Dallas First-Time Buyer Incentives and Down Payment Assistance

Dallas First-Time Buyer Incentives

Buying your first home in Dallas? You’re in luck. There’s a wealth of programs tailored to help you—which means more buying power and less stress on your savings.

1. Dallas Homebuyer Assistance Program (DHAP)

• Up to $60,000 assistance in High Opportunity areas or $50,000 elsewhere for down payment and closing costs.
  
• Income eligibility: 50–120% of Area Median Income (AMI), varying by program extension.
  
  • Standard DHAP: up to 80% AMI
    
  • Targeted Occupations: 80–120% AMI for educators, healthcare, and protective services.
    
  • Anti-Displacement: 50–120% AMI; must be Dallas resident for ≥10 years.
    
• Forgivable second lien, interest-free; repayment only upon sale, transfer, or refinance.
  
• How to apply: Take a HUD-approved homebuyer course → get pre-approved → submit DHAP application via Neighborly portal (open Oct–July) → close within 6 months.
  

2. Dallas County Home Loan Counseling Center

• Offers Upfront Cost Assistance Program (UPCAP) for down payment/closing cost aid.
  
• Free, HUD-approved homebuyer counseling seminars in English & Spanish—plus Section 8 voucher-to-ownership conversions.
  
• Ideal for low/moderate-income buyers seeking preparation + one-on-one guidance
  

3. TSAHC (Texas State Affordable Housing Corporation)

• Offers two flagship programs across DFW:
  
  • Homes for Texas Heroes (educators, first responders, veterans)
    
  • Home Sweet Texas (general homebuyers)
    
• Up to 5% of loan amount in down payment assistance (grant or forgivable second lien), plus optional Mortgage Credit Certificate (MCC)
  
• Minimum credit score 620, plus income limits
  
• Example: A police officer in Kaufman County recently leveraged 3% down + forgivable second lien for home purchase
  

4. Other State & Federal Lending Options

• FHA loans: 3.5% down, low credit threshold
  
• VA loans: 0% down, no PMI for veterans
  
• USDA loans: 100% financing in qualifying rural/suburban areas
  
• Conventional loans (Fannie Mae HomeReady, Freddie Mac Home Possible): down payments from 3%
  

Eligibility & Steps to Qualify

• 
  First-timers: HUD education course is required for most programs
  
• Income verification: Must not exceed program-specific limits
  
• Mortgage pre-approval: A must-have before cash assistance
  
• Timing: DHAP runs Oct 1 – Jul 31, closing within six months

FAQ

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