Ft. Worth Down Payment Assistance and First-Time Homebuyer Programs

Unsurprisingly given its location, Fort Worth shares many characteristics with Dallas, including an affordable housing market and a robust economy. It’s a booming city, with plenty of cultural activities and employment opportunities. In other words: Ft. Worth is a great place to be a first-time homebuyer. 

If you fall into this category, you’ve probably already begun to crunch the numbers. And, you’ve likely learned that even in an affordable housing market like Fort Worth, your down payment and closing costs can add up quickly.

Fort Worth down payment assistance and first-time homebuyer programs are there to help cover these costs. Programs in Ft. Worth offer up to $20,000, and other state and national programs can potentially offer an even larger amount. 

This assistance is there to help you hop the hurdle of upfront costs and buy a home much sooner.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

Types of down payment assistance for Ft. Worth homebuyers

Most down payment assistance in Ft. Worth is offered in the form of forgivable loans and liens. In principle, both types of down payment assistance function in the same way. The loan or lien is attached to your house, but it is fully forgivable, meaning you don’t have to pay back the money if you meet certain, basic requirements.

As a homebuyer in the Ft. Worth area, you might qualify for another type of assistance, such as the discounted mortgage loans available through the Veterans Land Board. But in most cases, if you seek out down payment assistance, it will come in the form of a forgivable loan.  

Learn more: Considering buying in Dallas instead? Read our full list of Dallas down payment assistance.

Fort Worth first-time homebuyer loans

So, how exactly do these forgivable first-time homebuyer loans work? 

In most cases, the forgiveness criteria for first-time homebuyer loans and liens is pretty straightforward. The same is true whether you’re seeking a loan through a program in Fort Worth, or a loan at the state or national level. 

Generally speaking, a forgivable loan or lien is fully forgiven after you live in the house for a certain number of years without refinancing, selling, or renting it out. You must also stay up-to-date on your mortgage payments during this time.

Usually, the forgiveness timeline is between three and ten years, although there are a few loans which do not get forgiven until you completely pay off your mortgage.

Down payment assistance programs in Ft. Worth

Ft. Worth offers quite a few options for down payment assistance, thanks to a robust local program administered by the city, as well as a number of state and national options which can be used in Fort Worth.

It’s great to have options, but it does make it more challenging to get the information you need to make an informed decision.

Stairs Financial streamlines the process of using down payment assistance. Stairs connects you with a trusted lender and shows you all of the loan and assistance programs you qualify for, so you can compare your options in one place. 

Learn more.

The City of Ft. Worth Homebuyer Assistance Program (HAP)

The Ft. Worth Homebuyer Assistance Program offers up to $20,000 in forgivable down payment assistance loans to first-time homebuyers in Fort Worth. Loans up to $14,999 can be forgiven after five years, and loans up to $20,000 can be forgiven after 10 years as long as you have not sold, refinanced, or moved out of the house during that time.

Assistance type: Deferred forgivable loan

Sponsor: City of Fort Worth

Assistance amount: $20,000 maximum

Purchase price limit*: $305,000 for newly constructed homes and $290,000 for existing homes

Minimum borrower contribution: $1,000 or 2% of the purchase price, whichever is less

Eligibility requirements:

• First-time homebuyer
• Purchasing within Fort Worth city limits
• Income limit*: 80% of area median income.

*For all DPA programs, purchase price and income limits are regularly reviewed and updated. Be sure to check the most current limits before assuming you don’t qualify. 

Statewide down payment assistance programs available in Ft. Worth

These statewide down payment assistance programs are also a great option for first-time homebuyers in Fort Worth. 

TSAHC Home Sweet Texas HFA Loan

The Home Sweet Texas HFA Loan is a down payment assistance loan available everywhere in Texas that can be fully forgiven if you don’t sell or refinance the home for a period of three years after purchase. 

This program can also be combined with the Texas Mortgage Credit Certificate (MCC) tax credit which we describe in greater detail below.

