Is There Down Payment Help for Denton County Buyers?

Yes. Denton County buyers can get down payment assistance, mostly through programs from two state agencies that offer up to 5% of the loan amount toward your down payment and closing costs. You apply through a participating lender, and income and purchase price limits apply. The county voted on October 20 to transfer a $40 million bond allocation to the state's program rather than creating a separate county grant. Here is how it works, who qualifies and what to watch for.

What Denton County actually approved

On October 20, 2026, the Denton County Commissioners Court approved a resolution allowing the Denton County Housing Finance Corporation to assign its $40 million 2026 private activity bond allocation to the Texas Department of Housing and Community Affairs (TDHCA), according to the county's notice. In plain English, that money will fund more low-interest mortgages and down payment help through the state's Texas Homebuyer Program for buyers in Denton County.

• The county projects it could help about 132 Denton County households buy a home, with nearly $1.4 million going to down payment assistance.
• Since January 2025, the state program has backed 49 mortgages totaling about $15 million in Denton County.
• There is no new county application. You go through the state program and a participating lender.

The main down payment assistance programs in Texas

Two state agencies run most of the down payment assistance Denton County buyers can use today.

Texas Department of Housing and Community Affairs (TDHCA)

The Texas Department of Housing and Community Affairs offers two main programs:

• My First Texas Home is for first-time buyers, which TDHCA defines as not having owned and lived in a home in the last three years. Qualified veterans, and buyers in certain targeted areas, can be exempt. It pairs a 30-year fixed FHA, VA or USDA loan with down payment help.
• My Choice Texas Home does not require you to be a first-time buyer, and it can also be used with a conventional loan.
• The basics: up to 5% of the loan amount in assistance, a minimum credit score of 620, and a free homebuyer education course for every borrower. See the TDHCA program chart.

Texas State Affordable Housing Corporation (TSAHC)

The Texas State Affordable Housing Corporation also offers two main programs:

• Homes for Texas Heroes is for teachers, firefighters, EMS personnel, police and correctional officers, and veterans.
• Home Sweet Texas is open to low- and moderate-income buyers in any line of work.
• The basics: up to 5% of the loan amount for down payment and closing costs, with credit scores as low as 620. Both can be paired with a Mortgage Credit Certificate, a federal tax credit that can lower what you owe in income tax each year. Ask a tax professional how it would apply to you.

What about the City of Denton?

The City of Denton has its own Homebuyer Assistance Program for homes inside Denton city limits, but its Homebuyer Resources page says it has spent all of its funds and is not taking applications right now. If it reopens, it has offered a 0% forgivable loan for income-qualified buyers. Community Services can be reached at (940) 349-7726.

Income and price limits for Denton County

For My First Texas Home, TDHCA's limits effective July 13, 2026 for Denton County are:

• Household income: up to $121,100 for a household of 1 or 2 people, and up to $139,265 for 3 or more.
• Purchase price: up to $589,596 for a one-unit home.
• Targeted areas: some census tracts in the county have higher limits (up to $720,617 for the price). Your lender can check an address.

My Choice Texas Home and the TSAHC programs have their own limits, so ask your lender which program fits best. Limits change, so always confirm the current numbers before you shop.

How the assistance is paid back (or not)

This is the part people most often miss. In most cases, down payment help is a second loan, not free cash. TDHCA's lender matrix for My First Texas Home describes two versions:

• Deferred: a 0% second loan with no monthly payment, due when you sell, refinance or pay off your mortgage.
• Forgivable: a 0% second loan with no monthly payment that is forgiven after 36 months, as long as you do not sell or refinance first.

A few other trade-offs to know:

• The rate can be a little higher. Program loans often carry a slightly higher rate than a lender's best market rate, in exchange for the help with cash. For context, Freddie Mac's weekly average for a 30-year fixed loan was 7.18% on November 5, 2026.
• There are added fees and steps. Program loans go through an extra compliance review, so build a little extra time into your closing date.
• It can combine with seller help. Some buyers use assistance for the down payment and ask the seller to cover closing costs. Our post on price cuts, buydowns and seller credits explains how that works.

What a local lender tells buyers

We asked Ryan Grubbs of the Ryan Grubbs Team at CrossCountry Mortgage in Flower Mound how this works in real life. Here is what he told us.

