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Homebuyer Programs in The Colony, TX (2026)

Last updated April 7, 2026 | Population: 45,454 | Median home price: $450,000 | Est. closing costs: $9,000 - $13,500

Skyline of The Colony, TX

The Colony is a lakeside city in Denton County, Texas, situated on the eastern shore of Lewisville Lake in the DFW metroplex. With a median home price around $450,000, buyers in The Colony can take advantage of several assistance programs. The Denton Affordable Housing Corporation AHOP program offers 10-30% discounts on home purchases throughout Denton County. State programs including the Home Sweet Texas Home Loan Program provide up to 5% of the loan amount as a grant, while Homes for Texas Heroes offers 3-5% grants for teachers and first responders. Habitat for Humanity of Denton County also serves the area with affordable zero-interest homeownership opportunities. By combining county nonprofit and state programs, eligible Colony buyers could access significant assistance toward their home purchase.

Top Homebuyer Programs in The Colony

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
Denton Affordable Housing Corporation AHOP
Type:
Grant
Amount:
10% to 30% discount on home purchase price
First-time only:
Yes
Habitat for Humanity of Denton County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase 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. Most Texas state programs require household income at or below 80% of the area median income for Denton County and a minimum credit score of 620. The Denton Affordable Housing Corporation AHOP has its own income guidelines.

  2. 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 area.

  3. Step 3:

    Explore the Denton Affordable Housing Corporation AHOP. This program offers 10-30% discounts on home purchases throughout Denton County, which can significantly reduce your purchase price.

  4. Step 4:

    Connect with a participating lender. TSAHC and TDHCA state programs are offered through approved lender networks. Ask about the Home Sweet Texas and Homes for Texas Heroes programs for additional assistance.

  5. Step 5:

    Explore nonprofit options. Contact Habitat for Humanity of Denton County at (940) 484-5006 to learn about their affordable homeownership program offering zero-interest mortgages.

  6. 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.

Frequently Asked Questions

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