Assistance type: Forgivable loan

Sponsor: Texas State Affordable Housing Corporation

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: None

Minimum borrower contribution: None

Eligibility requirements: 

• Purchasing in Texas
• Credit (FICO) score of 620 or higher
• Income limit*: $71,280 to $97,840 depending on location of home

TSAHC Homes for Texas Heroes HFA Loan

The Homes for Texas Heroes HFA Loan is a forgivable down payment assistance loan program available to Texas residents working in certain helping professions. The loan can be combined with the Mortgage Credit Certificate (MCC) tax credit, and it can be forgiven if you do not sell or refinance the home within three years.

Assistance type: Forgivable loan

Sponsor: Texas State Affordable Housing Corporation

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: none 

Minimum borrower contribution: None 

Eligibility requirements: 

• Purchasing in Texas
• A veteran, or currently working as: a teacher, emergency medical professional, nurse, law enforcement officer, or active duty service member 
• Credit (FICO) score of 620 or higher
• Income limit: $126,140 to $163,520 depending on location of home

SETH 5 Star Texas Advantage Forgivable Lien

The 5 Star Texas Advantage Forgivable Lien provides down payment assistance in the form of a community second lien which is forgiven after three years, provided you do not sell or refinance the home in that time. 

Assistance type: Forgivable loan

Sponsor: Southeast Texas Housing Finance Corporation

Assistance amount: Up to 5% down payment, no fixed maximum 

Purchase price limit for FHA loans*:  $472,030 to $571,550 (depending on location)

Purchase price limit for all other loan types: $492,500 

Minimum borrower contribution: None 

Eligibility requirements: 

• Purchasing anywhere in Texas except Travis County, El Paso, McKinney, and Grand Prairie
• Credit (FICO) score of 640 or higher 
• Income limit for USDA-backed loans: $56,880 to $170,800 depending on location 
• Income limit for all other loan types: $78,820 to $171,220 depending on location

TDHCA My First Texas Home Down Payment Assistance

My First Texas Home Forgivable Down Payment Assistance is a down payment assistance program that offers funding to first-time homebuyers in the form of a second lien that can be structured either as a three-year forgivable lien, or as a 30-year deferred repayment lien.

Assistance type: Forgivable loan

Sponsor: Texas Department of Housing and Community Affairs Homebuyer Program

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: none

Minimum borrower contribution: None 

Eligibility requirements: 

• First-time homebuyer purchasing in Texas
• Credit (FICO) score of 620 or higher 
• Income limit: $90,100 to $163,520 based on location of home

TDHCA My Choice Texas Home Down Payment Assistance

My Choice Texas Home Down Payment Assistance is a program with no first-time homebuyer requirement. Funds are delivered as second liens which can be structured either as a three-year forgivable lien, or as a 30-year deferred repayment lien.

Assistance type: Forgivable loan

Sponsor: Texas Department of Housing and Community Affairs Homebuyer Program

Assistance amount: Up to 5% down payment, no fixed maximum

Purchase price limit: $481,176 to $712,097 depending on location of home 

Minimum borrower contribution: None 

Eligibility requirements: 

• Purchasing in Texas
• Credit (FICO) score of 620 or higher
• Income limit: $90,100 to $163,520 depending on location of home

Veterans Housing Assistance Program

The Veterans Housing Assistance Program offers discounted mortgage loans for veterans and active duty service members to purchase a home in Texas. The funding can be structured as a 15, 20, 25, or 30 year loan. It requires minimal or no down payment and offers interest rates which are typically lower than the market rate. 

Assistance type: Discounted mortgage loan

Sponsor: Veterans Land Board

Assistance amount: up to $726,200 loan 

Minimum borrower contribution: none 

Eligibility requirements: 

• Purchasing in Texas 
• Veteran or active duty service member
• Income limit: none

National down payment assistance programs and grants you can use in Ft. Worth

Whether you’re purchasing a home in Fort Worth, or looking further afield, you might qualify for down payment assistance sponsored by the National Homebuyer Fund. We’ve included details about the program below. 

NHF Down Payment Assistance Program

The NHF Down Payment Assistance Program provides a down payment assistance loan which can be forgiven if the home is your primary residence for a certain number of years. The number of years required to forgive the loan is determined at closing.

