See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 7, 2026
Homebuyer Programs in Midlothian, TX (2026)
Midlothian is one of the fastest-growing cities in Ellis County, located about 25 miles south of Dallas, known for its highly rated schools and new-construction communities. With a median home price around $455,000, Midlothian sits above the Texas state average, reflecting strong demand from families relocating to the area. While Ellis County does not currently offer a county-funded down payment assistance program, buyers here can access several Texas state programs. The SETH 5 Star Texas Advantage Program and TDHCA My First Texas Home each provide up to 5% of the loan amount in down payment and closing cost assistance, which on a Midlothian home could mean over $20,000 in combined state aid. Habitat for Humanity of Ellis County also serves the area with affordable homeownership programs for qualifying families.
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 |
|---|---|---|---|---|
| Habitat for Humanity of Ellis County Homeownership Program | Zero-Interest Loan | Affordable home with zero-interest mortgage sold at no profit | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with zero-interest mortgage sold at no profit
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Texas state programs generally require household income within county-specific limits and a credit score of 620 or higher for TDHCA programs, or 640 for the SETH 5 Star program.
Step 2: Complete homebuyer education. HUD-approved homebuyer education is required for most state programs. The SETH 5 Star program offers a free online course for qualifying applicants.
Step 3: Get pre-approved for a mortgage. Work with a lender participating in the TDHCA or SETH programs to access state-level down payment assistance. Verify that your target home price falls within current acquisition limits for Ellis County.
Step 4: Explore nonprofit homeownership options. Habitat for Humanity of Ellis County, based in Waxahachie, builds affordable homes in the county and offers homeownership programs for qualifying families. Contact them to learn about current opportunities in the Midlothian area.
Step 5: Find a home within program limits. Ensure the property meets any applicable purchase price caps for your chosen programs. State program acquisition limits are updated annually and vary by county.
Step 6: Submit your application and close. Your lender will coordinate state assistance funds at closing. The SETH program provides assistance as a forgivable second loan that is forgiven after 3 years.
Frequently Asked Questions
How much down payment assistance can I get in Midlothian?+−
Do I have to be a first-time homebuyer to qualify?+−
Are Midlothian homes too expensive for assistance programs?+−
What credit score do I need?+−
What homebuyer education is required?+−
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