Texas Department of Housing and Community Affairs (TDHCA) Programs:
My First Texas Home:
Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans, or buyers in targeted areas (e.g., qualified census tracts); veterans exempt from first-time requirement.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; includes up to 5% of the loan amount as a 0% interest, no-monthly-payment second mortgage for down payment and closing costs, repayable upon sale, refinance, or payoff.
Requirements:
- Income must not exceed $108,900 for a 1-2 person household or $127,050 for 3 or more in high-cost counties (e.g., Travis); lower limits apply elsewhere (e.g., $84,240 in Bexar County).
- Minimum credit score of 620 (680 for streamlined conventional loans).
- Debt-to-income ratio capped at 45% (50% with compensating factors).
- Homebuyer education course (6-8 hours, online or in-person, ~$75-$100) required.
- Purchase price limit of $453,100 (non-targeted areas) or $553,790 (targeted areas).
Learn more about My First Texas Home
My Choice Texas Home:
Benefits: Offers a 30-year fixed-rate mortgage (FHA, VA, USDA, Fannie Mae HFA Preferred, or Freddie Mac HFA Advantage) with up to 5% assistance as a 0% interest, no-monthly-payment second mortgage (repayable over 30 years) or a grant for Charter Level Income Limits; open to first-time and repeat buyers; additional $1,000 grant may be available.
Eligibility: Must use a TDHCA first mortgage; same income and purchase price limits as My First Texas Home; homebuyer education course required.
Learn more about My Choice Texas Home
Texas Mortgage Credit Certificate (MCC):
Description: Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) to reduce tax liability; combinable with TDHCA or TSAHC loans; fee (~$500-$750) applies. Recapture tax may apply if sold within 9 years.
Requirements: Must meet TDHCA income and purchase price limits; credit score of 620; first-time buyer status not required with My Choice Texas Home.
Homes for Texas Heroes (TSAHC):
Description: Offers 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) with up to 5% down payment assistance as a grant or forgivable second mortgage (forgiven after 3 years) for teachers, firefighters, police, EMS, veterans, and correctional officers.
Requirements: Minimum credit score of 620; same income and purchase price limits as TDHCA programs; homebuyer education course required; proof of eligible occupation or military service.
Learn more about Homes for Texas Heroes
Home Sweet Texas Home Loan (TSAHC):
Description: Provides 30-year fixed-rate mortgages with up to 5% down payment assistance (grant or forgivable second mortgage after 3 years) for low-to-moderate-income buyers; no first-time buyer requirement in targeted areas.
Requirements: Minimum credit score of 620; DTI up to 43% for FHA manual underwriting; same income and purchase price limits as TDHCA programs; homebuyer education course required.
Learn more about Home Sweet Texas Home Loan
Homebuyer Assistance with New Construction (HANC):
Description: Offers up to $10,000 in 0% interest loans for down payment, closing costs, or new construction (site-built or manufactured homes); targets households at or below 80% AMFI.
Requirements: Purchase price capped at 95% of area median (~$430,445 in Travis County); homebuyer education course required; limited to specific nonprofit or local government partners.
Texas Bootstrap Loan Program:
Description: Provides up to $45,000 at 0% interest for very low-income buyers (≤30% AMFI) who contribute 65% of labor to build/rehabilitate their home.
Requirements: Income and asset limits apply; homebuyer education course required; limited availability through nonprofit partners.
Learn more about Texas Bootstrap Loan Program
Local Programs:
Austin
Austin Down Payment Assistance: Offers up to $40,000 as a 0% interest, forgivable loan (forgiven after 5 years of residency) for down payment and closing costs; income at or below 80% AMI (e.g., $78,150 for a family of four in Travis County); home price must not exceed $614,054.70.
Learn more about Austin Down Payment Assistance
Houston
Houston Homebuyer Assistance: Provides up to $50,000 as a 0% interest, forgivable loan (forgiven after 5 years) for down payment and closing costs; income capped at 80% AMI (e.g., $66,250 for a family of four in Harris County). NeighborhoodLIFT offers up to $15,000 in targeted areas.
Learn more about Houston Homebuyer Assistance
San Antonio
San Antonio Homeownership Incentive Program (HIP 80): Offers up to $30,000 as a forgivable loan (forgiven after 5 years) for down payment and closing costs; income capped at 80% AMI (e.g., $60,800 for a family of four in Bexar County); home price capped at $375,000 (existing) or $398,000 (new construction).
HIP 120: Offers up to $15,000, with 75% forgivable after 10 years and 25% repayable upon sale/refinance.
HOPE/FRHAP: Up to $15,000 forgivable loans for city employees and first responders.
Learn more about San Antonio Homeownership Programs
Additional Information:
- Median Home Price: $334,700 (January 2025); median down payment: $17,452.
- FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
- USDA Loans: Zero-down payment for rural Texas areas; income limits apply.
- VA Loans: Zero-down payment for eligible veterans or active military; no PMI; flexible credit requirements.
- Conventional 97 LTV: 3% down payment for first-time buyers; minimum credit score of 620; combinable with down payment assistance.
View First-Time Home Buyer Programs for: Utah