See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026
Homebuyer Programs in Denton, TX (2026)
Denton is a vibrant university city of nearly 160,000 residents in Denton County, located in the northern Dallas-Fort Worth metroplex and home to the University of North Texas and Texas Woman's University. With a median home price around $370,000, Denton stands out for having one of the most generous city-level down payment assistance programs in Texas: the City of Denton Homebuyer Assistance Program provides up to $50,000 as a zero-interest forgivable loan for down payment and closing costs. The Denton Affordable Housing Corporation also offers its AHOP program, which sells rehabilitated homes at 10% to 30% below market value throughout Denton County. At the state level, the My First Texas Home program and the Home Sweet Texas Home Loan Program each offer up to 5% of the loan amount in additional assistance. By combining the city program with state DPA, eligible Denton buyers could stack well over $60,000 in total assistance toward their home purchase.
City Programs in Denton
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Denton Homebuyer Assistance Program | Forgivable Loan | Up to $50,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $50,000
- First-time only:
- Yes
State Programs in Texas
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Home Sweet Texas Home Loan Program | Grant | 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien | No | View → |
| Homes for Texas Heroes Program | Grant | Up to 5% of the loan amount (between 3% and 5%) | No | View → |
| My First Texas Home | Forgivable Loan | Up to 5% of the first lien mortgage amount | Yes | View → |
| SETH 5 Star Texas Advantage Program | Forgivable Loan | Up to 5% of the loan amount | No | View → |
- Type:
- Grant
- Amount:
- 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the loan amount (between 3% and 5%)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the first lien mortgage amount
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the loan amount
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| DAHC Homebuyer Assistance Loans Program | Deferred Loan | Up to half of down payment and closing costs; gap financing available for very low-income buyers | Yes | View → |
| Denton Affordable Housing Corporation AHOP | Grant | 10% to 30% discount on home purchase price | Yes | View → |
| Habitat for Humanity of Denton County Homeownership Program | Zero-Interest Loan | Affordable home purchase with zero-interest mortgage sold at no profit | No | View → |
- Type:
- Deferred Loan
- Amount:
- Up to half of down payment and closing costs; gap financing available for very low-income buyers
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- 10% to 30% discount on home purchase price
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage sold at no profit
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The City of Denton Homebuyer Assistance Program requires household income at or below 80% of the Area Median Income, liquid assets under $20,000 (excluding retirement accounts), and first-time buyer status (no homeownership in the past 3 years). You must also contribute at least 1.75% of the sales price and have one month of mortgage payments in cash reserves.
Step 2: Complete homebuyer education. A HUD-approved homebuyer education course is required. Approved providers include BCL of Texas at 214-688-7456, Housing Channel at 817-924-5091, and online options through Homebuyer Funds and MGIC Investment Corporation.
Step 3: Get pre-approved through a participating lender. The City of Denton maintains a list of participating lenders on their website. If you also plan to use state programs like My First Texas Home, you'll need a TSAHC-approved or TDHCA-approved lender.
Step 4: Contact the City of Denton Community Development Division at (940) 349-7726 to begin your application. Ask about both Option 1 (up to $14,900 with 5-year forgiveness) and Option 2 (up to $50,000 with 15-year forgiveness) to determine which best fits your situation.
Step 5: Also contact the Denton Affordable Housing Corporation at (940) 484-7048 to ask about AHOP homes available for purchase at 10-30% below market value throughout Denton County.
Step 6: Find a home within program guidelines. For the city program, the property must be within Denton city limits and can be an existing or newly constructed single-family home, condo, or townhouse. Submit your application and coordinate with your lender to stack city and state assistance.
Frequently Asked Questions
How much down payment assistance can I get in Denton?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can purchase?+−
What homebuyer education is required?+−
What is the DAHC AHOP program and how is it different?+−
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