Texas first-time homebuyer programs
3% to 5% in down payment assistance
+1 more
Texas combines low home prices with no state income tax, making it a great place to buy your first home. The state also offers programs that help new homebuyers overcome upfront costs and other financial hurdles.
From down payment assistance to low-interest mortgages, Texas offers several programs that make it easier for first-time buyers to become homeowners, even if they have limited savings.
TSAHC offers down payment assistance to buyers with a credit score of 620 or higher.
Jump to insightThe My Choice Texas Home program is open to non-first-time buyers and has higher income limits than the My First Texas Home program.
Jump to insightThe Mortgage Credit Certificate program, which previously offered a 15% tax credit, has been discontinued.
Jump to insightThere are also city-specific assistance programs, with loan amounts ranging from $7,500 to $55,000.
Jump to insightRequired homebuyer education courses vary by program, with pricing ranging from free to $99.
Jump to insightTexas State Affordable Housing Corporation (TSAHC) programs
The Texas State Affordable Housing Corporation has two programs currently available to residents of Texas. As Daniel Cabrera, the founder and CEO of Fire Damage House Buyer, explained to us, the Texas State Affordable Housing Corporation (TSAHC) offers fixed-rate mortgages, down payment assistance (as grants or second liens) and Mortgage Credit Certificates (MCCs) for first-time buyers in the state. "These incentives lower the upfront costs and enhance affordability in the long term," he said.
Mortgage Credit Certificate (MCC)
As of publishing, the Mortgage Credit Certificate program has been discontinued. This program provided a federal tax credit worth up to 15% of the interest paid on a mortgage each year. It was available to first-time homebuyers who also used down payment assistance.
To qualify, applicants had to meet income and home price limits and have a credit score of at least 620. There was a $500 application fee, which was waived for those who met the qualification requirements of the Homes for Texas Heroes program.
Down payment assistance
Down payment assistance provides funding you can use for your down payment or closing costs. Assistance may come in the form of a grant or a deferred, forgivable second mortgage. To have your deferred second mortgage forgiven, you must keep the home for at least three years.
To qualify for down payment assistance, you must have a credit score of at least 620. You don’t have to be a first-time homebuyer, but your income must fall below the program's limit for your county.
Homes for Texas Heroes program
The Homes for Texas Heroes program offers down payment assistance to Texans in specific public service careers. Assistance may come in the form of a grant or forgivable loan equal to 3% or 5% of the mortgage amount.
Like other TSAHC programs, the Homes for Texas Heroes program requires a credit score of at least 620 and income within program limits — but it’s not limited to first-time homebuyers. This assistance is available to the following individuals:
- Allied health faculty members: Full-time faculty in undergraduate or graduate allied health programs at a public or private college in Texas
- Corrections officers: Full-time Texas Department of Criminal Justice employees who receive hazardous duty pay
- County jailers: Full-time jail guards licensed through the Texas Commission on Law Enforcement (TCOLE)
- Emergency medical services personnel: Full-time emergency care attendants, emergency medical technicians (EMTs), intermediate EMTs, paramedics or licensed paramedics
- Firefighters: Full-time fire department employees involved in suppression, investigation, education, training, marine firefighting, aircraft rescue or other firefighting-related duties
- Juvenile corrections officers: Full-time Texas Juvenile Justice Department employees who receive hazardous duty pay
- Nursing faculty members: Full-time faculty in undergraduate or graduate professional nursing programs
- Peace officers: Full-time officers licensed through TCOLE and defined by Texas law
- Professional educators: Full-time K-12 public school classroom teachers, aides, librarians, certified school counselors or school nurses
- Public security officers: Full-time armed officers directly employed by the state or a local government, licensed through TCOLE
- Veterans: Current active-duty service members stationed in Texas with Texas as their home of record or honorably discharged veterans who meet state residency and service requirements
- Surviving spouses of veterans: Not remarried, with the veteran meeting all program requirements and having been a Texas resident at the time of enlistment or induction
TSAHC program eligibility and benefits
| Limited to first-time homebuyers? | Assistance provided | Eligibility requirements | |
|---|---|---|---|
| Down payment assistance | No | Grant or forgivable loan toward down payment or closing costs | Must have a FICO score of at least 620 and meet income requirements |
| Mortgage Credit Certificate (currently unavailable) | Yes | Tax credit equal to 15% of the interest paid on your mortgage | Must have a FICO score of at least 620 and meet income and home price requirements |
| Homes for Texas Heroes program | No | Grant or forgivable loan toward down payment or closing costs | Must have a FICO score of at least 620 and meet income and job requirements |
» COMPARE: Best mortgages for first-time buyers
Texas Department of Housing and Community Affairs (TDHCA) programs
The Texas Department of Housing and Community Affairs (TDHCA) has two programs for homebuyers. One is restricted to veterans and first-time homebuyers, while the other is open to anyone. TDHCA’s website has an eligibility quiz that helps you see which programs you qualify for and connects you with approved lenders.
