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Buying a home in Texas for the first time can feel overwhelming, but there are a range of loan programs designed to make the process smoother. Whether you’re looking for a low down payment option, flexible credit requirements, or government-backed support, Texas has several programs to help you achieve your dream of homeownership.
Why Choose Texas for Your First Home?
Texas is one of the most popular states for first-time homebuyers, thanks to its relatively affordable housing, strong job market, and no state income tax. Major cities like Austin, Dallas, Houston, and San Antonio offer diverse real estate options, from urban condos to spacious suburban homes.
Key First-Time Homebuyer Loan Programs in Texas
1. FHA Loans
FHA loans are one of the most popular choices for first-time homebuyers in Texas. They offer low down payment requirements, more flexible credit score standards, and competitive interest rates.
- Down Payment: As low as 3.5% with a credit score of 580+
- Credit Requirements: Minimum credit score of 500 (with 10% down) or 580 (with 3.5% down)
- Mortgage Insurance: Required for the life of the loan
- Loan Limits: Vary by county
Learn more about FHA loans here: FHA Loan Guide
2. VA Loans
VA loans are an excellent option for eligible veterans, active-duty service members, and their families. These loans offer significant benefits, including no down payment requirements and no private mortgage insurance (PMI).
- Down Payment: 0% (no down payment required)
- Credit Requirements: Generally 580+, but flexible
- Mortgage Insurance: None required
- Loan Limits: Vary by county
Explore VA loan benefits here: VA Loan Guide
3. USDA Loans
USDA loans provide 100% financing for buyers in designated rural areas. This program is ideal for those looking to live outside major metropolitan areas in Texas.
- Down Payment: 0% (no down payment required)
- Credit Requirements: Typically 640+
- Income Limits: Vary by county and household size
- Mortgage Insurance: Required (lower than FHA)
Find out if a USDA loan is right for you: USDA Loan Requirements
Texas-Specific First-Time Homebuyer Programs
Texas First-Time Homebuyer Programs
Beyond national loan programs, Texas offers state-specific assistance to make homeownership more accessible:
- My First Texas Home – Down payment and closing cost assistance for eligible buyers.
- Homes for Texas Heroes – Special support for teachers, firefighters, police officers, and healthcare workers.
- Texas Mortgage Credit Certificate (MCC) – Provides a tax credit to reduce your federal tax liability.
Tools to Make Homebuying Easier
Use these helpful tools to estimate your budget and compare loan options:
- Affordability Calculator – Find out how much home you can afford. Try it here
- Loan Comparison Calculator – Compare different loan options. Check it out
- FHA Loan Calculator – Calculate your FHA payments. Use the calculator
FAQs About Texas First-Time Homebuyer Loans
What credit score do I need to buy a house in Texas?
Most first-time homebuyer programs in Texas require a minimum credit score of 580, though some FHA loans are available with a 500 score if you have a larger down payment.
Can I get a mortgage in Texas with no down payment?
Yes, VA and USDA loans offer 0% down payment options for qualified buyers.
What is a mortgage credit certificate (MCC)?
An MCC is a tax credit program that reduces your federal tax liability, making homeownership more affordable.
Read Next
- Buying Your First Home
- Conventional vs. FHA Loans – Which is Better?
- 15 vs. 30 Year Mortgages – Pros and Cons
Ready to take the next step? Connect with a mortgage expert today to explore your options and find the perfect loan for your needs.
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.
