Dallas Down Payment Assistance Programs: A Buyer’s Guide

Dallas buyers have access to some of the most generous down payment assistance (DPA) programs in the country. Between the Dallas Homebuyer Assistance Program (which offers up to $60,000 in assistance within city limits), TSAHC’s two statewide programs, TDHCA’s My First Texas Home, and specialty products like the Chenoa Fund, a qualified Dallas buyer can often reduce their cash to close from $25,000 or more down to just a few thousand dollars.

This guide covers the DPA programs available specifically to Dallas buyers, how they stack with FHA, VA, and conventional loans, and the eligibility rules that determine which one is right for your situation.

Quick Answer: Dallas DPA Programs at a Glance

The main programs Dallas buyers should know about:

• Dallas Homebuyer Assistance Program (DHAP): Up to $60,000 for homes within Dallas city limits, income-limited
• DHAP Targeted Occupations: Extra incentive for educators, healthcare, and first responders
• DHAP 10 (Anti-Displacement): Up to $50,000 for long-term Dallas residents with 10+ years in the city
• TSAHC Homes for Texas Heroes: 3-5% assistance for teachers, firefighters, police, EMS, corrections officers, veterans, nursing faculty
• TSAHC Home Sweet Texas: 3-5% assistance for any eligible Texas buyer
• TDHCA My First Texas Home: State program with DPA and lower rates for first-time buyers
• Chenoa Fund: Nationwide program that covers FHA’s 3.5% down with a second mortgage

Important: DHAP Is in Transition as of Early 2026

Before diving into the details, one important update. The City of Dallas is transitioning DHAP to a new administrator. On February 25, 2026, the Dallas City Council approved Business and Community Lenders (BCL) of Texas as the new DHAP administrator. During the transition, new applications are paused, and eligible buyers should monitor BCL’s website for reopening announcements.

Buyers who are already in process or who have been pre-approved by a DHAP-approved lender should continue working with their lender, but new applicants should plan for the timing. In the meantime, TSAHC, TDHCA, and Chenoa Fund remain fully available and can often deliver similar benefits depending on your situation.

Dallas Homebuyer Assistance Program (DHAP)

DHAP is the city of Dallas’s flagship DPA program, administered historically by the city’s Housing & Neighborhood Revitalization department. It offers some of the largest city-level DPA amounts in the country.

How Much Does DHAP Provide?

Assistance is based on need and capped by location:

• Up to $60,000 in High Opportunity Areas
• Up to $50,000 in all other Dallas city limits

The average award historically runs around $30,000 per household. Assistance is structured as a forgivable deferred second lien, meaning there are no monthly payments on the DPA. If you stay in the home as your primary residence through the affordability period, the loan is forgiven. If you sell, refinance, lease, or transfer the property before the period ends, a prorated repayment may be required.

DHAP Eligibility Requirements

• Must be a first-time homebuyer (not owned in the past 3 years) for the standard program
• Household income at or below 80% of the Dallas Area Median Income (AMI) for your household size
• Property must be located within Dallas city limits
• Property must appraise at 100% of sales price or higher
• Housing payment may not exceed 35% of monthly gross income
• Applicant must contribute at least $1,000 toward the purchase
• Must complete an 8-hour HUD-approved homebuyer education course
• Must be a U.S. citizen, permanent resident, or hold eligible immigration status
• Must be pre-approved by a DHAP-approved lender

How DHAP Works with Your Mortgage

DHAP is a second lien that layers on top of a standard first mortgage. Eligible first mortgages include FHA, VA, and conventional loans. Adjustable-rate mortgages, interest-only loans, sub-prime loans, and high-cost loans are not eligible. Your lender originates the first mortgage, and DHAP funds the second lien at closing. No non-occupant co-signers are allowed.

DHAP Targeted Occupations Program

The Targeted Occupations variant adds incentives for buyers who work in occupations that directly impact the Dallas community. Eligible professions include:

• Educational instruction (teachers, instructional support)
• Librarian services
• Healthcare (nurses, technicians, allied health)
• Protective services (police, fire, corrections)

Essential workers in these fields may qualify for up to $50,000 in additional assistance on top of standard DHAP eligibility, subject to funding availability and City Council-approved funding levels. As with standard DHAP, the property must be within Dallas city limits and meet all program requirements.

DHAP 10 (Anti-Displacement Program)

DHAP 10 is a newer variant of the program designed to help long-term Dallas residents stay in the city as rising home prices threaten displacement. Key differences from standard DHAP:

• Applicant must have lived in the City of Dallas for at least 10 consecutive years
• Household income between 50% and 120% of AMI (wider band than standard DHAP’s 80% cap)
• Does not require first-time buyer status
• Maximum assistance of $50,000

DHAP 10 is particularly valuable for long-term Oak Cliff, South Dallas, and East Dallas residents who want to buy a home in their existing neighborhood or elsewhere in the city without being priced out.

DHAP Programs Compared

Side-by-side view of the three DHAP variants:

TSAHC: Statewide Option for Dallas Buyers

If you don’t qualify for DHAP or prefer a program with statewide coverage, TSAHC (Texas State Affordable Housing Corporation) offers two programs that work for Dallas buyers:

• Homes for Texas Heroes: For teachers, firefighters, police, EMS, corrections officers, veterans, and nursing faculty. 3-5% assistance as grant or forgivable loan.
• Home Sweet Texas Home Loan Program: For any eligible Texas buyer who meets income and credit requirements. Same 3-5% structure.

TSAHC assistance stacks with FHA, VA, USDA, and HFA conventional loans. On a $325,000 Dallas home using FHA plus TSAHC Heroes, a typical Dallas firefighter can close with $0 toward the down payment (TSAHC covers the full 3.5% FHA requirement as a grant). For a full breakdown of TSAHC rules, income limits, and program structure, see our TSAHC down payment assistance guide.

