Down Payment Assistance Available to Ease the Pressure Home Buyers Face

August 3, 2018 | by Guest Posts

Categories: First Time Buyer, Homes for Texas Heroes

This is a guest post by Redfin (  Founded by software engineers, Redfin is the country’s #1 brokerage website and offers a host of online tools to consumers.

Redfin serves more than 80 major metro areas across the U.S.

Median home prices have increased by  nearly 13% over the last two years, leaving  many Texas home buyers  discouraged by the idea of saving for a down payment. A March 2018 study conducted by Redfin found that 50% of millennial-aged homebuyers were most concerned with having enough money for a down payment.

The study also found that many had the common misconception that you still needed the traditional 20 percent down to purchase a home. This misconception along with the inflated market has led over 65% of millennials to seek out secondary income. Specifically,  they plan to pursue additional employment, rent out a room to a friend or family member, drive for a ride-sharing service, and/or split ownership with friends or roommates.

What many millennials may not know is that even though the average down payment in Austin, Dallas, and Houston is still upwards of 20%, there are options available that can help ease this buyer pressure.  Thanks to federal, state and local programs, home buyers may be able to purchase a home with nothing or very little down.

What is down payment assistance?

Down payment assistance is help provided by a local or state housing authority, a nonprofit or your lender that gives you the cash infusion you need for a down payment on a mortgage loan. While many of these programs are targeted toward first-time homebuyers, there are several grants, loans, tax credits and other programs available to people who have already bought and sold one or more homes.

There are three types of assistance programs:

  • Grants: Down Payment Assistance that you don't have to pay back.
  • Second Lien Loan: Down Payment Assistance in the form of a loan, that you  eventually will need to pay back. Sometimes these loans are interest-free.
  • Tax credits: You get a federal income tax credit, which saves you money that you can then use to qualify for a mortgage and pay for ongoing home expenses.

While each program has its own eligibility requirements, many require you to live in the home as a primary residence (meaning you can't use it as an investment property).

TSAHC’s Down Payment Assistance Programs

TSAHC offers several different mortgage and down payment programs that will ease you into homeownership. For example, the Homes for Texas Heroes Program is geared towards teachers, firefighters, EMS personnel, police officers, and veterans. The Home Sweet Texas Home Loan Program is available for buyers of any profession.

These programs exist to help people who wouldn't ordinarily be able to buy a home. While you'll still be subject to your lender's credit and other eligibility requirements, down payment assistance programs can help you become a homeowner when circumstances may have otherwise deemed it impossible.

On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.


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Hi Eli,  we recommend contacting one of our participating lenders who can help you determine if you qualify for a mortgage loans and for TSAHC’s DPA programs.  You can find one here:

Eli P Ruiz

My wife is permanently disabled, we receive HIPP as she is on my work provided benefits. On her disability alone would we qualify for any down payment assistance?

Laura Ross

Hi Michael,  our homeownership team can answer any questions you or your girlfriend might have about the programs we currently have available. They can be contacted via our Homeowership Hotline at 877-508-4611.

Michael A Strickland

Hi my name is Mike Strickland I live in Georgia I have been disabled since 2001 and will be for life Broken Back crushed vertebrae I am able to walk not good chronic back trouble I lived with my mom and dad my mom passed away in 2015 I am 60 my dad is alive but close to death we me and my sister have no inheritance but I will be on disability the rest of my life wonder if there is any way there’s only one place I have to live in this world is my girlfriend in Texas or fiance is there anything you can tell me or her to get in touch with or would it be better just to call that number on your site? We are simple people no type of criminal records I just want to live with the woman I love until my dying days I don’t have much choice but I no it would be a dream come true

Laura Ross

Ms. Bell, please contact our Homeownership Hotline at 877-508-4611 for assistance with your questions.

Ms Bell

Hi. I’m interested in getting down payment and closing assistance . I’m a disabled widow of disabled veteran due to injuries while in service. I have my own lender, Navy Federal. I am preapproved . I took eligibility test and passed. Is it any way I can get assistance using my lender. Need assistance. Thanks

Laura Ross

Hi Rafael, please contact our Homeownership Hotline at 877-508-4611 for assistance with your questions.


This blog is very helpful especially for the first time buyers. Very Interesting!


Hi. I’m aproved with a USDA direct loan , can I be elegible for a down payment grant without applying for a new loan? If so, can I get the contact info please.
I’m under contract now and have 44 days to closing. Thank you

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