Fort Worth down payment assistance programs that can help eligible buyers afford a home

Buying a first home in Fort Worth or the surrounding Tarrant County area can feel out of reach, especially as down payments and closing costs add up. But several local, county and statewide programs are designed to bridge that gap — offering grants, forgivable loans and low-interest assistance to qualified buyers. Here is a breakdown of five programs Fort Worth-area residents can explore.

Fort Worth Homebuyer Assistance Program

The city of Fort Worth runs a program aimed squarely at first-time buyers who meet U.S. Department of Housing and Urban Development income limits based on household size.

According to fortworthtexas.gov, eligible buyers “may receive up to $25,000 in assistance for down payment and closing costs. The amount of assistance will depend on the sales price and the loan amount provided by the lender.”

The program is limited to homes purchased inside the Fort Worth city limits, and buyers have two ways to use the funds:

• 3% of the loan amount can go toward closing costs, with the remainder applied to the down payment.
• Or, the full amount can be applied to the down payment only, with no closing-cost assistance.

For families who have been priced out by upfront costs rather than monthly payments, that $25,000 ceiling can be the difference between renting and owning.

Homes for Texas Heroes Program

Administered by the Texas State Affordable Housing Corporation, the Homes for Texas Heroes program is open to buyers who work in certain public service professions.

According to TSAHC, eligible “hero” jobs include:

• Professional educators in a public school district, including teachers, teacher aides, school librarians, school counselors and school nurses
• Police officers and public security officers
• Firefighters and EMS personnel
• Veterans or active military
• Correction officers and juvenile corrections officers
• Nursing faculty and allied health faculty

Buyers can check whether they qualify by taking the program’s eligibility quiz. The program is designed to make homeownership more attainable for the workers who keep Texas communities running.

Tarrant County Homebuyer Assistance Program

For buyers looking outside Fort Worth proper, Tarrant County offers its own down payment and closing-cost assistance program.

According to the program’s official website, it “is designed to assist eligible low and moderate-income households to purchase a home in Tarrant County by providing down payment and closing costs assistance.” The funding comes from Tarrant County through HUD’s HOME Investment Partnerships Program.

Initial eligibility requirements include:

• The property must be located in Tarrant County but outside the city limits of Fort Worth, Arlington and Grand Prairie, and outside the FEMA-designated flood plain.
• Applicants must not have owned a home in the last three years.
• Total household income must be at or below 80% of the area median income.
• Liquid assets cannot exceed $25,000.
• Borrowers must invest a minimum of $1,500.
• Debt-to-income ratios cannot exceed 35/45.
• Buyers must have cash reserves equal to two months of mortgage payments, and the reserves cannot come from gift funds.
• Buyers must be a U.S. citizen or permanent resident alien.
• The home must pass a Minimum Acceptable Standards Inspection and an environmental review.
• Buyers must complete Housing Channel’s HUD-certified homebuyer workshop.

The assistance is offered as a zero-interest deferred note that is forgivable after a 10- to 20-year affordability period.

Home Sweet Texas Home Loan Program

The Home Sweet Texas Home Loan Program is geared toward low- and moderate-income Texans — and unlike some assistance programs, it is open to certain repeat buyers, not just first-timers.

The program provides down payment help through grants or forgivable second liens, with assistance reaching roughly 5% of the loan amount depending on which option a buyer chooses.

According to the program, “The Home Sweet Texas Program offers substantial down payment assistance, up to 5% of your home’s purchase price. For example, if you’re buying a home priced at $250,000, you could receive up to $12,500 in assistance. If your home costs $300,000, the program could provide as much as $15,000 to help cover your down payment and closing costs.”

That financial support can come as a grant, which does not have to be repaid, or as a deferred forgivable loan that is fully forgiven if the buyer stays in the home and makes timely mortgage payments for the first three years.

My First Texas Home

The My First Texas Home program is built for eligible veterans and first-time homebuyers statewide.

Qualified buyers can access a 30-year fixed-rate mortgage at competitive interest rates, plus down payment and closing-cost assistance of up to 5% of the loan amount. The program also offers a zero-interest second lien and a forgivable loan that may be forgiven after three years if requirements are met.

Buyers may stretch their savings further by pairing the program with a Mortgage Credit Certificate, which can reduce federal income tax liability and free up more household budget for the new mortgage.

Between city, county and state options, Fort Worth-area buyers have several paths to lower the upfront cost of owning a home.

This article was created by content specialists using various tools, including AI.