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Homebuyer Programs in Midlothian, TX (2026)

Last updated April 7, 2026 | Population: 39,356 | Median home price: $455,000 | Est. closing costs: $9,000 - $13,500

Skyline of Midlothian, TX

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.

Top Homebuyer Programs in Midlothian

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 Ellis County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home with zero-interest mortgage sold at no profit
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. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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

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