One of the biggest barriers to homeownership in DFW isn't qualifying for a mortgage — it's coming up with the down payment and closing costs. Fortunately, Texas has some of the strongest first-time homebuyer assistance programs in the country, and many DFW buyers don't even know they exist. I work with these programs regularly, and the difference they make is real: buyers who assumed they needed $20,000–$30,000 saved up have closed on homes with $3,000–$5,000 out of pocket.
Here's a comprehensive look at what's available in 2026, who qualifies, and how to access it.
Texas State Programs: TSAHC
The Texas State Affordable Housing Corporation (TSAHC) is one of the most powerful first-time buyer resources in the state. TSAHC offers down payment assistance of up to 5% of the loan amount, structured as either:
- A grant — money that never has to be repaid. This is the most straightforward option and the one most buyers prefer.
- A forgivable second lien — a silent second mortgage at 0% interest that is forgiven after three years if you remain in the home. If you sell or refinance before three years, you repay a prorated portion.
TSAHC's programs can be combined with FHA, conventional (Fannie Mae HFA Preferred), VA, and USDA loans. The program is offered through participating lenders — I'm a participating lender, so I can originate TSAHC-backed loans directly.
TSAHC Qualification Requirements (2026)
- Minimum credit score: 620 for most program options
- Must meet income limits (varies by county and household size — see below)
- Must be purchasing a primary residence
- Must complete an approved homebuyer education course
- First-time homebuyer requirement: not having owned a primary residence in the past three years (some areas and programs waive this)
TSAHC Income Limits for DFW Counties (2026)
Income limits are set as a percentage of area median income and vary by county and household size. As a general benchmark for 2026:
| County | 1–2 Person Household | 3+ Person Household |
|---|---|---|
| Dallas County | ~$97,000 | ~$111,500 |
| Tarrant County | ~$95,000 | ~$109,200 |
| Collin County | ~$110,000 | ~$126,500 |
| Denton County | ~$108,000 | ~$124,200 |
These limits are approximate and updated annually. The key point: they are much higher than most people assume. A household earning $85,000–$90,000 combined often still qualifies.
Texas State Programs: TDHCA — My First Texas Home
The Texas Department of Housing and Community Affairs (TDHCA) administers the My First Texas Home program, which offers two key benefits simultaneously:
- Below-market 30-year fixed interest rates — rates are set by the program and are typically competitive with or below market rates at the time of closing.
- Down payment and closing cost assistance of up to 5% of the loan amount as a 0% interest, deferred second lien.
The TDHCA second lien is not forgivable — it becomes due when you sell, refinance, or pay off the first mortgage. However, at 0% interest with no monthly payments, it is essentially free money while you're in the home. Many buyers use it as a bridge: they get into the home with minimal upfront cash, build equity, and repay the second lien when they eventually sell or refinance into a conventional loan.
TDHCA qualification requirements are similar to TSAHC — income limits, credit minimums (620+), first-time buyer definition, homebuyer education, and primary residence requirement. TDHCA also offers a My Choice Texas Home program for repeat buyers who don't meet the first-time buyer definition.
Local DFW Programs
City of Dallas — Homebuyer Assistance Program (HAP)
The City of Dallas offers the Homebuyer Assistance Program, which provides up to $60,000 in forgivable loans to income-qualifying buyers purchasing homes within Dallas city limits. The assistance is structured as a forgivable lien — forgiven over a set number of years provided you remain owner-occupant.
This program has strict income limits (typically 80% of area median income) and requires the home to be within city boundaries. Funds are often limited and awarded on a first-come, first-served basis. It is one of the most generous local programs in DFW when it's available. Contact me to verify current funding availability when you're ready to apply.
Other DFW City Programs
Several DFW cities operate their own homebuyer assistance programs with varying funding levels, eligibility criteria, and availability. Garland, Plano, McKinney, and other municipalities have offered down payment assistance programs in recent years. Funding and availability change frequently. When I'm working with a client buying in a specific city, I check current local program availability as part of my process — it's one of the advantages of working with a local broker who knows the DFW market.
