How To Get Help With Your Down Payment & Save Thousands

If saving for a down payment feels like the biggest hurdle standing between you and your dream of homeownership, you’re not alone. Down Payment Assistance (DPA) programs exist to help first-time homebuyers bridge the gap and make homeownership more affordable.

In this blog, we’ll explore what DPA programs are, how to find them, and how to qualify.

What Is Down Payment Assistance?

Down payment assistance (DPA) programs are designed to help homebuyers cover the upfront costs of purchasing a home. These programs come in different forms, including:

Grants: Free money you don’t have to pay back.
Low-interest or forgivable loans: Funds that you either repay over time or don’t have to repay at all if you meet certain conditions.
Matched savings programs: Programs that match your savings dollar-for-dollar up to a certain limit, helping you boost your down payment savings.

These programs make homeownership more accessible, especially for first-time buyers who may not have significant savings set aside.

How to Find Local and State Programs

Now, you might be wondering, “Where do I start looking for these programs?” That’s where the Down Payment Resource Center comes in.

Actionable Tip:

Visit bit.ly/downpaymentresourcecenter to explore programs available in your area. Simply enter your income, location, and household size, and the tool will provide a list of programs you may qualify for.

For example, here in Texas, some available programs include:

Local Grant Programs:

City of Houston Homebuyer Assistance Program (HAP): Offers up to $50,000 to income-qualified first-time homebuyers within Houston city limits for down payment and closing costs.
Austin Down Payment Assistance Program: Provides up to $40,000 to low-income families purchasing their first home.

State Loan Programs:

Texas State Affordable Housing Corporation (TSAHC) Programs:
- Homes for Texas Heroes Program: Offers fixed-rate mortgage loans and down payment assistance for teachers, firefighters, police officers, correctional officers, and veterans.
- Home Sweet Texas Home Loan Program: Provides similar benefits to Texas homebuyers who don’t qualify under the Heroes program.

Matched Savings Programs:

Covenant Community Capital: A Houston-based nonprofit that offers matched savings accounts to help low-income families save for home purchases, education, or small business expenses.
Financial Health Pathways’ I Save Texas Program: Matches participants’ savings and provides financial coaching sessions for long-term financial stability.

Once you locate programs through the Down Payment Resource Center, reach out directly to these organizations to learn about eligibility requirements, application processes, and specific benefits.

How to Qualify for Assistance Programs

Understanding eligibility requirements can improve your chances of qualifying for a down payment assistance program. Here are the key factors most programs consider:

1. Income Limits – Do You Qualify Based on Your Earnings?

Most DPA programs are designed for low- to moderate-income households. Each program has a specific income limit based on:

The area median income (AMI) for your county
The number of people in your household
Your gross income (before taxes)

Some programs allow income limits up to 120% or more of the AMI, so don’t assume you won’t qualify!

2. First-Time Homebuyer Status – Are You Eligible?

Many programs require you to be a first-time homebuyer. However, if you haven’t owned a home in the last three years, you’re often still considered a first-time buyer! Some programs also extend benefits to veterans, single parents, and certain public service workers.

3. Credit Score – What’s the Minimum You Need?

Most DPA programs require a minimum credit score of around 620 or higher. If your score is lower, you may still qualify by taking a homebuyer education course or working with a certified housing counselor.

4. Property Type & Location – Does Your Home Qualify?

Many DPA programs are location-specific and apply to:

Certain cities or counties
Designated revitalization areas (which may offer extra incentives!)
Specific property types (e.g., single-family homes, condos, or manufactured homes)

Most programs require the home to be your primary residence—meaning you can’t use DPA funds to buy an investment property.

5. Additional Requirements – Be Prepared!

Other common requirements may include:

Homebuyer Education Course: Many programs require you to complete a homebuyer education class.
Debt-to-Income Ratio (DTI) Limits: Some programs have a maximum DTI, ensuring you don’t take on more debt than you can afford.
Financial Documentation: You’ll typically need to provide pay stubs, tax returns, bank statements, and a credit report when applying.

How DPA Can Save You Thousands

Let’s break this down with real numbers:

Say you’re buying a $250,000 home using a 3% down payment conventional loan.
Without assistance, you’d need $7,500 for the down payment.
If you qualify for a $5,000 grant, your out-of-pocket cost drops to just $2,500!

Where Could That Extra Money Go?

With those savings, you could:

Cover moving expenses
Make home improvements
Buy new furniture
Build an emergency fund

DPA allows you to step into homeownership with more financial stability.

Common Questions About Down Payment Assistance

1. Do I Have to Pay Back the Assistance?

It depends on the type of program:

Grants – Free money you don’t have to repay.
Forgivable Loans – Loans that are forgiven over time if you meet residency requirements.
Deferred or Low-Interest Loans – Some programs require repayment when you sell or refinance your home.

Always read the program’s fine print before applying!

2. Can I Combine Multiple Assistance Programs?

Yes! Many buyers layer multiple programs to maximize their benefits. For example, you might qualify for:

A state down payment grant of $5,000
A local forgivable loan of $3,000
A matched savings program that doubles your savings up to $2,500

By stacking programs, you could reduce or completely eliminate your out-of-pocket down payment costs!

3. Do These Programs Delay the Home-Buying Process?

Not necessarily! If you work with an experienced realtor and lender, they can help you apply early and ensure everything stays on track.

Some programs offer pre-approval options to speed up the process.
Many DPAs are built into the mortgage process, meaning they won’t add extra steps or delays.

Take the First Step!

Down payment assistance programs can be a game-changer on your path to homeownership. Don’t let misconceptions or lack of information hold you back. The resources are out there—you just need to take action!