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Allen, TX First-Time Homebuyer Programs & Down Payment Assistance (2025)

Population: 115,500 | Median home price: $515,000 | Est. closing costs: $10,500 - $15,500

Skyline of Allen, TX

Allen is a fast-growing city in Collin County, north of Dallas, known for its excellent schools and family-friendly neighborhoods. With a median home price around $515,000, buying here is a significant investment, but several assistance programs can help reduce upfront costs.

While the City of Allen does not currently offer its own down payment assistance program, Texas residents benefit from strong statewide programs administered by the Texas Department of Housing and Community Affairs (TDHCA). Programs like My First Texas Home and Home Sweet Texas offer below-market interest rates with up to 5% of the loan amount in down payment and closing cost assistance.

Collin County residents also have access to Habitat for Humanity of Collin County for affordable homeownership opportunities, and the NDBT HomeStart Program provides a $2,500 closing cost credit for qualifying buyers purchasing in the North Dallas area. Combined with federal options like FHA and VA loans, Allen homebuyers have multiple paths to make their purchase more affordable.

Top Homebuyer Programs in Allen

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Habitat for Humanity of Collin County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase at no profit with 0% interest mortgage
First-time only:
No
NDBT HomeStart Program
Type:
Grant
Amount:
$2,500 closing cost credit plus no PMI
First-time only:
No
Home Sweet Texas Home Loan Program
Type:
Grant
Amount:
Up to 5% of the total loan amount
First-time only:
No
Homes for Texas Heroes Program
Type:
Grant
Amount:
Up to 5% of the loan amount (between 3% and 5%)
First-time only:
No
My First Texas Home
Type:
Forgivable Loan
Amount:
Up to 5% of the first lien mortgage amount
First-time only:
Yes
SETH 5 Star Texas Advantage Program
Type:
Forgivable Loan
Amount:
Up to 5% of the loan amount
First-time only:
No

How to Apply

  1. Step 1:

    Check your eligibility for Texas statewide programs by visiting the TDHCA website at tdhca.texas.gov. Income limits, purchase price caps, and first-time buyer requirements vary by program.

  2. Step 2:

    Contact a TDHCA-approved lender to get pre-qualified. These lenders are specifically trained on state assistance programs and can help you determine which option fits your financial situation.

  3. Step 3:

    Explore the NDBT HomeStart Program by visiting ndbt.com or contacting a participating loan officer. This program offers a $2,500 closing cost credit for eligible buyers.

  4. Step 4:

    If you are interested in affordable homeownership through Habitat for Humanity of Collin County, visit their website at habitatcollincounty.org to learn about their application process and requirements.

  5. Step 5:

    Compare all available options including FHA, VA, and USDA loans. A HUD-approved housing counselor can help you navigate the full range of programs. Find one at hud.gov or call 800-569-4287.

Frequently Asked Questions

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