Learn About Texas Homebuyer Assistance
Plain-language explanations of the terms, rules, and concepts behind Texas homebuyer programs. No jargon, no sales pitch.
A grant is money you do not have to pay back. It is a true gift with no lien on your home. Texas programs like TSAHC offer grants of 2% to 4% of your loan amount.
Down payment assistance (DPA) is a broader term. It can be a grant, but it can also be a forgivable second lien or a deferred loan. The key difference is in the repayment rules. A grant has none. A forgivable loan has a timeline — stay in the home long enough and the loan is forgiven. A deferred loan is due when you sell or refinance.
Before choosing, ask: "Is this a grant, a forgivable loan, or a deferred loan?" The answer changes what happens if you sell or refinance in a few years.