Saving enough cash for a down payment and closing costs while keeping up with North Texas rent is one of the biggest hurdles for many Dallas buyers.
This 2026 guide breaks down the Dallas Homebuyer Assistance Program (DHAP), now administered by Business and Community Lenders of Texas (BCL of Texas), along with the DHAP 10 Anti-Displacement track, other DFW city and county programs, and statewide options you can compare.
Check Your Dallas Home Purchase Eligibility
By the end, you will know the current 2026 income limits, how the 5-, 10-, and 15-year forgiveness rules work, what out-of-pocket cash you need, and the exact steps to start your application.
What Is the Dallas Homebuyer Assistance Program (DHAP)?
The Dallas Homebuyer Assistance Program provides up to $60,000 in need-based homebuyer assistance to eligible buyers purchasing a home inside Dallas city limits. Since May 1, 2026, the City of Dallas no longer directly runs the program; instead, Business and Community Lenders of Texas (BCL of Texas) administers it, including the Readiness Check and intake.
As of October 2026, BCL is taking Readiness Checks and intake for DHAP. Funding is limited and first come, first served. Submitting intake information does not guarantee funding, so preparing your pre-approval early is essential. Note that the City's separate Targeted Occupations track (which previously served teachers, healthcare workers, police, and firefighters at 80% to 120% AMI) is closed with all funds expended. Existing homeowners who need a lien subordination, payoff, or release still work through the City of Dallas Housing & Neighborhood Revitalization Department's Compliance & Lien Portfolio division.
Two Active DHAP Tracks for 2026
Today's DHAP offers two active paths: Standard DHAP for households earning at or below 80% of the Area Median Income (AMI), and DHAP 10 (the Anti-Displacement Homebuyer Assistance Program) for longtime Dallas residents earning between 50% and 120% AMI.
| Feature | Standard DHAP | DHAP 10 / Anti-Displacement |
|---|---|---|
| Household Income Limit | At or below 80% AMI | 50% to 120% AMI |
| Maximum Assistance | Up to $60,000 in High Opportunity Areas; up to $50,000 elsewhere | Up to $50,000 (based on need) |
| Dallas Residency Rule | None stated | Must currently live in the City of Dallas and have lived there for at least 10 years |
| Maximum Purchase Price | $342,000 existing; new construction is conflicting: $342,000 (Manual and City page) vs. $273,000 (BCL brochure), so confirm with BCL | No sales price limit (set by lender qualifying income and credit) |
| Affordability / Forgiveness Period | 5 years (under $25,000); 10 years ($25,000–$50,000); 15 years (over $50,000) | 5 years, forgiven annually |
| Eligible Area | Anywhere within Dallas city limits | City of Dallas (some funding is restricted to designated DHAP 10 Targeted Areas) |
Under Standard DHAP, a High Opportunity Area is defined in the program manual as a Dallas census tract with a poverty rate of 20% or below. BCL of Texas links a map on its DHAP page. Across both tracks, the dollar award is based on financial need—not every qualifying buyer receives the $50,000 or $60,000 ceiling.
How DHAP Forgiveness and Loan Terms Work
Every DHAP award is structured as a 0% interest, deferred forgivable second lien recorded against the property, with no monthly payments. The balance is forgiven incrementally (pro rata on an annual basis) over the required affordability period.
For Standard DHAP, the length of that affordability period depends on how much assistance you receive:
| DHAP Assistance Amount | Track | Affordability Period | Forgiveness Structure |
|---|---|---|---|
| Under $25,000 | Standard DHAP | 5 years | Pro rata annually over 5 years |
| $25,000 to $50,000 | Standard DHAP | 10 years | Pro rata annually over 10 years |
| Over $50,000 (up to $60,000) | Standard DHAP | 15 years | Pro rata annually over 15 years |
| Up to $50,000 | DHAP 10 (Anti-Displacement) | 5 years | Forgiven annually over 5 years |
If you sell, lease, enter a lease-purchase or contract for deed, or transfer title before the affordability period finishes, a partial repayment of the unforgiven balance comes due. If a homeowner passes away during the compliance period, program rules allow heirs to assume the DHAP loan provided the heirs are income-eligible and occupy the property as their primary residence.
