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

Texas has two statewide sources of first-time buyer help. The Texas Department of Housing and Community Affairs (TDHCA) runs My First Texas Home, My Choice Texas Home, and the Texas Mortgage Credit Certificate. The Texas State Affordable Housing Corporation (TSAHC) runs Homes for Texas Heroes and Home Sweet Texas. Most pair a 30-year fixed-rate mortgage with down payment and closing cost assistance of up to 5% of the loan amount, and many Texas cities and counties add programs of their own. Eligibility depends on income, purchase price, credit, and county.

Texas statewide programs at a glance.

Five statewide programs cover most Texas first-time buyers. Terms and funding change, so confirm current details with the agency before planning around them.

Texas statewide home buyer programs
Program	Run by	Who it's for	Type of help
My First Texas Home	TDHCA	First-time buyers (requirement waived for qualified veterans and homes in targeted areas)	30-year fixed FHA, VA, or USDA loan with down payment assistance of up to 5% of the loan amount
My Choice Texas Home	TDHCA	First-time and repeat buyers	30-year fixed FHA, VA, USDA, or conventional (Fannie Mae HFA Preferred or Freddie Mac HFA Advantage) loan with assistance of 2% to 5% of the loan amount; income limits apply, no purchase price limit
Texas Mortgage Credit Certificate	TDHCA	First-time buyers and qualified veterans (first-time rule also waived in targeted areas), within income and price limits	An annual federal tax credit on part of the mortgage interest you pay; available with a TDHCA loan or on its own
Homes for Texas Heroes	TSAHC	Public school teachers, aides, librarians, counselors, and nurses; firefighters and EMS; peace, corrections, juvenile corrections, and public security officers; county jailers; nursing and allied health faculty; veterans and active military. First-time and repeat buyers	Fixed-rate loan with assistance of up to 5% of the loan amount, as a grant, a 3-year forgivable second lien, or a deferred second lien repaid on sale or refinance
Home Sweet Texas	TSAHC	Low- and moderate-income buyers who are not in a Heroes profession	The same loan and assistance structure as Homes for Texas Heroes

Who counts as a first-time buyer in Texas?

TDHCA and most local programs use the federal definition: you have not owned and lived in a primary residence during the last three years. A non-purchasing spouse is counted too.

My First Texas Home waives the requirement for honorably discharged veterans (shown by a DD-214) and for homes in qualified targeted census tracts. My Choice Texas Home and the TSAHC programs have no first-time requirement at all, so a past owner is not automatically shut out.

Requirements most Texas programs share.

The details differ by program, but nearly every Texas option checks the same things:

Household income and purchase price limits, set by county and household size
A minimum credit score: 620 for My First Texas Home and for TSAHC government loans, 640 for TSAHC conventional loans; lenders may require more
A HUD-certified homebuyer education course before closing
The home must be your primary residence (TDHCA requires move-in within 60 days of closing)
Single-family homes, condos, townhomes, PUDs, eligible manufactured homes, and some duplexes with one unit owner-occupied
Applying through a participating approved lender, which reserves the program funds for your loan

TDHCA or TSAHC: which fits?

If you work in a Texas Heroes profession, start with Homes for Texas Heroes: assistance can come as a grant that is never repaid, and the program is open to repeat buyers.

If you are a first-time buyer using FHA, VA, or USDA, compare My First Texas Home with Home Sweet Texas. The two differ in how the assistance is repaid and whether it can be combined with a Mortgage Credit Certificate.

If you have owned a home recently, My Choice Texas Home and the TSAHC programs are the statewide options that remain open to you.

The Texas Mortgage Credit Certificate and targeted areas.

A Mortgage Credit Certificate (MCC) turns part of the mortgage interest you pay each year into a federal tax credit. TDHCA's MCC can be paired with a My First Texas Home loan or used on its own; TSAHC's MCC must be combined with TSAHC down payment assistance. The credit only helps if you owe federal income tax.

