San Antonio Down Payment Assistance and First-Time Homebuyer Programs

Texas has quite a lot of affordable housing, but it’s not just the rural parts of the state that offer homebuyers a modest sticker price. A number of metro areas in the Lone Star State also have relatively affordable housing markets while still providing great access to employment and amenities. One of these areas is San Antonio. 

Median home prices in San Antonio consistently fall below the national average. However, buying a well-priced home still comes with upfront costs. As a first-time homebuyer, your down payment and closing costs can add up to tens of thousands of dollars, even if you get a great deal on your house.

There are several down payment assistance and first-time homebuyer programs in San Antonio to help you cover these costs. These programs offer up to $30,000 to help you buy a home. That’s a significant chunk of change, and it could mean the difference between buying now or waiting years to save up the money. 

We’ll walk you through all of the down payment assistance programs available to first-time homebuyers in San Antonio. 

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 San Antonio homebuyers

Most down payment assistance (DPA) in Texas comes in the form of a loan. This is true for local San Antonio down payment assistance programs, as well as programs offered at the state and national level. 

These programs may be labeled as “loans” or “liens,” but there is little difference between the two terms.

Loans and liens are a form of down payment assistance attached to the house. In most cases, these loans or liens are “forgivable” meaning they do not need to be repaid if you meet certain criteria (which we’ll discuss throughout the article).

San Antonio first-time homebuyer loans

As we mentioned above, the majority of down payment assistance programs available in San Antonio are forgivable loans. 

Most of these DPA loans can be forgiven if you fulfill certain requirements. Most often, this involves living in the house for a certain number of years before refinancing, selling, or renting it out. You must also consistently make your mortgage payments on time in order to have the loan forgiven.

Common forgiveness timelines are between three and ten years from the closing date. However, there are a small number of loan programs that are only forgiven once you completely pay off the mortgage.

There are also a few programs that don’t offer loan forgiveness at all. These are still a viable option for many homebuyers, though. Even if they can’t be forgiven, the loans are deliberately structured so that using the money to make a down payment or cover closing costs won’t cause financial strain.

Down payment assistance programs in San Antonio

San Antonio has a local down payment assistance program, and there are also state and national DPA options available to San Antonio home buyers.

Stairs Financial streamlines your access to this assistance, making it easy for you to connect with a trusted lender and compare the loan and assistance programs you may qualify for, all in one place.

San Antonio Homeownership Incentive Program: HIP 80

The San Antonio Homeownership Incentive Program: HIP 80 is a generous down payment assistance option for first-time homebuyers.

Assistance type: Forgivable loan

Sponsor: City of San Antonio

Assistance amount: $30,000 maximum

Purchase price limit*: $257,000 for new construction; $244,000for existing homes

Minimum borrower contribution: $500

Eligibility requirements:

• Purchasing within city limits
• Complete an 8-hour homeowner education class
• Income limit: 80% of area median income*

Learn more about your down payment assistance options.

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

San Antonio Homeownership Incentive Program: HIP 120

The San Antonio Homeownership Incentive Program HIP 120 is an assistance program with a higher income limit and higher purchase price maximum. Unlike HIP 80, this loan is partially forgivable, up to 75% over ten years. 

Assistance type: Forgivable loan

Sponsor: City of San Antonio

Assistance amount: $15,000 maximum

Purchase price limit: $301,200 for new construction; $283,300 for existing homes

Minimum borrower contribution: $500

Eligibility requirements:

• Purchasing within city limits
• Complete an 8-hour homeowner education class
• Income limit: 120% of area median income

Statewide down payment assistance programs available in San Antonio

Homebuyers in San Antonio can also take advantage of these statewide down payment assistance options. 

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
• Working as a teacher, emergency medical professional, nurse, law enforcement officer, veteran, 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

*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. 

TDHCA My First Texas Home Down Payment Assistance Lien

The My First Texas Home Forgivable Down Payment Assistance Lien 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: $481,176 to $712,097 depending on location of home 

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 Lien

The My Choice Texas Home Down Payment Assistance Lien 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 San Antonio

If you are a San Antonio homebuyer, you could be eligible 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. 