My First Texas Home program
The My First Texas Home program provides down payment assistance in the form of a 30-year, no-interest second mortgage. The loan amount can be up to 5% of the first mortgage and can be used toward the down payment or closing costs.
To qualify for the My First Texas Home program, you must be a veteran or a first-time homebuyer. You must have a credit score of at least 640, a debt-to-income (DTI) ratio below 45% and income that falls within the program’s limits.
TDHCA sets income limits for its homebuyer programs based on the area median family income (AMFI) for each county. These limits typically range from 80% to 125% of AMFI, depending on whether the property is in a targeted area — a community identified by the U.S. Department of Housing and Urban Development as lower-income or underserved.
My Choice Texas Home program
The My Choice Texas Home program is similar to the My First Texas Home program in that it provides down payment assistance in the form of a 30-year, low-interest second mortgage. You can borrow up to 5% of the first mortgage amount. Certain applicants may qualify for loan forgiveness after three years.
This program isn’t limited to first-time homebuyers but has higher income limits than the My First Texas Home program. Unlike the Home for Texas Heroes program, Cabrera said, “My Choice Texas Home is available to all qualified first-time homebuyers (not exclusively public servants). It provides 30-year fixed-rate mortgages with the possibility of down payment help up to 5% of the mortgage.”
TDHCA program eligibility and benefits
| Limited to first-time homebuyers? | Assistance provided | Eligibility requirements | |
|---|---|---|---|
| My First Texas Home program | No (veterans also eligible) | Down payment assistance as a 30-year, no-interest loan, with forgiveness available for qualified applicants | Must be a first-time homebuyer or a veteran with a credit score of at least 640 and a DTI ratio of less than 45%; must meet income requirements |
| My Choice Texas Home program | No | Down payment assistance as a 30-year, low-interest loan, with forgiveness available for qualified applicants | Must meet income requirements |
» MORE: First-time homebuyer benefits
City-specific homebuyer assistance programs
Several Texas cities have their own homebuyer assistance programs.
Arlington
The city of Arlington provides up to $20,000 in the form of a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for at least five years. You must earn 80% or less of the area median income, depending on household size, and the home must not exceed 95% of the area's median home price.
Austin
The city of Austin provides up to $40,000 in the form of a zero-interest loan to first-time homebuyers. Loans in the amount of $14,900 or less will be forgiven after five years, and loans above this amount will be forgiven after 10 years. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price is $579,250.
Beaumont
The city of Beaumont provides up to $14,999 as a zero-interest loan, which will be forgiven after five years. You must be a first-time homebuyer and meet income limitations. The maximum home purchase price is $150,000.
Bryan
The city of Bryan provides up to $14,000 in the form of a zero-interest loan, which will be forgiven after five years. You must be a first-time homebuyer, earning 80% or less of the area median income, depending on household size. The maximum home purchase price is $261,000 for existing homes and $273,000 for new homes.
