First-Time Home Buyer Programs in Texas

First-Time Home Buyer Programs in Texas

Written by

Arman Javaherian

What counts as a "first time home buyer" in Texas?

Here's the part that trips people up. You don't actually have to be a true first-timer. Most Texas first time home buyer programs use a three-year rule, which means you qualify if any of these is true:

  • You've never owned a home

  • You haven't owned a home you lived in during the last three years

  • You're a veteran or active-duty military (the three-year rule usually gets waived)

  • You're buying in a designated targeted area

So if you owned a place years ago and have been renting since, you might still count. Don't write yourself off before you check.

Federal loan programs you can use in Texas

Before the Texas-specific money, start with the federal loan programs. These set the foundation, and the state assistance usually stacks on top.

FHA loans

Down payment as low as 3.5 percent, credit scores down to 580. More forgiving on debt-to-income than a conventional loan. Popular with first-time buyers for a reason.

VA loans

Zero down, and no monthly mortgage insurance. For veterans, active military, and some surviving spouses. Texas has one of the largest veteran populations in the country, so this one carries real weight here.

USDA loans

Zero down for homes in eligible rural areas. And "rural" covers more of Texas than you'd think, including a lot of small towns and the outer rings around the big metros.

Conventional 97

Three percent down through Fannie Mae and Freddie Mac. You'll pay mortgage insurance until you hit 20 percent equity, but it drops off, and the rate is often better than FHA if your credit is solid.

What counts as a "first time home buyer" in Texas?

Here's the part that trips people up. You don't actually have to be a true first-timer. Most Texas first time home buyer programs use a three-year rule, which means you qualify if any of these is true:

  • You've never owned a home

  • You haven't owned a home you lived in during the last three years

  • You're a veteran or active-duty military (the three-year rule usually gets waived)

  • You're buying in a designated targeted area

So if you owned a place years ago and have been renting since, you might still count. Don't write yourself off before you check.

Federal loan programs you can use in Texas

Before the Texas-specific money, start with the federal loan programs. These set the foundation, and the state assistance usually stacks on top.

FHA loans

Down payment as low as 3.5 percent, credit scores down to 580. More forgiving on debt-to-income than a conventional loan. Popular with first-time buyers for a reason.

VA loans

Zero down, and no monthly mortgage insurance. For veterans, active military, and some surviving spouses. Texas has one of the largest veteran populations in the country, so this one carries real weight here.

USDA loans

Zero down for homes in eligible rural areas. And "rural" covers more of Texas than you'd think, including a lot of small towns and the outer rings around the big metros.

Conventional 97

Three percent down through Fannie Mae and Freddie Mac. You'll pay mortgage insurance until you hit 20 percent equity, but it drops off, and the rate is often better than FHA if your credit is solid.

If you're a first time home buyer in Texas, there's a real chance you're leaving thousands of dollars on the table. Down payment help, closing cost grants, a tax credit that pays you back every year you own the home. Texas has a lot of it.

Most first-time buyers never touch any of it. Not because they don't qualify, but because nobody walked them through what's out there or how the pieces fit together.

So let's fix that.

If you're a first time home buyer in Texas, there's a real chance you're leaving thousands of dollars on the table. Down payment help, closing cost grants, a tax credit that pays you back every year you own the home. Texas has a lot of it.

Most first-time buyers never touch any of it. Not because they don't qualify, but because nobody walked them through what's out there or how the pieces fit together.

So let's fix that.

TDHCA: the main Texas first-time buyer programs

This is where the Texas-specific money lives. The Texas Department of Housing and Community Affairs, which everyone just calls TDHCA, runs the biggest statewide programs.

My First Texas Home

A 30-year fixed-rate loan at a below-market rate, paired with down payment and closing cost assistance of up to 5 percent of the loan amount. It's built for first-time buyers and veterans. On a $300,000 loan, that 5 percent is $15,000 toward your down payment and closing costs. Income and purchase price limits apply, and they vary by county.

My Choice Texas Home

Same idea, same up-to-5-percent assistance, but you don't have to be a first-time buyer. Handy if you owned a home recently and don't fit the three-year rule.

Texas Mortgage Credit Certificate (MCC)

This one's underused, and it's basically free money every year. An MCC is a federal tax credit worth up to $2,000 a year, for as long as you live in the home and keep the mortgage. It credits you 40 percent of your annual mortgage interest, capped at $2,000. You can pair it with My First Texas Home, so you get the down payment help and the yearly tax credit together.

TSAHC: grants for buyers and Texas heroes

There's a second statewide group worth knowing: the Texas State Affordable Housing Corporation, or TSAHC. It's separate from TDHCA and runs its own assistance. These first-time home buyer grants in Texas are some of the most generous you'll find.

Homes for Texas Heroes

Down payment assistance for teachers, police officers, firefighters, EMS workers, corrections officers, nurses, and veterans. The help comes as a grant or a forgivable second loan, up to 5 percent of your loan amount. If you work one of those jobs, start here.

