First-Time Homebuyer
Grants in Dallas, TX

1. City of Dallas Homebuyer Assistance Program (DHAP)

Dallas’s flagship buyer program offers the largest city-level assistance in Texas. In high-opportunity areas, buyers can receive up to $60,000 in forgivable deferred assistance; in other Dallas areas, the maximum is $50,000. The program is structured as a 0% interest second lien that is forgiven over time provided you maintain owner-occupancy. As of May 2026, the program is administered by Business & Community Lenders (BCL) of Texas, which handles the intake, underwriting, and approval process.

City ProgramForgivable

• Must be a first-time buyer (no home ownership in past 3 years)
• Household income at or below 80% AMI (e.g., ~$62,800 for family of 4 in Dallas)
• Property must be within Dallas city limits and used as primary residence
• Requires an executed real estate contract and first mortgage approval
• Apply through BCL of Texas (bcloftexas.org/dhap)

2. My First Texas Home — TDHCA

Texas Department of Housing and Community Affairs (TDHCA) offers a 30-year fixed mortgage bundled with 5% down payment and closing cost assistance. The DPA comes as a deferred second lien at 0% interest — repayable only when you sell, refinance, or pay off the first mortgage. It’s one of the most widely used programs in Texas.

State Program0% Deferred

• Available statewide to first-time buyers and qualified veterans
• Income limits apply by county and family size
• 640 minimum credit score required
• Can be paired with Texas MCC for additional savings
• Works with FHA, VA, USDA, and Conventional loans

3. TSAHC Home Sweet Texas Home Loan

The Texas State Affordable Housing Corporation (TSAHC) provides up to 5% of the loan amount as either a true grant (no repayment ever) or a deferred second lien. The grant option is available to buyers meeting income limits, and unlike most DPA programs there are no first-time buyer requirements for most areas of Dallas County.

State ProgramTrue Grant Option

• Grant requires no repayment — not a loan
• Available through TSAHC-approved lenders
• 640 minimum credit score; 45% max DTI
• Stackable with Texas MCC tax credit
• No first-time buyer requirement in most Dallas County areas

4. TSAHC Homes for Texas Heroes

Built for the people who serve our communities, Homes for Texas Heroes provides the same 5% down payment assistance as Home Sweet Texas but adds a below-market mortgage interest rate — typically 0.25–0.5% lower. Eligible professions include teachers, firefighters, law enforcement, EMS, corrections officers, veterans, and nurses.

State ProgramRate Discount

• Teachers (K–12 and higher ed), firefighters, law enforcement officers
• EMS personnel, corrections officers, and licensed nurses
• Active military and veterans also qualify
• Same 5% DPA structure as Home Sweet Texas
• Contact a TSAHC-approved lender to confirm current rate

5. Texas Mortgage Credit Certificate (MCC)

The Texas MCC converts a portion of your annual mortgage interest into a dollar-for-dollar federal income tax credit — up to $2,000 every year you live in the home. This is a long-term benefit that compounds over time: a buyer in the home for 10 years could claim up to $20,000 in total tax credits. Must be requested through a TDHCA-approved lender at the time of your loan.

FederalAnnual Tax Credit

• Reduces your federal tax liability — not just a deduction
• Must be a first-time buyer (or buying in a targeted area)
• Can be combined with TSAHC or TDHCA DPA programs
• Credit rate is 20–40% of annual mortgage interest paid
• Request at closing through an MCC-approved lender

How much can I get through Dallas DHAP?

Up to $60,000 in high-opportunity areas and up to $50,000 in other Dallas areas. The exact amount depends on your need (based on the gap between your approved mortgage and purchase price), not just the maximum cap. BCL of Texas determines the specific amount during underwriting.

What income limits apply to DHAP?

The primary DHAP program requires household income at or below 80% AMI. For 2026 in Dallas, that’s roughly $62,800 for a family of four. The DHAP-10 anti-displacement variant allows incomes between 50% and 120% AMI. If your income is higher, TSAHC programs use separate (and sometimes higher) income thresholds.

Can I stack multiple programs together?

Yes — many Dallas buyers combine DHAP with a TSAHC grant and the Texas MCC. The key is working with a lender approved for all the programs you want to use, and allowing extra lead time for DHAP city approval through BCL of Texas. Your lender coordinates the layering at closing.

What credit score do I need?

Most programs require a minimum 640 credit score. DHAP does not publish a hard minimum but requires qualifying for a first mortgage (FHA, VA, or Conventional), which typically means 580–640+. TSAHC and TDHCA programs both require 640.

Do I have to be a first-time buyer?

DHAP requires that you haven’t owned a home in the past 3 years. TSAHC’s Home Sweet Texas and Homes for Texas Heroes generally do not require first-time buyer status in most Dallas County locations, and the Texas MCC requires it only outside of targeted census tracts. Check with your lender to confirm based on the specific property address.

1. Check your income eligibility — Compare your household income against 80% AMI (DHAP) and TSAHC limits for Dallas County.
2. Identify if you’re in a high-opportunity area — BCL of Texas can confirm whether your target neighborhood qualifies for the $60K maximum.
3. Complete a HUD-approved homebuyer course — Required for DHAP and most TDHCA programs; often available online for free.
4. Find a participating lender — Look for a lender approved by both BCL of Texas (for DHAP) and TSAHC to stack programs at closing.
5. Get pre-qualified — Your lender will confirm which programs you qualify for based on income, credit, and loan type.
6. Request the Texas MCC at application — The MCC must be applied for before closing; ask your lender upfront.