Denton
The city of Denton provides up to $50,000 in the form of a zero-interest loan to first-time homebuyers. Loans in the amount of $14,900 or less will be forgiven after five years, and loans above this amount will be forgiven after 15 years. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price is $375,250.
El Paso
The city of El Paso provides up to $50,000 if the home is in a priority area and up to $30,000 if the home is outside of the priority area. The loan is a zero-interest loan for first-time homebuyers. You must earn between 60% and 80% of the area median income or less, depending on household size. The maximum home purchase price is $184,000.
Fort Worth
The city of Fort Worth provides up to $25,000 in the form of a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for up to 10 years, depending on the amount of the loan. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price is $309,000 for existing homes and $329,000 for new homes.
Frisco
The city of Frisco provides up to $10,000 in the form of a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for five years. The combined income of all adults must not exceed $144,567. The maximum home purchase price is $563,500.
Galveston
The city of Galveston provides up to $14,500 as a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for five years. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price can’t exceed 95% of the median home price in the area.
Grand Prairie
The city of Grand Prairie provides up to $7,500 as a grant to first-time homebuyers. There are no conditions that you must remain in the home for any set amount of time. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price is $300,000.
Houston
The city of Houston provides up to $50,000 as a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for 10 years. You must earn 80% or less of the area median income, depending on household size. There’s no maximum purchase price.
Irving
The city of Irving provides up to $50,000 as a zero-interest loan to first-time homebuyers. Loans in the amount of $14,900 or less will be forgiven after five years, and loans above this amount will be forgiven after 10 years. You must earn 80% or less of the area median income, depending on household size. There’s no maximum purchase price.
Laredo
The city of Laredo provides up to $30,000 as a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for up to 10 years. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price is $209,000 for existing homes and $251,000 for new homes.
Mesquite
The city of Mesquite provides up to $10,000 as a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for up to 10 years. You must earn 80% or less of the area median income, depending on household size. There’s no maximum purchase price.
Plano
The city of Plano provides up to $55,000 as a zero-interest loan to first-time homebuyers. Loans in the amount of $10,000 or less will be forgiven after five years; loans above this amount will be forgiven after 15 years. For loans over $10,000, your income must be between 60% and 80% of the area median income. The maximum home purchase price is $418,000.
San Angelo
The city of San Angelo provides up to $15,000 as a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for five years. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase can’t exceed 95% of the area's median price.
San Antonio
The city of San Antonio provides up to $15,000 as a zero-interest loan to first-time homebuyers. If you remain in the home for 10 years, 75% of the loan will be forgiven. You must earn 80% or less of the area median income, depending on household size. The maximum home purchase price is $305,200 for existing homes and $325,800 for new homes.
Texarkana
The city of Texarkana provides up to $20,000 as a zero-interest loan to first-time homebuyers. The loan will be forgiven if you remain in the home for up to five years. You must earn 80% or less of the area median income, depending on household size. There’s no maximum purchase price.
FAQ
Who is eligible for the first-time homebuyer program in Texas?
You must live in Texas and be a first-time homebuyer to be eligible. You'll also need to meet credit and income limits.
A first-time buyer is defined as someone who hasn’t owned a home within the last three years. For married couples, both spouses need to qualify. If one spouse has owned a home but the other hasn’t, the couple won’t be eligible for first-time homebuyer programs.
What is the My First Texas Home program?
The My First Texas Home program provides down payment assistance in the form of a 30-year no-interest loan. Eligible applicants may also qualify for loan forgiveness after three years.
Are there any grants available to first-time homebuyers in Texas?
Yes, TDHCA offers down payment assistance that may come in the form of a grant or a three-year forgivable loan. Both the My First Texas Home and My Choice Texas Home programs offer forgivable loans to eligible buyers who meet program requirements and stay in the home for at least three years.
What are the benefits of using a Mortgage Credit Certificate?
