Are there down payment assistance programs in California, Texas, Florida, or Colorado?
The short answer
Yes. All four states have state housing agency programs that help with the down payment and closing costs, either as a grant or as a low- or no-payment second loan: CalHFA in California, TDHCA and TSAHC in Texas, Florida Housing in Florida, and CHFA in Colorado. Most have income and price limits and require a homebuyer class. At The Mortgage Advisory, we'll tell you straight whether a program actually saves you money compared with a regular loan.
What kinds of help are out there?
Down payment assistance comes in three main flavors:
- Grants: money you don't pay back.
- Deferred or "silent" second loans: no monthly payment. You repay it when you sell, refinance, or pay off the house.
- Forgivable loans: a second loan that's forgiven over time if you stay in the home.
Some local programs also use shared appreciation, where you pay back the assistance plus a share of your home's value growth when you sell or refinance. Always ask which kind you're getting.
What's available in each state?
| State | Statewide agency | Examples |
|---|---|---|
| California | CalHFA | MyHome Assistance: a deferred second loan up to 3% of the price (3.5% with FHA), with no payments until you sell, refinance, or pay off. Many cities and counties have their own programs too. |
| Texas | TDHCA and TSAHC | My First Texas Home (TDHCA) and Homes for Texas Heroes and Home Sweet Texas (TSAHC), offered as grants or deferred second loans you repay when you sell or refinance. Heroes covers teachers, first responders, and veterans. |
| Florida | Florida Housing | Hometown Heroes helps first-time buyers in essential jobs (teachers, law enforcement, firefighters, healthcare workers, military and veterans, and more) buy where they work. Florida Housing also runs other statewide programs. |
| Colorado | CHFA | A grant of up to 3% of your loan (maximum $25,000), or a second mortgage of up to 4% (maximum $25,000). You can use one or the other, not both. |
Program amounts, limits, and funding change often, so we check the current rules for your exact situation.
What's the fine print?
- Income limits and purchase price limits, which usually depend on your county and household size
- A homebuyer education class, often online
- A minimum credit score (commonly around 620 to 640)
- Only approved lenders can offer them, so ask your lender which programs they're approved for
- The first-mortgage rate can be a bit higher than a standard loan, so compare the total cost both ways
Example scenario (illustrative)
A first-time buyer in Texas has great credit and steady income but only $6,000 saved. A deferred assistance second loan, repaid when they sell or refinance, covers their down payment and most closing costs. Their first-mortgage rate is slightly higher than a standard FHA loan, but for them, getting into the home now is worth more than waiting three more years to save.
Our take
Down payment assistance can be the difference between buying this year and waiting three more. It's not always the cheapest option, though. I'll price your loan with and without assistance, side by side, so you can see exactly what the help costs and what it saves you.
Sources
Ace Ausar, Mortgage Banker · NMLS #1143018
The Mortgage Advisory, Inc. · NMLS #1549739
Reviewed by Ace Ausar, NMLS #1143018 · Updated
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