Probably more often than people think, but it depends on the program, not on a general "Texas" rule. The two statewide programs I can offer are TSAHC (Home Sweet Texas and Homes for Texas Heroes) and TDHCA (My First Texas Home and My Choice Texas Home). For both, you generally need a middle credit score of at least 620, household income under the program's limit for your county, a home under the price limit, homebuyer education, and a home you'll live in as your primary residence. Then the first mortgage itself still has to be approved, and the program has to have funding open when we reserve it.
Down payment assistance, or DPA, isn't one thing. It's a category, and each program in it is its own small rulebook. Below I'll walk through how the help is structured, the rules that stack on top of each other, what the Fort Worth area limits look like right now, and the mistakes I see most.
The short version
- Most Texas DPA is a second lien, not free cash. Some is a true grant. The paperwork you sign at closing decides which one you have.
- TSAHC and TDHCA both offer assistance of up to 5% of the first mortgage amount, funding permitting. TDHCA's My First Texas Home matrix shows 2% to 5%.
- Both programs start at a 620 credit score. TSAHC asks for 640 on conventional loans and on manually underwritten FHA loans.
- Income limits count household income in ways the mortgage itself may not, so check the program's rule, not just the borrowers' income.
- The first mortgage (FHA, VA, USDA or conventional) has its own rules about who can provide the money and how a second lien has to be written.
How the help is structured
Assistance comes in a few shapes. The flyer usually describes the friendliest version, but the recorded note, deed of trust or grant agreement controls what you owe and when.
- Grant. Doesn't have to be repaid. TSAHC offers a grant option. Even a grant can come with conditions, like living in the home.
- Deferred forgivable second lien. No monthly payment, and it's forgiven after a set period if you keep the conditions. For both TSAHC and TDHCA, that period is three years: if you sell, refinance, pay off the first mortgage or stop living there before then, it's due.
- Deferred repayable second lien. No monthly payment and no interest under the state programs, but it's repaid when you sell, refinance, transfer or pay off the first mortgage. TDHCA's version is a 30-year 0% second (TDHCA matrix).
- Repayable second with a payment. Some local programs use these. The payment counts in your debt-to-income ratio.
A second lien with no payment still matters. It counts toward your combined loan-to-value, it shows up on title, and it has to be paid off or subordinated if you refinance later. If you think you might sell or refinance in the first few years, a forgivable or repayable second can play out very differently from a grant, so we'd compare them side by side.
The rules stack in layers
A DPA file works when every layer is satisfied at the same time. Here's how they line up, kept separate so you can see where each rule comes from.
Layer 1: the first mortgage's agency rules
- FHA. You need to make HUD's Minimum Required Investment, which keeps the base loan within FHA's maximum loan-to-value of 96.5% of the adjusted value. It can't come from the seller, anyone else who benefits from the sale, or anyone reimbursed by them. HUD does allow a government entity's secondary financing to cover it, and there's no maximum combined loan-to-value when the second comes from a governmental entity. That second can't create cash back to you, can't carry a balloon payment within 10 years, and any payment on it counts in your ratios (HUD 4000.1 II.A.4.d.ii and II.A.4.d.iii(J)). HUD also says it doesn't "approve" DPA programs run by charities. The lender has to confirm the provider qualifies and document the money (II.A.4.d.iii(I)).
- Seller money isn't DPA. Under FHA, sellers, builders, agents and other interested parties can contribute up to 6% of the sales price toward closing costs, prepaids and discount points, but none of it can be used for your Minimum Required Investment (II.A.4.d.iii(G)).
- Fannie Mae (conventional). Assistance seconds fall under Fannie's Community Seconds rules. The provider has to be an eligible source, like a state or local government, a housing finance agency, a 501(c)(3) nonprofit or an employer, and can't be the seller or another interested party. Combined loan-to-value can go up to 105%. On a one-unit primary residence, Fannie doesn't require a contribution from your own funds. When both the program and the loan have an income limit, the stricter one applies (Fannie Mae Selling Guide B5-5.1-02).
- Freddie Mac (conventional). Freddie's version is called Affordable Seconds. It has to come from an eligible agency, credit union or certified CDFI under an established program, and it can't be funded through the first mortgage's pricing (Freddie Mac Affordable Seconds, Guide 4204.2).
- VA and USDA. Both programs can be paired with state assistance. TDHCA's My First Texas Home runs on FHA, VA and USDA first mortgages, and the VA or USDA rules for the first loan still apply.
Layer 2: the automated underwriting findings
Desktop Underwriter, Loan Product Advisor, FHA's TOTAL scorecard and USDA's GUS evaluate the whole file, including the second lien and any payment on it. TSAHC and TDHCA both follow the automated findings for debt-to-income on most files, and set their own caps when a file is manually underwritten.
Layer 3: the Texas program's rules
- TSAHC. 620 minimum on FHA, VA and USDA, 640 on conventional. No maximum DTI with an automated approval. Manually underwritten FHA needs a 640 score and DTI of 43% or less. Homebuyer education is required. Heroes covers specific public-service professions and veterans. Home Sweet Texas is income-based for any profession (TSAHC homebuyer programs). Details are in how TSAHC's programs work.
- TDHCA. 620 minimum middle score. My First Texas Home is for first-time buyers, meaning no owned and occupied primary residence in the last three years, with waivers for qualified veterans and targeted census tracts. HUD-certified homebuyer education is required for every borrower, and there's no cash back at closing. Manually underwritten FHA, VA and USDA files are capped at 45% DTI (TDHCA matrix, published Aug 17, 2026). My Choice Texas Home drops the first-time requirement and adds conventional loans. See how TDHCA's programs work.
