Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Buying your first home in Texas can feel daunting—but you’re not alone. The Lone Star State offers a rich array of assistance programs designed to make your dream of homeownership a reality. This comprehensive guide breaks down everything you need to know to navigate Texas first-time homebuyer programs confidently.
What Qualifies You as a “First-Time Homebuyer” in Texas?
In Texas, a “first-time homebuyer” is anyone who hasn’t owned a primary residence in the past three years. HUD further broadens this definition to include single parents and displaced homemakers, even if they previously co-owned a home. Veterans may also qualify under specific exceptions.
Key Statewide Programs
Texas State Affordable Housing Corporation (TSAHC)
A nonprofit backed by the Texas Legislature, TSAHC provides two powerful loan programs for first-timers and repeat buyers:
Home Sweet Texas Home Loan Program
- 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional)
- Up to 5% down-payment assistance (grant or forgivable 2nd lien)
- No-interest, no-payment second mortgage forgiven after 3 years unless you sell/refinance.
Homes for Texas Heroes
- Same loan structure targeting teachers, firefighters, EMS, police, correctional officers, veterans, and healthcare faculty.
- Up to 5% assistance via grant or forgivable loan.
Both require a minimum credit score of 620 and income/purchase-price limits determined by county—eligibility quiz available online.
Texas Department of Housing and Community Affairs (TDHCA)
TDHCA offers two aid packages:
My First Texas Home
- 30-year mortgage (FHA, VA, USDA)
- Up to 5% down-payment and closing cost assistance via no-interest second mortgage
- Available to first-time buyers and veterans—credit score 620+.
My Choice Texas Home
- 30-year conventional or government-backed loan
- Also offers up to 5% assistance regardless of first-time status—credit score 620+
Both programs include the Texas Mortgage Credit Certificate (MCC), offering a federal tax credit of up to $2,000/year.
Local & City-Specific Assistance Programs
Many Texas cities offer supplemental programs with substantial benefits:
- Austin: Up to $40,000 forgivable loan for down payment/closing; property price limits apply.
- Houston: NeighborhoodLIFT and city programs offer $15,000–$50,000 forgivable assistance.
- Dallas: Assistance up to $50,000 for low-to-moderate-income buyers.
- San Antonio: HIP 80 & HIP 120 offer up to $30,000 forgivable; additional support via city employment programs.
- Fort Worth, Corpus Christi, Waco, Beaumont, and many more—all offering $7,500–$25,000+ in forgivable loans .
Eligibility Essentials
- Credit Score: 620 minimum, though FHA loans may accept scores as low as 580.
- Income & Purchase Price Caps: Set by program and county—check TSAHC/TDHCA sites.
- Homebuyer Education: Most require a certified course (free–$99).
- Select Approved Lender: Programs require application through participating lenders.
- Primary Residence: Homes must be single-family or condo units in your primary residence.
Federal Loan Programs (Nationwide Options)
Consider pairing state assistance with these:
- FHA Loans: 3.5% down, credit 580+ (500 with 10% down).
- VA Loans: 0% down, no PMI for eligible veterans/service members.
- USDA Loans: 0% down in rural areas; credit typically 640+.
Steps to Secure Assistance
- Take the TSAHC Eligibility Quiz — find programs you qualify for.
- Choose a Program(s) — decide TSAHC, TDHCA, local programs, and/or federal loan.
- Complete Education Course — TSAHC-approved; costs vary.
- Get Pre‑Approved — through participating lender.
- Shop for Your Home — with your realtor + lender.
- Apply for Assistance — when you close on your home.
- Claim MCC — file for tax credit each year.
Why This Matters for SEO
In-demand keywords: Texas first-time homebuyer programs, down payment assistance Texas, Homes for Texas Heroes, and My First Texas Home. Feature them prominently in headings and body to boost SEO.
FAQs
What credit score do I need?
Do I have to repay the down payment assistance?
Grants are forgiven; forgivable 2nd liens require repayment only if you sell or refinance within 3–5 years
Can veterans use these programs?
Yes. Veterans can use TSAHC, TDHCA, Homes for Texas Heroes, and MCC—even without meeting the first-time criteria .
Read Next
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