Home Sweet Texas Home

The version for everyone else who meets the income limits. Same up-to-5-percent assistance, no occupation requirement.

One nice thing about TSAHC: the help often comes as a true grant or a second lien that gets forgiven after three years. Forgiven means you never pay it back. And you can stack an MCC on top of either program.

City and county programs

On top of the state stuff, most big Texas metros run their own first-time buyer assistance. The amounts here can be large.

Houston

The Homebuyer Assistance Program offers up to $30,000 in down payment and closing cost help for income-qualified buyers inside the city limits. It's a forgivable loan, so live there long enough and you keep it.

Dallas

The Dallas Homebuyer Assistance Program goes up to $60,000 depending on your income and the area you're buying in. That's not a typo. Dallas runs one of the more generous city programs in the state.

Austin

The city's down payment assistance can reach $40,000 as a deferred, forgivable loan for buyers under the income limits. Austin's prices are steep, so this helps close the gap.

San Antonio

The Homeownership Incentive Program, or HIP, offers up to $35,000 as a deferred or forgivable loan.

Every city sets its own income limits, price caps, and funding windows, and they shift year to year. Check your specific city and county housing department before you count on a number.

Find your home.
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Search homes, schedule tours, make smarter offers, and get thousands back at closing with Homa

Find your home.
Get up to 2% back.

Search homes, schedule tours, make smarter offers, and get thousands back at closing with Homa

Find your home.
Get up to 2% back.

Search homes, schedule tours, make smarter offers, and get thousands back at closing with Homa

How the programs stack

Here's where it gets good. You can usually combine federal, state, and local help into one deal. A realistic stack for a San Antonio first-time buyer might look like:

  • FHA loan with 3.5 percent down

  • TSAHC Home Sweet Texas grant covering most of that down payment

  • San Antonio HIP funds covering closing costs

  • A Texas MCC worth up to $2,000 in tax credits every year after

On a $280,000 home, a buyer who stacks all of that might walk in with a few hundred dollars out of pocket instead of the $15,000-plus they assumed they'd need. Not everyone qualifies for every program. But a lot of buyers qualify for more than they think.

Income and eligibility, in plain terms

The limits change by program, county, and household size, but here's the general shape for 2026:

  • TDHCA and TSAHC income limits usually land between $100,000 and $150,000 in the big metros, higher than people expect

  • Purchase price limits often run up to $350,000 to $400,000, again depending on the county

  • Most programs want a credit score around 620 or higher

  • Almost all of them require a homebuyer education course

A household making $95,000 in the Dallas area often assumes these programs aren't for them. They usually are.

How to actually apply

1. Take a homebuyer education course

Nearly every Texas program requires one. It's usually online, takes 6 to 8 hours, and costs $75 to $100. TSAHC has its own approved course. Do it early so it's not the thing holding up your closing.

2. Get pre-approved with a participating lender

Not every lender is approved for TDHCA and TSAHC programs. You need one that's on their list, and they'll know how to set up the assistance correctly. This is the single most common place buyers get stuck.

3. Find a home within the price limits

Each program caps the purchase price. Your lender can tell you the exact number for your county and program before you fall for a house that's over the line.

4. Submit the paperwork

There's a lot of it. Income documents, asset statements, your course certificate, the assistance application. Stay organized and respond fast when your lender asks for something.

5. Close

At closing, the down payment and assistance funds get wired in alongside your own money. You sign, you get the keys, and the MCC paperwork goes into your tax file for next April.

Common mistakes Texas first-time buyers make

Assuming it is only for low-income buyers

The income limits are often well into six figures in the metros. Plenty of middle-income Texans qualify and never apply.

Using a lender that is not approved

If your lender isn't on the TDHCA or TSAHC list, you can't use those programs through them. Ask before you pick a lender, not after.

Skipping the education course

No course, no program. It's that simple.

Not stacking

The biggest savings come from combining state, city, and federal help plus an MCC. A lender who only does one of them won't bring up the rest.

Missing the funding window

City programs run on annual budgets. When the money's gone, it's gone until the next cycle. Apply early in the year if you can.

How the programs stack

Here's where it gets good. You can usually combine federal, state, and local help into one deal. A realistic stack for a San Antonio first-time buyer might look like:

  • FHA loan with 3.5 percent down

  • TSAHC Home Sweet Texas grant covering most of that down payment

  • San Antonio HIP funds covering closing costs

  • A Texas MCC worth up to $2,000 in tax credits every year after

On a $280,000 home, a buyer who stacks all of that might walk in with a few hundred dollars out of pocket instead of the $15,000-plus they assumed they'd need. Not everyone qualifies for every program. But a lot of buyers qualify for more than they think.

