Buy With Less Cash Upfront. DPA Programs Make It Possible.
Down payment assistance programs cover part or all of your down payment and closing costs through grants, forgivable loans, and deferred-payment programs. See if you qualify — it takes less than 2 minutes.
Grants, forgivable loans, and deferred-payment programs help you buy a home with significantly less cash upfront.
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Free Money (Grants)
Many DPA programs offer outright grants that never need to be repaid. It's free money toward your down payment or closing costs.
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Forgivable Loans
Some programs provide second liens that are forgiven after 5-10 years of living in the home. Stay put, and the loan disappears.
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Cover Down Payment + Closing Costs
DPA can cover your entire down payment and even a portion of closing costs — dramatically reducing the cash you need at closing.
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Stack With FHA, VA, or Conventional
DPA programs work alongside FHA (3.5% down), Conventional 97 (3% down), and other loan types. Combine programs to minimize out-of-pocket costs.
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Not Just First-Time Buyers
Many DPA programs are open to repeat buyers, not just first-time homebuyers. Income limits are often higher than you'd expect.
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Flexible Credit Requirements
Most DPA programs accept credit scores of 620 or higher. Some go as low as 580 when paired with FHA financing.
Qualification
Who Qualifies for Down Payment Assistance?
DPA programs are more accessible than you think. Income limits, credit requirements, and eligibility vary by program — here's the typical range.
Borrower Requirements
First-Time Buyer Status
Many programs: Open to first-time buyers (haven't owned in 3+ years)
Some programs: Open to ALL buyers regardless of prior ownership
Note: "First-time buyer" includes anyone who hasn't owned a home in 3 years
Income Limits
Typical range: 80%–150% of Area Median Income (AMI)
Example: In many counties nationwide, a family of 4 can earn $80,000–$120,000+ and still qualify
Credit Score
620+ — Most DPA programs
580+ — When paired with FHA financing
Homebuyer Education: Most DPA programs require a HUD-approved homebuyer education course. These are typically free or low-cost, available online, and take 4-8 hours.
Property & Program Details
Property Type
Primary residence only (must occupy the home)
Single-family, condos, townhomes, 2-4 units (varies by program)
Must meet minimum property standards
DPA Amounts Available
Grants: Typically $5,000–$25,000 (no repayment)
Forgivable loans: $5,000–$50,000 (forgiven after 5-10 years)
Deferred loans: Up to 5% of purchase price (due on sale or refi)
Compatible Loan Types
FHA: Most popular pairing (3.5% down)
Conventional 97: 3% down with HomeReady/Home Possible
VA: 0% down + DPA for closing costs
Stack programs: In some cases, you can combine multiple DPA sources — a state grant + a local forgivable loan = even less cash out of pocket.
Program Types
Types of Down Payment Assistance Programs
DPA comes in several forms. The type you receive depends on your location, income, loan type, and the specific program. Texana Bank works with multiple DPA providers to find the best fit for you.
Grants — Free money that never needs to be repaid. Typically $5,000–$25,000
Forgivable second liens — Loan is forgiven after 5-10 years of continuous occupancy
Deferred-payment loans — No monthly payments; balance due when you sell, refinance, or move
Matched savings (IDA) — Save money and the program matches your savings 2:1 or 3:1
Employer-assisted housing — Some employers offer down payment matching or grants
State/local housing authority — every state has a housing finance agency that administers DPA programs
Purchase price: $300,000 FHA down payment (3.5%): $10,500 DPA grant: $10,000 Your cash for down payment: $500 Seller concessions (3%): $9,000 toward closing costs
Result: Move in for under $1,000 out of pocket. The DPA grant covered nearly the entire down payment.
Pro tip: Stack DPA with seller concessions and gift funds to potentially buy a home with $0 out of pocket in some cases.
How It Works
How DPA Works With Your Mortgage
Down payment assistance is layered on top of your primary mortgage. The DPA covers part (or all) of your required down payment, and your mortgage covers the rest of the purchase price.
DPA + FHA (most common): 3.5% down required, DPA covers most or all of it. Credit scores as low as 580
DPA + Conventional 97: 3% down with Fannie Mae HomeReady or Freddie Mac Home Possible. Often lower MI than FHA
DPA + VA: Veterans already get 0% down — DPA can cover closing costs instead
DPA + USDA: 0% down rural program — DPA covers closing costs
DPA is structured as a second lien, grant, or closing cost credit depending on the program
Most DPA programs have no impact on your primary mortgage rate
Purchase price: $275,000 Conventional 97 down (3%): $8,250 DPA forgivable loan: $8,250 Your cash for down payment: $0 Closing costs: ~$8,000 (seller contributes $5,000)
Result: $3,000 out of pocket. Forgivable loan is forgiven after 7 years of occupancy — effectively free money.
