Updated for 2026
Buying a house is one of the biggest financial milestones most people will ever reach — and for the majority of first-time buyers, the down payment is the single hardest part. The good news: with the right plan and the right assistance program, that hurdle is far more clearable than it looks.
Whether you’re here to learn about our $15,000 Down Payment Assistance Program or you just want practical tips for building your savings faster, you’re in the right place. Below, we cover who qualifies for down payment assistance in Texas and six proven strategies to reach your goal sooner.
What is down payment assistance in Texas?
Down payment assistance (DPA) is financial help — usually a grant or a low-interest or forgivable loan — that covers part or all of the upfront cash a homebuyer needs at closing. In Texas, eligible first-time and low-to-moderate-income buyers can receive a grant of up to $15,000 toward their down payment through Dream Home Mortgage. If you live in the home for at least five years, the grant is fully forgivable, meaning you never pay it back.
Why saving for a down payment feels so hard right now
You’re not imagining it — the down payment really is the top obstacle for today’s buyers. In Bankrate’s 2025 Home Affordability Survey, 81% of aspiring homeowners said the down payment and closing costs are a significant obstacle to buying a home. And assistance is now the norm rather than the exception: a 2026 LendingTree survey found that 40% of homeowners received financial help with the down payment on their current home, up from 35% in 2023.
That’s exactly why programs like ours exist — and why smart saving habits matter more than ever.
Do you qualify for the Down Payment Assistance Program?
Our program is designed for first-time homebuyers in low-to-moderate-income households. You may be eligible if:
- You have not owned a home before.
- You have at least three years of rental history.
- You are a divorced parent who previously co-owned a home with a spouse.
- You are a “displaced homemaker” who previously co-owned a home with an ex-spouse.
- Your household income falls within the low-to-moderate range for your area, as determined by the Area Median Income (AMI).
- You plan to live in the home for at least five years (this makes the grant fully forgivable).
Which states are eligible?
Where you live matters. The Down Payment Assistance Program currently serves residents of:
- Texas
- Louisiana
- Arkansas
- New Mexico
- Mississippi
Buying in Texas specifically? We work with homebuyers across the state, including Dallas, Houston, Plano, Frisco, and Fort Worth.
Top 6 tips for saving for a down payment
1. Set a realistic savings goal
Before you start saving, decide what you’re saving for. Your target depends on your home price and loan type. Conventional loans often expect around 20% down, while an FHA loan can get you into a home with as little as 3.5% down. Putting more down upfront can also save you thousands over time by eliminating Private Mortgage Insurance (PMI).
Pro tip: Use our mortgage calculators to see exactly how much you’ll need and how long it will take, based on your target home price and loan type.
2. Open a dedicated savings account
If saving doesn’t come easily, open a separate account used only for your down payment. It helps you:
- Stay organized and disciplined.
- Automate monthly transfers from checking so your fund grows without thinking about it.
- Earn more with a high-yield savings account.
3. Cut unnecessary expenses
Every dollar counts, and small daily costs add up fast. Cook at home, brew your own coffee, and cancel streaming services you don’t use. Start a simple spending log so you can see exactly where your money goes.
Pro tip: Try the 50/30/20 rule — 50% of income to needs, 30% to wants, and 20% to savings. Shift more toward savings to reach your goal faster.
4. Find a profitable side hustle
Extra income can accelerate your timeline. The gig economy offers flexible options like freelance work, selling products online, or ride-sharing. Deposit that extra money straight into your dedicated savings account — and pace yourself so you don’t burn out.
Pro tip: Platforms like Fiverr, Upwork, Freelancer, and TaskRabbit are good places to turn your skills into down payment cash.
5. Reevaluate your housing situation
Rent is one of the biggest monthly expenses standing between you and your goal. Consider moving to a smaller or cheaper place, or splitting costs with a roommate. Short-term sacrifices here can shave months off your savings timeline.
Pro tip: If moving isn’t an option, try negotiating your lease renewal — even a small rent reduction adds up over a year.
6. Put windfalls and bonuses to work
Tax refunds, work bonuses, and raises are perfect for boosting your down payment. When you get a raise, redirect the extra to savings before you get used to spending it. Just paid off a debt? Send that same monthly amount to your down payment fund instead.
Pro tip: A trusted financial advisor can help you make the most of windfalls and keep you on track toward your home-buying goal.
How much down payment do you actually need?
| Loan type | Typical minimum down payment |
|---|---|
| FHA loan | 3.5% |
| Conventional loan | 3% – 20% |
| VA loan (eligible veterans) | 0% |
| With Dream Home DPA grant | Up to $15,000 covered |
Many buyers assume they need a full 20% down. In reality, several loan programs — combined with down payment assistance — can get you into a home for far less.
Frequently asked questions
How much down payment assistance can I get in Texas?
Eligible first-time buyers in Texas can receive a grant of up to $15,000 toward their down payment through Dream Home Mortgage. If you live in the home for at least five years, the grant is fully forgivable.
Do I have to repay down payment assistance?
It depends on the program. Our grant is forgivable — if you stay in the home for at least five years, you never repay it. Other programs may structure assistance as a second loan.
Can I use down payment assistance with an FHA loan?
Yes. Down payment assistance can often be paired with an FHA loan, which already allows a low 3.5% down payment — making homeownership even more affordable.
How long does it take to save for a down payment?
It varies with your income, target home price, and savings rate. Using a dedicated account, cutting expenses, and applying windfalls can meaningfully shorten the timeline. A pre-qualification helps you set a realistic target.
Who qualifies as a first-time homebuyer?
Generally, anyone who hasn’t owned a home in the past three years. Certain divorced parents and displaced homemakers who previously co-owned a home may also qualify. See our first-time homebuyer options for details.
Plan for the long term with Dream Home Mortgage
Saving for a down payment takes discipline, but with the right plan — and the right team beside you — it’s absolutely achievable. Our Texas Down Payment Assistance Program offers eligible first-time buyers up to a $15,000 grant to help you get there faster.
Ready to take the next step? Book a free 30-minute consultation with our mortgage brokers or ask a professional your questions. Under the leadership of Hussein Panjwani, the Dream Home Mortgage team has helped thousands of families across all 50 states achieve homeownership. It’s time to add your name to that list.