How to Stack Programs for Maximum Benefit
One of the most valuable things I do for first-time buyers is identify how programs can be layered. Here's a common example of a stacked structure:
- First mortgage: FHA loan (3.5% down required)
- DPA layer: TSAHC grant covers the 3.5% FHA down payment plus part of closing costs
- Result: Buyer brings minimal cash to closing — often just earnest money and a small closing cost gap
Or with TDHCA:
- First mortgage: Conventional loan at TDHCA below-market rate
- Second lien: TDHCA 0% DPA covering down payment and closing costs
- Result: Below-market rate, minimal cash to close, no monthly second payment
These stacks work because the programs are explicitly designed to be combined. I handle all the program coordination — you don't have to figure out the paperwork or which lender participates in which program.
Common Misconceptions About These Programs
"I make too much money to qualify."
This is the most common reason people don't even ask about assistance programs — and it's wrong more often than not. As the income limits table above shows, many households earning $80,000–$100,000 still qualify for TSAHC and TDHCA programs in DFW counties. The limits are calibrated to local cost of living, not national averages. Always check the actual current limits before assuming you're out.
"I'm not really a first-time buyer — I owned a house years ago."
Under TSAHC and TDHCA definitions, a "first-time homebuyer" is someone who has not owned a primary residence in the past three years. If your last home purchase or sale was more than three years ago, you meet the first-time buyer definition for these programs. Divorce situations, where one spouse owned and the other didn't, are also handled under specific guidelines — ask me about your situation specifically.
"These programs have terrible rates or hidden fees."
TSAHC and TDHCA loans are originated by participating lenders at competitive rates. They are not predatory or penalty-laden products. The rates and terms are disclosed on the same Loan Estimate form as any other mortgage — you can compare them directly to alternatives. In many cases, particularly with TDHCA's below-market rate option, the program rate is genuinely favorable.
Step-by-Step: How to Access These Programs
- Get pre-approved with a participating lender. Not every lender participates in TSAHC and TDHCA programs. I participate in both. Start with a pre-approval application so I can review your income, credit, and identify which programs fit your profile.
- Complete required homebuyer education. Both TSAHC and TDHCA require completion of an approved homebuyer education course — typically a few hours online, available through HUD-approved counseling agencies. This can be done before or during the loan process.
- Identify your target home and get under contract. Once pre-approved and program-matched, you shop for your home knowing your real buying power with assistance factored in.
- I submit the loan and program application. Once you have a contract, I handle the program paperwork alongside your mortgage application. Program approval is coordinated with the loan approval process.
- Close and receive keys. The DPA funds are applied at closing — you don't receive a check and then apply it. The assistance flows directly into the transaction.
For a full overview of available assistance options, visit my Down Payment Assistance page. For a broader guide to the homebuying process, read my First-Time Homebuyer Guide. If you're ready to find out what you qualify for today, start a pre-approval — it's free and takes about 10 minutes. And if you're considering an FHA loan paired with a DPA grant, I'll run both scenarios and show you the real numbers side by side.
Frequently Asked Questions
Do I have to be a first-time homebuyer to use TSAHC or TDHCA programs?
For most TSAHC and TDHCA programs, "first-time homebuyer" is defined as not having owned a home as a primary residence in the past three years — not someone who has never owned a home at all. If you owned a home five years ago but have been renting since, you likely qualify. Some programs also waive the first-time buyer requirement entirely for homes in targeted areas or for certain veterans.
What are the income limits for TSAHC in Dallas County?
TSAHC income limits vary by county and household size and are updated annually. For Dallas County in 2026, the limit for a household of 1–2 people is approximately $97,000–$105,000 depending on the specific program and whether the area is designated as a targeted zone. Limits are higher for larger households. These limits are higher than most people assume — many dual-income households earning $80,000–$90,000 combined still qualify.
Can I combine a TSAHC grant with an FHA loan?
Yes. TSAHC's down payment assistance can be layered with FHA, conventional, VA, and USDA loans. The DPA covers your required down payment and can also help with closing costs. This combination — TSAHC grant plus FHA financing — is one of the most common paths I use for first-time buyers in DFW who have limited savings but stable income and acceptable credit.
Ready to take the next step?
Talk to me about your specific situation. I'll run real numbers — no estimates, no industry-speak — and tell you straight what fits.