Overview
Dallas is the pricier of the big Texas metros for a first-time buyer, but the local assistance is also the deepest. The MetroTex Association of REALTORS reported a Dallas County median sale price of $359,460 for September 2026, down 0.7% from a year earlier, with 4.6 months of inventory and homes taking 54 days to sell. About a quarter of county sales closed between $200,000 and $299,999, which is the band most assisted buyers shop in. The city's main program caps the purchase price at $342,000, and in practice that steers buyers to Oak Cliff, Pleasant Grove, far East and West Dallas and the southern half of the city, where most sub-cap single-family homes and condos sit.
The Dallas Homebuyer Assistance Program (DHAP) is the workhorse: up to $50,000, or $60,000 in designated High Opportunity Areas, as a 0% deferred second lien that is forgiven in annual increments. Awards under $15,000 carry a five-year affordability period, $15,000 to $40,000 ten years, and anything above that fifteen. You need household income at or below 80% of AMI ($96,900 for a family of four under the June 1, 2026 limits), a $1,000 minimum cash investment, an eight-hour HUD-approved class taken within the last 12 months, and a mortgage from a DHAP-approved lender. DHAP does not require you to be a first-time buyer, but you must owner-occupy as your homestead. Since May 1, 2026 the program is run by BCL of Texas, not City Hall. Two extensions matter: the Anti-Displacement track pays up to $50,000 to buyers earning 50% to 120% of AMI who have lived in Dallas at least ten years, with no price cap; the Targeted Occupations track for teachers, nurses, police and firefighters has spent all of its money. Dallas County's Home Loan Counseling Center runs an Upfront Cost Assistance Program worth up to $15,000 anywhere in the county, with terms you have to get by phone.
Local Programs in Dallas
Dallas Homebuyer Assistance Program (DHAP)
Open, subject to funding ('first come, first served' and 'subject to availability of funds'); neither the city nor BCL posts a current funds-remaining figure. No first-time buyer rule, but you must owner-occupy as your homestead. Maximum sales price $342,000 for existing and new homes on contracts written on or after Sept 1, 2024 (the 2024-25 manual lists $273,000 for new construction; the city page lists $342,000 for both), and the home must appraise for at least the contract price. Minimum $1,000 buyer cash investment; 8-hour HUD-approved class from a DHAP provider within 12 months of applying; mortgage must come from a DHAP-approved lender (list dated Sept 2026); housing payment capped at 35% of gross monthly income; liquid assets above $10,000 must go into the purchase first; no ARMs, interest-only, high-cost loans, borrower-paid discount points or cash back; lender must escrow taxes and insurance; six months of continuous employment; U.S. citizen, permanent resident or eligible immigration status. Process: Readiness Check, intake application, Eligibility Determination Session, home review (city inspection and environmental review), closing. Contact dhap@bcloftexas.org, (214) 919-1866.
DHAP Anti-Displacement Homebuyer Assistance
Applicant must currently live in the City of Dallas and have lived there at least 10 years. No sales price limit (the lender sets the price from qualifying income and credit), but the housing payment may not exceed 35% of gross monthly income. All other DHAP terms apply (approved lender, $1,000 investment, 8-hour class, homestead occupancy).
DHAP Targeted Occupations (Targeted Homebuyer Incentive Program)
CLOSED: the city states that all funding for this extension has been expended. It served education and library, healthcare practitioner, healthcare support and protective-service workers (including police and firefighters) with no sales price limit. Listed here so readers know it is not currently available.
Upfront Cost Assistance Program (UPCAP)
The county page gives only the $15,000 maximum, the Dallas County service area and HLCC's HUD-approved counseling and education services. Funding status, first-time buyer rules (historically required for HLCC's HOME-funded assistance), buyer contribution, price caps and lender requirements must be confirmed with HLCC at (214) 819-6060 or HLCC@dallascounty.org. HLCC also runs a Section 8 Homeownership voucher program for Dallas County Housing Choice Voucher holders.
Stacking With Texas Programs
DHAP sits behind a conventional, FHA, VA or portfolio first mortgage, so a TDHCA My First Texas Home or TSAHC first loan (see the Texas page) can be the base as long as the loan officer is also on the DHAP-approved lender list. Because DHAP is HOME-funded, the city sizes its award to the remaining gap after any state DPA, requires the lender to escrow taxes and insurance, and bars ARMs, interest-only loans, borrower-paid discount points and cash back. Carrying both a state DPA lien and the DHAP lien is allowed in principle but depends on the first-mortgage product's combined-loan-to-value rules, so ask the lender before you write an offer.
Full details, income limits, and the federal FHA, VA, and USDA options are on the Texas first-time homebuyer programs guide. When you know what you qualify for, compare the best mortgage lenders for first-time buyers and confirm the lender is approved for the program you plan to use.
Tips for First-Time Buyers in Dallas
Stacking: DHAP sits behind a conventional, FHA, VA or portfolio first mortgage, so a TSAHC or TDHCA first loan (see our Texas page) can be the base as long as that lender is also DHAP-approved. The lender must escrow taxes and insurance, and DHAP bars adjustable-rate loans, interest-only loans, borrower-paid discount points and cash back at closing. Because DHAP is HOME-funded, the city will size its award to the remaining gap after any state DPA, and the home must appraise for at least the contract price.
The process has five steps: a Readiness Check, an intake application, an Eligibility Determination Session, a home review (city inspection against Minimum Housing Standards plus an environmental review), and closing. BCL says it does an initial review within 24 to 48 hours, but the home review is where timelines stretch, so tell your seller up front that you are using DHAP and ask for a longer option period. Your housing payment cannot exceed 35% of gross monthly income, and liquid assets above $10,000 must go into the purchase before HOME funds do. Funding is first-come, first-served and tied to the city's annual budget, so apply early in the fiscal year.
Dallas rewards preparation. Take the class, get pre-approved with a lender on the DHAP list, and search below $342,000 from the start. Done in that order, $50,000 to $60,000 of forgivable money is a realistic path from renting to owning here, as long as you plan to stay long enough for the lien to disappear.
Frequently Asked Questions
Sources
- City of Dallas - Dallas Homebuyer Assistance Program (DHAP)
- BCL of Texas - DHAP program page (2026 income limits, approved lenders)
- City of Dallas - DHAP Manual 2024-2025 (rev. Nov 2024)
- Dallas County Health and Human Services - Home Loan Counseling Center (UPCAP)
- Dallas County Housing Finance Corporation (no homebuyer DPA listed)
- MetroTex Association of REALTORS - Dallas County Housing Report, September 2026
For educational purposes only -- not financial or tax advice. Program details, funding availability, income limits, and benefit amounts change, often mid-year. Verify everything with the administering agency before you apply. Median home price: MetroTex Association of REALTORS, Dallas County Housing Report, September 2026 (county-level median; MetroTex does not publish a City of Dallas figure), https://www.mymetrotex.com/wp-content/uploads/2026/10/Dallas-County_Housing-Report_September-2026.png. Last verified: October 29, 2026.