Conventional Loans with Down Payment Assistance

What is Conventional Loans with Down Payment Assistance?

Conventional Loans with Down Payment Assistance is a grant for homebuyers in Texas.

• Conventional loans paired with down payment assistance allow homebuyers to use conventional financing (Fannie Mae/Freddie Mac HFA products) while receiving 2%–5% of the loan amount in down payment and closing cost assistance. Texas programs such as TSAHC's Home Sweet Texas, SETH 5 Star, and TDHCA My First Texas Home offer DPA structured as forgivable second liens or grants alongside conventional 30-year fixed-rate mortgages.
• 3%–5% DPA on conventional loan.
• Forgivable after 3 years.
• Stackable with MCC.
• 30-year fixed rate.
• No first-time buyer requirement in some programs.
• Funding comes from State and Local.

How much assistance does it provide?

Conventional Loans with Down Payment Assistance provides assistance worth 3% of the purchase price, as set by the program.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Conventional Loans with Down Payment Assistance is structured as a grant, so it is not repaid.

• Repayment is triggered by Sale, Refinance, and No Longer Primary.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Conventional Loans with Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Conventional Loans with Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Varies by program; typically up to 80%–120% AMI depending on provider.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Conventional Loans with Down Payment Assistance can be used for Single-family.

• New construction is eligible.

Is there eligibility for specific groups?

Conventional Loans with Down Payment Assistance names veterans, active-duty service members, educators, law enforcement officers, firefighters, and healthcare workers among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Conventional Loans with Down Payment Assistance serves buyers purchasing anywhere in Texas.

• The program gives priority to designated target areas, so the address matters as well as the county.

How do you apply?

Applications for Conventional Loans with Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.