Types of Homebuying Assistance In Greater Dallas

So, you’re considering Dallas-area suburbs for your next move. Great choice! Whether you’re escaping the renting cycle or putting down roots, buying a home is a big financial decision.

Realtor.com reports that in the Dallas/Fort-Worth metro, all-cash payments made up 35.9% of all home sales in the first half of 2025, up 3.5% year-over-year (Jones, 2025).

Some of us aren’t so lucky. But not having enough cash on hand or a less-than-perfect credit score shouldn’t stop you from achieving your dream of owning a home. This article breaks down some basic financial terminology and types of homebuying assistance you may be eligible for in the Greater Dallas area.

Are You a First-Time Homebuyer?

Whether you’re a first-time homebuyer or not can influence the amount of financial assistance you’re eligible to receive. It doesn’t literally mean “never owned a home.” You can still count as a first-timer if you fit the following:

• You haven’t owned your main home in the last 3 years. Even if you owned a house years ago, as long as you haven’t owned the place you live in for the past 3 years, you count. If you’re married, only one of you has to pass for both of you to count.
• You’re a single parent, and the only home you ever owned was one you shared with an ex while you were married. You never owned a home on your own, so you still count.
• You’re a “displaced homemaker,” (someone who used to stay home to care for family and now needs to support themselves) and the only home you owned was shared with a spouse.
• The only home you’ve owned was so broken or out of code that fixing it would cost more than just building a new house from scratch. That kind of home doesn’t count against you either.

For more specific wording, Texas uses the U.S. Department of Housing and Urban Development (HUD) first-time homebuyer definition.

What Types of Homebuying Assistance Can The Federal Government Offer Me?

Government agencies can be helpful resources in finding assistance with your home loan (otherwise known as a mortgage), or finding lenders with government backing. The two most common types of federal home loans are:

Federal Housing Administration (FHA) Loan

An FHA may be a good option for buyers with less-than-perfect credit or buyers paying off debts. The main advantage of an FHA loan is the lower credit requirement and smaller down payment. It can be financed in 15 or 30 years, though a 15-year loan will have higher monthly payments.

Pros And Cons Of An FHA Loan

Because FHA loans have lower hurdles to jump for buyers, FHA interest rates are higher than typical loans from a credit unition or local bank. Most FHA loans also require buyers to pay an upfront mortgage premium up to a certain percent of the loan. FHA loans are also limited by county. Take this case, for example.

The U.S. Department of Housing and Urban Development (HUD) FHA lookup tool reports that in Grayson County, the single-family mortgage maximum is $541,287 as of January 1, 2026, where the median price for a home is $294,000. According to the same tool, the median price for a home in Dallas County is $479,000, but the single-family mortgage maximum is $563,500.

While it may seem obvious, it’s very difficult to be approved for a mortgage close to the maximum. The less you pay upfront, the more you’ll have to pay over time.

U.S Department of Veterans Affairs (VA) Loan

If you’re a registered Veteran or Military Member whose primary residence is in the state you’re buying, you may qualify for a VA loan. These loans offer $0 down payment, don’t require mortgage insurance, and are known for below-average interest rates.

Pros And Cons Of a VA Loan

For veterans who qualify, the VA loan is a pretty compelling offer. The main disadvantage of a VA loan is the funding fee. The first time you use a VA loan to finance a home, the fee is lower. If you plan to apply for it again, it will be higher next time. Also, you can’t use an FHA loan on your primary home, and a VA loan on your secondary. Both loan types only work for your primary residence, so they can’t be stacked.

What Bank Should I Take Out My Home Loan With?

The main advantage of using a local bank for a VA loan OR an FHA loan ultimately comes down to flexibility. While nationwide bank chains are used to dealing with large volumes of home loans (and for this reason considered reliable), local lenders may offer more personalized services.

Unfortunately, there’s always a chance that a local lender may not be familiar with how VA loans work. If an FHA or a VA loan isn’t right for you, shopping for a mortgage is the standard way to go.

If you’ve got your eye on a house you like, you should check the homebuilder or real estate developer’s website to see if they have any preferred lenders. Local loan officers are more likely to have a deeper understanding of the housing market, and can work with you on your unique financial situation.

What Homebuying Assistance Can I Get From The State Of Texas?

The Texas State Affordable Housing Corporation (TSAHC) Offers various forms of assistance, from grants to loans, to help make homeownership more accessible to Texans:

● 30-year fixed interest rate mortgage loan
● Down Payment Assistance (DPA) as a grant
● Down Payment Assistance (DPA) as a forgivable second lien loan
● Down Payment Assistance (DPA) for up to 5% of the loan amount
● Mortgage Credit Certificate (after you buy a home, but can be combined with DPA)

Based on a few factors like your job, first time homebuyer status, the size of your household, and your gross household income, you may be eligible for assistance. Take the TSAHC eligibility quiz, and complete a TSAHC homebuyer education course to see if you qualify.

The Texas Department of Housing and Community Affairs (TDHCA)

Offers DPA and mortgage liens through qualifying programs like:

● My First Texas Home Program offers 30-year mortgage plans with or without DPA up to 5%. Mortgage and DPA offers can be combined with a Mortgage Credit Certificate in this program.
● My First Un-Assisted Low Rate First Lien offers 30-year deferred repayable loans that can be combined with up to 5% DPA.