Check Your Dallas Home Purchase Eligibility
DHAP Eligibility Requirements (2026)
To qualify for Dallas down payment assistance through BCL of Texas, buyers and properties must meet the guidelines set in the 2025–2026 DHAP Program Manual (revised May 1, 2026):
- Legal Status: The borrower must be a U.S. citizen, lawful permanent resident, or hold eligible immigration status, and must have a valid Social Security card issued by the Social Security Administration.
- Buyer Out-of-Pocket Contribution: You must contribute at least $1,000 of your own funds toward the transaction.
- Cash Reserves & Liquid Assets: Buyers must retain post-closing reserves equal to 2 months of PITI (principal, interest, taxes, and insurance). Any liquid assets above $10,000 must go toward the purchase first.
- Debt-to-Income (DTI) Ratios: Your front-end housing ratio cannot exceed 35% of gross income (and must be at least 20% after assistance is applied), and your total back-end DTI cannot exceed 45%.
- Credit & Income History: The manual does not state a minimum credit score; instead, you must have "acceptable credit" to qualify for an eligible first mortgage and show at least 6 months of continuous income history. Co-signers are not permitted.
- First Mortgage Rules: Your primary loan must be a 30-year fixed-rate conventional, FHA loan, VA loan, or portfolio loan with a loan-to-value (LTV) ratio of at least 80%. Adjustable-rate mortgages (ARMs), interest-only loans, high-cost or subprime loans, buyer-paid discount points, and cash back at closing are prohibited. You must work with a DHAP-approved lender and a DHAP-approved title company.
- Homebuyer Education: Every borrower and co-borrower (all adults on the loan or title) must complete an 8-hour HUD-approved homebuyer education course taken within 12 months, and BCL requires the certificate to come from a DHAP provider on its posted list.
- Property & Inspection Standards: Eligible homes include single-family detached houses, townhomes, and condominiums inside Dallas city limits. The appraisal must equal at least 100% of the sales price, and the home must pass an MHS inspection, an environmental review, and a visual lead check if built before 1978.
Two Details to Confirm Before You Shop
First, first-time homebuyer status is not stated in the DHAP Program Manual, the BCL of Texas webpage, the 2026 brochure, or the City of Dallas page. Some other local programs require that you have not owned a home in the past three years, so verify directly with BCL whether repeat buyers are eligible for Standard DHAP or DHAP 10. For general rules, see our guide to the requirements to buy a house in Texas.
Second, confirm the new-construction price cap. Both the DHAP Program Manual (revised May 1, 2026) and the City of Dallas website list a $342,000 maximum purchase price for both existing and newly built homes under Standard DHAP. However, BCL's 2026 one-page brochure lists $342,000 for existing homes and $273,000 for new construction. If you are shopping for a newly built home under Standard DHAP, ask BCL of Texas or your DHAP lender which cap applies before signing a builder contract. (Remember that DHAP 10 has no sales price cap.)
2026 Dallas DHAP Income Limits by Household Size
BCL of Texas publishes 2026 income limits whose 50% and 80% columns match HUD's FY2026 limits for the Dallas HUD Metro FMR Area (which covers Collin, Dallas, Denton, Ellis, Hunt, Kaufman, and Rockwall counties, where the median family income is $121,100). BCL's table is effective June 1, 2026, and its 120% column is BCL's own figure (HUD does not publish 120% limits). Note that the City of Dallas website and the Program Manual still display older 2025 numbers; the table below reflects the current 2026 published figures from HUD and BCL of Texas.
| Household Size | 50% AMI (DHAP 10 Floor) | 80% AMI (Standard DHAP Max) | 120% AMI (DHAP 10 Max — BCL) |
|---|---|---|---|
| 1 person | $42,400 | $67,850 | $101,724 |
| 2 people | $48,450 | $77,550 | $116,256 |
| 3 people | $54,500 | $87,250 | $130,788 |
| 4 people | $60,550 | $96,900 | $145,320 |
| 5 people | $65,400 | $104,700 | $156,946 |
| 6 people | $70,250 | $112,450 | $168,571 |
| 7 people | $75,100 | $120,200 | $180,197 |
| 8 people | $79,950 | $127,950 | $191,822 |
These are the current published figures. Income limits are updated yearly, so always verify your household's calculation with BCL of Texas or a participating lender. You can also compare how local caps stack up against statewide Texas homebuyer income and purchase price limits.
