See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 7, 2026
Homebuyer Programs in Sherman, TX (2026)
Sherman is the county seat of Grayson County, Texas, located about 65 miles north of Dallas near the Oklahoma border. With a median home price around $324,000, Sherman offers affordable homeownership in the Texoma region. While Sherman does not currently have a city-funded down payment assistance program, buyers here can take advantage of strong state programs including the Home Sweet Texas Home Loan Program offering up to 5% of the loan amount as a grant, the Homes for Texas Heroes Program providing 3-5% grants for teachers and first responders, and My First Texas Home with up to 5% in forgivable down payment assistance. The Habitat for Humanity of Grayson County also serves the area with affordable zero-interest homeownership opportunities. By stacking multiple state programs, eligible Sherman buyers could receive significant assistance toward their down payment and closing costs.
State Programs in Texas
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Home Sweet Texas Home Loan Program | Grant | Up to 5% of the total loan amount | 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:
- Up to 5% of the total loan amount
- 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 Grayson 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. Most Texas state programs require household income at or below 80% of the area median income for the Sherman-Denison MSA. My First Texas Home sets income limits of $98,800-$138,320 depending on household size, with purchase price limits up to $544,232-$665,173 for the area. Minimum credit scores range from 620-640.
Step 2: Complete homebuyer education. All major Texas state DPA programs require an approved homebuyer education course. Contact a HUD-approved housing counseling agency by calling (800) 569-4287 to find courses in the Sherman area.
Step 3: Connect with a participating lender. TSAHC and TDHCA programs are offered through approved lender networks. Ask your lender which programs you qualify for and whether you can combine multiple sources of assistance.
Step 4: Check your eligibility for Homes for Texas Heroes. If you work as a teacher, police officer, firefighter, EMS personnel, corrections officer, or are a veteran, you may qualify for 3-5% of your loan amount as a grant through this TSAHC program.
Step 5: Explore nonprofit options. Contact Habitat for Humanity of Grayson County at (903) 893-0009 or visit 901 N. Grand Ave, Sherman, TX 75091 to learn about their affordable homeownership program offering zero-interest mortgages.
Step 6: Get pre-approved and find a home. Work with your lender to determine your maximum purchase price including all DPA funds. Processing times vary, so plan for 30-60 days from application to closing.