How down payment assistance works
Down payment assistance, often called DPA, is money from a state or local housing agency that covers part of your down payment or closing costs. It comes in three main forms:
- A grant that you do not repay.
- A forgivable loan that disappears after you live in the home for a set number of years.
- A deferred loan with no monthly payment, repaid when you sell, refinance or pay off the first mortgage.
Assistance is usually paired with a specific first mortgage from the same agency, sometimes at a slightly higher rate than a loan without assistance. The real comparison is total cost, not just the cash you save at closing. Many programs also require a short homebuyer education class.
"First-time buyer" usually means you have not owned and lived in a home in the last three years, so you may qualify even if you owned a home before.
Texas programs
- TSAHC Home Sweet Texas: from the Texas State Affordable Housing Corporation, open to buyers who meet county income limits, with no first-time buyer rule. Assistance of up to about 5% of the loan, as a grant or a deferred second loan.
- TSAHC Homes for Texas Heroes: the same structure for teachers, firefighters, police and corrections officers, EMS, nurses and veterans.
- TDHCA My First Texas Home: from the Texas Department of Housing and Community Affairs, for first-time buyers (or anyone who has not owned a home in three years) within income limits. A second loan of up to 5% with 0% interest and no monthly payment, paired with a 30-year fixed first mortgage. Funding has had gaps, so confirm it is open.
- San Antonio's Homeownership Incentive Program (HIP): the City's program offered up to $30,000 (HIP 80) or $15,000 (HIP 120) for income-qualified buyers, but it was paused for fiscal year 2026. Ask Sarah whether it has reopened before you count on it.
Most Texas state programs look for a credit score of at least 620.
Florida programs
- Florida Assist: from Florida Housing Finance Corporation, up to $10,000 at 0% interest with no monthly payment, repaid when you sell, refinance or move out.
- HFA Preferred and HFA Advantage second mortgage: up to 5% of the loan, forgiven 20% a year and fully forgiven after five years in the home.
- Florida Homeownership Loan Program: up to $12,500 at 3% interest, paid monthly over 30 years, so it counts as a monthly debt.
- Hometown Heroes: for income-qualified workers at Florida businesses and for military members and veterans, up to 5% of the loan with a cap (reported at $35,000 in 2026), at 0% with no monthly payment. Amounts and funding have changed from year to year, so confirm the current terms.
Florida Housing programs generally require a credit score of at least 640, and many Florida counties and cities run their own programs as well.
California programs
- CalHFA MyHome Assistance: from the California Housing Finance Agency, a deferred loan of up to 3.5% of the price on FHA loans and 3% on conventional, VA and USDA loans, for first-time buyers within county income limits. Repaid when you sell, refinance or pay off the first mortgage.
- CalHFA Zero Interest Program (ZIP): 2% or 3% of the loan toward closing costs, paired with a CalPLUS first mortgage, repaid with no interest.
- Dream For All: up to 20% of the price (capped at $150,000) for first-generation buyers, repaid with a share of the home's appreciation. Its 2026 round closed in March 2026, and a new round had not been announced at the time of writing.
CalHFA loans generally need a credit score of at least 640 for FHA and 680 for conventional, and income limits vary by county.
The main state programs at a glance
| Program | State | Help available | Repaid? | Credit score | First-time rule |
|---|---|---|---|---|---|
| Home Sweet Texas (TSAHC) | TX | Up to about 5% of the loan | Grant, or deferred second loan | 620 | No |
| Homes for Texas Heroes (TSAHC) | TX | Up to about 5% of the loan | Grant, or deferred second loan | 620 | No; for eligible professions |
| My First Texas Home (TDHCA) | TX | Up to 5% of the loan | 0% deferred, repaid on sale or refinance | 620 | Yes (3 years) |
| Florida Assist | FL | Up to $10,000 | 0% deferred, repaid on sale or refinance | 640 | Program rules apply |
| HFA Preferred or Advantage second | FL | Up to 5% of the loan | Forgiven over 5 years | 640 | Program rules apply |
| Hometown Heroes | FL | Up to 5% of the loan (capped) | 0% deferred, repaid on sale or refinance | 640 | For eligible workers and veterans |
| MyHome Assistance (CalHFA) | CA | 3% to 3.5% of the price | Deferred, repaid on sale or refinance | 640 FHA, 680 conventional | Yes (3 years) |
| Zero Interest Program (CalHFA) | CA | 2% or 3% for closing costs | 0% deferred | 640 FHA, 680 conventional | With a CalPLUS loan |
Terms as reported in 2026; income limits apply to all of them and vary by county and household size.
What assistance looks like on a real purchase
Texas, $300,000 home with an FHA loan. FHA needs 3.5% down, which is $10,500, plus closing costs that often run around 3% of the price, roughly $9,000. A Texas program worth 5% of the $289,500 loan is about $14,475, enough to cover the whole down payment and about $4,000 of closing costs. If the program's rate is 0.25% higher, the principal and interest payment goes from about $2,040 to about $2,090 a month, roughly $50 more.
Florida, $300,000 home with a conventional loan. With 3% down, the down payment is $9,000. Florida Assist could cover it with a $10,000 loan at 0% that you repay when you sell or refinance. Alternatively, the HFA Preferred second mortgage of 5%, about $14,550, would be fully forgiven after five years in the home. Insurance in Florida is often the bigger surprise, so price it before you choose a home.