What is the biggest misconception?

"The biggest misconception is that down payment assistance is only available to first-time homebuyers or people with very low incomes," Ryan says. Many buyers are surprised to learn they may qualify even if they have owned a home before or have a solid household income. Some programs can help with both the down payment and closing costs.

When does it make sense, and when is a traditional loan better?

"Down payment assistance can be a great solution for buyers who have the income to comfortably afford a mortgage but don't have a large amount of money saved for their down payment and closing costs," Ryan says. It can help them buy sooner while keeping more savings available for emergencies and other expenses.

A traditional mortgage may be the better choice if you already have enough funds, especially if it offers a lower rate, reduced fees or a lower overall cost of borrowing. Ryan also notes that some programs come with added requirements, repayment obligations or higher interest rates.

How much time should you allow to close?

"I strongly recommend a 30 day closing when using a down payment assistance option," Ryan says.

What should you have ready for that first call?

The most important thing, Ryan says, is having an idea of what you want to accomplish and where you want your monthly payment to be. It also helps to have:

• A general understanding of your income
• Your most recent paystub, plus the last paystub from the previous year
• Your tax returns, all pages, if you are self-employed
• A general idea of your asset accounts, such as checking, savings, investments, IRA and 401(k) accounts

Ryan Grubbs, Loan Officer, NMLS #191548, CrossCountry Mortgage, LLC. Branch NMLS 2398021, 737 International Pkwy, Suite 200, Flower Mound, TX 75022. Licensed in Texas. His comments are general information, not an offer or commitment to lend. All loans are subject to program rules and lender approval.

What this looks like in Corinth and Oakmont

The $589,596 price limit covers most of what is for sale near us. Based on live MLS data on November 5, 2026:

• Corinth: about 111 of the roughly 135 homes listed were priced under the limit, with an average list price near $438,000 among them.
• Denton: about 586 of the roughly 721 homes listed were under the limit, averaging about $383,000.
• Any neighborhood, including ours in Oakmont Country Club Estates: the price limit, your income limit, your loan type and the home's condition all have to fit. FHA and VA loans have their own property standards, so we check those before you fall in love with a house.

Want the bigger picture first? Start with our guide to buying a home in Denton County.

How to get started

1. Talk to a participating lender. TDHCA and TSAHC both list approved lenders on their websites. Ask them to compare a program loan with a standard loan side by side.
2. Take the homebuyer education course early. It is required for TDHCA assistance, and TDHCA offers a free online option.
3. Get pre-approved for the program, not just a loan. Sellers want to know your financing will close on time.
4. Shop within the limits. We will set up your home search around your program's price cap.

Frequently asked questions

Do I have to be a first-time buyer to get down payment assistance in Texas?

Not always. TDHCA's My First Texas Home is for buyers who have not owned and lived in a home in the last three years, with exceptions for qualified veterans and targeted areas. My Choice Texas Home and TSAHC's programs do not require first-time buyer status.

What are the income limits for down payment assistance in Denton County?

For TDHCA's My First Texas Home, effective July 13, 2026, the limit is $121,100 for a household of 1 or 2 people and $139,265 for 3 or more, with a purchase price limit of $589,596. Other programs have their own limits.

Do I have to pay back Texas down payment assistance?

Usually it is a 0% second loan with no monthly payment. Depending on the option, it is either due when you sell, refinance or pay off your mortgage, or forgiven after 36 months if you keep the loan that long.

Did Denton County create its own down payment assistance program?

No. On October 20, 2026, the county approved sending a $40 million bond allocation to TDHCA to fund the state's Texas Homebuyer Program for Denton County buyers. You apply through a participating lender, not the county.

This post explains how down payment assistance generally works in Denton County as of November 5, 2026. Program terms, limits and funding change. It is general information, not an offer of credit, and not lending, tax or legal advice. The Airheart Realty Team is not a mortgage lender. Talk with a participating lender about your options, and with a tax professional about tax credits.

Photo credits: header photo by Karola G on Pexels; house keys photo by Jakub Zerdzicki on Unsplash. Sources: TDHCA Texas Homebuyer Program, TDHCA My First Texas Home lender matrix, TSAHC, City of Denton, Denton County and Freddie Mac. Listing counts are from live MLS data on our site.