Down Payment Assistance in Denton County and North Texas.

What Buyers in 2026 Need to Know!

Saving for a down payment is one of the biggest reasons buyers in North Texas delay purchasing a home. The good news is that Texas offers multiple down payment assistance programs, and many buyers qualify without realizing it.

These programs are not gimmicks. They are legitimate state and local options designed to help buyers reduce the cash needed upfront. In many cases, assistance can be used toward both the down payment and closing costs.

Below is a clear breakdown of how down payment assistance works in Denton County and surrounding North Texas communities, and how buyers should approach it strategically.

What Is Down Payment Assistance?

Down payment assistance refers to programs that help cover a portion of a buyer’s upfront costs when purchasing a home. This assistance typically comes in one of three forms:

• Grants that do not need to be repaid

• Forgivable second loans that are forgiven after a set number of years

• Low-interest second loans that are repaid over time

The goal is simple: reduce the amount of cash a buyer needs to bring to closing so homeownership becomes more accessible.

Importantly, down payment assistance is not limited to people buying their first home ever. Some programs allow repeat buyers who have not owned a home in several years.

Statewide Texas Down Payment Assistance Programs

Most buyers in Denton County and North Texas use statewide Texas programs administered through approved lenders.

My First Texas Home

This program is offered through the Texas Department of Housing and Community Affairs and is designed for first-time homebuyers and veterans. It provides a fixed-rate mortgage paired with down payment and closing cost assistance based on a percentage of the loan amount.

Source:
https://www.tdhca.texas.gov/homebuyers-renters/homebuyers/my-first-texas-home

My Choice Texas Home

This program works similarly but is not limited to first-time buyers. It is commonly used by repeat buyers who sold a home years ago and are re-entering the market.

Source:
https://www.tdhca.texas.gov/homebuyers-renters/homebuyers/my-choice-texas-home

Texas State Affordable Housing Corporation Programs

TSAHC offers programs such as Homes for Texas Heroes and Home Sweet Texas. These are especially relevant for teachers, firefighters, law enforcement, EMS, veterans, and healthcare workers.

Source:
https://www.tsahc.org/homebuyers-renters

Most state programs require:

• Working with an approved lender

• Meeting income and purchase price limits

• Completing a short homebuyer education course

Local Opportunities in Denton County and Nearby Cities

In addition to statewide programs, buyers may qualify for city-level assistance depending on location and income.

These programs vary year to year and are often limited by funding availability.

Examples include:

• Denton – First-time buyer assistance programs tied to income limits

• Lewisville – Periodic homebuyer assistance initiatives

• Corinth – Buyers often combine state programs with competitive pricing

• Lantana – State programs commonly used due to HOA and pricing structures

• Bartonville – Planning early is key due to purchase price thresholds

• Flower Mound and Highland Village – Price limits apply, making lender strategy critical

• Argyle – Fewer homes qualify, but assistance can still apply with proper planning

A good overview of local and statewide programs can be found here:
https://www.fha.com/first-time-home-buyers-state/texas

Who These Programs Are Best For

Down payment assistance tends to work best for buyers who:

• Have steady income but limited savings

• Are currently renting and seeing rising rents

• Owned a home in the past but sold years ago

• Work in education, healthcare, public safety, or military service

• Plan to live in the home as a primary residence

Most programs require minimum credit scores in the low-to-mid 600s, and income limits are often higher than buyers expect.

These programs are not designed for investment properties or short-term ownership.

Common Mistakes Buyers Make

The most common issue we see is buyers assuming they do not qualify and never asking.

The second is waiting until they find a home before learning how assistance works.

Down payment assistance requires alignment between:

• The lender

• The specific program

• The contract terms

• The property itself

This is why planning early matters. The right preparation often makes the difference between qualifying and missing out.

Final Thoughts

Down payment assistance is real, widely used, and helping many North Texas buyers move from renting to owning. The key is understanding the options, planning early, and working with professionals who know how these programs actually function in the local market.

If you are considering buying a home in Denton County or surrounding North Texas communities and want to understand what down payment assistance may look like for your situation, we are happy to help guide that conversation.

John & Jennifer Shelby, REALTORS®

Shelby Realty Group
Brokered by REAL Broker LLC
📞 Call or Text: 469-586-8998
📧 jshelby@shelbyrealtygroup.com
🌐 https://www.shelbyrealtygroup.com