Texas Down Payment Assistance: What Rockwall and DFW Buyers Need to Know
What Down Payment Assistance Programs Are Available in Texas?
Texas has two state-administered programs that can put up to 5% of your loan amount toward your down payment and eligible closing costs: TSAHC (Texas State Affordable Housing Corporation) and TDHCA (Texas Department of Housing and Community Affairs). TSAHC programs are generally for first-time buyers, veterans, and buyers purchasing in targeted areas; TDHCA's My Choice Texas Home program is open to any buyer who meets income and credit requirements. Both pair with a 30-year fixed-rate mortgage and require you to work with a participating lender — but they can meaningfully close the gap between what you've saved and what you need at closing in Rockwall, Rowlett, or anywhere in the DFW area.
If you're trying to buy in Rockwall, Rowlett, Wylie, or anywhere in the Northeast Dallas suburbs, you already know that the cash needed to close isn't small. Even on a $380,000 home — toward the lower end of what's available in Rockwall County right now — a 5% down payment comes to $19,000, and that's before you layer in the closing costs buyers pay in Texas, which typically run $6,000–$10,000 on a purchase in this price range.
That's a real barrier for a lot of buyers — including people who are fully qualified on income and credit and simply haven't had years to stockpile liquid savings. Texas has two state-funded programs designed for exactly that situation, and they're more accessible than most buyers realize.
Here's what you need to know before you start the process.
The Two Programs: TSAHC and TDHCA
The state of Texas funds down payment assistance through two separate agencies. Both offer competitive 30-year fixed-rate mortgages bundled with assistance for your down payment and closing costs. The differences come down to who qualifies and how the assistance is structured.
TSAHC — Texas State Affordable Housing Corporation
TSAHC offers down payment assistance through its Home Sweet Texas and Homes for Texas Heroes programs. For most buyers in the Rockwall and DFW area, the relevant offering is their standard homebuyer program, which pairs a first mortgage with assistance you can choose to receive in one of two forms:
- A non-repayable grant — the money is yours, it never has to be repaid, no conditions attached
- A forgivable second lien — the assistance is recorded as a second loan, but it's forgiven after three years if you remain in the home and don't refinance during that period
The TSAHC program is designed for first-time homebuyers — defined as anyone who hasn't owned a primary residence in the past three years. Veterans and active-duty military qualify regardless of prior homeownership. Some properties in designated "targeted areas" also allow repeat buyers to participate. A TSAHC-approved lender can confirm whether a specific address in Rockwall County or Rowlett qualifies.
TDHCA — Texas Department of Housing and Community Affairs
TDHCA runs two programs worth knowing:
- My First Texas Home — for first-time buyers and qualified veterans, pairing a below-market interest rate with up to 5% in down payment and closing cost assistance
- My Choice Texas Home — open to any Texas buyer, first-time or not, who meets income and credit requirements
My Choice Texas Home is the more flexible option. If you've owned a home before and are buying again in Rockwall County or the Northeast Dallas area, this is the program worth looking into. There's no "first-time buyer" requirement standing between you and the assistance.
Both TDHCA programs structure the assistance as a second lien — either deferred (repaid only when you sell, refinance, or pay off the first mortgage) or forgivable on a three-year schedule depending on which option you choose.
How Much Help Can You Actually Get?
Both TSAHC and TDHCA offer up to 5% of the first mortgage loan amount, applied toward your down payment and eligible closing costs.
To make that concrete: on a $400,000 purchase with an FHA loan, the loan amount after a 3.5% down payment is approximately $386,000. Five percent of that is roughly $19,300 — which can cover your entire FHA down payment and put a meaningful dent in your closing costs in a single program.
The exact percentage available depends on your loan type and the specific program option. Some TSAHC options offer 3% through conventional loans and up to 5% through FHA, VA, or USDA loans. Your lender will present what fits your situation.
Who Qualifies?
The eligibility picture breaks into a few pieces:
Credit score. Most TSAHC and TDHCA programs require a minimum 620 credit score for FHA, VA, or USDA loans and 640 or higher for conventional loans. Some "HFA Preferred" conventional options require a 660. If your score is close to these thresholds, a lender can often identify specific steps to get you there.
Income limits. Both programs set maximum income limits based on your county and household size. Rockwall County limits differ from Dallas County limits and are updated periodically. Rather than quote a number that could be outdated, I'll point you directly to tsahc.org and tdhca.state.tx.us for current tables — or ask a participating lender, who can run your numbers in minutes.
Purchase price limits. There are maximum purchase prices for homes financed through these programs. In the DFW area, those caps have historically been set above the median home price — but if you're buying toward the higher end of the Rockwall market, you'll want to verify you're within the limit before getting too far into your search.
Primary residence only. The home must be where you actually live. These programs aren't available for second homes, vacation properties, or investment purchases.
Homebuyer education. You'll complete a TDHCA-approved homebuyer education course before closing. These are available online through providers like eHome America and Framework — typically six to eight hours and about $75. It covers budgeting, the mortgage process, and what to expect as a homeowner. Many buyers find it genuinely useful, and it's a small requirement relative to what you're getting.
