Upfront Cost Assistance Program (UPCAP)

What is Upfront Cost Assistance Program (UPCAP)?

Upfront Cost Assistance Program (UPCAP) is a forgivable loan for homebuyers in Dallas County, Texas.

• Dallas County (excluding City of Dallas) UPCAP: up to $7,500 forgivable second mortgage at 0% interest for first-time homebuyers. HOME-funded. 5-year affordability period. 80% AMI ceiling. Max purchase $318,000. 620 FICO.
• Dallas County's Upfront Cost Assistance Program (UPCAP) provides up to $7,500 in down payment and closing cost assistance to first-time homebuyers purchasing primary residences within Dallas County (excluding the City of Dallas). HOME-funded. Structured as a 0% interest deferred forgivable second mortgage with 5-year affordability period per HUD HOME 24 CFR 92.254. Pairs with FHA, VA, USDA, or conventional 30-year fixed first mortgage. 80% AMI ceiling. Maximum purchase price $318,000.
• Funding comes from Federal.

Do you have to pay it back?

Upfront Cost Assistance Program (UPCAP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Deferred 0% second mortgage forgiven prorata over 5 years (20% per year). 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.

Who qualifies?

Upfront Cost Assistance Program (UPCAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Upfront Cost Assistance Program (UPCAP) limits household income to 80% of the area median income, which varies by county and household size.

• 80% AMI for Dallas-Fort Worth-Arlington MSA per HUD; 1-person $57,750 / 4-person $82,500 / 8-person $108,900 (2025 limits).
• 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.

What kind of home can it be used for?

Upfront Cost Assistance Program (UPCAP) caps the purchase price at $318,000.

• Eligible property types include Single-family detached, condominium, townhouse, PUD. Must be primary residence.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Upfront Cost Assistance Program (UPCAP) names veterans, active-duty service members, reservists and National Guard members, and surviving spouses 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?

Upfront Cost Assistance Program (UPCAP) serves buyers purchasing in Dallas County, Texas.

• The program targets specific areas: Dallas County excluding the City of Dallas. The City of Dallas operates its own Dallas Homebuyer Assistance Program (DHAP) for residents within Dallas city limits.

How do you apply?

Applications for Upfront Cost Assistance Program (UPCAP) 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, through HUD-approved 8-hour homebuyer education required. Local providers include Frameworks CDC, Texas State Affordable Housing Corporation (TSAHC) network, and other HUD-approved counseling agencies in Dallas County..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved by participating lender through Dallas County HHS Community Development. Funds available on first-come, first-served basis subject to annual HUD HOME allocation., 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.