A Mortgage Credit Certificate allows you to receive a tax credit for 15% of the interest you paid on your mortgage, up to $2,000 per year. Tax credits directly reduce the amount of income tax you owe, so using this certificate can save you money.
Homebuyer education and resources
To qualify for most homebuyer assistance programs in Texas, you must complete a homebuyer education course. Classes are available online, with prices ranging from $0 to $99. Requirements vary depending on which program you use to purchase your home.
- Becoming a Homeowner: This is a required class for all TDHCA program participants. Becoming a Homeowner is a two-hour online course that covers how to prepare for homeownership and helps you understand the mortgage process. You’ll receive a certificate to present to your lender.
- Texas Mortgage Credit Certificate course: This is a required course for those who plan on using an MCC. You must take a course issued by TDHCA and provide proof of completion at closing.
- Framework: This course is $75 and is offered online only. It teaches students about finding, buying and owning a home.
- eHomeAmerica: This course is $99 and is offered online only. It helps students determine if they are ready for homeownership, learn how to shop for a home and find out how to maintain their home.
- Fannie Mae's Homeview: This course is free and available online. It covers homeowner readiness, the mortgage loan process, house shopping and homeownership tips.
- Freddie Mac's Credit Smart Homebuyer U: This free course covers the homebuying process, understanding credit and finances, applying for a mortgage, shopping for a home and managing your home after purchase.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- TSAHC, “Eligibility Quiz.” Accessed May 21, 2025.
- TSAHC, “First Time Homebuyer Grants in Texas.” Accessed May 21, 2025.
- Next Wave Mortgage, “My First Texas Home Program.” Accessed May 21, 2025.
- Next Wave Mortgage, “My Choice Texas Home Program.” Accessed May 21, 2025.
- FHA, “Homes for Texas Heroes Program.” Accessed May 21, 2025.
- TSAHC, “Homes for Texas Heroes Program.” Accessed May 21, 2025.
- TSAHC, “Attend a Homebuyers Education Course.” Accessed May 21, 2025.
- Housing Channel, “Buy and Own a Home with Confidence.” Accessed May 21, 2025.
- eHome America, “Homebuyer Education.” Accessed May 21, 2025.
- Fannie Mae, “Homeview.” Accessed May 21, 2025.
- Freddie Mac, “CreditSmart Homebuyer U.” Accessed May 21, 2025.
- Texas Department of Housing & Community Affairs, “Texas Homebuyer U.” Accessed May 21, 2025.
- FHA.com, “First-Time Homebuyer Assistance Programs in Texas.” Accessed May 21, 2025.
- FHA.com, “City of Arlington Homebuyers Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Austin Down Payment Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Beaumont Down Payment Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Bryan Down Payment Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Denton Homebuyers Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of El Paso First Time Homebuyer Program.” Accessed May 21, 2025.
- FHA.com, “City of Fort Worth First Time Homebuyer Program.” Accessed May 21, 2025.
- FHA.com, “City of Frisco Down Payment Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Galveston First Time Homebuyer Program.” Accessed May 21, 2025.
- FHA.com, “City of Grand Prairie Buying Power Program.” Accessed May 21, 2025.
- FHA.com, “City of Houston First Time Homebuyer Program.” Accessed May 21, 2025.
- FHA.com, “City of Irving Down Payment Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Laredo First Time Homebuyer Program.” Accessed May 21, 2025.
- FHA.com, “City of Mesquite Down Payment Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of Plano First Time Homebuyer Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of San Angelo First Time Homebuyer Assistance Program.” Accessed May 21, 2025.
- FHA.com, “City of San Antonio Homeowner Incentive Program.” Accessed May 21, 2025.
- FHA.com, “City of Texarkana First Time Homebuyer Assistance Program.” Accessed May 21, 2025.
- City of Texarkana, “First Time Homebuyer Assistance Program.” Accessed May 21, 2025.
- TSAHC, “First Time Homebuyer Grants in Texas.” Accessed May 21, 2025.