The Participating Lender Requirement
This is the piece buyers miss most often. You cannot walk into any bank or mortgage company and access these programs. Both TSAHC and TDHCA work exclusively through approved participating lenders. Not every mortgage company in Rockwall, Rowlett, or Dallas is set up to originate these loans.
When you're shopping lenders, ask directly: "Are you a TSAHC-approved lender?" and "Do you originate TDHCA My First Texas Home or My Choice Texas Home loans?" If they're not approved, they can't structure the loan to use state assistance. This is worth asking before you submit an application and get deep into the process with a lender who can't close what you need.
The good news is that the DFW area has no shortage of qualified participating lenders. You're not stuck with a single option — you're just narrowing the field to lenders who've gone through the approval process and actively originate these loans.
How This Fits Into the Texas Buying Timeline
If you plan to use down payment assistance in Rockwall or Northeast Dallas, here's where it fits in the process:
Pre-Approval First
Start with a participating lender who confirms your eligibility for TSAHC or TDHCA — including your income, credit score, and which specific program and option you'll use. That pre-approval shapes your realistic price range before you start looking at homes.
Accepted Offer and Earnest Money
Once your offer is accepted, your earnest money is deposited with the title company — not directly to the seller, which is standard Texas practice. Your option period runs concurrently, giving you time for inspections.
Underwriting and Second Lien
The lender processes both your first mortgage and the down payment assistance second lien together. The title company handles both at closing. From a buyer's standpoint, the process looks much like a standard mortgage — you're just closing two loans simultaneously.
Timing Considerations
TSAHC and TDHCA funding is allocated on a fiscal year basis. Some programs run low or are temporarily paused before year-end. If you're planning to use these programs, starting the process earlier tends to be better than waiting. For a full picture of the Texas buyer's closing timeline from accepted offer to close, that post walks through each stage in detail.
What Down Payment Assistance Doesn't Cover
These programs address the upfront cash problem — they don't change what you'll qualify for on a monthly payment basis. You still need to demonstrate you can carry the full payment: principal and interest, property taxes in Rockwall County (which run meaningfully higher than the Texas average due to the county's strong tax base), HOA dues if applicable, and homeowner's insurance.
Run your full monthly payment estimate before you get attached to a price range. In Rockwall County, buyers sometimes qualify on paper for a price that feels uncomfortably tight once property taxes are fully factored in.
These programs also don't waive any standard transaction steps. You'll still go through inspection, appraisal, title insurance, and the full process that applies to any Texas purchase.
Is It Worth Using These Programs?
If you qualify, the answer is almost always yes. A 5% grant or forgivable loan on a $400,000 purchase is nearly $20,000 that either stays in your savings or gets you into a home you couldn't have purchased otherwise. The trade-off — slightly higher mortgage rate compared to a non-assisted loan in some cases, a short forgivable period on the second lien — is typically worth it for buyers who are ready to own but short on liquid funds.
The one reason to think carefully: if you have strong cash savings, a competitive rate without DPA may put you in a better long-term position depending on the specific rate differential. That's a conversation worth having with your lender when you're comparing options.
Frequently Asked Questions
Do I have to be a first-time buyer to use Texas down payment assistance?
Not necessarily. The TDHCA My Choice Texas Home program is open to any Texas buyer who meets income and credit requirements, regardless of prior homeownership. TSAHC programs and TDHCA My First Texas Home are generally reserved for first-time buyers (no primary residence ownership in the past three years), veterans, and buyers purchasing in designated targeted areas.
How much down payment assistance can I get in Texas?
Both TSAHC and TDHCA offer up to 5% of the first mortgage loan amount, applied toward your down payment and eligible closing costs. On a $400,000 purchase with an FHA loan, that's roughly $19,000 in assistance. The exact amount depends on your loan type, the specific program, and the lender you work with.
Do I have to repay Texas down payment assistance?
It depends on the program option. TSAHC offers a non-repayable grant that never has to be repaid, as well as a forgivable second lien that is forgiven after three years if you remain in the home without refinancing. TDHCA structures its assistance as a second lien — either deferred (repaid when you sell, refinance, or pay off the first loan) or forgivable over a three-year period depending on the option selected.
What credit score do I need for Texas down payment assistance programs?
Most TSAHC and TDHCA programs require a minimum 620 credit score for government-backed loans (FHA, VA, USDA) and 640 or higher for conventional loans. Some conventional program options may require 660. Your participating lender will review your full credit profile and match you to the best available program.
Can I use down payment assistance to buy a home in Rockwall or Rowlett?
Yes. Both TSAHC and TDHCA programs are available statewide, including Rockwall County, Rowlett, Wylie, Sachse, and throughout the Northeast Dallas area. Income and purchase price limits apply and are set by county — confirm current Rockwall County limits with a TSAHC- or TDHCA-approved lender. The home must be your primary residence.
If you're ready to start mapping out what buying in Rockwall County or Northeast Dallas actually looks like for your situation — including whether a down payment assistance program makes sense for you — I'd be glad to walk through it with you.
You can download our 90 Ways We Serve Buyers guide for a full picture of what working with us looks like from start to close. Or, if you're ready to talk specifics, schedule a conversation here — no pressure, just a straight conversation about where you are and what your options look like.
