Texas down payment assistance can put up to 5% of your loan amount toward your down payment or closing costs — at 0% interest — in all 254 counties. For veterans and military families near Fort Hood, the doors open even wider. Here is exactly how the 3 programs work and how to qualify.
We see it constantly in the Greater Fort Hood market: families comfortably paying $1,800 to $2,200 a month in rent who could absolutely carry a mortgage — they just have not saved the lump sum needed for a down payment. That gap is exactly what these programs are built to bridge.
The Texas Department of Housing and Community Affairs (TDHCA) is the official Housing Finance Agency for the State of Texas. Through The Texas Homebuyer Program, it provides Texas down payment assistance and closing cost help statewide, working through a network of approved lenders. The assistance is real, the funding is ongoing, and the income limits are far more generous than most people assume.
One important truth up front: this is not free money with no strings, and you still have to qualify for a mortgage. These programs are designed for mortgage-ready buyers who simply need help with the upfront cash — not a substitute for credit, income, or stability. Once you can qualify for the loan, assistance helps get you to the closing table.
The flagship program for first-time buyers using government-backed financing.
More flexible eligibility that opens the door to a much wider pool of buyers.
A federal tax credit that keeps paying you back, year after year.
The down payment help is delivered as a second lien behind your main mortgage. Here is the part buyers love: there is no interest, no required monthly payment, and lenders do not count it as debt when qualifying you. It simply sits there. You choose between two structures:
A repayable second lien with no interest and no monthly payment. The balance only comes due if you sell, refinance, or pay off the first mortgage. Often paired with a lower rate on your first mortgage.
If you stay in the home and remain current on your first mortgage, the assistance is forgiven after the three-year anniversary and simply drops off. Sell or refinance before then, and it becomes repayable.
Which is better? It depends entirely on your plans. The forgivable option often carries a slightly higher first-mortgage rate than the 30-year deferred. If you plan to stay put for years, forgivable can be a clear win. If you may move or refinance soon, the deferred-repayable structure may serve you better. We will help you run both scenarios before you commit.
There is also a fourth path — the unassisted (No DPA) option — a below-market rate on a 30-year fixed first mortgage with no down payment funds attached. It is built for stronger buyers who already have their down payment but want a more competitive rate, and it can often be layered with other grant programs.
As a veteran-owned brokerage serving military families near Fort Hood, this is the part we make sure no one in uniform misses. Texas down payment assistance carries built-in advantages specifically for those who have served.
Qualified veterans can use My First Texas Home and the Mortgage Credit Certificate even if they have owned a home before. The three-year first-time rule does not apply to you.
The Mortgage Credit Certificate issuance fee can be waived entirely for military veterans — one more cost removed from your path to closing.
These programs work alongside government-backed VA financing, so you can combine the strength of your VA benefit with state assistance.
On top of state assistance, our own Heroes Program rewards military, first responders, healthcare workers, and educators. See how Heroes works ›
The single most common misconception is that you "make too much" to qualify. Do not count yourself out before checking the numbers. Limits are set by county and household size, and they are reviewed regularly.
| Example Area | 1–2 Person Household Income | Purchase Price Cap |
|---|---|---|
| Balance of State (default) | around $98,000 | Set by county |
| Higher-cost metros (e.g. Travis / Hays) | up to roughly $133,800 | up to roughly $593,000 |
| My Choice Texas Home | Higher limits apply | No purchase price limit |
Figures shown are illustrative and change periodically. Always confirm the current limits for your county on the official Texas Homebuyer Program website — or simply ask us and we will pull them for the exact home you are considering.
Good to know: agent commissions count as a closing cost under these programs, and Texas down payment assistance funds can be applied toward them where needed. In the current real estate landscape, that flexibility matters.
Considering new construction? It is one of our favorite paths for first-time buyers because of the incentives, and assistance can still apply as long as you use an approved lender. Start your search on our home search.
The one rule that matters most: you must use a TDHCA-approved lender. The funds cannot be accessed any other way. There is no separate TDHCA application and no website form to fill out for the money — the Texas down payment assistance simply piggybacks onto your regular mortgage application. We will connect you with vetted, approved lenders who actively offer these programs, because not every lender does.
We talk through your situation — how much cash you have ready and whether assistance makes sense. A simple question like "how much of your own money do you plan to use?" tells us a lot.
We introduce you to a TDHCA-approved lender who offers these programs and can pre-qualify you and confirm which option fits best.
If you are eligible, the lender folds the assistance right into your first mortgage. No upfront review, no separate application, no extra time to close.
Take the HUD-approved course any time before closing. The completion certificate is valid for up to a year.
The lender reserves your assistance and locks your fixed interest rate — no separate seller disclosure required and no added days to your timeline.
You sign, you get the keys, and you may walk in having brought far less — sometimes close to nothing — to the closing table.
Want to estimate your numbers first? Run them on our mortgage calculator or review our full buyer's guide.
Not every agent brings these programs up. They are not always the path of least resistance. But you cannot make the best decision about something you have never been told exists.
Our role is not to qualify you for the loan — that is the lender's job. Our role is to recognize when Texas down payment assistance could change everything for you, to put every option on the table, and to connect you with the right approved lender to find out. You make the final call. We make sure you have the full picture before you do.
With more than 1,000 closed transactions serving military families near Fort Hood since 2005, the Homevets Realty team knows how to match the right buyer with the right program — and how to keep more of your money in your pocket for the move-in costs that always come.
When Experience Matters, Hire A Real Estate Veteran.
It costs nothing to check — and the answer could be the difference between renting another year and getting your keys. Tell us a little about what you are looking for, and the Homevets Realty team will pull the current Texas down payment assistance limits for your county and connect you with an approved lender.
Homevets Realty LLC · TREC #519202-BB · 2000 E Central Texas Expressway, Suite B, Killeen, TX 76541. This article is provided for general educational purposes and is not lending, tax, or legal advice. Homevets Realty is a licensed real estate brokerage and does not originate mortgage loans or qualify borrowers; loan eligibility, program terms, income and purchase price limits, interest rates, and fees are determined by TDHCA and its approved lenders and are subject to change. Mortgage Credit Certificate benefits depend on your tax situation — consult a qualified tax advisor. Program availability and funding are subject to change and limited to qualified buyers using a TDHCA-approved lender. Confirm current details at welcomehome.tdhca.texas.gov.