Down Payment Assistance Program


The City of Mesquite Down Payment Assistance Program’s (DPAP) mission is to provide low to moderate income families with homeownership opportunities. The program offers assistance for down payment and closing costs to first time home buyers in the form of a 0% interest forgivable loan. The DPAP is funded through the Community Development Block Grant (CDBG) by the Federal Department of Housing and Urban Development (HUD). If you are interested in being a future homeowner, please check the eligibility requirements below before applying.


Applicants must meet the following criteria to qualify for the DPAP: 

  • Must be a first time homebuyer or not owned a home in last 3 years
  • Must have submitted an offer on, or, signed the Sales Contract on a potential property in Mesquite
  • Must be a U.S. Citizen, Citizen National, or Qualified Alien
  • Applicant’s debt-to-income ratio must be at or below 43%
  • Annual Income must be at or below 80% Area Median Income (AMI). For 2020 Income Limits see chart below.
**Area Median Income for Dallas County for FY 2020, as published by HUD. Effective April 8, 2020
# of People in Household  1 2 3 4 5 6 7 8
80% AMI 
Low Income 
and below
$55,200 and below $62,100 and below $68,950 and below $74,500 and below $80,000 and below $85,500 and below $91,050 and below
50% AMI 
Very Low Income 
and below
$34,550 and below $38,800 and below $43,100 and below $46,550 and below $50,000 and below $53,450 and below $56,900 and below
30% AMI 
Extremely Low Income 
$18,100 and below  $20,700 and below  $23,300 and below $26,200 and below $30,680 
and below 
and below
$39,640 and below $44,120 and below


Applicants interested in the program are required to complete an 8-hour home buyer education course before submission of application. The following link provides a search engine that list all eligible HUD-approved Housing Counseling Agencies. Please have counselor sign and date Certification for Completion of Homebuyer Counseling Form

HUD Approved Housing Counseling Agencies in Texas. To locate providers offering courses online or over the phone, please contact Housing Counseling Agencies directly.

The City of Mesquite has established partnerships with the following approved Agencies. Please contact them directly for upcoming dates, times, and prices of classes:


Buyers are required to contribute a minimum of 25% toward the down payment cost, depending on income. Maximum grant assistance is $7,000. If the match amount is less than $7,000, remaining funds will be used to cover a portion of the closing costs. The buyer is responsible for covering excess closing costs beyond grant maximum. See chart below.

Maximum Grant Assistance=$7,000 Down Payment Assistance Closing Cost Assistance 
80% AMI
Low Income 
50% of minimum  Up to $1,000 
50% AMI 
Very Low Income 
63% of minimum  Up to $1,500
30% AMI 
Extremely Low Income 
75% of minimum  Up to $2,000
Completed application with supporting documents will be processed on a first come, first served basis. 

***Submission of Application does not automatically qualify you for assistance under the program.*** Each application will go through a review and processing to determine eligibility prior to final approval of grant assistance.