Layer 4: our company rules
We don't add our own credit, DTI or reserve overlays to these programs. The one company rule worth knowing is our 580 minimum on FHA, and since both state programs start at 620, it doesn't change anything here. TSAHC and TDHCA assistance is available through me where the current published guidelines allow it for your loan type. Your eligibility, the program's funding that week, and the rules for the option you choose still have to check out, and I'll confirm those up front.
Fort Worth area limits right now
Limits change during the year, so these come with their dates. Check them again before you count on them.
- TSAHC, Tarrant County, assistance with a government loan. Home Sweet Texas: $165,450. Homes for Texas Heroes: $187,510. Source: TSAHC income and purchase price limits, file dated Oct 15, 2026 (TSAHC limits). Conventional and MCC columns are different.
- TDHCA My First Texas Home, Fort Worth-Arlington area (Johnson, Parker and Tarrant counties). Income: $110,300 for a household of 1 to 2, $126,845 for 3 or more, in non-targeted areas. Purchase price: $589,596 for one unit in non-targeted areas. Effective July 13, 2026 (TDHCA limits).
Whose income counts is a common surprise. For My First Texas Home, TDHCA counts everyone who'll live in the home and sign the deed of trust, including a non-purchasing spouse. The mortgage underwriter may count only the borrowers. The program's rule decides whether you're eligible for the help.
Other local programs
Some Texas cities, counties, nonprofits and employers run their own assistance. Each sets its own terms, approves its own lenders and keeps its own funding calendar, so I verify any local program separately before I'd suggest building an offer around it. If you've been told about a local program, bring me the name and I'll tell you honestly whether it's something I can use on your loan.
Fictional example
This example is made up to show how the layers work.
Marisol is a single mom in Fort Worth with a 642 middle score. She rents, hasn't owned a home, and her household of two earns under both state programs' Tarrant County limits. She's looking at an FHA purchase. We compare a TSAHC grant with TDHCA's forgivable second. Her builder also offers a "buyer incentive," but because the builder benefits from the sale, that money can only go toward allowed closing costs within FHA's interested party limit. It can't be her Minimum Required Investment. The state assistance can cover that part. She finishes homebuyer education before she writes an offer, and the program funds get reserved once she's under contract. Whether she's approved still comes down to underwriting her income, debts and credit.
Common mistakes and myths
- "It's free money." Sometimes. Often it's a lien that's forgiven later or repaid when you sell or refinance. Read what you sign.
- "Only first-time buyers qualify." TSAHC serves first-time and repeat buyers, and TDHCA's My Choice Texas Home has no first-time requirement. See who counts as a first-time buyer.
- "The seller can just give me the down payment." Not under FHA, and conventional programs treat it as an interested party contribution with its own cap.
- "I'll get cash back at closing." TDHCA doesn't allow it, and FHA doesn't let government seconds create it beyond refunds of your own earnest money or costs you paid up front.
- "I can refinance anytime." A second lien has to be paid or subordinated in a refinance. Know the terms before you sign.
- "I'll do the class later." Education certificates are a closing condition. Finish it before you're under contract.
What to have ready
- Your last 30 days of pay stubs, two years of W-2s, and your bank statements.
- Income for everyone in the household, including anyone who won't be on the loan.
- Your job title and employer if you might qualify for Homes for Texas Heroes.
- A DD-214 if you're a veteran, since it can waive TDHCA's first-time requirement.
- The area or school district you're shopping, so we can check price limits and targeted tracts.
Assistance isn't always the best tool. Sometimes gift funds, a seller credit toward cash to close, or a different loan type gets you there with fewer strings. I'll show you the options together.
Next step
Wondering whether TSAHC or TDHCA fits your purchase in Fort Worth or anywhere in Texas? I'll check your eligibility and current program funding before you shop. Book a call, or when you're ready, start an application.
Related questions
Sources
Links checked Oct 21, 2026.
- HUD Handbook 4000.1, II.A.4.d.ii, II.A.4.d.iii(G), (I) and (J) (Update 17, issued Nov 26, 2025, the version in effect today; Update 18, issued Aug 12, 2026, may be adopted now and must be used by Nov 10, 2026, and does not change the rules cited here): https://www.hud.gov/sites/default/files/OCHCO/documents/40001-hsgh-Update-17.pdf
- Fannie Mae Selling Guide B5-5.1-02, Community Seconds Loan Eligibility (dated May 3, 2023; Guide published Oct 7, 2026): https://selling-guide.fanniemae.com/sel/b5-5.1-02/community-seconds-loan-eligibility
- Freddie Mac Affordable Seconds product page, summarizing Seller/Servicer Guide 4204.2 (current version): https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/affordable-seconds
- TSAHC homebuyer programs, lender summary (retrieved Oct 21, 2026): https://www.tsahc.org/lenders-realtors/tsahc-homebuyer-programs/
- TSAHC down payment assistance: https://www.tsahc.org/homebuyers-renters/loans-and-down-payment-assistance/
- TSAHC income and purchase price limits (file dated Oct 15, 2026): https://e1.nmcdn.io/assets/tsahc/wp-content/uploads/2026/10/TSAHC-Income-and-Purchase-Price-Limits-Nontargeted-Areas.pdf
- TDHCA My First Texas Home program matrix (published Aug 17, 2026): https://welcomehome.tdhca.texas.gov/uploads/My-First-Texas-Home-Program-Matrix-TMS.pdf
- TDHCA income and purchase price limits (effective July 13, 2026): https://welcomehome.tdhca.texas.gov/uploads/Limits.pdf
- TDHCA Texas Homebuyer Program, programs overview: https://welcomehome.tdhca.texas.gov/programs
About the author: McKade Lively, NMLS 2704474, American Pacific Mortgage Corporation dba True North Home Loans, NMLS 1850.
Equal Housing Opportunity.
Last reviewed: Oct 2026