The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the Home Star Program, which helps eligible applicants with down payment and closing cost assistance. SETH provides up to 4 percent of the total loan amount in the form of a down payment assistance grant.

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May 26, 2019
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Home Star Program

Financial Assistance for Homebuyers in Texas

The Southeast Texas Housing Finance Corporation (SETH) recognizes that though many potential homebuyers can afford the monthly mortgage payments on a new house, they don’t have enough money saved up for the down payment. That’s why SETH offers Texas residents the Home Star Program, which helps eligible applicants with down payment and closing cost assistance.

The Home Star Program provides up to 4 percent of the total loan amount in the form of a down payment assistance grant, in conjunction with a 30-year fixed rate FHA, VA, USDA, or conventional mortgage loan.

Eligibility Requirements
  • All borrower are required to make an investment of 0.50 percent of their own funds.
  • Borrowers with credit scores of at least 660 are allowed a maximum debt-to-income (DTI) ratio of 50 percent, while those below the 660 threshold must have a DTI no higher than 45 percent.
  • All borrowers on the mortgage must complete the online SETH Homebuyer Education Class.
  • Borrowers must fall within the program’s income limits, regardless of household size.
Property Guidelines
  • The home being financed must be owner-occupied and located anywhere in the state of Texas, except the cities of El Paso, Grand Prairie, and McKinney, as well as Travis County.
  • The maximum home purchase price is $250,200 on FHA, VA, or USDA loans, and $320,400 on a conventional mortgage.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits. spacer

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Texas

The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the 5 Star Texas Advantage Program, which helps eligible applicants with down payment and closing cost assistance in the form of a grant.

This program is designed for homebuyers to purchase a home anywhere in Travis County, including the City of Austin, by helping them overcome the obstacle of down payment costs. A grant of up to 5 percent of the loan amount is applied towards the down payment or closing costs.

The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the Home Star Program, which helps eligible applicants with down payment and closing cost assistance. SETH provides up to 4 percent of the total loan amount in the form of a down payment assistance grant.

Homeownership Across Texas grants 5 percent of the loan amount with VA, FHA, or USDA financed loans. Borrowers with conventional loans receive 3 percent grants. Grants do not come with any repayment or recapture period, nor is there a first-time homebuyer requirement.

This initiative provides teachers, police and correctional officers, fire fighters and EMS personnel, and veterans with down payment assistance between 3 and 5 percent of the loan amount and a 30-year fixed rate mortgage with several rates and loan options.

Along with a competitive, fixed interest, 30-year home loan, the Texas Department of Housing and Community Affairs’ My First Texas Home’s Taxable Mortgage Program (TMP) offers down payment and closing cost assistance of up to 5 percent of the mortgage loan.

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