The average 30-year mortgage rate touched 7.4% this past week — the highest it’s been since November 2023, and the seventh straight weekly increase. If that headline made you want to pause your home search, I get it. But here’s what that headline leaves out: San Antonio still has real, dollar-for-dollar help available for buyers who put little or nothing down, and most of it has nothing to do with your credit being perfect or your income being high.
I’m going to walk through five programs that are either active right now or expected to reopen soon, exactly what they’re worth in dollars, and who actually qualifies. No jargon, no fine print buried on page nine — just what you need to know before you decide the rate alone makes this the wrong year to buy.
Why this matters right now: San Antonio’s own numbers tell a more balanced story than the national rate headline. As of June 2026, SABOR reported 6.13 months of housing supply, homes averaging 77 days on market, and a median sale price of $329,730 (up 4% year over year). Translation: inventory has loosened up, and sellers are negotiating more than they were a year ago. Pairing that with the right down payment program can matter more than the rate itself.
My First Texas Home
A below-market interest rate paired with up to 5% in down payment assistance, for first-time buyers only. On a $290,000 home, that’s roughly $10,000 to $14,000 in upfront help.
- 620+ credit score
- First-time buyer under the 3-year rule (haven’t owned a home in the last 3 years)
- Household income within program limits
- Completion of a homebuyer education course
Funding is bond-based, meaning it can pause when the current round of money runs out — so timing matters.
Home Sweet Texas
Run by the Texas State Affordable Housing Corporation, this one is open to all buyers, not just first-timers. It offers up to 5% of your loan amount as either a grant you never repay, or a 0% second lien that’s forgivable.
- 620+ credit score
- Household income within limits — in Bexar County, typically around $95,000–$125,000 depending on household size
- Homebuyer education course required
Homes for Texas Heroes
Same structure and dollar amounts as Home Sweet Texas above, but reserved for teachers, nurses, police officers, firefighters, corrections officers, EMS personnel, and veterans. It does not require first-time buyer status, which makes it one of the few programs move-up buyers in those professions can still use.
SETH 5-Star
Open to any qualifying buyer, this program provides up to 5% of your loan as a deferred second lien — you repay it only when you sell, refinance, or pay off the home.
- 620+ credit score
- Household income within program limits
- Homebuyer education course required
Loans paired with this DPA sometimes carry a rate 0.25%–0.50% higher than a loan with no assistance attached — worth comparing against the cash you’d otherwise need upfront.
Homebuyer Incentive Program (HIP) – PAUSED
The City’s own down payment program is the most generous on this list when it’s funded — and it’s worth watching, because it may reopen as soon as October 2026 pending City Council renewal.
- HIP 80: Up to $30,000 at 0% interest, forgivable over 5–10 years of owner-occupancy, for households at or below 80% of Area Median Income. Home price caps: $263,000 (existing homes) / $278,000 (new construction).
- HIP 120: Up to $15,000 at 0% interest with no monthly payments, for households at or below 120% of Area Median Income.
If you’re close to qualifying, this is a program worth getting pre-positioned for now, so you can move fast if funding reopens.
A note for military and veteran buyers
If you’re using a VA loan, you’re already starting at 0% down with no PMI — so several of the programs above are less relevant to you. What matters more is the VA funding fee, and whether you qualify to have it waived entirely. Any service-connected disability rating, from 0% to 100%, can qualify you for a $0 funding fee as long as you’re receiving compensation — that’s a savings of roughly $7,525 on a $350,000 purchase at 0% down. We’re covering that in detail this week; book a consult below and we’ll walk through your specific numbers.
San Antonio’s market snapshot (June 2026, SABOR)
| Metric | June 2026 | Year-over-year |
|---|---|---|
| Median sale price | $329,730 | +4% |
| Average days on market | 77 days | +1% |
| Months of housing supply | 6.13 months | — |
| Homes sold | 3,479 | +15% |
| Active listings | 17,409 | +5% |
| Avg. sale price vs. original list price | 93.8% | — |
Starter homes under $300,000 near Joint Base San Antonio and the South Side are still moving quickly — often 25–35 days with competing offers — while homes above $400,000 on the far North Side are sitting longer, closer to 90+ days, with more room to negotiate. Where you’re looking matters as much as the rate you’re locking.
Sources: San Antonio Board of Realtors (SABOR) June 2026 MLS report; Trading Economics 30-year mortgage rate data (week of October 8, 2026); Texas State Affordable Housing Corporation (TSAHC) program guidelines; VA.gov funding fee schedule. Program dollar amounts, income limits, and funding status change throughout the year — confirm current details with your lender and 1st Home Texas before relying on any figure above for a specific purchase.
Frequently Asked Questions
Usually not more than one DPA program on the same loan, but you can often pair a single DPA program with a separate closing-cost credit from your builder or seller. We’ll map out the best combination for your specific loan type during your consult.
Most of the programs above can be paired with FHA, conventional, or VA loans, though the specific pairing affects your rate and monthly payment. The lender administering the program will confirm which combination fits your situation.
Most of the active statewide programs set 620 as the minimum. The City of San Antonio’s HIP programs, when funded, have historically accepted scores as low as 580. If your score is still building, we can talk through a realistic timeline to get there.
Not usually. A grant or forgivable second lien reduces the cash you need at closing, which is a separate problem from your monthly rate. For many buyers, the bigger obstacle right now is having enough saved for closing — these programs solve that specific problem even while rates sit near 7%.
Down payment assistance has to be applied before or at closing — it can’t be used retroactively. That’s why it’s worth getting pre-qualified now, so you’re ready to move the moment funding reopens rather than waiting and missing the window.
