Patriot Nation, here is the short version: down payment assistance in Texas is not a rumor, it is a stack of programs with real money, real income caps, and real fine print. The smart move in 2026 is to know which programs fit your file before you tour homes, because the assistance changes your cash-to-close math, and that changes what you can offer. Let's break this down.
Let's find your program before you find the house.
Bring your income and county, and I will check which 2026 programs you qualify for and what each one does to your payment.
The two statewide players in 2026
TSAHC: Home Sweet Texas
Pairs a 30-year fixed first mortgage (FHA, VA, USDA, or conventional) with up to 5% of the loan amount as down payment and closing cost assistance, delivered as a non-repayable grant or a forgivable deferred second. Open to first-time and repeat buyers. Credit minimums run 620 for government loans and 640 for conventional, homebuyer education is required, and the 2026 income limits reach up to 125% to 150% of area median income depending on product. In Bexar County, household income guides commonly sit near $89,000 to $112,000 based on household size.
TDHCA: My First Texas Home
For first-time buyers (no homeownership in the prior three years), up to 5% of the loan amount as a deferred, 0% interest second, stackable with a Mortgage Credit Certificate worth up to $2,000 a year in federal tax credit. Credit minimum around 620, education required, and income capped at 80% of area median income by county, roughly $97,000 for 1 to 2 person households and $111,550 for 3 or more in most counties.
Program terms and limits change annually and by county. These are the published 2026 figures; your eligibility is confirmed on your file.
Both programs require you to use a participating lender, which is exactly why I keep current on both. For a deeper look at the statewide picture, the Texas DPA explainer and the DPA guide are worth your time.
San Antonio and Bexar County options
- City of San Antonio HIP: the Homeownership Incentive Program has historically offered up to $15,000 (HIP 120) or $30,000 (HIP 80) as 0% interest second loans with partial forgiveness for first-time buyers inside city limits under income and price caps. City funding cycles reopen and pause, so check current availability before you plan around it, because FY 2026 rounds have at times been paused pending renewal.
- Neighborhood Housing Services of San Antonio: up to about $12,000 in down payment and closing cost assistance for first-time buyers purchasing in Bexar County and surrounding counties through a participating lender, with citizenship or permanent residency required.
- County and community programs: assistance also shows up through community development agencies in places like Schertz, New Braunfels, and the Hill Country, so your county is worth a direct call.
The San Antonio-specific landscape changes by funding cycle, and my San Antonio DPA guide tracks it in detail.
Silent seconds, explained like a human
Most DPA money arrives as a silent second: a second mortgage recorded behind your first loan, at 0% interest, with no monthly payment. The name comes from the silence, it never asks for a monthly check. Depending on the program, the second is forgiven over a set number of years, usually five to ten, or repaid when you sell or refinance. It covers part of the down payment and closing costs, and it is why "down payment assistance" can shrink your cash to close so dramatically. The rules of the second, whether it is forgivable, how long you must stay, and what happens at sale, live in the program documents, and I walk every buyer through them before we sign anything.
Here's the key: DPA attacks the first bucket of your cash to close (the down payment) and often the second (transaction costs) too. If you have not read the three-buckets guide, read it first, because assistance is a bucket-filler, not a mystery discount.
The rate impact you have to price in
Programs are funded somewhere, and in many cases the assistance is paired with a rate on the first mortgage that runs a bit higher than the street rate, because the lender recovers part of the cost through pricing. That is not a scam, it is the economics, but it means the honest comparison is always: program loan payment, including the program rate and any second, versus a plain loan with your own down payment. Sometimes the rate trade is worth it, sometimes your saved cash beats it. That is the math I run with clients on every single file. The step-by-step application flow lives in the DPA steps explainer.
Compare the program rate against the plain loan before you decide.
I show the total monthly picture both ways, program and no-program, so you keep the assistance when it helps and skip it when your own cash is cheaper.
How DPA stacks with FHA and conventional
DPA pairs with both FHA and conventional first mortgages, plus VA and USDA in many programs. FHA with 3.5% down plus a 5% assistance second can cover the entire down payment and part of closing costs, which is the engine behind the low-cash-to-close offers we structure in San Antonio. Its sister articles dig into the pairing on FHA, conventional, and VA loans.
Frequently Asked Questions
What down payment assistance programs are available in Texas in 2026? Tap to expand
What credit score do I need for down payment assistance? Tap to expand
How do Texas DPA income limits work? Tap to expand
What is a silent second mortgage in down payment assistance? Tap to expand
Does down payment assistance raise my interest rate? Tap to expand
Don't leave program money on the table.
I work with TSAHC, TDHCA, and local San Antonio programs every month, and I will match your file to the programs that fit before you miss a funding round.
Patrick Kevin Fagan
Senior Mortgage Loan Officer and Texas REALTOR | AXEN Realty LLC | Greater San Antonio and Texas Hill Country
Licensed Sales Agent | 454749 | TX
Sincerely, Patrick Kevin Fagan
Program details, income limits, and funding availability change annually and by county; figures above reflect published 2026 information and are confirmed at application. Assistance figures are examples, not guarantees.
