Targeted Down Payment Assistance Program

Targeted Down Payment Assistance Program is a forgivable loan for homebuyers in Frisco, Texas. Targeted DPA for educators, first responders, healthcare professionals, and Frisco municipal employees. $10,000-$15,000 forgivable second mortgage at 0% interest with 5-year affordability period. 120% AMI ceiling. Max purchase $563,500. 640 FICO. Property must be in Frisco city limits. City of Frisco's Targeted Down Payment Assistance Program (TDAP) provides $10,000-$15,000 in down payment and closing cost assistance to homebuyers in targeted occupations (educators, first responders, healthcare professionals, and Frisco municipal employees) earning up to 120% AMI. Structured as a 0% interest deferred forgivable second mortgage with 5-year affordability period. Pairs with FHA, VA, USDA, or conventional 30-year fixed first mortgage. Maximum purchase price $563,500. Property must be in Frisco city limits. Funding comes from Local.

Targeted Down Payment Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Deferred 0% second mortgage forgiven prorata over 5 years. If property is sold, refinanced (cash-out), transferred, or vacated as primary residence before 5-year anniversary, unforgiven balance becomes due in full. 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.

Targeted Down Payment Assistance Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 640 minimum FICO across all products. A homebuyer education course is required, through HUD-approved homebuyer education required. Local providers include Texas State Affordable Housing Corporation (TSAHC) network, Frameworks CDC, and other HUD-approved counseling agencies in Collin County and DFW MSA. Residency requirement: Property must be located in the City of Frisco city limits and occupied by borrower as primary residence throughout 5-year forgiveness period. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. Property must be located in the City of Frisco city limits. Borrower must be employed in a targeted occupation: K-12 educator (teacher, counselor, administrator), first responder (police, fire, EMS, 911 dispatcher), healthcare professional (RN, LVN, EMT, paramedic, physician), or City of Frisco/Frisco ISD employee. Household income at or below 120% AMI for Dallas-Fort Worth-Arlington MSA. Mandatory 8-hour HUD-approved homebuyer education class. Minimum $1,000 borrower contribution. 640 FICO minimum. Property must be a single-family detached, condominium, or townhouse used as primary residence.

Targeted Down Payment Assistance Program limits household income to 120% of the area median income, which varies by county and household size. 120% AMI for Dallas-Fort Worth-Arlington MSA per HUD; 4-person $144,567 (2025 limits). Income limits scale with household size. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Targeted Down Payment Assistance Program caps the purchase price at $563,500. Eligible property types include Single-family detached, condominium, townhouse, PUD. Must be primary residence. New construction is eligible. Manufactured homes are not eligible.

Targeted Down Payment Assistance Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, 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.

Targeted Down Payment Assistance Program serves homebuyers purchasing in Frisco, Texas.

Applications for Targeted Down Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved by participating lender at rate lock through City of Frisco Community Development. Funds available on first-come, first-served basis subject to annual allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.