Do You Earn Too Much — or Too Little — for Down Payment Help in Texas?

You've been saving. Maybe not as much as you'd like, but you've been trying. And then someone tells you there's down payment assistance in Texas — free money, essentially — and your first thought is: "That's probably not for people like me."

I hear that a lot. Some clients think they earn too much to qualify. Others worry they don't earn enough to even apply. The truth is, these programs have income limits that are more specific than most people realize — and they're worth understanding before you assume you're out.

Let me walk you through how it actually works.

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What Is Down Payment Assistance in Texas, Really?

Down payment assistance (DPA) in Texas usually comes in two forms: a grant (money you don't repay) or a forgivable second loan (paid off over time, often 3–5 years if you stay in the home). The most common programs are run by the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA).

These programs typically offer 3% to 5% of the loan amount to cover your down payment and sometimes closing costs.

On a $250,000 home, that's $7,500 to $12,500 — real money that means you're not draining your savings to zero on closing day.

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So What Are the Income Limits?

This is where it gets specific — and I want to give you real numbers, not vague answers.

For TSAHC's Home Sweet Texas program, income limits depend on your county and household size. Some examples for 2024:

• Harris County (Houston area): ~$97,000/year for a family of 1–4
• Bexar County (San Antonio): ~$92,000/year for a family of 1–4
• Travis County (Austin area): ~$110,000/year for a family of 1–4

For TDHCA's My First Texas Home, limits are similar but also tied to whether you're a first-time buyer (defined as not owning a home in the last 3 years).

• Income limits generally range from $75,000 to $115,000 depending on location and family size
• Larger families (5+) often get a higher limit, which surprises a lot of people

The key thing I always tell my clients: don't guess. The limits are set by area median income (AMI), and they change. What disqualified you two years ago might qualify you today.

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Is There a Minimum Income Requirement Too?

Yes — and this is the part people forget to ask about.

You can earn too little to qualify, not because of the program's rules, but because you still need to qualify for the mortgage itself. The assistance covers your down payment, but you're still taking out a loan.

Here's a real example:

A family in San Antonio wants to buy a $210,000 home using TSAHC assistance. With a 30-year FHA loan at 7%, their estimated monthly payment (principal, interest, taxes, insurance) is around $1,650/month. To qualify, most lenders want your total debt-to-income ratio under 45%. That means the family needs a gross monthly income of roughly $3,700–$4,000/month, or about $44,000–$48,000/year.

So the floor isn't set by the DPA program — it's set by the math of the mortgage. If your income is too low to support the payment, the assistance alone won't close the gap.

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What If You're Over the Limit?

Don't close this tab yet. If you earn more than the program limits, there are still options:

• Conventional loans with 3% down don't have income limits in most cases
• Local municipality programs (city of Houston, Dallas, etc.) have their own DPA with different limits
• Employer-assisted housing programs exist in some areas
• A bigger down payment could lower your payment enough to make the numbers work another way

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Next Steps: Let's Look at Your Numbers Together

The honest truth? Most people don't know where they land until someone actually runs the numbers with them. I've had clients who were sure they didn't qualify — and they did. I've also had clients who needed a few months to adjust their situation before applying.

Either way, you deserve a clear answer, not a guess.

If you want to find out whether your income puts you in range for down payment assistance in Texas, send me a message. No pressure, no sales pitch — just real information so you can make a smart decision for your family.