Can I Combine Down-Payment Assistance with Builder Incentives?

If you're buying a home in East Texas or a growing community near Dallas–Fort Worth, chances are you’ve come across some tempting builder incentives. Maybe they’re offering closing cost credits or interest rate reductions. But if you also qualify for a down-payment assistance program, you might be wondering — can you use both?

The good news is, you usually can. According to Bethany Ashby of easttexaslending.com/home, many buyers are able to stack builder incentives with assistance programs to lower their upfront costs and make monthly payments more manageable.

What Are Builder Incentives?

Builders offer incentives to help sell homes faster, especially in new developments where inventory is high. Common incentives include:

• Closing cost assistance

• Interest rate buydowns

• Design center or upgrade credits

• Appliance packages

These incentives are typically tied to using the builder’s preferred lender or title company. While this setup can be helpful, it's important to understand how it affects your loan terms and whether it fits your financial strategy.

What Is Down-Payment Assistance?

Down-payment assistance (DPA) programs are designed to help eligible buyers with funds for their down payment and sometimes their closing costs. These programs come in several forms:

• Grants that do not need to be repaid

• Deferred or forgivable second loans

• Mortgage credit certificates for long-term tax savings

In Texas, popular options include TSAHC’s Homes for Texas Heroes and TDHCA’s My First Texas Home. Many cities, like Tyler and Dallas, also offer local programs with added benefits.

Can You Use Both Together?

Yes, you can often use builder incentives and down-payment assistance together. The key is coordinating them properly through a lender who understands both types of programs.

Bethany Ashby says the most common approach is to use the builder’s incentives for closing costs or a rate buydown, while the DPA program covers the down payment. This combination reduces your out-of-pocket expense and improves affordability in the early years of homeownership.

Things to Keep in Mind

While combining these programs is possible, you’ll want to:

• Confirm lender participation. Some assistance programs require you to work with approved lenders, which may or may not be the builder’s preferred lender

• Watch your loan limits. Loan type and program guidelines may cap the amount of assistance you can receive

• Get all incentives in writing. This ensures they’re applied at closing and underwritten properly

• Complete homebuyer education. Most DPA programs require a certified course, which can usually be done online

Bethany helps her clients navigate these details so the incentives and assistance work together without delays or surprises.

Final Thoughts

Yes, you can often combine builder incentives with down-payment assistance, and doing so can help you save thousands. Whether you’re a first-time buyer or simply looking to reduce your upfront costs, stacking both types of support can make a big difference.

To find out what’s available in your area and how to qualify, connect with Bethany Ashby at easttexaslending.com/home. She’ll walk you through your options and help you create a plan that maximizes every advantage.

Sources:
TSAHC.org, TDHCA.state.tx.us, City of Dallas, City of Tyler, HUD.gov