HOUSTON – House-hunting shouldn’t feel impossible. But for Martin Campusano and millions of prospective buyers across Texas, the biggest obstacle isn’t interest rates or search fatigue — it’s the down payment. What many don’t realize: there are powerful assistance programs that can provide real, often life-changing money to help you buy a home.
The problem:
- Mortgage rates hovering around 6.2% and record-high home prices have pushed monthly payments and upfront costs out of reach for many families.
- The number that stops people most often: the down payment. Even modest-sized homes can demand thousands of dollars up front — money many hardworking families don’t have.
A surprising solution: Enter down payment assistance (DPA) programs. These programs — run by state agencies, counties, cities — can provide grants and interest-free loans that are used specifically for down payments and closing costs. In Texas alone, there are roughly 46 different DPA programs available, and the impact is enormous.
How they help — real examples:
- Erika Loza and her husband, Pedro, thought owning a 4-bedroom home was out of reach. A Texas State Affordable Housing Corporation (TSAHC) grant covered $7,000 — nearly half their down payment — and made the difference between renting and owning. “It was amazing… it was kind of unbelievable,” Erika said.
- Some households qualify for much more. One lender described helping a buyer receive $32,000 through a county program — enough to change what neighborhoods and homes are possible.
Big picture: the numbers that matter
- TSAHC has helped more than 58,900 Texans buy homes over the past five years — that’s tens of thousands of families who moved from dreaming to owning.
- Across the state, these programs take many forms: direct grants you don’t repay, deferred interest-free loans, and forgivable loans that disappear if you meet residency or time requirements.
How the money works:
- Grants: Money you don’t have to pay back. They’re applied to your down payment or closing costs and are effectively free money.
- Interest-free/deferred loans: You don’t pay interest, and depending on the program, you may only repay if you move or refinance before a certain time — some loans are forgiven after you stay in the home for the required period.
- Eligibility usually depends on income, property location, first-time buyer status and your occupation. Veterans, first-responders, Nurses are all eligible.
Why this is a game-changer:
- Access to the down payment removes the single biggest barrier to homeownership for many buyers.
- Even a relatively small grant can unlock mortgage products with better rates and lower monthly payments, amplifying the value of the assistance.
- The programs are designed to stabilize communities by helping more families buy and stay in homes.
How to find the right program for you:
- Talk to an approved lender. Many assistance programs require you work with participating lenders — they guide you through applications and what documentation you’ll need.
- Check state and local agencies. TSAHC and county housing offices list programs, eligibility rules and how much assistance they provide.
- Look for grants vs. forgivable loans. If you don’t want future obligations, prioritize grant-funded assistance.
- Gather documentation: ID, pay stubs, tax returns, bank statements and proof of residency are commonly required.
Questions to ask a lender or housing counselor:
- Which down payment programs am I eligible for?
- Is the assistance a grant or a loan? If a loan, when is it forgiven or due?
- Are there income or purchase price limits where I’m looking?
- Are there approved properties or neighborhoods I must choose from?
- In Texas, organizations like TSAHC have helped tens of thousands of buyers — and local county programs can sometimes offer even larger awards.
For a simple guide to finding every DPA program in the country, click here.
To contact the Texas State Affordable Housing Corporation, click here.
After searching for two years and seeing prices from the low $200,000s to more than $700,000, Martin admitted the down payment was what stopped him. For many like Martin, DPA programs change the equation: instead of endlessly searching and waiting, they provide a tangible bridge to ownership.
The most important step experts say is to contact not just one, but several different mortgage lenders and go with the one most knowledgeable about these down payment assistance programs.