Down payment assistance in Texas.

You do not need to save a full down payment to buy a home in Texas. Here are the main paths our clients use. Disponible en español; solo pregunte.

0% down loan options

VA loans offer 0% down for eligible veterans and service members. USDA loans offer 0% down for eligible buyers in eligible rural and suburban areas.

A VA loan is a benefit earned through military service, and it is open to eligible veterans, active service members, and surviving spouses. A USDA loan is open to eligible buyers who are purchasing in an eligible rural or suburban area and who meet the program's income rules. Both loans still require credit and income to be reviewed, and both still charge normal closing costs. A loan officer checks your eligibility for each program in one short call.

SETH down payment assistance

SETH is the Southeast Texas Housing Finance Corporation. Its 5 Star Texas Advantage, MyHome Plus, and Buyer Select programs offer down payment and closing cost help to eligible buyers in most of Texas.

Each SETH program pairs with a 30-year fixed-rate FHA, VA, USDA, or conventional loan, and the help comes as a second loan. 5 Star Texas Advantage offers up to 5% of the loan amount, either forgiven after 3 years or as a deferred loan repaid when you sell, refinance, or reach 30 years, and asks for a 640 credit score. MyHome Plus offers up to 6%, forgiven after 10 years, with a 620 minimum. Buyer Select is forgiven after 3 years, with a 620 minimum. None of the three requires you to be a first-time buyer, all three carry income limits, and none is offered inside the city limits of El Paso, Grand Prairie, or McKinney. A loan officer explains the terms of any SETH option before you accept it.

Source: SETH program pages for 5 Star Texas Advantage, MyHome Plus, and Buyer Select (sethfc.com), checked November 4, 2026.

TDHCA My First Texas Home

TDHCA is the Texas Department of Housing and Community Affairs. My First Texas Home is a TDHCA program built for eligible first-time buyers, with down payment help of up to 5% of the loan amount.

My First Texas Home pairs a 30-year fixed-rate FHA, VA, or USDA loan with 2% to 5% of the loan amount in down payment help, depending on funding, and asks for a 620 credit score. First-time buyer here means you have not owned and lived in a home in the last 3 years, with exceptions for qualified veterans and homes in targeted areas. The help is a second loan with no monthly payment: either forgiven after 3 years, or deferred and repaid when you sell, refinance, or pay off the first loan. TDHCA's My Choice Texas Home offers similar help, adds conventional loans, and does not require you to be a first-time buyer. Both require a homebuyer education course and carry income and purchase price limits. A loan officer confirms which TDHCA program, if any, fits your household and your target home.

Source: TDHCA Texas Homebuyer Program, program chart and My First Texas Home program matrix (welcomehome.tdhca.texas.gov), checked November 4, 2026. For TSAHC and the City of Houston program, see our Houston down payment assistance guide.

Grants and second loans: how they differ

Assistance comes in three shapes: a grant, a forgivable second loan, and a repayable second loan. Each works differently.

• A grant. Money toward your down payment or closing costs that you do not repay.
• A forgivable second loan. A second loan on your home that is forgiven over time, usually if you keep living in the home for a set number of years. Move or sell too soon, and part of it may come due.
• A repayable second loan. A real second loan with its own payment, or a balance due at a later date, such as when you sell or refinance.

What usually affects eligibility: your household income against the program's limit, whether you are a first-time buyer, a required homebuyer education course, your credit, rules about the property itself, and living in the home as your primary residence. Every program sets its own mix of these rules. A loan officer reviews your file against current programs and tells you exactly what applies to you.

Program names, terms, and availability change and are set by each program's administrator, not by Warens Financial Group.

How to start

A short conversation about your income, credit, and the home you have in mind, in English or Spanish.

Warens Financial Group is a Houston mortgage broker, so we check your file against VA, USDA, SETH, TDHCA, and grant programs in one call. Start below, or read more on our VA loans page.

Frequently asked questions

What are the 0% down loan options in Texas?

VA loans offer 0% down for eligible veterans, service members, and surviving spouses. USDA loans offer 0% down for eligible buyers in eligible rural and suburban areas. A loan officer can check your eligibility for both.

What is SETH down payment assistance?

SETH is the Southeast Texas Housing Finance Corporation. Its 5 Star Texas Advantage, MyHome Plus, and Buyer Select programs offer down payment and closing cost help as a second loan that can be forgiven, paired with a 30-year fixed-rate FHA, VA, USDA, or conventional loan. None of the three requires you to be a first-time buyer, and income limits apply. A loan officer can walk you through the SETH programs you may qualify for.

What is TDHCA My First Texas Home?

TDHCA is the Texas Department of Housing and Community Affairs. My First Texas Home pairs a 30-year fixed-rate FHA, VA, or USDA loan with down payment help of up to 5% of the loan amount for eligible first-time buyers, with a 620 minimum credit score. TDHCA's My Choice Texas Home offers similar help without the first-time buyer rule.

What is the difference between a grant and a second loan?

A grant does not need to be repaid. A forgivable second loan is forgiven over time if you meet the program rules, often living in the home for a set number of years. A repayable second loan is a real loan, with its own payment or a payoff due later. Your loan officer explains which type fits an offer before you accept it.

Who qualifies for down payment assistance in Texas?

Eligibility rules vary by program. Common factors are your household income, whether you are a first-time buyer, a homebuyer education course, your credit, the property you are buying, and living in the home as your primary residence. A loan officer checks your full file against each program.

Can I use down payment assistance with an FHA or conventional loan?

Often, yes. Many Texas assistance programs pair with FHA and conventional loans. VA and USDA loans can also stand on their own at 0% down. Ask us which combination fits your file.

Disclaimer: This article is for general educational purposes only and is not financial or legal advice, a commitment to lend, or an offer of credit. VA and USDA 0% down financing is available only to eligible buyers; USDA loans require an eligible rural or suburban property location. Down payment assistance, grants, and second-loan programs are run by outside agencies and housing finance corporations, not by Warens Financial Group, have their own eligibility rules, and can change or end without notice. No rate, payment amount, or approval is guaranteed. Warens Financial Group, NMLS #2532048. Franklin Warens, Mortgage Broker, NMLS #1249423. Equal Housing Opportunity.