Free educational tools for Texas home buyers · Identify federal, state, and local homeownership assistance programs you may qualify for. Educational information only - not a loan offer or guarantee of eligibility.
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Homeownership Incentive Program (HIP)

City of San Antonio offers up to $30,000 in down payment and closing cost assistance through 0% interest loans.

AssistanceUp to $30,000

Overview

Homeownership Incentive Program (HIP) is a local program that provides up to $30,000 in assistance for qualifying Texas buyers. City of San Antonio offers up to $30,000 in down payment and closing cost assistance through 0% interest loans.

How it works

  • The program provides assistance toward your down payment, closing costs, or rate buydown - depending on the option you choose at application.
  • Funds are reserved with your lender at the time you go under contract and disbursed at closing through the title company.
  • Most assistance is structured as a grant (never repaid) or a forgivable second lien (forgiven after a 5-10 year owner-occupancy period).

Application process

  1. 1
    Take a HUD-approved homebuyer education course
    Required by nearly every Texas assistance program. Free or low-cost online. The certificate is good for two years.
  2. 2
    Get pre-qualified with a participating lender
    Not every lender is approved for Homeownership Incentive Program (HIP). Ask directly: "Are you an approved lender for Homeownership Incentive Program (HIP)?" before submitting documents.
  3. 3
    Confirm income, price, and area limits
    Limits are set by household size and county. Have recent pay stubs, W-2s, and tax returns ready so the lender can verify in writing.
  4. 4
    Submit a complete loan + program application
    Your lender packages the underlying mortgage application and the program reservation together. Funding is first-come, first-served.
  5. 5
    Lock your funds and proceed to closing
    Once reserved, the assistance is held for a fixed window (typically 60-90 days). Coordinate the inspection, appraisal, and closing inside that window.

Eligibility at a glance

  • ✓Texas buyer purchasing a primary residence
  • ✓Household income within published program limits for your county and family size
  • ✓Purchase price within program limits
  • ✓Completion of a HUD-approved homebuyer education course

Frequently asked questions

Does Homeownership Incentive Program (HIP) require me to be a first-time buyer?▾

Some programs are first-time-buyer only (no ownership in the prior 3 years); others serve repeat buyers within income limits. Confirm the rule with your approved lender before applying.

Can I combine this with other Texas programs?▾

In most cases, yes - one statewide program plus a local city/county program and an MCC tax credit is a common stack. State programs (TDHCA and TSAHC) usually cannot be combined with each other on the same loan.

Is this a grant I never repay, or a second loan?▾

It depends on the program and the option you choose. Many Texas programs offer a grant (never repaid) or a forgivable second lien (forgiven after 5-10 years of owner occupancy). Selling or moving early may trigger partial repayment.

How long does the application take?▾

From lender pre-qualification to closing, typical timelines are 30-60 days when documents are complete. Program reservation must stay active through closing.

Will using this program raise my interest rate?▾

Some assistance programs use a slightly higher base rate to fund the assistance. Compare the total cost with and without the program over your expected holding period before deciding.

Official source

Program administrator. Program details, income limits, and funding availability change. Always confirm current rules at the official program site before applying.

https://www.sa.gov/Directory/Departments/NHSD/Housing-Support/Homeowner-Support/HIP ↗