask your lender if a Garland-specific program is currently active when you're ready to buy.
What "Stacking" Programs Means — and Why It Matters
In some cases, buyers can combine a state-level DPA program with seller-paid closing costs or lender credits, reducing their total out-of-pocket at closing to near zero. For example, a buyer using TSAHC's 5% grant on a $300,000 home in Forney receives $15,000 toward down payment and closing costs. If the seller also agrees to pay $3,000–$5,000 in closing costs as part of the offer, the buyer may arrive at closing needing very little beyond their first month's insurance and prepaid interest.
This isn't a loophole — it's how these programs are designed to work. A broker who knows how to structure the offer correctly makes the difference.
Does DPA Affect Your Interest Rate?
Yes, in most cases slightly. DPA programs typically come with a rate that is marginally higher than a standard FHA or conventional loan without assistance — often 0.25% to 0.5% above market. For most buyers, the value of having the down payment funded outweighs a slightly higher rate, especially early in homeownership when the alternative is renting. Once you have equity, you can refinance out of the DPA structure entirely.
How to Access DPA in Garland, Rockwall, or Forney
DPA programs are not available at every lender — they are offered through approved participating lenders. I'm an approved TSAHC and TDHCA participating lender. Here's the process:
- Start a pre-approval — I check your income, credit, and program eligibility simultaneously
- I confirm which DPA programs you qualify for and run a side-by-side payment comparison
- You select the program structure that fits your situation
- I lock your rate and assistance amount
- Close on your new home with funded down payment assistance
The earlier you start, the more options you have. DPA funds can be limited, and some programs close when their allocation runs out for the year.
Frequently Asked Questions
Do down payment assistance programs need to be repaid?
It depends on the program. TSAHC grant programs do not require repayment — the funds are a true gift. TSAHC's deferred second lien option and TDHCA's My First Texas Home DPA are forgivable after 3 years (TSAHC) or 30 years (TDHCA) if you remain in the home. If you sell or refinance before the forgiveness period, you may need to repay a prorated portion. Your loan officer will explain the specific terms of any program you qualify for before you commit.
Can I use down payment assistance in Garland, Rockwall, or Forney?
Yes. State-level programs like TSAHC and TDHCA are available statewide — they are not restricted to specific cities or counties. This means buyers in Garland (Dallas County), Rockwall (Rockwall County), and Forney (Kaufman County) can all access these programs as long as they meet income limits and purchase price caps for their area. A local mortgage broker who works with these programs regularly can confirm your specific eligibility.
Do I have to be a first-time homebuyer to use DPA in Texas?
Not always. TSAHC's Home Sweet Texas program is available to all buyers — not just first-timers — as long as income and purchase price limits are met. TDHCA's My First Texas Home is limited to first-time buyers (defined as not owning a home in the past 3 years) and veterans. If you've owned before, the TSAHC grant program may still be available to you. Ask your lender which programs apply to your situation.
Find out which DPA programs you qualify for today
I'm Bond Peter Njoku, and I serve buyers in Garland, Rockwall, Forney, and across East DFW. I'll check your eligibility across all active programs at no cost.