Why Conventional + DPA? If your credit is 680+, Conventional 97 often has lower mortgage insurance than FHA, and PMI drops off at 20% equity (FHA MIP stays for life).
Program Details
DPA Program Types at a Glance
Each type of down payment assistance has different repayment terms, amounts, and requirements. Here's how the four main types compare.
Grants
$5K–$25K
Outright gifts that never need to be repaid. The gold standard of DPA — free money toward your down payment or closing costs.
Best for: First-time buyers within income limits. Many state housing agencies offer grant programs.
Forgivable Loans
$5K–$50K
Second lien recorded against your property. No monthly payments. Loan is forgiven entirely after 5-10 years of continuous occupancy.
Best for: Buyers planning to stay in the home long-term. If you sell or refinance before the forgiveness period ends, you repay the remaining balance.
Deferred-Payment Loans
Up to 5%
No monthly payments and no interest in most cases. The full balance is due when you sell, refinance, or no longer occupy the home as your primary residence.
Best for: Buyers who need maximum cash flexibility now. Pay it back when you sell — often from the sale proceeds.
Matched Savings (IDA)
2:1 or 3:1 Match
Individual Development Accounts match your savings at a 2:1 or 3:1 ratio. Save $3,000, receive $6,000–$9,000 in matching funds for your down payment.
Best for: Buyers with time to save (6-24 months). Requires participation in a savings program and financial education.
Which DPA Type Is Right for You?
Need maximum help now? Look for grants or forgivable loans — these eliminate or dramatically reduce your upfront cash need.
Planning to stay long-term? Forgivable loans are ideal — stay 5-10 years and the loan disappears entirely.
Want flexibility? Deferred-payment loans have no monthly payments and no impact on your budget until you sell or move.
Note: Program availability varies by location, income, and loan type. Texana Bank works with multiple DPA providers to find the best combination for your situation.
Compare
DPA + FHA vs DPA + Conventional vs No DPA
See how down payment assistance changes the math on a $300,000 home purchase. DPA dramatically reduces your cash needed at closing.
Feature
DPA + FHA
DPA + Conv 97
No DPA (FHA)
Down Payment Required
3.5% ($10,500)
3% ($9,000)
3.5% ($10,500)
DPA Applied
-$10,000
-$9,000
$0
Your Cash for Down Payment
$500
$0
$10,500
Min Credit Score
580
620
580
Mortgage Insurance
MIP (0.55% annual, life of loan)
PMI (drops off at 20% equity)
MIP (0.55% annual, life of loan)
Seller Concessions
Up to 6%
Up to 3%
Up to 6%
DPA Repayment
Grant = none; Forgivable = after 5-10 yrs
Grant = none; Forgivable = after 5-10 yrs
N/A
Homebuyer Education
Required (free online)
Required (free online)
Not required
Best For
Lower credit, limited savings, first-time buyers
Good credit (680+), PMI removal goal
Buyers with savings who don't meet DPA income limits
Calculate
DPA Savings Calculator
See your estimated monthly payment and how much DPA reduces your cash needed at closing.
Estimates only. Actual rates, DPA amounts, and payments will vary based on program, credit, property, and market conditions. Subject to credit approval and DPA program eligibility.
Process
DPA Home Purchase Timeline
From DPA eligibility check to closing — here's the step-by-step process for buying with down payment assistance.
1
Check Eligibility & Get Pre-Approved
1–3 Days
We review your income, credit, and location to determine which DPA programs you qualify for. You'll receive a pre-approval letter showing your purchase power with DPA included.
2
Complete Homebuyer Education
1–7 Days
Most DPA programs require a HUD-approved homebuyer education course. Available online, typically free or low-cost, and takes 4-8 hours. You'll receive a certificate of completion.
3
Find a Home & Apply for DPA
Varies
Once you find a home within the program's purchase price limits, we submit your DPA application alongside your mortgage application. We coordinate both processes simultaneously.
4
Close & Receive DPA Funds
30–45 Days
At closing, DPA funds are applied directly to your down payment and/or closing costs. You sign your mortgage documents, receive your keys, and move in with dramatically less cash out of pocket.
FAQ
Frequently Asked Questions
Your top down payment assistance questions, answered.
