How to Stack FHA With Texas Down Payment Assistance—and Close Sooner

Last updated: October 2025

Quick Answer

Yes, you can combine an FHA loan with Texas down payment assistance (DPA) programs. These programs help cover your 3.5% minimum down payment or closing costs.

Salute Mortgage simplifies the process by helping you layer local grants and deferred-payment loans with FHA approval—without delaying your closing timeline.

Apply for your FHA loan with Salute Mortgage.

Why combine FHA loans with Texas down payment assistance

FHA loans already require low down payments, but even 3.5% can be a barrier for first-time buyers. Down payment assistance (DPA) programs in Texas help cover that cost, often with grants or forgivable loans.

When stacked correctly, DPA programs:

• Cover all or part of your 3.5% FHA down payment
• May help with closing costs
• Don’t require repayment if you meet terms
• Are available to both first-time and repeat buyers

Texas offers some of the most buyer-friendly programs in the country, and Salute Mortgage knows how to layer them with FHA loans for maximum benefit.

What are the top Texas DPA programs compatible with FHA

Several statewide and local assistance programs work directly with FHA loans.

1. Texas State Affordable Housing Corporation (TSAHC)

• 3%–5% assistance available as a grant or deferred loan
• No first-time buyer requirement for eligible professions
• Minimum credit score: 620
• Income and home price limits apply by county

2. Texas Department of Housing and Community Affairs (TDHCA)

• My First Texas Home and My Choice Texas Home programs
• FHA-compatible DPA with up to 5% assistance
• Options for first-time and repeat buyers
• Requires completion of homebuyer education

3. Local and city-specific programs (Houston, Dallas, San Antonio, El Paso)

• May offer grants or second liens
• Often stackable with statewide programs
• Limited funding windows—Salute monitors availability

Each program has its own structure, income limits, and timelines. Salute Mortgage helps you match with the right program based on your county, income, and credit profile.

How FHA loan structure supports down payment layering

FHA loans require a minimum 3.5% down payment, calculated based on the lesser of the purchase price or the appraised value. That amount can come from:

• Your own savings
• A gift from a relative
• Employer assistance
• Or a qualified DPA program

Texas DPA programs work well with FHA because:

• FHA allows gifted and third-party assistance
• DPA funds can be used for closing costs or a down payment
• Lenders like Salute handle DPA disbursement coordination

Salute ensures your FHA approval and DPA funds are timed correctly, avoiding common underwriting or closing delays.

How Salute Mortgage fast-tracks FHA and DPA approvals

Many lenders struggle with DPA because it adds layers of paperwork and third-party timelines. Salute Mortgage has built a process to streamline that from day one.

Here’s how Salute supports you:

• Starts with FHA pre-approval, including DPA eligibility check
• Confirms DPA program limits and timing in your specific area
• Submits DPA documents early in the loan process
• Coordinates with housing agencies to ensure fast fund disbursement
• Communicates with real estate agents to align contract dates with funding timelines

You won’t be left wondering if your DPA will arrive on time or if your contract needs to be extended. Salute handles every step.

What documentation do you need for FHA + DPA

To qualify for most DPA programs layered with FHA, you’ll need:

• Completed loan application and credit report
• FHA pre-approval with Salute
• Signed homebuyer education certificate
• Income documentation (W-2s, pay stubs, tax returns)
• Executed purchase contract (before DPA reservation in many cases)

Some programs require mortgage credit certificate (MCC) applications, which provide an annual tax credit for first-time buyers. Salute can help determine if an MCC is beneficial in your case.

Will combining FHA with DPA delay your closing

Not when managed properly. DPA can delay your closing if you or your lender waits too long to submit documents. Salute Mortgage starts this process early to avoid bottlenecks.

In most cases:

• Closing can still happen in 30 days or less
• Delays are avoided with early reservation of DPA funds
• You can shop confidently with a pre-approval that includes assistance

Working with an experienced FHA + DPA lender is critical. Salute has the internal systems and housing agency partnerships to keep your timeline on track.

Can DPA cover more than just the down payment

Yes. Most Texas DPA programs allow funds to be used for:

• Closing costs (title fees, lender fees, escrows)
• Prepaid items (taxes, insurance, interest)
• Rate buydown points in some cases

This means you may be able to bring little or no money to closing. In many Salute cases, FHA + DPA buyers close with less than $1,000 in out-of-pocket costs.

Can you use DPA again if you’ve owned before?

Yes. Many Texas programs are not limited to first-time buyers. You can often qualify if:

• You haven’t owned a home in the past 3 years
• You’re buying in a targeted area
• You are a veteran or public service professional
• You meet income and credit guidelines

Salute Mortgage verifies your eligibility for first-time or repeat-buyer options across all available DPA platforms.

Start strong with FHA and assistance

Stacking an FHA loan with Texas down payment assistance lets you move forward even if your savings are limited. You don’t need 20% down or perfect credit.

With expert guidance from Salute Mortgage, you can close on your new Texas home confidently, and sooner than you thought possible.

Start your FHA + DPA loan application now.