San Antonio down payment assistance program FAQ

We get a lot of questions from first-time homebuyers looking to use down payment assistance in San Antonio. Here are answers to the questions most often asked. 

What first-time homebuyer programs are available in the city of San Antonio?

These are the first-time homebuyer programs available to homebuyers in the city of San Antonio:

• San Antonio Housing Assistance Program
• San Antonio Homeownership Incentive 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?

To use down payment assistance in Texas, you must apply through a qualified lender who works with the program. You typically submit your DPA and loan applications at the same time. After you are approved, your DPA funds get paid either directly to you, or to your lender, at the time of closing. 

You must use the funds to pay approved costs only. This of course includes your down payment, and in many cases it also includes closing costs. 

How do I find San Antonio realtors familiar with down payment assistance?

Choosing a good realtor is important, whether you live in San Antonio or elsewhere. But your realtor doesn’t need to be familiar with down payment assistance (DPA). It’s more important to find a lender familiar with DPA, because this is the person who helps you complete the application and move through the process. 

Also, to use down payment assistance, you must work with a lender who is approved by the program. 

Unfortunately, finding lenders qualified to work with your down payment assistance program can be tricky since lenders typically don’t do the same sort of marketing and outreach.

Stairs Financial makes the process easy by pairing you with a trusted lender who works with down payment assistance, then matching you with all of the DPA programs for which you might qualify. You can compare your options side-by-side and make the most informed decision. 

Learn more about all your down payment assistance options.

How much is a down payment for a house in San Antonio (on average)?

According to the National Association of Realtors, the average down payment for first-time homebuyers nationwide is 6%. The median home price in San Antonio is $263,747. Based on these numbers, the average down payment in San Antonio is $15,824.

Keep in mind that this is the average down payment, not necessarily the best or more optimal down payment.

Most mortgage loans offer reduced interest rates at the 5%, 10%, and 20% down payment levels. Therefore, increasing your down payment from 5% to 6% may not be the most efficient way to use your money.

It might be more beneficial to make a 5% down payment and use the extra money to cover other expenses or pay down the interest rate on your mortgage. 

What is the income limit for first-time homebuyers in San Antonio?

There is no single income limit for first-time homebuyers in San Antonio. Each first-time homebuyer program sets its own limits. However, the most common income limit is 80% of the median income in the area where the home is purchased, adjusted for the size of your household.

80% of the area median income for San Antonio in 2023 is $49,150 for a single person and $70,200 for a family of four. But keep in mind that these income limits are reviewed and revised frequently. Be sure to check the most current limits before assuming you don’t qualify. 

What is a mortgage credit certificate and does it apply to San Antonio first time homebuyers?

The Mortgage Credit Certificate (MCC) is a federal income tax credit. With this credit, 20% of the total amount you paid in mortgage interest over the course of the year gets refunded to you when you file your taxes. Because it is available to taxpayers nationwide, San Antonio homebuyers are eligible for the MCC. 

What are the minimum requirements for San Antonio down payment assistance?

Each down payment assistance program has different criteria, but these are the most common minimum requirements for San Antonio DPA:

• A minimum contribution from the buyer, usually $1,000 or less.
• A minimum credit score between 620 and 640.
• Purchasing your first home or have not owned a home within a certain period of time, usually three years.

How do I find info about the homeownership incentive program in San Antonio?

There are two homeownership incentive programs sponsored by the City of San Antonio. HIP 80 is a fully forgivable loan of up to $30,000 for eligible first-time homebuyers. HIP 120 is a partially forgivable loan of up to $15,0000. Under this program, 75% of the loan can be forgiven. You can get more information in the local programs section of this article.

See if you qualify for San Antonio down payment assistance 

Stairs Financial makes it easy to use down payment assistance (DPA) to buy a home in San Antonio and throughout the entire state of Texas.  

Stairs helps you connect with an experienced lender who knows how to work with DPA programs, matches you with programs from a huge database, and enables you to compare programs side-by-side so you can choose the best program for you.

Learn more about your down payment assistance options.