Guide Article

First-Time Home Buyer Programs in Texas

Learn about first-time home buyer programs in Texas, including statewide down payment assistance, local grants, eligibility requirements, and homebuyer education options.

Updated July 2026

Looking for first-time buyer assistance in other states? View our complete first-time home buyer programs guide to explore programs nationwide.

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Texas Department of Housing and Community Affairs (TDHCA) Programs:

Updated June 1, 2026

TDHCA runs the Texas Homebuyer Program (My First Texas Home for first-time buyers and My Choice Texas Home for repeat buyers). TDHCA offers 30-year fixed mortgages through approved lenders and state down payment assistance commonly up to 5% of the first-lien amount. Income and purchase-price limits are county-specific — check the TDHCA county limits matrix or contact a TDHCA-approved lender for current offers. See TDHCA My First Texas Home and the official limits matrix at TDHCA Limits (county matrix) for details.

Texas First-Time Homebuyer Mortgage Programs:

Eligibility: My First Texas Home generally requires first-time status (no primary residence in the past 3 years); My Choice Texas Home is available to repeat buyers. Income and purchase-price limits vary by county.
Offerings: 30-year fixed-rate mortgages paired with FHA, VA, USDA, or conventional options; low-down-payment paths and DPA are commonly available.
Requirements:

  • Income ≤ county-specific limits (see TDHCA county matrix; targeted census-tract exceptions may apply).
  • Minimum credit scores depend on loan type and lender — TDHCA/TSAHC materials commonly reference lender minimums around 620+ for some products; FHA and other federal options may have different official minima.
  • Debt-to-income guidelines commonly target a back-end ratio near 45% but lender overlays and compensating factors vary.
  • Homebuyer education/counseling is required for many TDHCA products (complete via a TDHCA-approved counselor).

Down Payment Assistance (DPA) Options:

State DPA (TDHCA): State DPA is commonly available up to 5% of the first-lien amount (often as a zero-percent deferred second lien). Check the TDHCA program pages and your TDHCA-approved lender for exact terms and whether forgivable timelines or repayment triggers apply. See TDHCA for official details.
TSAHC alternatives: The Texas State Affordable Housing Corporation offers mortgage programs and DPA options (Homes for Texas Heroes, Home Sweet Texas) including grant or deferred/forgivable second-lien packages. See TSAHC guidance at TSAHC eligibility FAQ and Homes for Texas Heroes details.

Texas Heroes / Profession-Based Options:

Description: TSAHC’s Homes for Texas Heroes and Home Sweet Texas programs give enhanced DPA or MCC tax-credit options to eligible public servants (teachers, firefighters, EMS, police, corrections, nursing faculty, veterans, etc.). Check the TSAHC eligibility pages for the official list of qualifying professions and program benefits. TSAHC Heroes qualifications.

Local Programs (Examples):

Many cities and counties run local DPA or principal-reduction programs; amounts, eligibility, and intake status change frequently — always confirm with the local housing office or program administrator.

Houston / Harris County

City of Houston HCD programs: Houston operates several homebuyer streams. The Homebuyer Assistance Program (HAP) and Harvey Homebuyer Assistance (HbAP) streams differ by target group and funding; Harvey streams have offered much larger awards in targeted recovery tracks (the City’s Homebuyer Hub references program awards in some streams up to approximately $125,000). See official City materials at City of Houston - Homebuyer Assistance and Houston Homebuyer Hub (HbAP details).

Dallas / Dallas County

Dallas Homebuyer Assistance (DHAP): The City of Dallas provides deferred/forgivable DPA through DHAP. Note: DHAP administration was updated in 2026 (new administrator effective May 1, 2026); check the City of Dallas page or program administrator for current intake windows and application procedures. See the City page for the official notice at Dallas DHAP.

Austin / Travis County

City of Austin & Travis County: Austin’s Neighborhood Housing programs include a City Down Payment Assistance option that can provide meaningful help (City materials list assistance up to $40,000 for income-eligible first-time buyers in current documents). Travis County’s Hill Country Home DPA (administered by the Travis County Housing Finance Corporation) offers assistance commonly in the 4%–6% range of the loan amount as a 0% forgivable second lien for qualifying buyers purchasing in Travis County. Official pages: City of Austin Homebuyer and Travis County Hill Country Home DPA.

Additional Information:

  • USDA Loans: 0% down is available in eligible rural areas; property and income eligibility apply. See USDA Rural Development single-family programs.
  • VA Loans: Eligible veterans/active-duty borrowers can generally access VA-backed loans that routinely permit no down payment when entitlement and lender approval allow. Confirm entitlement and lender rules at VA eligibility.
  • FHA Loans: FHA allows a 3.5% down option for borrowers with a 580+ Minimum Decision Credit Score per the FHA Single Family Handbook; lenders commonly have overlays. See HUD FHA guidance: HUD Handbook 4000.1.

Texas programs are diverse — state DPA commonly maxes around 5% while local city/county programs can be larger or smaller depending on funding and target populations. Always confirm program rules and current availability with the official program page or a program-approved lender before advising buyers.

Official resources: TDHCA Homebuyer Program, TSAHC, and the City/County pages linked above.

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About the Author

Written by Jim Gruler, Arizona Licensed Real Estate Broker and Co-Founder of Seeking Agents®. Jim has more than 18 years of real estate experience and helps create educational resources for buyers and sellers navigating the home buying and selling process.

Seeking Agents® is a Phoenix-based platform that helps buyers and sellers compare real estate agents, service offerings, and commission options. Seeking Agents® is not a brokerage and does not provide legal, financial, mortgage, or tax advice.

Last updated: July 2026

Learn more about Jim Gruler →

Frequently Asked Questions

What first-time home buyer programs are available in Texas?

Texas buyers may qualify for statewide assistance, local city or county programs, and federal mortgage options such as FHA, VA, and USDA loans. Because Texas is a large state, available assistance can vary a lot by location.

Who qualifies as a first-time home buyer in Texas?

In many Texas programs, a first-time buyer is someone who has not owned a primary residence within the last three years. Some programs may also include repeat buyers, veterans, or buyers in targeted areas.

How much down payment assistance can Texas buyers get?

Texas down payment assistance may range from a small grant to a larger percentage-based benefit depending on the program. Assistance can come as a grant, a forgivable loan, or a deferred second mortgage.

Do Texas buyer assistance programs require homebuyer education?

Many Texas first-time buyer programs require at least one borrower to complete homebuyer education. This is meant to help buyers understand financing, budgeting, and the complete home buying process.

Is it important to use a Texas agent familiar with first-time buyer programs?

Yes. A Texas real estate agent with experience in buyer assistance can help you align your home search, lender choice, and offer strategy with the program rules you are using.

Helpful Home Buying Tools for Texas

Explore First-Time Buyer Programs in Other States

Comparing programs across multiple states? These nearby guides make it easy to review assistance options, eligibility rules, and down payment help in other markets.

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