The FHLB HELP Grant: $25,000 Toward Your Down Payment in Dallas (2026)

What Is the FHLB HELP Grant and How Does It Work for Dallas Buyers?

The Federal Home Loan Bank of Dallas (FHLB Dallas) offers a down payment grant of up to $25,000 for first-time homebuyers in Texas through its Homebuyer Equity Leverage Partnership (HELP) program. To qualify, your household income must be at or below 80% of the area median income for your area (roughly $96,880 for a family of four in the Dallas metro in 2026), and you must apply through a participating FHLB Dallas member institution. FHLB Dallas committed $17 million to the program in 2026, and as of early September 2026, less than $4 million remained.

By Paul Blair | October 27, 2026

There's $25,000 sitting in a federal grant fund, earmarked for first-time homebuyers in Dallas, and most buyers in DFW have never heard of it.

The Federal Home Loan Bank of Dallas runs a program called the Homebuyer Equity Leverage Partnership, or HELP. It gives qualifying first-time buyers in Texas grants of up to $25,000 to use toward a down payment and closing costs. The money does not need to be repaid as long as you stay in the home for five years.

FHLB Dallas set aside $17 million for this program in 2026. As of September 8, 2026, $3.4 million remained. That is roughly 80% depleted, with the remainder available on a first-come, first-served basis until the fund runs out or December 31, 2026, whichever comes first.

If you are buying in Frisco, McKinney, Plano, or anywhere else in the DFW metro this fall, you need to know this program exists.

What Is the FHLB Dallas HELP Grant?

FHLB Dallas is a government-sponsored enterprise, not a retail bank. It provides liquidity to member banks and credit unions across Texas, Louisiana, Mississippi, New Mexico, and Arkansas (the 11th Federal Home Loan Bank District). As part of its community investment mandate, it funds grants that flow from the FHLB through participating member institutions to qualifying homebuyers.

The HELP program has run annually for years, but it rarely gets the attention that TSAHC or TDHCA programs do. That is partly because the money moves through lenders, not directly to consumers, and not every lender in DFW has enrolled. More on that below.

Texas and New Mexico buyers receive the maximum grant amount of $25,000. Buyers in other 11th District states receive up to $20,000.

Do You Qualify?

There are four primary eligibility requirements for the FHLB HELP grant:

First-time homebuyer. FHLB Dallas uses the standard federal definition: you have not owned a home as a primary residence in the past three years. If you owned a home before 2023 and have been renting since, you likely qualify.

Income at or below 80% of area median income. Income limits for the Dallas-Fort Worth metro in 2026 are set by HUD. The Dallas Metro FMR Area includes Dallas, Collin, Denton, Ellis, Hunt, Kaufman, and Rockwall counties.

If your household income falls below these thresholds, you likely meet the income test. Confirm the exact current figures with your lender, as HUD updates these annually.

Homebuyer education. You must complete an approved homebuyer counseling course before the grant is disbursed. Your lender can point you to an approved provider. This is typically a few hours of online coursework and is not difficult to complete.

Primary residence only. The home must be your primary residence. Investment properties, vacation homes, and second homes are not eligible.

What You're Agreeing To

The FHLB HELP grant is a true grant, not a loan you repay monthly. But it comes with two conditions worth understanding before you sign anything.

$500 personal contribution. You must put at least $500 of your own money into the transaction. The grant cannot fund 100% of the purchase. This $500 can come from savings, a gift from a family member, or another approved source. It is a low bar.

Five-year retention requirement. You must occupy the home as your primary residence for five years. If you sell, refinance out of the program structure, or vacate before the five-year mark, you may owe back a prorated portion of the grant. The exact repayment schedule is outlined in the retention agreement you sign with your lender.

For most buyers who plan to stay in a home for at least a few years, this requirement is entirely manageable. If you are buying a short-term starter home with firm plans to move in 18 months, discuss this with your lender before building the grant into your plans.

How Much Does $25,000 Actually Cover in DFW?

In the northern DFW suburbs, where entry-level and move-up homes in McKinney, Prosper, and Celina are running between $450,000 and $650,000 in 2026, $25,000 is meaningful money.

The standard FHA minimum down payment is 3.5% of the purchase price. Here is how the FHLB grant stacks up against that threshold at common DFW price points:

On a $500,000 home, the FHLB HELP grant can cover your entire FHA down payment and put a meaningful dent in buyer closing costs, which typically run 2% to 4% of the purchase price in Texas.

