Dated: November 23 2019

Views: 836


Most people think of Down Payment Assistance as something only available to low income or first time home buyers.  Not any more.   There are a variety of programs that can help with down payment and closing costs.   Some programs are open to buyers with incomes well above the average annual income in the area.  And many programs are grants as opposed to loans.   That meand you never have to pay the funds back.   Other programs may start as a loan that has no interest or payments and "forgives" a percentae of the amount each year until you own nothing...in effect turning into a grant.

Down Payment Assistance

Down Payment Assistance (DPA) is simply money that is used for the combined Mortgage Down Payment and other closing costs when you purchase a loan.   Most of the time, buyers handle much of the application and paperwork with their lender, so it's important that you choose a LOCAL mortgage professional who is familiar with the programs in the area where you want to buy a loan.

National websites can be great places to start on rate comparisons, but often do not ffer the programs, since the loan officer many times must complete a certification to qualify as an approved lender.  It's important to ask any lender you contact whether they offer information on DPA programs in your area.

Your REALTOR® can be a great resource to help you locate programs in your area,  In Texas, you have the right to have an agent represent you as a buyer.  That's a big change from the historical real estate agent's role.  Agents all used to represent only the seller....even if the actual listing was by another agent.  But Texas set down regulations that allow and obligate agents to serve the best interest of their client when the represent the buyer.  (You can see the information from the Texas Real Estate Commission by clicking here:  INFORMATION ABOUT BROKERAGE SERVICES 


Seth Grants are simple to understand.   There are several options that offer grants.   The program is available in Texas, but OUTSIDE of Travis County, or outside the city limits of Grand Prairie or El Paso.

Both programs require you to take a short, simple HOMEBUYER EDUCATION COURSE.   You can click on that title to go there.  There are fees for the course:  $100 for a single borrower, or $60 each when there is more than one person on the loan.  But when you consider that a $200,000 loan may qualify for up to $14,000 in DPA...it's well worth it.  And the information will make you a smarter homebuyer for life.

There are no prepayment penalties of federal recapture taxes for these mortgage loans.

Seth Five Star Advantage Program

The maximum assisstance amount is 5%, based on the final loan amount.  These grants are provided for Conventional loans with no repayent or recapture.  Assistance for Government loans is provided a s Community Second and is completely foriven after 2 years.  There are no monthly payments for the assistance provided with either options.   The program also provides a 30-year fixed rate mortgage.  Options include FHA, VA, USDA and Conventional loans.  This program does have income limits that change each year.  The minimum FICO Score is 640.   The maximum home sales price is $ 484,350.   Details are at 5 Star Texas Advantage Program

Seth Goldstar Program

The GoldStar Program offers even higher levels of assistance (up to 7% of the final loan amount.)  It comes in the form of a 7 or 10-year gorgivable community Second Loan.  It also provides a 30-year fixed rate mortgage paired with an FHA, VA, USDA or Conventional loan.    There is NO first time homebuyer requirement and the minimum FECO score is 600.   Chcck out the program and the income limits at SETH Goldstar Program

What's the Catch?

SETH loans may carry a slightly higher interest rate and that's something to consider.   But with interest rates at the time of this artcle (November 2019) below historic norms, it can be highly beneficial!  Property appreciation on teh home you DON'T own will continue to drive prices up while you continue to pay rent or maintain an older home.

Who Can Help Me Get Connected and Started?

Call me or message me and lets talk about where you want to live and how we can use the programs to help you 

  • Afford a better home
  • Reduce your "out of pocket costs" down payment and closing 
  • Buy your home before prices rise more.

You can use the CONTACT tab under Our RESOURCES at the top of my webpage at Mike4Houses, call me or send me a text at 817-692-5026.   My email address is Mike4Houses@gmail.com.

Blog author image

Michael Dryden

Michael Dryden has helped North Tarrant County families buy and sell homes using the skills developed over more than fifty years of work experience and over 25 years in North Tarrant County. Michael....

Latest Blog Posts


70% OF BUYERS MISS OUT ON DOWN PAYMENT ASSISTANCEMost people think of Down Payment Assistance as something only available to low income or first time home buyers.  Not any more.   

Read More

With First-Time Buyers Starving for Homes, Feed Them and Live The Life You Want

ShareWith every problem comes an opportunity and today's market is a unique opportunity for homeowners with long tenure and high equity in their existing home. Fort Worth, Keller, Saginaw, Watauga,

Read More

Start Your Home Search

5 Tips for Starting Your Home SearchIn today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you

Read More

Reasons This is NOT the 2008 Real Estate Market

3 Reasons This is NOT the 2008 Real Estate MarketNo one knows for sure when the next recession will occur. What is known, however, is that the upcoming economic slowdown will not be caused by a

Read More