Assistance type: Forgivable loan

Sponsor: National Homebuyer Fund

Assistance amount: up to 5% down payment, no fixed maximum

Purchase price limit: Flexible, based on buyer’s income

Minimum borrower contribution: None 

Eligibility requirements: 

• Credit (FICO) score of 600 or higher
• Income limit*: 115% of median income in area where home is purchased

In addition to the National Homebuyer Fund, you could potentially qualify for a lender-sponsored assistance program through one of the nation’s largest banks. These programs vary from lender to lender. Stairs Financial does not endorse any single lender-sponsored DPA program over the next.  

Ft. Worth down payment assistance program FAQ

We get a lot of questions from prospective homebuyers in Ft. Worth wondering exactly how down payment assistance works. Here are a few short-and-sweet answers to the most common questions.. 

What first-time homebuyer programs are available in the city of Fort Worth?

These are the first-time homebuyer programs available in Ft. Worth:

• The City of Ft. Worth Homebuyer Assistance Program
• Home Sweet Texas HFA Loan
• Homes for Texas Heroes HFA Loan
• 5 Star Texas Advantage Forgivable Lien
• My First Texas Home Down Payment Assistance Lien
• My Choice Texas Home Down Payment Assistance Lien
• Veterans Housing Assistance Program
• NHF Down Payment Assistance Program

How does down payment assistance work in Texas?

In Texas, as in other states, your mortgage lender handles your down payment assistance application. In most cases, you submit it at the same time you submit your mortgage application. Depending on the program, your assistance funds get sent either to you or to your lender.

If you receive the money, as opposed to your lender, bear in mind that you can only use it to pay approved costs. 

How do I find a mortgage lender in Fort Worth who works with down payment assistance?

The easiest way to find a mortgage lender in Ft. Worth who works with down payment assistance is to use a service that connects you with trusted and approved lenders. 

Stairs Financial does this and more by matching you with both qualified lenders and down payment assistance programs and making it easy to compare your options across different lenders and programs all in one place.

How much is a down payment for a house in the city of Fort Worth (on average)?

The average price for a home in Ft. Worth is $307,816. Data from the National Association of Realtors reveals that the average down payment for first-time homebuyers nationwide is 6%. Using these numbers, the average down payment for a house in the city of Fort Worth is around $18,468.

Keep in mind that the six-percent cited by the National Association of Realtors is just an average. It’s not necessarily the best option for many first-time homeowners. It might make more financial sense for you to put down a larger or smaller amount. 

Your lender will run the numbers with you and help you understand what’s best in your specific situation.  

What is the income limit for down payment assistance in Fort Worth?

Income limits are set independently by each down payment assistance program. However, the most common income limit for down payment assistance in Fort Worth is 80% of the area median income, adjusted for the size of your household. 

In Fort Worth, 80% of the median income for a family of four is $65,200.

The income limits (as well as purchase price limits) for down payment assistance programs are reviewed often, and revised based on the current economy. So always check the most up-to-date information before assuming you don’t qualify.

What is the minimum credit score for down payment assistance in Fort Worth?

A minimum credit score of 620 is the most common for down payment assistance in Ft. Worth, although each program sets its own limits. There are a few programs with lower or higher credit score requirements, and a small number with no specific credit score threshold at all. 

What is a mortgage credit certificate and does it apply to first time homebuyers in Fort Worth?

Yes, the Mortgage Credit Certificate (MCC) applies to first-time homebuyers in Fort Worth. It is a national program available to all qualifying first-time homebuyers. The MCC is a tax credit for 20% of the total mortgage interest you paid over the course of the tax year. You receive this credit when you file your taxes. 

The Mortgage Credit Certificate reduces your effective interest rate, since you receive a refund on a portion of the interest you pay.

Learn all about the Ft. Worth down payment assistance programs you qualify for

Stairs Financial makes it simple to get and use down payment assistance (DPA). Stairs connects you with a lender who works with DPA programs in your area, then shows you all the DPA you might qualify for. 

With Stairs, it’s easy to compare down payment assistance programs side-by-side and make the most informed choice that will get you into a new home sooner.

Learn more about your down payment assistance options.