No. Our initial eligibility check uses a soft credit pull, which does not affect your credit score. A hard credit pull only occurs when you formally apply and authorize it.
Down payment assistance (DPA) is a program that provides funds to help homebuyers cover their down payment and/or closing costs. DPA can come as grants (free money), forgivable loans (forgiven after 5-10 years), deferred-payment loans (due when you sell), or matched savings programs. They're offered by state/local housing authorities, nonprofits, and employers.
Not always. While many DPA programs target first-time buyers, several are open to all buyers regardless of prior homeownership. Also, "first-time buyer" is defined as someone who hasn't owned a home in the past 3 years — so even if you owned before, you may qualify.
It depends on the type. Grants never need to be repaid. Forgivable loans are forgiven after 5-10 years of living in the home. Deferred-payment loans are due when you sell, refinance, or move out. Contact us to learn which type you qualify for.
Income limits vary by program and location but are typically 80%-150% of the Area Median Income (AMI). In many counties nationwide, a family of 4 can earn $80,000-$120,000+ and still qualify. The limits are often higher than people expect.
Yes. FHA is the most common loan type paired with DPA. Your FHA 3.5% down payment can be fully covered by a DPA grant or forgivable loan. Credit scores as low as 580 qualify for FHA + DPA combinations.
Yes. Programs like Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down with DPA covering part or all of it. Conventional + DPA is a great option if your credit is 680+ because PMI drops off at 20% equity (unlike FHA MIP which lasts for life).
DPA amounts vary by program: grants typically range from $5,000-$25,000, forgivable loans from $5,000-$50,000, and deferred-payment loans up to 5% of the purchase price. Some programs also cover closing costs in addition to down payment.
Most DPA programs require a minimum credit score of 620. When paired with FHA financing, some programs accept scores as low as 580. Your credit score also affects your mortgage rate and mortgage insurance costs.
Most DPA programs require completion of a HUD-approved homebuyer education course. These are typically free or low-cost ($25-$75), available online, and take 4-8 hours. You'll receive a certificate of completion that satisfies the DPA requirement.
Some DPA programs cover both down payment and closing costs. Others are limited to down payment only. Additionally, you can combine DPA with seller concessions (up to 6% on FHA, 3% on conventional) to further reduce your out-of-pocket closing costs.
A forgivable loan is a second lien placed on your property with no monthly payments. If you live in the home for a set period (typically 5-10 years), the entire loan is forgiven and you owe nothing. If you sell or move before the forgiveness period ends, you repay the remaining balance.
If you sell, refinance, or move out before the forgiveness period ends, you typically repay the remaining prorated balance. For example, if a $10,000 forgivable loan has a 10-year term and you sell after 6 years, you'd repay approximately $4,000 (40% remaining).
Yes. Every state has a housing finance agency that offers DPA programs, and many cities and counties have their own local programs as well. We work with DPA programs nationwide and can identify every available program in your area. Contact us and we'll match you with the best options.
Some DPA programs are paired with slightly above-market interest rates (typically 0.25%-0.5% higher) to fund the assistance. Other programs, especially grants, have no rate impact at all. We compare all available options to find the combination that results in the lowest total cost for you.
In some cases, yes. You may be able to stack a state program with a local city/county program. For example, a state housing agency grant plus a city forgivable loan could cover your entire down payment and some closing costs. Program rules vary — we help identify stackable options.
DPA approval typically adds 1-2 weeks to the standard mortgage timeline. Most DPA purchases close in 30-45 days total. The DPA application is processed alongside your mortgage application, so there's significant overlap. The main addition is ensuring your homebuyer education certificate is complete.
DPA is limited to primary residences — you must live in the home. Most programs allow single-family homes, condos, and townhomes. Some allow 2-4 unit properties if you occupy one unit. Investment properties and second homes do not qualify for DPA.
Standard mortgage documents (tax returns, pay stubs, bank statements, ID) plus: proof of income for DPA limits (may include household income), homebuyer education certificate, and any program-specific forms. We guide you through exactly what's needed for each program you qualify for.
Some DPA programs include manufactured homes on permanent foundations. Availability varies by program. Mobile homes on leased land typically do not qualify. Contact us to check which DPA programs cover manufactured housing in your area.
Reviews
What First-Time Buyers Say About Texana Bank
Real reviews from real borrowers. See why homebuyers trust Texana Bank Mortgage.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
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Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
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Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
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Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
Ready to Buy With Less Cash Upfront?
Whether you're a first-time buyer or haven't owned in three years, our DPA specialists will find the right program for your situation and guide you every step of the way.