Check Your Dallas Home Purchase Eligibility
How to Apply for DHAP Through BCL of Texas (Step-by-Step)
BCL of Texas says buyers must already have a DHAP lender, a pre-approval, and an executed contract, so the order of operations matters. BCL lists a typical timeline of 30 to 45 days.
Before you start, line up a lender from BCL's DHAP-approved list (dated as of September 2026), and get pre-approved. Every borrower and co-borrower also needs the 8-hour HUD-approved education certificate from a listed DHAP provider.
- Take BCL's Readiness Check: A 3-minute online quiz on BCL of Texas's website. It is not an application.
- Receive the Intake Application (By Invitation): BCL invites you once basic eligibility and lender pre-approval are in place.
- Submit the Intake and Complete the EDS: Submit your intake and complete the Eligibility Determination Session (EDS).
- Home Review: The home goes through inspection and environmental review.
- Close: The assistance is applied at closing.
Other Fort Worth & DFW Down Payment Assistance Programs (2026)
If your house hunt takes you outside Dallas city limits into Tarrant County or neighboring suburbs, several cities and counties run their own local assistance programs. We did not find a county-run down payment assistance program for Dallas County on an official page.
| Program | Max Assistance | Structure & Forgiveness Term | Income & Credit Rules | Price Cap & Key Rules |
|---|---|---|---|---|
| Fort Worth HAP | Up to $25,000 ($1,000 min) | 0% forgivable loan: 5 years if $14,999 or less; 10 years if over $14,999 up to $25,000 | At or below 80% AMI ($88,250 for 4 people); first-time buyer or no ownership in 3 years; 620 minimum credit score | $309,000 existing / $329,000 new (dated June 15, 2024 in April 2026 guidelines — confirm current cap and open status) |
| Tarrant County HAP (Housing Channel) | Up to $50,000 | 0% deferred note forgivable after 10 to 20 years | At or below 80% AMI; first-time buyer (3 yrs); DTI 35%/45% | Tarrant County outside Fort Worth, Arlington, and Grand Prairie, and outside FEMA floodplains; $1,500 buyer investment; status not stated |
| Mesquite DPA | Up to $10,000 (up to 50% of DPA/closing costs) | Deferred forgivable loan with 5-year primary residence rule | At or below 80% AMI; first-time buyer (3 yrs) | Inside Mesquite city limits; 1% buyer contribution; accepting applications first come, first served (guidelines rev. 7/2026) |
| Grand Prairie Buying Power | Up to $7,500 (up to 50% of DPA/closing costs) | Grant (no repayment) | At or below 80% AMI; first-time buyer (3 yrs); DTI at or below 42% | $350,000 price cap; existing homes in Grand Prairie only; $500 buyer investment; subject to funding |
| Irving Homebuyer DPA | Amount not stated on city page | HUD-funded 0% deferred forgivable loan (term not stated) | At or below 80% AMI; no ownership in 3 years | Must use City-approved lender and complete online orientation video + acknowledgment form |
| Garland HFC | $10,000 DPA loan + MCC, OR up to 5% of loan amount | 5% option "may be forgivable" (terms not stated) | MCC + $10,000 option requires first-time buyer; 5% option does not | Income limits, price limits, and current status are not stated on the Garland HFC page |
Fort Worth HAP: How the 5-Year vs. 10-Year Rule Works
Fort Worth's Homebuyer Assistance Program guidelines (revised April 15, 2026) clarify why buyers sometimes see both five-year and ten-year terms mentioned. If your Fort Worth HAP assistance is $14,999 or less, the affordability period is 5 years. If your assistance is over $14,999 up to the $25,000 maximum, the affordability period is 10 years: the first $14,999 is forgiven after year 5, and 20% of the remaining balance above $14,999 is forgiven on each anniversary in years 6 through 10.
Fort Worth requires a 620 minimum credit score, a front-end ratio between 10% and 35%, a back-end DTI up to 45% (with waivers up to 50%), 2 months of reserves, and a buyer contribution of the lesser of $1,000 or 2% (assets above $25,000 must go toward the down payment). For Tarrant County and Fort Worth programs, HUD's FY2026 80% AMI limits for the Fort Worth–Arlington HMFA (median family income $110,300) are $61,800 (1 person), $70,600 (2 people), $79,450 (3 people), and $88,250 (4 people).
