How stacking works.
Most buyers use one program. Texas buyers who maximize savings layer them — base loan, assistance, credits, concessions, and lender incentives — within rules that vary by loan type.
Concession & assistance limits by loan type
Stacking only works inside the rules. These are the federal/agency caps every Texas buyer should know before negotiating.
Concession caps change by rule-making. Confirm current limits in the FHA Single Family Handbook 4000.1, VA Lenders Handbook, and the Fannie Mae Selling Guide. Last checked August 2026.
| Loan type | Concession cap | Minimum down |
|---|---|---|
| FHA | 6% seller concessions | 3.5% down |
| Conventional (LTV > 90%) | 3% seller concessions | 3–5% down |
| Conventional (LTV 75–90%) | 6% seller concessions | 10%+ down |
| VA | 4% concessions + unlimited closing costs | $0 down |
| USDA | 6% seller concessions | $0 down |
$350,000 home → $25,500 at the closing table
- FHA loan · 3.5% down ($12,250)Base
- TDHCA My First Texas Home grant+ $10,000
- Seller concession (4%, within FHA 6% cap)+ $14,000
- Lender credit at quote stage+ $1,500
Illustrative scenario for educational purposes. Cash total is the sum of the grant, concession, and lender credit; the MCC is an annual federal tax credit (capped at $2,000/yr) rather than money at closing.
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