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Texas first-time homebuyer assistance programs

Meaghan Hunt Chris Jennings
Written by
Meaghan Hunt,
Edited by
Chris Jennings
Published on February 26, 2025 | 5 min read

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Houston Heights neighbhorhood
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The Texas economy continues to grow, and an influx of residents has pushed home prices up. As of January 2025, the number of homes for sale was up 13.6 percent year-over-year, presenting more inventory for buyers than has been available over much of the last five years.

If you’re a first-time homebuyer in the state, the Texas Department of Housing and Community Affairs (TDHCA) and other organizations oversee several programs that could help you more easily afford a home. These initiatives for first-time buyers include loans and down payment assistance.

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Texas homebuying statistics
  • Median sale price, as of January 2025: $334,700
  • Median down payment in the state, as of December 2025: $17,452
  • Most affordable counties: Crosby, Duval, Cottle, Wheeler, Garza, Hall, Hardeman, Swisher, Floyd, Zavala

Texas first-time homebuyer programs

TDHCA My First Texas Home

Through The Texas Homebuyer Program, the TDHCA offers numerous first-time homebuyer programs, including the My First Texas Home program, a 30-year mortgage with a low interest rate and up to 5 percent in interest-free down payment assistance. You can obtain a Fannie Mae HFA Preferred conventional loan through this program, or opt for an FHA, VA or USDA loan.

TDHCA My Choice Texas Home

If you’re a first-time or repeat homebuyer, TDHCA’s My Choice Texas Home program offers a similar low-rate mortgage and up to 5 percent assistance to help cover your closing costs and down payment. This assistance is a zero-interest, no-monthly payment second mortgage.

In addition to an FHA, VA or USDA loan, you can also obtain a Fannie Mae HFA Preferred conventional loan through this program.

TSAHC Home Sweet Texas Home Loan Program

The Home Sweet Texas Home Loan Program through the Texas State Affordable Housing Corporation (TSAHC) offers a 30-year fixed-rate mortgage and up to 5 percent down payment assistance, either as a grant or second mortgage. Income, purchase price, and credit score limits apply, and buyers must complete a homebuyer education course before closing.

This program can be used to get a Fannie Mae HFA Preferred or Freddie Mac HFA Advantage conventional loan, an FHA loan, VA loan or USDA loan.

TSAHC Homes for Texas Heroes Program

If you work in a public service profession — such as a teacher, police officer or firefighter — or are an eligible veteran, you might qualify for TSAHC’s Homes for Texas Heroes Program. This program offers a 30-year mortgage along with down payment assistance up to 5 percent. Like the Home Sweet Texas Home Loan Program, the assistance can be either a grant or second mortgage.

You don’t have to be a first-time homebuyer, but your income and the home’s price can’t exceed income and purchase price limits. You can view a list of eligible occupations here.

City-specific homebuyer assistance programs

Austin

First-time homebuyers in Austin could qualify for up to $40,000 in down payment and closing cost assistance via a forgivable loan through the city.

Dallas

The Dallas Homebuyer Assistance Program (DHAP) is designed to provide purchase assistance for low- and moderate-income buyers. A home price limit of $342,000 applies, regardless of whether the purchase is an existing home or a new construction.

Fort Worth

Through its Homebuyer Assistance Program, the City of Fort Worth offers up to $25,000 toward a down payment and closing costs for qualified buyers looking to purchase a home within city limits. Sales price maximums apply — $309,000 for existing homes or $329,000 for new constructions — and buyers must work with an approved lender.

Houston

First-time buyers may qualify for assistance in Houston, where the entire application may be completed via an online portal. The city has several active homebuyer programs, including a homebuyer assistance program that provides qualified buyers with up to $50,000 that can be used for eligible purchase-related expenses. The assistance comes in the form of a zero-percent interest, forgivable loan.

San Antonio

Homeowner incentive programs (HIPs) through the City of San Antonio offer options to help buyers afford the down payment on a home. HIP 80 and HIP 120 have different requirements and program benefits.

HIP 80: Lends between $1,000 and $30,000 to qualifying buyers as a second mortgage with zero interest. Up to $14,999 will be forgiven at 100 percent after you live in the home for five years; up to $30,000 will be forgiven at 100 percent after you live in the home for 10 years.

HP 120: Lends between $1,000 and $15,000 as a zero-interest, no-payment second loan. The loan is 75 percent forgivable after 10 years, with 25 percent loaned perpetually until the home is either sold, transferred or refinanced with cash back.

Other first-time homebuyer loan programs

A mortgage credit certificate (MCC) is a federal tax credit for a percentage of your annual mortgage interest. The credit is equal to up to $2,000 per year.

You can combine the MCC with a My First Texas Home loan, but you’re not required to have that type of loan in order to be eligible. The certificate is only available to first-time homebuyers and veterans who are within income and price limits.

In addition to MCCs and the Texas state homebuying programs, consider any of the nationally available first-time buyer loan programs, including:

  • FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment as little as 3.5 percent.
  • VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
  • USDA loans – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.
  • Good Neighbor Next Door program – This HUD program has a very low down payment requirement on homes in certain areas, coupled with the ability to save 50 percent on the purchase price.

Get started

  • Do your homework. If you’re interested in a Texas Department of Housing and Community Affairs program, find an approved mortgage lender to help you get the process started. It’s helpful to have your documentation handy ahead of time, including three months’ worth of bank statements and two months’ worth of recent pay stubs. If you’re considering a program through the Texas State Affordable Housing Corporation, begin by taking this eligibility quiz. You can then browse through the organization’s list of lenders to learn more.
  • Work on your credit score. It’s the most important factor in determining your mortgage rate, so focus on boosting your number.
  • Compare lenders. Whichever lender or loan program you decide on, compare mortgage rates and loan offers with at least three lenders. This can help you find the most affordable mortgage for your first home purchase.

Curious to learn more about homeownership in Texas? Here are some resources that might help:

Written by
Meaghan Hunt Arrow Right Icon
Contributor, Personal Finance
Meaghan Hunt is a researcher, writer, and editor across disciplines with a passion for personal finance topics. After a decade of working in public libraries, she now writes, edits, and researches as a full-time freelancer.