Dallas County Home Loan Upfront Cost Assistance Program (UPCAP)

The Dallas County Home Loan Upfront Cost Assistance Program (UPCAP) helps low-to-moderate income buyers purchase homes in unincorporated Dallas County, TX as well as in certain eligible cities within the county. 

The program offers flexible down payment assistance that can be used to increase your down payment, pay closing costs, and cover other eligible upfront purchase expenses.

Eligibility requirements

To qualify for the Dallas County Home Loan Upfront Cost Assistance Program (UPCAP), you must meet the following eligibility requirements:

1. You must be a first-time homebuyer or have not owned a home in the past three years. 
2. The home you buy must be in Dallas County, TX, either in an unincorporated area, or within the city limits of: Balch Springs; Coppell; Glenn Heights; Sachse; Cedar Hill; Duncanville Hutchins; Seagoville; Cockrell Hill; Farmers Branch; Lancaster; or Wilmer.
3. The final purchase price must not exceed $318,000.
4. Your total household income must be at or below 80% of the area median income (AMI). 
5. Your mortgage payments can’t be more than 35% of your monthly income, and your total debts can’t be more than 45% of your monthly income. 

*In certain cases, single parents and displaced individuals are exempt from the first-time homebuyer requirement.

**For all DPA programs, income and purchase price limits are regularly reviewed and updated. These amounts were correct at publication but may change with time.

Type of loan

The Dallas County Home Loan Upfront Cost Assistance Program (UPCAP) offers a deferred forgivable loan to help with your down payment. You don’t have to make payments on this loan for the first five years. If you meet certain eligibility requirements, your loan is fully forgiven after that five-year period, meaning you don’t have to pay any of the money back. 

To be eligible for full loan forgiveness, you must consistently make your mortgage payments on time, and you must use the home as your primary residence without selling or refinancing (except to get a better interest rate). 

Amount of down payment assistance

The maximum amount of down payment assistance (DPA) you can get through this program is $7,500. 

However, if you have liquid assets (cash, stocks, bonds, etc.) that are worth more than $7,000, the amount of DPA you can receive is reduced one-for-one for every dollar over $7,000.

For example, if you have liquid assets totaling $9,000, your DPA amount will be reduced by $2,000, meaning you will only be eligible for $5,500 in assistance. 

Minimum borrower contribution

This program has a minimum borrower contribution of $1,000 or 1% of the purchase price, whichever is greater. 

This means you’ll need to have some savings on hand to participate, however, your contribution can be applied to your down payment or used to pay closing costs and other upfront expenses. So your contribution is an investment in your home purchase. 

Purchase price limits

The purchase price limit for Dallas County UPCAP is $318,000, regardless of whether the home is new construction or an existing property. The median home sale price in Dallas County is $312,749, so this limit still gives you plenty of room to shop around. 

Income limits

The income limit for this down payment assistance program is 80% of the area median income (AMI). In Dallas County, 80% AMI currently ranges between $57,750 and $108,900, depending on household size. 

Income limits are regularly evaluated and adjusted. To see if your income qualifies you for this program, use our free down payment assistance finder.

How to qualify for the Dallas County Home Loan Upfront Cost Assistance Program (UPCAP)

To be eligible for this down payment assistance program, you must satisfy the eligibility requirements described in this article. Use our free down payment assistance finder to verify your eligibility.

How to apply for the Dallas County Home Loan Upfront Cost Assistance Program (UPCAP)

Before you can apply for Dallas County UPCAP, you must get pre-qualified for a mortgage through a lender who is approved to work with the program. Use our free down payment assistance finder to locate approved lenders who can help you.