Texas Down Payment Assistance Programs

There are multiple options for Texas homebuyers when it comes to down payment assistance programs.

 

Security First Financial provides a great selection of down payment assistance loan programs, including TSAHC, SETH 5 Star Texas Advantage, and The Texas Homebuyer Program.

 

We're here to help you get started or assist you with any questions you may have.

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TSAHC Programs

The Texas State Affordable Housing Corporation (TSAHC) offers the Home Sweet Texas and Homes for Texas Heroes Programs to help low and moderate-income homebuyers, including teachers, veterans, police officers, corrections officers, and firefighters, purchase a home anywhere in Texas.

TSAHC offers several loan types, interest rates, and DPA options.

 

  • DPA is available as a grant or 3-year deferred forgivable second lien loan.

  • You do not need to be a first-time homebuyer to use our DPA programs.

  • You can use TSAHC’s DPA to purchase a home, even if you’ve been a homeowner before.

  • Homebuyers may purchase a home anywhere in Texas using TSAHC programs.

  • Closing a loan using TSAHC programs doesn't take any longer than a traditional mortgage loan.

Two types of assistance are available:

Fixed-Rate Loans with Down Payment Assistance (DPA)

  • Several rate, loan, and DPA options available

  • DPA can be up to 5% of the loan amount

  • DPA provided as a grant or 3-year second lien loan

 

Mortgage Credit Certificates (MCC)

  • A special tax credit that reduces your federal income taxes every year

  • Save thousands of dollars over the life of the loan

  • Only for first-time homebuyers or those who have not owned a home in the last three years

  • Can be used with TSAHC’s DPA

No Down Payment Disclaimer: Closing cost and fees may still apply. Down Payment Assistance Disclaimer: First lien interest rates may be higher when using DPA second.

SETH 5 Star Texas Advantage Program

The SETH 5 Star Program provides eligible homebuyers several options for a loan program that meets their needs. The program provides down payment and closing cost assistance when purchasing a home.

 

The maximum Assistance is 5% and is based on the final loan amount. Grants are provided for Conventional loans with no repayment or recapture. Other options provide assistance as a Community Second, completely forgiven after 3 years. There are no monthly payments for the assistance provided with either option. The program also provides a 30 year fixed FHA, VA, USDA, or Conventional mortgage loan.

This program is available in Texas but outside of Travis County and the city limits of El Paso, McKinney and Grand Prairie.

 

Buyers must be income limits (see below) and will be required to complete the SETH on-line Homebuyer Education Course.

  • No First Time Homebuyer Requirement

  • Minimum FICO Score of 640

  • Maximum Sales Price: $484,350

  • Meet Program Income Limits

No Down Payment Disclaimer: Closing cost and fees may still apply. Down Payment Assistance Disclaimer: First lien interest rates may be higher when using DPA second.

The Texas Homebuyer Program

My First Texas Home


My First Texas Home is avail­able only to first-time home­buy­ers and vet­er­ans. It provides a 30-year, low inter­est rate mort­gage with up to five per­cent of assis­tance. Com­bine your loan with a Mort­gage Cred­it Cer­tifi­cate and potentially save even more.

My Choice Texas Home


Per­haps you are already a home­own­er, but you could still use a lit­tle help. We’ve got you cov­ered. We offer a 30-year low inter­est rate mort­gage loan and up to five per­cent of assistance. 

The Texas Mortgage Credit Certificate (MCC)
The MCC is avail­able to vet­er­ans and first-time home­buy­ers and as a stand-alone option. This cer­tifi­cate enti­tles you to a dol­lar-for-dol­lar reduc­tion on fed­er­al tax lia­bil­i­ty. There is no min­i­mum cred­it score require­ment for MCCs. 

No Down Payment Disclaimer: Closing cost and fees may still apply. Down Payment Assistance Disclaimer: First lien interest rates may be higher when using DPA second.

VA Loan Programs

VA Loans are great for veterans who are first-time homebuyers with limited savings for down payments and closing costs. They are also great for purchasing or refinancing in high-cost areas.

Qualifications:

 

Eligibility:

With a VA loan, the borrower must be a qualifying active duty member of the U.S. military, veteran, or surviving spouse. A Certificate of Eligibility (COE) is required. 

 

You might be eligible if:

  • You served 90+ days active duty during wartime

  • You served 180+ days active duty during peacetime

  • You were not dishonorably discharged

  • You are currently active duty

  • You are the surviving spouse of a veteran who died during service or because of service-related injuries and are not remarried

No Down Payment Disclaimer: Closing cost and fees may still apply. Down Payment Assistance Disclaimer: First lien interest rates may be higher when using DPA second.

Rural Housing (USDA) Loan

The USDA determines what “rural” means, and that varies widely by state. But if you’re eligible, you can qualify for lower monthly payments and you don’t need money for a down payment. You’ll also spend less time in traffic driving to the closing.

Click here to check property eligibility

Requirements:

  • Down Payment: None*

  • Terms: 30 years, fixed

  • Credit Score: 620 Minimum

  • Mortgage Insurance: Yes

  • Maximum Loan Limit: Yes, varies by county

No Down Payment Disclaimer: Closing cost and fees may still apply. Down Payment Assistance Disclaimer: First lien interest rates may be higher when using DPA second.

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Security First Financial is a division of Primary Residential Mortgage, Inc. PRMI NMLS 3094. Branch NMLS ID# 385589. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Colorado – Regulated by the Division of Real Estate, UCCC #987701-016. Arizona – Arizona Department of Financial Institutions 0902614. Massachusetts – Licensed by the Massachusetts Division of Banks as a Broker and Lender as #MC3094. Florida - Florida Office of Financial Regulation MLD646. Texas - This office is licensed and examined by the Office of Consumer Credit Commissioner of the State of Texas. 

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Primary Residential Mortgage, Inc. is licensed under the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking through one of the means indicated below: In Person or U.S mail: 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294, Telephone No. (877) 276-5554, Fax No: (512)475-1313 Email: consumer.complaints@dob.texas.gov Website: www.dob.texas.gov

Consumers wishing to file a complaint against a mortgage banker or licensed mortgage banker residential loan originator should complete and send a complaint form to the TX department of savings and mortgage lending, 2601 North Lamar Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery find must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.

 

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