FHA Loans in Texas: Grants That Can Cover Your Down Payment

Texas runs one of the most generous first-time buyer programs in America — assistance worth up to 5% of your loan, sometimes as a grant you never repay. Paired with a 3.5%-down FHA loan, many Texas buyers close with very little out of pocket.

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FHA Loan Limits in Texas (2026)

The 2026 FHA floor of $541,287 applies across most of Texas — more than enough for typical first-time purchases in Houston, San Antonio, Dallas–Fort Worth suburbs, and El Paso. Higher-cost pockets like Austin and parts of the Dallas metro carry limits above the floor, up to the $1,249,125 national ceiling.

Down Payment Assistance in Texas

TSAHC — the Texas State Affordable Housing Corporation — runs the state's flagship programs:

Home Sweet Texas Home Loan: a 30-year fixed mortgage paired with down payment assistance of up to 5% of the loan amount — as a true grant (never repaid) or a deferred forgivable second lien. Minimum 620 credit score.
Homes for Texas Heroes: the same benefits with expanded eligibility and preferred pricing for teachers, police, firefighters, EMS, nurses, corrections officers, veterans, and active-duty military.
TSAHC pairs with FHA, VA, USDA, and conventional loans. The classic combo: FHA's 3.5% down fully covered by a 5% TSAHC grant.

TDHCA's My First Texas Home offers a second path: a below-market 30-year mortgage with up to 5% assistance as a 0%-interest deferred loan, plus a Mortgage Credit Certificate worth a federal tax credit each year you live in the home.

Program terms change — I'll verify yours

Income limits vary by county and household size, and grant availability moves with funding. When we talk, I'll check current TSAHC/TDHCA terms for your area — free.

Areas I Serve in Texas

Statewide and 100% remote. My Texas buyers are concentrated in Houston, San Antonio, Dallas–Fort Worth, and Austin — each with its own county income limits and price points — plus El Paso and the Rio Grande Valley, where the FHA floor goes furthest.

Texas Homebuyer FAQs

Is TSAHC assistance really a grant I never repay?

The grant option is — true gift money with no repayment, ever. It comes with a slightly higher rate on the first mortgage. The alternative (deferred forgivable second lien) is forgiven after a set period, typically three years.

Do I have to be a first-time buyer for TSAHC?

Home Sweet Texas generally follows the 3-year rule (no home owned in the last 3 years), with exceptions for targeted areas and veterans. Homes for Texas Heroes extends eligibility to qualifying professions regardless.

Can TSAHC cover my entire 3.5% FHA down payment?

Often, yes. On a $300,000 home, 5% assistance is $15,000 — enough to cover the $10,500 FHA down payment with money left toward closing costs.

Buying in this state? Let's talk.

Free consultation, straight answers about what you qualify for. Call or text (646) 977-1860 or send me a message.

New to buying? Start at the First-Time Buyer Hub. Compare loan programs.