Income and eligibility, in plain terms

The limits change by program, county, and household size, but here's the general shape for 2026:

  • TDHCA and TSAHC income limits usually land between $100,000 and $150,000 in the big metros, higher than people expect

  • Purchase price limits often run up to $350,000 to $400,000, again depending on the county

  • Most programs want a credit score around 620 or higher

  • Almost all of them require a homebuyer education course

A household making $95,000 in the Dallas area often assumes these programs aren't for them. They usually are.

How to actually apply

1. Take a homebuyer education course

Nearly every Texas program requires one. It's usually online, takes 6 to 8 hours, and costs $75 to $100. TSAHC has its own approved course. Do it early so it's not the thing holding up your closing.

2. Get pre-approved with a participating lender

Not every lender is approved for TDHCA and TSAHC programs. You need one that's on their list, and they'll know how to set up the assistance correctly. This is the single most common place buyers get stuck.

3. Find a home within the price limits

Each program caps the purchase price. Your lender can tell you the exact number for your county and program before you fall for a house that's over the line.

4. Submit the paperwork

There's a lot of it. Income documents, asset statements, your course certificate, the assistance application. Stay organized and respond fast when your lender asks for something.

5. Close

At closing, the down payment and assistance funds get wired in alongside your own money. You sign, you get the keys, and the MCC paperwork goes into your tax file for next April.

Common mistakes Texas first-time buyers make

Assuming it is only for low-income buyers

The income limits are often well into six figures in the metros. Plenty of middle-income Texans qualify and never apply.

Using a lender that is not approved

If your lender isn't on the TDHCA or TSAHC list, you can't use those programs through them. Ask before you pick a lender, not after.

Skipping the education course

No course, no program. It's that simple.

Not stacking

The biggest savings come from combining state, city, and federal help plus an MCC. A lender who only does one of them won't bring up the rest.

Missing the funding window

City programs run on annual budgets. When the money's gone, it's gone until the next cycle. Apply early in the year if you can.

How Homa helps Texas first-time buyers keep even more

All of that assistance is powerful on its own. But there's one more piece most buyers miss, and it's the commission.

Homa started in Florida with a simple idea: the buyer should keep the buyer-side commission instead of handing it to a traditional agent. Now Homa is launching in Texas, bringing the same model to one of the fastest-growing housing markets in the country.

Here's how it works. You get a licensed broker who handles your offer and negotiation, local showing specialists who tour homes with you, and a closing coordinator who runs the paperwork and deadlines. At closing, the buyer-side commission comes back to you, minus Homa's 1 percent fee. On a $350,000 Texas home, that's roughly $7,000 back in your pocket.

Now stack that on the programs above. A first-time buyer using My First Texas Home, a TSAHC grant, and the commission they keep with Homa could put real money toward the down payment, the closing costs, or a rate buydown that lowers the monthly payment for good. A traditional agent keeps that commission. With Homa, you do.

The bottom line

First-time home buyer programs in Texas are bigger and more stackable than most people realize, and a lot of the money goes unclaimed every year. If you're buying in 2026, don't leave it sitting there.

Start with the homebuyer education course. Find a participating lender. Check your city and county programs on top of the state ones. Look into the Texas homestead exemption for property tax savings once you own. And keep the commission instead of giving it away. Your first home costs enough already. Take every dollar Texas is offering you.

How Homa helps Texas first-time buyers keep even more

All of that assistance is powerful on its own. But there's one more piece most buyers miss, and it's the commission.

Homa started in Florida with a simple idea: the buyer should keep the buyer-side commission instead of handing it to a traditional agent. Now Homa is launching in Texas, bringing the same model to one of the fastest-growing housing markets in the country.

Here's how it works. You get a licensed broker who handles your offer and negotiation, local showing specialists who tour homes with you, and a closing coordinator who runs the paperwork and deadlines. At closing, the buyer-side commission comes back to you, minus Homa's 1 percent fee. On a $350,000 Texas home, that's roughly $7,000 back in your pocket.

Now stack that on the programs above. A first-time buyer using My First Texas Home, a TSAHC grant, and the commission they keep with Homa could put real money toward the down payment, the closing costs, or a rate buydown that lowers the monthly payment for good. A traditional agent keeps that commission. With Homa, you do.

The bottom line

First-time home buyer programs in Texas are bigger and more stackable than most people realize, and a lot of the money goes unclaimed every year. If you're buying in 2026, don't leave it sitting there.

Start with the homebuyer education course. Find a participating lender. Check your city and county programs on top of the state ones. Look into the Texas homestead exemption for property tax savings once you own. And keep the commission instead of giving it away. Your first home costs enough already. Take every dollar Texas is offering you.

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Have questions or need help?

I’m Arman, one of the founders of Homa. I will personally answer your questions and give you a quick sense of what you can do with Homa

Have questions or need help?

I’m Arman, one of the founders of Homa. I will personally answer your questions and give you a quick sense of what you can do with Homa

Have questions or need help?

I’m Arman, one of the founders of Homa. I will personally answer your questions and give you a quick sense of what you can do with Homa