Are there any down payment assistance available in Texas for first-time homebuyers?  There are many down payment assistance (DPA) programs in Texas available through the state, county & city for first-time homebuyers.   The amount of  grant, type and qualifications required for the assistance will vary depending on the county and city.  However, the programs operate in accordance with applicable rules and regulations of the Department of Housing and Urban Development (HUD).  Following are basic guidelines:

1. Property must be primary residence. 
2. Must be a first time homebuyer (A first-time homebuyer is defined as a person who has not owned a home as a principal residence during the last 3 years).
3. Income verification - 3 years verified tax returns required.  The purpose is to  verify income, number of dependents claimed and whether you have owned a home in the last 3 years.
4. Household size - Buyer household gross income cannot exceed a certain amount based on family size.
5. Property must be located in a certain geographic location within the county or city.  
6. A Maximum purchase price is set depending on county or city.
7. Buyer must be able to obtain an acceptable loan within a certain time period of being qualified for the program from a lender.
8. Homebuyer counseling certificate required - buyer must complete typically an 8 hour counseling class.
9. Property condition - property must pass certain housing standards
10. Recapture provisions -  The assistance is in the form of a deferred loan.  A percentage of the loan will be forgiven each year.  If the homebuyer sells, refinances or moves out of the property within the applicable Affordability Period, the homebuyer will be responsible for the full amount of the loan that has not been forgiven.
11. Minimum borrower investment -  Buyer is required to have a minimum amount of of his own cash in the transaction.

The programs are a great opportunity to get free money for those who qualify.  However, keep in mind that they are based on availability of funds.  Therefore, even if you meet all the qualifications, there is no guarantee that they will not run out of funds.  Consult with a knowledgeable Realtor and lender in your area who can educate and can guide you through the process.