Texas FHA Loan Down Payment Assistance
Texas FHA down payment assistance programs that can help eligible homebuyers purchase a home with less money out of pocket
Buy a Home with FHA Financing Using Down Payment Assistance
For many Texas homebuyers, the biggest challenge isn’t qualifying for a mortgage- it’s coming up with the funds needed for a down payment and closing costs. Fortunately, Texas FHA loans can often be paired with down payment assistance programs that help eligible buyers reduce upfront expenses and move into a home sooner.
At Lone Star Financing, we help Texas homebuyers explore FHA financing options along with available down payment assistance programs that may help cover some of the cash needed at closing. Whether you’re purchasing your first home or returning to homeownership, our team can help determine which programs may be available based on your location, income
What Is FHA Down Payment Assistance?
FHA down payment assistance programs are designed to help first time homebuyers in Texas who may have sufficient income to afford a monthly mortgage payment but need help covering the upfront costs of purchasing a home.
These programs are typically offered through state housing agencies, local governments, nonprofit organizations, and community development programs. Assistance may be available in the form of grants, deferred loans, forgivable loans, or low-interest second mortgages.
While FHA loans already allow qualified borrowers to purchase a home with as little as 3.5% down, down payment assistance programs can potentially reduce the amount of cash required at closing even further. View the Texas FHA credit score requirements at Lone Star Financing.
FHA Requirements
Types of Down Payment Assistance Available in Texas
FHA loans are designed to make homeownership more accessible for Texas buyers with flexible credit guidelines, low down payment options, and borrower-friendly qualification requirements.
Grants
Grant programs provide funds that generally do not require repayment as long as program requirements are met.
Forgivable Loans
These programs provide assistance that may be forgiven after a specified period of occupancy.
Deferred Payment Loans
Repayment may not be required until the home is sold, refinanced, or the mortgage is paid off.
FHA Loan vs FHA Loan - Down Payment Assistance
Select the home loan option that fits your financing goals.
*Subject to eligibility and approval.
Who Qualifies for FHA Down Payment Assistance?
Eligibility varies by program, but many Texas assistance programs review a few common factors:
Household income
Property location
Occupancy requirements
Credit history
First-time buyer status (some programs)
Purchase price limits
Texas State Affordable Housing Corporation (TSAHC)
The Texas State Affordable Housing Corporation (TSAHC) offers statewide down payment assistance programs designed to help eligible Texans achieve homeownership. TSAHC assistance can often be combined with FHA loans, helping qualified buyers reduce the upfront cash needed for a home purchase. TSAHC provides assistance through approved participating lenders and offers programs for both first-time and repeat homebuyers.
Depending on the program selected, assistance may be available as a grant that does not require repayment or as a deferred second lien loan. Funds can generally be used toward down payment requirements and eligible closing costs. TSAHC programs are available throughout Texas and support FHA, VA, USDA, and conventional financing.
Up to 5% Assistance
Eligible buyers may receive assistance based on a percentage of the loan amount.
FHA Compatible
TSAHC programs can often be paired with FHA financing to help reduce upfront homebuying costs.
Statewide Availability
Programs are available throughout Texas through approved participating lenders.
Grant & Loan Options
Assistance may be available as a grant or deferred second lien depending on program selection.
Benefits of FHA Down Payment Assistance
At Lone Star Financing, we make homeownership easier with competitive rates, smooth closings, and local expertise you can trust. Whether a new home purchase or a cash-out refinance—we’ve got you covered!
As a mortgage broker, Lone Star Financing provides access to wholesale rates and multiple lenders—helping you secure better options and competitive pricing.
Lower Upfront Costs
Reduce the amount of cash needed to purchase a home.
Buy Sooner
Avoid waiting years to save a larger down payment.
Preserve Savings
Keep more money available for emergencies, moving expenses, and home improvements.
Expanded Homeownership Opportunities
Make homeownership more accessible for qualified buyers across Texas.
Frequently Asked Questions
Common Questions, Answered
Can FHA loans be combined with down payment assistance?
Yes. Many Texas assistance programs allow qualified borrowers to use FHA financing.
Do I have to be a first-time homebuyer?
Many programs allow funds to be used toward eligible closing costs in addition to down payment requirements.
Is down payment assistance free money?
Many programs allow funds to be used toward eligible closing costs in addition to down payment requirements.
Can assistance help with closing costs?
Many programs allow funds to be used toward eligible closing costs in addition to down payment requirements.
How do I know which programs I qualify for?
At Lone Star Financing, Texas FHA loans are one of our specialties. Our experienced mortgage professionals are well-versed in TSAHC Down Payment Assistance programs and other homebuyer assistance options available across Texas. We’ll take the time to review your financial profile, explain your financing options, and help determine whether you qualify for programs that can reduce your down payment and closing costs, making homeownership more affordable.
Work with a licensed FHA mortgage lender backed by experienced loan officers who understand Texas FHA down payment assistance and Texas FHA requirements. Lone Star Financing is not affiliated with an agency of the federal government, HUD or FHA. Proudly offering Texas FHA loans in Houston, Dallas, Fort Worth and all of the Lone Star State.