TDHCA: My First Texas Home

The Texas Department of Housing and Community Affairs (TDHCA) administers My First Texas Home, a separate state program with a different structure than TSAHC. Key features:

• 30-year fixed-rate first mortgage
• Down payment and closing cost assistance
• Typically reduced interest rates vs. standard market pricing
• Available for first-time homebuyers, veterans, and buyers in targeted areas
• Compatible with FHA, VA, USDA, and conventional financing

TDHCA works through approved lenders and has income and purchase price limits that vary by county. For Dallas buyers who don’t qualify for DHAP or prefer TDHCA’s structure, this is a strong third option to consider.

Chenoa Fund: Nationwide FHA Down Payment Solution

For Dallas buyers who don’t qualify for city or state DPA programs (often because of income caps), the Chenoa Fund offers an alternative. Chenoa provides a second mortgage that covers the 3.5% down payment required for an FHA loan, resulting in 100% financing.

Key features of Chenoa:

• No income limits on the repayable option (real advantage for buyers above TSAHC/DHAP limits)
• Credit scores accepted from 600
• Available year-round (not subject to DHAP-style funding gaps)
• Two structures: forgivable (requires 36 or 120 on-time payments) or repayable (10-year second)

For complete details on how Chenoa works and when it’s the right fit, see our Chenoa Fund page.

How DPA Programs Stack with Different Loan Types

Most DPA programs pair with standard loan products. Here’s how the main stacks work for Dallas buyers:

Jumbo loans don’t pair with DPA because DPA programs are designed for buyers who fit within FHA, conforming, or HFA loan limits. If you’re buying a Highland Park or Preston Hollow home that requires jumbo financing, DPA won’t apply.

When Does DPA Actually Make Sense?

DPA programs sound like universal good news, but they aren’t always the best financial choice. A few real considerations Dallas buyers should weigh:

When DPA Is Clearly the Right Move

• You have stable income that supports the monthly payment but limited savings for down payment
• Waiting to save the full down payment would cost you more in rent and lost appreciation than the DPA rate trade-off
• You qualify for a grant (DHAP, TSAHC Heroes with government loan) that doesn’t require repayment
• You’re planning to stay in the home long enough to reach forgiveness (typically 3+ years)

When DPA Might Not Be the Best Fit

• You can cover the down payment with existing savings or family gift funds without financial strain
• You’re planning to sell or refinance within 3 years (may trigger repayment)
• The rate increase on the DPA-linked mortgage outweighs the assistance benefit over your time horizon
• You’re buying above DPA income or purchase price limits

A higher DPA-linked rate isn’t automatically bad if it lets you buy now instead of renting for two more years. But the math works out differently for every buyer, so it’s worth running the actual numbers rather than defaulting to “assistance is always better.”

How to Apply for Dallas DPA

The sequence that usually works best for Dallas buyers:

Frequently Asked Questions

Can I combine DHAP with TSAHC or TDHCA?

In some cases yes, depending on program rules and funding availability. Most Dallas buyers use one primary DPA program rather than stacking multiple, but the Mortgage Credit Certificate (MCC) from TSAHC can be layered on top of other assistance for first-time buyers, providing an annual federal tax credit in addition to the upfront help.

What’s the difference between DHAP and TSAHC?

DHAP is a city of Dallas program limited to properties within Dallas city limits. It offers larger maximum awards ($50,000 to $60,000) but has an 80% AMI income cap. TSAHC is a statewide program with 3-5% assistance and different income limits that vary by county. TSAHC has wider geographic coverage (all of Texas) and generally higher income caps, while DHAP has larger awards for qualified buyers.

Do I have to be a first-time homebuyer for Dallas DPA?

For standard DHAP, yes (defined as not having owned a home in the past 3 years). DHAP 10 and TSAHC do not require first-time buyer status. Repeat buyers often assume they don’t qualify for assistance and miss these options.

Is there a $25,000 first-time homebuyer grant in Texas?

There is no standing $25,000 federal grant for Texas first-time buyers in 2026. Some searches confuse this with California programs or the temporarily-proposed federal Downpayment Toward Equity Act that was never enacted. Dallas-area first-time buyers have access to DHAP (up to $60,000), TSAHC (3-5% of loan amount), and TDHCA My First Texas Home, which can often provide comparable or larger assistance than the mentioned $25,000 figure.

Does DPA affect my interest rate?

Usually yes, by a small amount. DPA programs typically set interest rates based on the DPA level you choose. A higher DPA percentage often comes with a slightly higher rate on the first mortgage. The math usually still favors the DPA when you factor in the reduced cash-to-close, but your lender should model the comparison for your specific scenario.

Can I use DPA for a Dallas home I’ll rent out?

No. All DPA programs covered here require the home to be your primary residence. Investment properties and second homes are not eligible.

What happens if I sell the home before the DPA is forgiven?

Most DPA programs require prorated repayment if you sell, refinance, or transfer the property before the affordability period ends. DHAP forgiveness periods and TSAHC’s 3-year forgiveness window should be confirmed in writing before closing.

Find the Right DPA Program for Your Dallas Purchase

The best DPA program for you depends on your income, your profession, where in Dallas you’re buying, and your planned ownership timeline. Running the math before you shop gives you a clear picture of which program delivers the lowest total cost, and which ones are worth skipping in favor of a simpler FHA or conventional loan.

Our team is local to Dallas with an office at 2626 Cole Avenue in Uptown. We work with DHAP (as program access reopens with the new administrator), TSAHC, TDHCA, and Chenoa every month and can tell you quickly which program fits your situation best.

Ready to find your Dallas DPA program? Contact JVM Lending today for a free pre-approval and rate quote.