Both “My First” programs through the TDHCA have a max home purchase price of $585,006 and a max income limit of $134,895. Check your eligibility on the TDHCA website.

The Southeast Texas Housing Finance Corporation (SETH) 5 Star Advantage Program

Offers buyers within a certain income range up to 6% of their total loan amount in the form of DPA. As long as the property is not in El Paso, Grand Prairie, or Travis County, anywhere in Texas is fair game, not just the southeast. Find a participating lender on the SETH website.

Mortgage Credit Certificates (MCCs)

MCCs are tax credits available for first-time homebuyers designed to ease the burden of mortgage interest. While this is technically a federal tax credit, the specifics for how much you can claim in returns vary by state. TSAHC no longer has a standalone Mortgage Credit Certificate program, but you could still qualify for one with DPA.

Can I Get Assistance Even If I’m Not A First-Time Homebuyer?

Even if you’re not a first-time homebuyer, you may still qualify for financial assistance.

● TSAHC down-payment assistance (DPA) program does not have a first-time homebuyer requirement.
● SETH assistance isn’t restricted to first-time homebuyers and can be combined with FHA loans.
● TDHCA offers the My Choice Texas Home Program (different from My First Texas Home) that is not restricted to first-time homebuyers.

Affordable Places to Live in Greater Dallas

Finding the right home isn’t just about financing, it’s also about finding a community that fits your lifestyle. These Denton County suburbs each offer something unique. Here’s a closer look at what makes each suburb an attractive place to call home, along with Denton County’s current median home price and FHA loan limit.

Denton County, TX

2026 FHA-Forward Single-Family Mortgage Cap: $563,500

Q4 2025 Median home price: $471,880*

Located just north of Dallas-Fort Worth Metroplex, Denton County is home to growing communities like Little Elm, Pilot Point, and Justin. These Denton County suburbs continue to attract Texans looking to buy a home that won’t break the bank.

Little Elm, TX

In Little Elm, the water isn’t just a feature. The town wraps around Lake Lewisville, so marina hangouts and golden-hour views along the lakefront are part of daily life here, not just a weekend road trip. With Target just recently opening at the brand-new Bates Towne Crossing development at US-380 and Ryan Spiritas Parkway, plus Kroger, and a Sprouts-anchored shopping center landing at the same intersection, Little Elm has everything you need and more. For buyers looking to put down roots, it’s a rare combo: lakeside living with big city conveniences.

Pilot Point, TX

Pilot Point’s historic downtown, working horse ranches, and small-town rhythm are becoming increasingly rare this close to Dallas. Bring the family around the Sharkarosa Wildlife Ranch just minutes from home, and spend the weekend hand-feeding zebras and camels. For hiking, canoe launches, and wide-open trails, drive down to Eagle Mountain Park, or Fort Worth Nature Center & Refuge at Pelican Bay. Pilot Point offers noticeably more home for the money than nearby Frisco or Prosper, making it a smart landing spot for buyers who want space and character without those price tags. For first-time buyers especially, Pilot Point makes a compelling case with its affordability, small-town pace, and proximity to the greater Dallas job market.

Justin, TX

If work or weekends point you toward Fort Worth, Justin puts you in arm’s reach. Sitting right off I-35W and the fast growing Alliance corridor, Justin is not only accessible, it’s also a great choice for families who value good schools just as heavily as square footage. Niche ranked Northwest ISD the 3rd best school district in Denton County, with positive student reviews for academics and dual-credit opportunities with Tarrant Community College. Justin is also just a short drive from Texas Motor Speedway, home to some of the biggest NASCAR races in the country, for those who want big-event excitement close to home. For buyers searching for new construction, strong schools, and an easy commute west, Justin is a compelling entry point into North Texas homeownership.

Frequently Used Terms Glossary

When researching the best way to buy a new home, you’re going to come across some common terms. Let’s start with the basics:

A mortgage is another word for the loan you take out to buy a home.

A mortgage comes with an interest rate; a percent of the original loan you pay (in addition to your loan) to the bank for lending you that money.

A lender (a banking or HFA representative) will review your mortgage application and decide how much money you’re allowed to borrow. They’ll review your financial record, the kind of loan you’re applying for, and come to a decision.

A down payment is a sum of money you give upfront to show the bank you’re serious about buying the house. Think of it like agreeing to how much of the home you can buy right now.

For example: A two-story 4-bed, 3-bath home with a 4-car garage is listed for $497,000. Assuming that price doesn’t change, a 10% down payment on this house would be $49,700.

Your down payment is a confidence signal to lenders. If you put down less than 20% on a house, your lender may require you to buy mortgage insurance. In this case, you’ll pay less upfront, but you could pay more over time.

A forgivable second lien loan can be taken out on top of a 15 or 30-year mortgage. Exactly like it sounds, it can be forgiven. Homebuyers who qualify often use this to offset the burden off a down payment or closing costs.

Down Payment Assistance (DPA) is money you qualify for to help with the upfront cost of buying a home, typically given as a grant. A Mortgage Credit Certificate (MCC) is a tax credit available to first-time homebuyers.

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*Median home prices by county are cited from the National Association of Realtors Research & Statistics, “Median Home Prices and Mortgage Payments by County,” (Q4 2025) and are reprinted with permission.