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We recognize that purchasing a home in Texas can be both an exciting milestone and a significant financial commitment. Homebuying grants exist to reduce upfront costs, improve affordability, and help qualified buyers achieve sustainable homeownership.
In 2026, Texas continues to offer a wide range of state, local, and nonprofit housing assistance programs designed to support first-time buyers, repeat buyers, and low-to-moderate income households.
This comprehensive guide delivers a precise, structured overview of Texas homebuyer grants, eligibility standards, benefits, and application strategies, allowing buyers to move forward with confidence and clarity.
What Are Homebuying Grants?
Homebuying grants are a form of financial assistance that generally does not require repayment as long as the program’s terms are met. These grants are most commonly used to provide down payment assistance, cover closing costs, offer interest rate reductions, and support affordable housing initiatives.
In Texas, these grants are administered through a variety of channels, including state agencies, local housing authorities, city programs, and approved nonprofit organizations.
They are often designed to work alongside mortgage types such as FHA, VA and conventional loans, providing buyers with a comprehensive package of financial support to make homeownership more attainable.
Homebuying Grants in Texas
1. Texas Statewide Homebuyer Assistance Programs
The Texas State Affordable Housing Corporation (TSAHC): It is one of the most widely used housing assistance providers in Texas. Eligible homebuyers can access down payment grants, deferred forgivable second liens, and mortgage interest rate assistance. These programs are available to both first-time and repeat buyers, provided income and purchase price limits are met, and the properties are owner-occupied and located within Texas.
The Texas Department of Housing and Community Affairs (TDHCA): It supports homebuyer assistance programs through partnerships with lenders and local agencies, focusing on low-to-moderate income households, first-time homebuyers, and rural or underserved communities. These programs are typically paired with fixed-rate mortgages to promote long-term affordability and financial stability.
2. City and County Homebuying Grants
Many Texas cities and counties operate independent homebuyer grant programs funded through housing bonds or federal allocations.
The Houston Homebuyer Assistance Program offers substantial support for eligible buyers, including down payment and closing cost grants, income-based eligibility tiers, and a primary residence requirement.
Dallas and Fort Worth housing grants focus on first-time homebuyer education, provide grant funds for owner-occupied homes, and target neighborhood revitalization efforts.
Austin and Travis County programs often include shared equity assistance, deferred payment loans, and long-term affordability covenants. While local programs may have stricter guidelines, they often provide higher assistance amounts compared to statewide options.
Lender-Sponsored Homebuyer Grant Programs in Texas
While state and local programs provide significant support, some lenders also offer grant programs to help make homeownership more accessible. These programs can complement traditional grants and reduce upfront costs, making it easier for buyers to enter the housing market.
1. ONE+ Mortgage Program
- Eligibility: First-time homebuyers earning less than 80% of Area Median Income (AMI).
- Down Payment: 1% down from the buyer, plus a 2% grant from the lender.
- Grant Amount: Up to $7,000, giving buyers immediate 3% equity from day one.
Benefits: Homebuyers can benefit from lower monthly mortgage payments and a fixed 30-year term, which ensures predictable and stable payments over time. Additionally, LLPA waivers help reduce loan-level pricing adjustments, making financing more affordable. This program is ideal for buyers who want to minimize upfront costs while building equity immediately.
2. Home Possible Mortgage Program
- Eligibility: Buyers whose income does not exceed 80% of AMI, including first-time and repeat buyers.
- Down Payment: As little as 3% down, combined with lender-funded grants.
- Grant Amount: Up to $3,500, helping with down payment or closing costs.
Benefits: Homebuyers enjoy lower mortgage insurance premiums, with no hidden fees or processing charges, and flexible co-borrower income considerations to make qualifying for a loan easier and more accessible. This program helps buyers stretch their budget without sacrificing affordability, especially in higher-cost areas.
3. FHA Down Payment Assistance Program
- Eligibility: Buyers with household income up to 140% of AMI, including first-time buyers, first responders, and other priority groups.
- Down Payment: No upfront payment required.
- Grant Amount: Forgivable 2%–3.5%, with no strings attached.
Benefits: These programs can be combined with up to 6% in seller concessions for closing costs, offer flexible credit requirements with a minimum FICO score of 580, and include a 30-year fixed FHA mortgage to ensure predictable and stable monthly payments. This option is perfect for buyers seeking maximum assistance to reduce cash-to-close while taking advantage of FHA loan benefits.
Tip: Always check income and property eligibility to ensure you qualify for both state and lender grants. Working with a professional mortgage lender can help you identify all available options.
Income and Property Eligibility Requirements
Income Limits
Buyers should expect income caps ranging from 80% to 140% of Area Median Income (AMI), depending on the program.
Property Requirements
Manufactured homes, condominiums, and townhomes may qualify under select programs.
How to Apply for Homebuying Grants in Texas
To apply for homebuying grants in Texas, start by researching state, local, and city-specific programs to determine eligibility based on income, first-time buyer status, and property location.
Work with an approved lender or participating housing agency, gather required documentation such as income statements, credit history, and property details, and complete the application for the chosen program. Many programs also require attending a homebuyer education course. Once approved, the grant funds are typically applied toward down payment and closing costs, helping make homeownership more affordable.
Common Mistakes to Avoid
When applying for Texas homebuyer grants, it’s important to be aware of common pitfalls, including assuming grants are automatic, failing to complete required education courses, selecting non-eligible properties, missing income documentation deadlines, and changing lenders mid-transaction.
1. Assuming grants are automatic: Homebuyer grants are not guaranteed. Approval depends on meeting income limits, property eligibility, funding availability, and program-specific requirements.
2. Failing to complete required education courses: Many Texas homebuyer assistance programs require approved homebuyer education. Skipping or delaying this step can result in immediate disqualification.
3. Selecting non-eligible properties: Not all homes qualify. Properties must meet location, price, occupancy, and condition standards set by the grant program.
4. Missing income documentation deadlines: Grant administrators require the timely submission of income and asset verification. Delays or incomplete documentation can cause loss of funding.
5. Changing lenders mid-transaction: Assistance programs often require approved lenders. Switching lenders can invalidate the grant approval and delay or cancel the transaction.
Advantages of Using Homebuying Grants in Texas
Homebuyer grants offer significant advantages that make purchasing a home more attainable and financially manageable.
1. Reduced cash-to-close
Grants significantly lower the upfront costs required at closing, including down payment and closing fees, allowing buyers to enter the housing market without draining their savings or taking on high-interest debt.
2. Improved loan affordability
By covering part of the down payment or closing costs, grants reduce the total loan amount needed and often make monthly mortgage payments more manageable, increasing the buyer’s overall financial flexibility.
3. Lower financial risk
Assistance programs minimize the initial financial burden, helping buyers avoid overextending themselves, reducing the risk of default, and providing a safety net in the critical first years of homeownership.
4. Expanded homeownership access
Grants open doors for first-time buyers, low-to-moderate income households, and other underserved populations who might otherwise struggle to qualify for a mortgage or afford a home in competitive markets.
5. Long-term housing stability
By easing the upfront financial strain and pairing with favorable mortgage terms, grants promote sustained homeownership, help build equity over time, and contribute to stronger, more stable communities.
Homebuying grants will remain a key component of affordable homeownership in 2026. By combining statewide programs, local grants, and nonprofit assistance, buyers can significantly reduce upfront costs and enter the housing market with confidence. Proper planning, lender coordination, and program knowledge unlock the full potential of these opportunities.