Targeted areas are census tracts where TDHCA and TSAHC allow higher income and price limits and waive the first-time buyer rule. A lender can check whether a specific address is in one.

City and county programs in Texas.

Local programs can add help on top of a statewide one. The City of San Antonio, the City of Houston, and the City of Dallas (administered for the City by BCL of Texas) each run homebuyer assistance for eligible buyers. TDHCA also lists county housing finance corporation gift funds that combine with its loans, currently from the Capital Area Housing Finance Corporation in Bastrop, Blanco, Burnet, Caldwell, Fayette, Hays, Lee, Llano, and Williamson counties. Local funds are limited and usually first come, first served.

The path, start to finish.

Get pre-approved first, because every Texas program sits on top of a mortgage you have to qualify for. Next, check which programs your income, county, and profession open up, and complete the homebuyer education course early. Once you are under contract, an approved participating lender reserves the program funds and submits the compliance file before closing. TDHCA and TSAHC each publish their list of approved lenders.

Bryan Bowman, NMLS #1473913, is licensed in Texas and can talk through how these programs compare with standard loan options.

Common questions.

General answers — your situation deserves a specific one. Bryan is a call away.

What is the best first-time home buyer program in Texas?

There is no single best program. Homes for Texas Heroes fits teachers, first responders, and veterans. My First Texas Home fits first-time buyers using FHA, VA, or USDA. The Texas Mortgage Credit Certificate adds a yearly tax credit. City programs can stack on top. The right choice depends on your income, county, profession, and loan type.

How much down payment assistance can I get in Texas?

Statewide programs from TDHCA and TSAHC offer assistance of up to 5% of the loan amount, depending on the program, the loan type, and available funding. City and county programs set their own amounts.

What credit score do I need for Texas first-time buyer programs?

My First Texas Home and TSAHC government loans require a minimum 620 credit score, and TSAHC conventional loans require 640. Individual lenders can set higher minimums.

Do I have to repay Texas down payment assistance?

It depends on the structure. TSAHC grants are never repaid. Forgivable second liens are forgiven after three years if you keep the home as your primary residence. TDHCA and TSAHC also offer a 30-year deferred second lien with no interest and no monthly payment that is repaid when you sell, refinance, or pay off the first mortgage.

Is there an income limit for Texas home buyer programs?

Yes. TDHCA and TSAHC publish income and purchase price limits by county and household size, with expanded limits in targeted areas.

Can I use a Texas program if I have owned a home before?

Yes. My Choice Texas Home, Homes for Texas Heroes, and Home Sweet Texas do not require you to be a first-time buyer. My First Texas Home does, except for qualified veterans and homes in targeted areas.

How do I apply for a Texas first-time buyer program?

You apply through a TDHCA- or TSAHC-approved participating lender, not directly with the agencies; each agency publishes its lender list. Bryan Bowman, NMLS #1473913, is licensed in Texas and can talk through how these programs compare with standard loan options.

Closely related guides on the same decision.

Down Payment Assistance in Texas

Texas down payment assistance (DPA) helps eligible buyers cover the down payment and closing costs, usually as a second lien behind the main mortgage. Statewide programs from TDHCA and TSAHC offer assistance of up to 5% of the loan amount as a grant, a forgivable second lien, or a deferred second lien repaid when you sell or refinance. Cities and counties add local programs. Income, purchase price, and credit requirements apply.

First-Time Home Buyer Programs in San Antonio

The City of San Antonio's Neighborhood and Housing Services Department runs the Homeownership Incentive Program (HIP) for first-time buyers. It has two tiers: HIP 80 for households at or below 80% of area median income, and HIP 120 for households up to 120%. Both provide down payment and closing cost assistance as a no-interest, no-payment second lien that is largely forgiven over time. San Antonio buyers can also use statewide programs from TDHCA and TSAHC.

Get answers about your situation.

Guides explain the general rules. A short conversation with Bryan tells you how they apply to you — no obligation, no pressure.

Get Pre-Approved Call (702) 820-2963