Dallas offers one of the largest city down payment programs in Texas — the Dallas Homebuyer Assistance Program provides up to $60,000 in fully forgivable money in designated areas — on top of the statewide help every Texas buyer can use.
This guide focuses on what first-time buyers in Dallas specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Dallas’s own first-time buyer programs
The Dallas area’s local help comes from the city and the county:
- Dallas Homebuyer Assistance Program (DHAP) — a City of Dallas forgivable second (administered by BCL of Texas as of 2026) of up to $60,000 in designated High Opportunity Areas or up to $50,000 elsewhere in the city; interest-free with no monthly payments, for buyers at or below 80% of area median income (price cap around $342,000)
- Dallas County Upfront Cost Assistance Program (UPCAP) — a deferred second of up to $7,500 for first-time buyers in the county, released after five years of owner-occupancy
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Dallas
On top of Dallas’s local help, every Texas buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to Texas first-time home buyer programs, and the wider local picture in our Texas first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Dallas
The Dallas home price median is around $400,000 — more affordable than coastal metros but rising steadily. That is where DHAP makes a real difference: up to $60,000 in forgivable assistance in a High Opportunity Area can cover the entire down payment and closing costs on a moderately priced home, with nothing to repay if you stay.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Dallas buyers
Most Dallas first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Dallas
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Dallas and Texas program requires one, and it is usually free.
- Find a lender who works with both Dallas and Texas programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Dallas first-time buyer FAQ
What down payment help is available in Dallas?
The headline program is the Dallas Homebuyer Assistance Program (DHAP), a forgivable second of up to $60,000 in designated High Opportunity Areas or up to $50,000 elsewhere in the city, for buyers at or below 80% of area median income. Dallas County separately offers UPCAP, a deferred second of up to $7,500 for first-time buyers. Both require homebuyer education.
Can I combine Dallas city programs with Texas state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a Texas state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our Texas programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Dallas?
DHAP focuses on income eligibility (at or below 80% of area median income) and owner-occupancy within Dallas city limits, while Dallas County’s UPCAP requires first-time buyer status or no ownership in the past three years. Both require HUD-approved homebuyer education, and DHAP applies a purchase-price cap around $342,000. Confirm current terms, as DHAP’s administration recently moved to BCL of Texas.
How does the Dallas Homebuyer Assistance Program (DHAP) work?
DHAP provides up to $60,000 in designated High Opportunity Areas (or up to $50,000 elsewhere in Dallas) as an interest-free forgivable second with no monthly payments, for buyers at or below 80% of area median income. The home must be within Dallas city limits and under roughly a $342,000 price cap. As of 2026 the program is administered by BCL of Texas, so confirm the current amounts and application process with them before you plan around it.