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Comparing or Pairing Statewide Programs (TDHCA & TSAHC)
When local city funding runs out, or when your household income or target home price exceeds strict city limits, statewide programs from the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC) are alternatives to compare across Dallas, Collin, Denton, and Tarrant counties.
In some cases, programs can even be layered. For example, according to TSAHC, its No-DPA first mortgage can be combined with city or county down payment assistance programs, and other subsidy programs can be layered on if they meet agency and Lakeview guidelines. Plus, if you are buying north of Dallas in the City of McKinney, the McKinney Housing Finance Corporation offers $5,000 in local gift funds (no repayment required, while funds last, using Collin County limits) that can stack with TDHCA's My First Texas Home program (not available with My Choice Texas Home).
These are the current published limits (TDHCA's took effect July 13, 2026; TSAHC's county tool states no effective date). Limits change yearly, so confirm with a participating lender.
| Statewide Program | Who It Serves | Assistance Amount & Structure | 2026 Dallas / Collin / Denton Income Limit | 2026 Tarrant Income Limit | Purchase Price Limit (Non-Targeted) |
|---|---|---|---|---|---|
| My First Texas Home (TDHCA) | First-time buyers, qualified veterans, or targeted-area buyers (FHA, VA, USDA only; 620+ credit) | 2% to 5% of loan amount as 0% 30-yr deferred repayable second lien (or 3-yr forgivable when paired with MCC Combo, per daily rate sheet) | $121,100 (1–2 people) / $139,265 (3+ people) | $110,300 (1–2 people) / $126,845 (3+ people) | $589,596 ($720,617 in targeted tracts) |
| My Choice Texas Home (TDHCA) | First-time and repeat buyers (FHA, VA, USDA, or HFA conventional; 620+ credit) | 2% to 5% of loan amount as 0% 30-yr deferred repayable or 3-yr forgivable second lien | $205,870 (FHA/VA/USDA); $94,000 or $199,750 (Conventional tiers) | $187,510 (FHA/VA/USDA); $94,000 or $199,750 (Conventional tiers) | No purchase price limit |
| Homes for Texas Heroes (TSAHC) | Full-time public K-12 educators, peace officers, firefighters, EMS, corrections, veterans, allied health/nursing faculty (620+ gov't / 640+ conv.) | 2% to 5% grant (gov't loans) or 3-yr forgivable second lien (all loans); or 4%–5% 30-yr repayable Bond DPA | $205,870 (Non-Bond gov't / conv. over 80% AMFI); $94,000 (conv. at or below 80% AMFI) | $187,510 (Non-Bond gov't / conv. over 80% AMFI); $94,000 (conv. at or below 80% AMFI) | No price limit on Non-Bond DPA without MCC ($589,596 with MCC or Bond DPA) |
| Home Sweet Texas (TSAHC) | All low- and moderate-income buyers, no profession or first-time rule on Non-Bond DPA | Same 2% to 5% grant or 3-yr forgivable second lien options as Heroes | $181,650 (Non-Bond gov't / conv. over 80% AMFI); $94,000 (conv. at or below 80% AMFI) | $165,450 (Non-Bond gov't / conv. over 80% AMFI); $94,000 (conv. at or below 80% AMFI) | No price limit on Non-Bond DPA without MCC ($589,596 with MCC or Bond DPA) |
Both TDHCA and TSAHC also offer a Mortgage Credit Certificate (MCC) for eligible first-time buyers and veterans, which provides a federal income tax credit currently equal to 15% of the mortgage interest you pay each year (with no $2,000 annual cap at the current 15% credit rate, limited to your annual federal tax liability). Interest rates and available assistance tiers on TDHCA and TSAHC loans are set daily by each program, and buyers apply through a participating lender. You can explore our full directory of 58 Texas first-time home buyer grants and programs to see how local and statewide options compare.
Next Steps for Dallas and DFW Homebuyers
Whether you are aiming for up to $60,000 through the Dallas Homebuyer Assistance Program in a High Opportunity Area, applying under the 10-year residency rule for DHAP 10, or comparing Fort Worth and statewide assistance, your first step is checking your numbers before you sign a purchase contract. Our team helps Texas buyers check their eligibility, compare Texas home loan options, and get connected with the right participating lender for their city and income tier.
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