California, $600,000 home with an FHA loan. The 3.5% down payment is $21,000. CalHFA MyHome Assistance of up to 3.5% of the price, also about $21,000, could cover it, repaid with interest when you sell, refinance or pay off the first mortgage. Closing costs, often around $18,000 at this price, would still need cash, a seller credit or a program like ZIP.
Rough examples only, using a 7.40% example rate; your rate, costs and program terms will differ.
Local programs worth checking
Many cities and counties have their own help, often larger than the state programs but with tighter income limits and limited funding. A few examples reported in 2026:
- San Antonio: the City's HIP program (paused for fiscal year 2026), plus statewide options from TSAHC, TDHCA and SETH.
- Houston: the City of Houston's Homebuyer Assistance Program, up to $50,000 for buyers at or below 80% of area median income, forgivable after five years; Harris County offers a separate program for areas outside the city.
- Austin: the City of Austin offers up to $40,000 as a forgivable loan for income-qualified first-time buyers, and Travis County's Hill Country Home program offers 4% to 6% of the loan.
- Dallas and Fort Worth: both cities have run homebuyer assistance programs; check current funding and limits with each city.
- Tampa: the City's Dare to Own the Dream program offers up to $50,000, forgivable after 20 years, and Hillsborough County offers up to $15,000.
- Miami: the City of Miami's first-time buyer program can provide large deferred loans for buyers at or below 80% of area median income.
- Orlando: Orange County's program offers $10,000 to $70,000 depending on income, but it is closed to new applications until about March 2027.
- Los Angeles: the City's LIPA program offers up to $161,000 with a share of the home's appreciation, released in a few rounds a year with limited spots.
- San Diego: the San Diego Housing Commission offers a deferred loan of up to 17% of the price in parts of the county for moderate-income first-time buyers.
Local programs open, close and change limits often. Always confirm the current terms directly with the city or county before you count on them.
Help for veterans, teachers and other heroes
- Everywhere: VA loans allow 0% down for eligible veterans, service members and some surviving spouses, with no monthly mortgage insurance.
- Texas: Homes for Texas Heroes covers teachers, firefighters, police, corrections officers, EMS, nurses and veterans. The Texas Veterans Land Board also offers home loans to eligible Texas veterans.
- Florida: Hometown Heroes is aimed at income-qualified workers at Florida businesses, including many teachers, health care and public safety workers, and at military members and veterans.
- California: CalVet, the California Department of Veterans Affairs, offers home loans to eligible veterans, and some cities and school districts run their own programs for teachers and staff.
The hidden costs of assistance
- A slightly higher rate. Many programs require their own first mortgage, which can price a little higher, often about $50 a month on a $300,000 home, adding up over the years you keep the loan.
- Repayment when you sell or refinance. Deferred loans come due when you sell, refinance or pay off the first mortgage, which can make a future refinance less attractive.
- Shared appreciation. Some programs, like Dream For All and Los Angeles LIPA, take a share of your home's increase in value instead of interest.
- Limits on the home. Price caps, income limits, required inspections and occupancy rules can narrow your choices.
- More time. Program approvals add steps, so allow extra days in your contract.
None of this makes assistance a bad choice. It means comparing the total cost over the time you plan to keep the home, not just the cash you save at closing.
Compare state programs with low down payment loans
Assistance is not the only way to buy with little cash. FHA allows 3.5% down with a credit score of 580 or higher, many conventional loans allow 3% to 5% down, and VA allows 0% down for eligible veterans and service members. Sometimes a regular loan with seller-paid closing costs costs less over time than a program loan with a higher rate. Sarah can compare both for your situation.
Use the affordability calculator to see a comfortable price range, then compare Conventional, FHA and VA side by side.
How much can I afford? Compare loan typesHow to get started
- Check your credit score and pay down balances if you are close to a cutoff like 620 or 640.
- Look up the income limit for your county, since it depends on household size and changes each year.
- Take a homebuyer education class if your program needs one. Many are free online.
- Get preapproved with a lender who offers the program you want, because not every lender offers every program.
- Confirm the program is funded before you make an offer, and leave time for its approval in your contract dates.
Frequently asked questions
Do I have to repay down payment assistance?
It depends on the program. Some are grants you never repay, some are forgiven after you live in the home for several years, and others are 0% loans repaid when you sell, refinance or pay off the mortgage.
Can I get down payment assistance if I owned a home before?
Often, yes. Many programs define a first-time buyer as someone who has not owned and lived in a home in the last three years, and some Texas programs, such as Home Sweet Texas, have no first-time buyer rule at all.
What credit score do I need for down payment assistance?
Most state programs need at least 620 in Texas and about 640 in Florida and California, and CalHFA conventional loans need 680. Individual lenders can set higher requirements.
Can I use down payment assistance with an FHA or VA loan?
Yes. Most state programs work with FHA, VA, USDA and conventional loans, as long as the first mortgage comes from the program's approved lenders and meets its rules.
Does down payment assistance raise my interest rate?
Often a little. Many programs require their own first mortgage, which may price slightly higher than a loan without assistance. On a $300,000 home, a rate 0.25% higher adds roughly $50 a month, so compare total cost, not just cash at closing.
What happens to my down payment assistance if I refinance or sell?
Deferred assistance loans are usually repaid when you sell, refinance or pay off the first mortgage. Forgivable programs may owe nothing after the required years in the home, and grants are never repaid.
Find out which programs fit you
Programs open and close during the year, and not every lender offers every program. Sarah can check what is available for your county, income and loan type, and compare it with a regular low down payment loan.
Ask Sarah about assistance programs First-time buyer guide