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Professional headshot of LaShelle Rauseo, a Texas Loan Officer specializing in first-time homebuyers, standing beside a red and white 'Home For Sale' sign in front of a modern beige house. The image has a vibrant, sunny feel, highlighting homeownership opportunities.
down payment assistance mortgage grants Forgivable Loan

The San Antonio Homeownership Cheat Code: Down Payment Assistance

LaShelle Rauseo |
What's up, San Antonio? It's LaShelle Rauseo, and if you're like most first-time homebuyers, you're probably thinking, "Down payment? Closing costs? Is my bank account running a marathon I can't finish?!"

The cost of entry is often the biggest hurdle, but here's the truth: You don't have to tackle it alone. As a mortgage expert who has coached countless homebuyers—some going from "not ready" to pre-qualified in 1-6 months thanks to their dedication and a solid plan—I'm here to give you the blueprint.

Let's dive into the San Antonio assistance programs that can turn your homeownership dream into a "keys-in-hand" reality!

 

Part 1: How Does a "Grant" Actually Work in a Home Purchase?

 

Forget what you think you know about "free money"—it's not a lottery win, it's smarter than that!

  • The Big Picture: Not All "Grants" Are Created Equal

    • True Grants: This is the best-case scenario—financial assistance that is an outright gift and does not need to be repaid. This is often used for down payment or closing costs.

    • Forgivable Loans (The Sneaky Good One): Many programs, especially at the local level, are structured as a 0% interest second lien loan.

      • The trick? If you live in the home for a set number of years (e.g., 5 or 10 years), the loan is fully or partially forgiven. You build equity without the monthly payment burden!

    • Repayable Second Mortgages: This is a low-interest loan (also called a second mortgage) that is paid back over time, usually in 10 to 20 years. It helps cover upfront costs and keeps your total cash-to-close low.

  • The Bottom Line: These programs are typically combined with a standard first-lien mortgage (like an FHA, VA, or Conventional loan). The assistance funds are sent directly to your lender or the title company to cover the down payment and/or closing costs, taking the massive financial weight off your shoulders.

 

Part 2: San Antonio's Down Payment & Closing Cost Power-Ups

 

San Antonio has some major players in the down payment assistance (DPA) game. Here are the must-know programs for first-time homebuyers (generally defined as not having owned a home in the last three years):

Program Name Assistance Amount Funding Source/Type Minimum Qualifications Eligible Zip Codes/Area
City of San Antonio HIP 80 $1,000–$30,000 Federal Grant Funds / 0% interest, forgivable loan * Income: Must be  of Area Median Income (AMI). * Homebuyer Ed: Must complete a HUD-approved course. * Deposit: Minimum $500 earnest money deposit required. Must purchase a home within San Antonio city limits.
City of San Antonio HIP 120 **$1,000–$15,000** Federal Grant Funds / 0% interest, 75% forgivable loan * Income: Must be between  of AMI. * Homebuyer Ed: Must complete a HUD-approved course. * Deposit: Minimum $500 earnest money deposit required. Must purchase a home within San Antonio city limits.
Neighborhood Housing Services of SA (NHSSA) Up to $20,000 Non-profit / Second mortgage (repayable over time) * Credit Score: Minimum 580. * Homebuyer Ed: Must complete a HUD-approved course. * Financing: Must obtain a first-lien mortgage through a participating lender. Homes in Bexar County and surrounding counties (Comal, Kendall, Bandera, Medina, Atascosa, Wilson, & Guadalupe).
TSAHC Programs (Home Sweet Home Loan) Up to 5% of Loan Amount Texas State Affordable Housing Corporation (TSAHC) / Grant or zero-interest second mortgage * Credit Score: Minimum 620. * Homebuyer Ed: Must complete an approved course before closing. * Financing: Must qualify for a first-lien residential mortgage through a qualified lender. Available Statewide (including San Antonio Area).
 

🔥 LaShelle's Hot Take on Why This Matters Now:

  • These programs can often be stacked or combined with a first mortgage (FHA, VA, Conventional) to cover 100% of your down payment and closing costs!

  • The market is still competitive, but an efficient, pre-approved buyer with a down payment plan (like you, soon!) is a seller's dream. Leveraging this assistance makes your offer stronger. 

  • I am connected to the major builders in San Antonio to make sure you get "white glove" treatment.

 

🎯 Area Median Income (AMI): The Key to Unlocking Your Grant

 

Area Median Income (AMI) is the annual household income midpoint for a metropolitan area, as set by HUD, and it's the primary qualifier for San Antonio's grant programs. Programs define eligibility based on a percentage of this AMI (like less than or equal to 80% or less than or equal to 120%), which is adjusted for your household size. To see the exact income limits for the San Antonio area, you can reference the official chart here: City of San Antonio AMI Chart.

Ready to Stop Scrolling and Start Owning?

 

Listen, if you’re trying to figure out if you fit into the  box or the  bracket, you’re in the right place, but you're doing it backward!

The only way to cut through the noise and get a real, actionable plan is to work with an expert who can look at your unique financial picture and guarantee you’re accessing every dollar you’ve earned.

I specialize in both first-time buyers and reverse mortgages, so I know the whole journey of homeownership. I have successfully coached countless first-time homebuyers to be pre-qualified in as little as 1 to 6 months, depending on their unique situation and commitment.

Your Home in 2026 Starts with a Click Today.

Don't wait until 2026 to figure out your path—let's build your comprehensive plan right now!

➡️ Ready to get off the sidelines? Click Apply Now at www.lashelleloans.com to start your pre-qualification process and lock in your homeownership plan for 2026!

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