You can also combine FHLB HELP with a conventional loan if you qualify, though the income and property constraints can be more complex. Talk through your loan type options with an enrolled lender before assuming one path is better.

If you want help finding a lender who is enrolled in the FHLB HELP program or figuring out whether you qualify based on your specific situation, reach out to Grey Square. The fund is running low and the year-end deadline is approaching.

How to Actually Apply

The FHLB Dallas does not take applications from individual buyers. The process runs through a participating member institution:

1. Find an enrolled lender. FHLB Dallas maintains a member directory at fhlb.com. Not every bank or credit union in DFW has enrolled in the HELP program. If you call a lender who has not heard of it, that is a signal to find another lender, not a sign that the program does not exist.
2. Get pre-approved. Work with your enrolled lender on a standard mortgage pre-approval. The HELP grant is layered on top of your loan, not a substitute for it.
3. Your lender submits the grant request. Once you have an accepted offer, your lender submits the HELP grant application to FHLB Dallas on your behalf.
4. FHLB Dallas reviews and approves. The review process takes 10 to 15 business days. Start early. Do not wait until you have a house under contract and a 30-day close deadline bearing down.
5. Grant funds are applied at closing. The $25,000 goes directly toward your down payment and closing costs at the closing table through your title company.

One timing note: lenders must complete a separate enrollment process with FHLB Dallas before they can submit grant requests. Factor this in when you are choosing a lender. Not all mortgage originators are enrolled, and an unenrolled lender cannot retroactively submit your grant after closing.

Can You Stack FHLB HELP with Other Programs?

Potentially yes, but stacking eligibility depends on the specific programs and your lender's guidelines.

TSAHC's Home Sweet Texas program offers 3% to 5% down payment assistance as a grant or deferred second mortgage and serves a broader income range than FHLB HELP. TDHCA's My First Texas Home program pairs 5% DPA with a Mortgage Credit Certificate (MCC) that generates an annual federal tax credit. A full comparison of Texas first-time buyer DPA programs is available here.

Whether FHLB HELP can be layered with TSAHC or TDHCA depends on how the funds interact in your specific loan structure. Your enrolled lender needs to confirm compatibility before you count on a combined figure.

What is clear: FHLB HELP offers the largest single grant available to first-time buyers in DFW right now. At $25,000, it outpaces most DPA options in the market.

Frequently Asked Questions

Is the FHLB HELP grant a loan or a true grant?

The FHLB HELP grant is a true grant, not a loan. You do not make monthly payments on it. However, you must stay in the home as your primary residence for five years. If you sell or move before that five-year period ends, you may owe back a prorated share of the grant. After five years, the full amount is yours with no obligation.

Who qualifies as a first-time homebuyer under the FHLB HELP program?

FHLB Dallas uses the standard federal definition: you have not owned a home as your primary residence in the past three years. If you previously owned a home but sold it or moved out more than three years ago, you qualify as a first-time buyer under this definition.

Can I use the FHLB HELP grant with an FHA loan?

Yes. The FHLB HELP grant is compatible with FHA financing, which is one of the most common pairings in DFW. On a $500,000 home, the $25,000 grant covers the entire 3.5% FHA down payment with money left over for closing costs. Confirm the specific pairing with your enrolled lender, as program rules can interact in ways that depend on your loan scenario.

What is the five-year retention requirement for the FHLB HELP grant?

When you receive the FHLB HELP grant, you sign a retention agreement committing to occupy the home as your primary residence for five years. If you sell, refinance out of compliance with the agreement, or vacate the property before five years, you may be required to repay a prorated share of the grant. Your lender will explain the exact repayment schedule for your loan. After five full years, the obligation ends.

How do I find a participating FHLB lender in the Dallas area?

FHLB Dallas maintains a directory of enrolled member institutions at fhlb.com. Not every bank or mortgage company in DFW has enrolled, so you will need to either use the directory or ask lenders directly whether they are enrolled in the HELP program. If you are working with a buyer's agent in Frisco, McKinney, or the northern suburbs, they should be able to point you toward lenders who have used this program for their clients.

I work with buyers across Dallas County and Collin County, and the down payment hurdle is one of the most consistent friction points I see, especially in the $450,000 to $600,000 range in McKinney, Prosper, and Frisco. The FHLB HELP grant is one of the most useful tools available right now, and it is underused because most buyers do not know it exists. If you are trying to get into the northern suburbs before the end of the year, this is worth knowing about.

About Paul Blair Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas, Los Angeles and Houston. With 22 years in the business, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.