TSAHC & Texas Home Buyer Programs in Frisco, TX
Texas Home Buyer Programs provide down payment assistance (DPA) of up to 5% of your total loan amount to help cover the upfront costs of purchasing a home. At First Lonestar Bank, we facilitate TSAHC (Texas State Affordable Housing Corporation) programs that offer either a non-repayable gift grant or a forgivable second lien. These programs are compatible with FHA, VA, USDA, and Conventional mortgages for eligible homes across the Dallas/Fort Worth metroplex.
Which Assistance Option is Right for You?
Home Sweet Texas Home Loan Program
The Home Sweet Texas Home Loan Program is designed to help low- to moderate-income Texans purchase a home. Eligible buyers may receive down payment assistance of up to 5% of the loan amount, which can be used toward closing costs or the down payment.
Homes for Texas Heroes Program
The Homes for Texas Heroes Program provides special home financing options for public service professionals, including:
- Teachers and school employees
- Police officers
- Firefighters
- EMS personnel
- Veterans and military members.
Eligible borrowers may receive down payment assistance between 3% and 5% of the loan amount, helping reduce upfront homebuying costs.
Am I Eligible for the Texas DPA in 2026?
One of the biggest myths is that these programs are only for first-time buyers. Many Texans who owned homes before can still qualify for assistance.
- Credit Score: You'll generally need a minimum score of 620, though some specific conventional products may look for a 660 or higher.
- Income Limits: Eligibility is determined by your household income. In high-growth areas like Frisco, Plano, and McKinney, these limits are often scaled higher to reflect local home prices.
- Homes for Texas Heroes: If you are a teacher, police officer, firefighter, or veteran, you may qualify for specialized perks, including lower interest rates and enhanced grant options.
The First Lonestar Difference
Navigating state-funded assistance can feel like a mountain of paperwork. As a community bank in Frisco, we bend over backward to handle the complexity for you. We don't just secure your mortgage; we hunt down the grants and credits that make homeownership a reality in North Texas.
Talk to a Texas Program Expert
Texas Home Buyer Program FAQs
How much down payment assistance can you receive in Texas?
In Texas, you can typically receive down payment assistance (DPA) ranging from 2% to 5% of your total loan amount through statewide programs. For example, on a $300,000 mortgage, a 5% assistance package would provide $15,000 to cover your down payment and closing costs. While these are the most common statewide figures, some localized city or county programs—such as those in Dallas, Houston, or Harris County—can offer significantly higher amounts, sometimes reaching $30,000 to $40,000 for qualifying low- to moderate-income buyers.
Do you have to be a first-time homebuyer to qualify for the Texas Home Buyer Program?
No, you do not have to be a first-time homebuyer for all Texas programs; many options are available to "repeat" buyers who haven't owned a home in the last three years. While the "My First Texas Home" program specifically targets first-time buyers and veterans, other major statewide programs, such as "My Choice Texas Home" and the "Home Sweet Texas" loan, are open to anyone who meets the income and credit requirements. At First Lonestar Bank, we can help you determine which program fits your current homeownership status.
What credit score is required for Texas home buyer programs?
Most Texas down payment assistance programs require a minimum credit score of 620 for government-backed loans (FHA, VA, USDA) and 640 for conventional loans. Some specific "HFA Preferred" conventional products or manufactured home options may require a score of 660 or 680. It is important to note that while 620 is the baseline for many programs, having a higher score can often lead to more favorable interest rates on your primary mortgage.
How much down payment assistance can I get with the Texas Home Buyer Program?
The exact amount of assistance you receive is calculated as a percentage of your first mortgage, with most borrowers selecting either a 3%, 4%, or 5% option. This money is generally delivered in one of two ways:
- A Gift/Grant: This does not have to be repaid and is often available with government-backed loans.
- A Forgivable Second Lien: This is a 0%-interest loan that is completely forgiven if you live in the home for a specific period (usually 3 years).
If you sell or refinance before that period ends, you may be required to pay back a portion of the assistance.
The Fine Print
This is not a commitment to lend; you must submit additional information for review and approval. Rates, Annual Percentage Rates (APRs), and terms are subject to change without notice. Certain restrictions apply to all programs. See your FLB Mortgage Loan Officer for complete program guidelines, loan application, applicable fees and annual percentage rates (APRs) for all loan programs. Full underwritten approval is required, and all loan approvals are subject to credit, income, and asset reviews and approvals. Bank NMLS#1215182
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