Key Takeaways
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Texas offers multiple homebuyer assistance programs, including low-interest mortgages and down payment aid.
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City-specific programs in Austin, Dallas, Houston, Fort Worth, and San Antonio provide additional financial support.
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First-time buyers can also use federal loan programs like FHA, VA, and USDA loans to reduce costs.
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Homebuyer education courses are required for most programs and can help buyers navigate the process.
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Purchasing your first home in Texas is an exciting milestone, but rising home prices and upfront costs can make it challenging. Fortunately, Texas first-time homebuyer programs offer financial assistance, including low-interest mortgages, down payment aid, and tax credits. Understanding these options can help you secure a more affordable path to homeownership.
Texas Housing Market Overview (2025)
As of January 2025, the Texas housing market has expanded, with a 13.6% increase in home listings compared to last year. The median sale price is $334,700, requiring an average down payment of $17,452. If you’re looking for affordability, counties like Crosby, Duval, Cottle, Wheeler, and Garza offer lower home prices.
Statewide First-Time Homebuyer Programs
Texas offers several programs to make homeownership more accessible. These options provide low-interest mortgages, down payment assistance, and even forgivable second loans to qualified buyers.
My First Texas Home
Offered by the Texas Department of Housing and Community Affairs (TDHCA), this program provides 30-year fixed-rate mortgages and up to 5% in down payment assistance for FHA, VA, USDA, and conventional loans.
| Eligibility Requirements | Benefits | Potential Drawbacks |
| Minimum 620 credit score | Down payment & closing cost aid | Must work with an approved lender |
| Income & purchase price limits apply | Forgivable second-lien options | Repayment required if sold/refinanced too soon |
| Homebuyer education course required | Low-interest mortgage rates | x |
My Choice Texas Home
Also managed by TDHCA, this program is available to both first-time and repeat homebuyers. It offers similar low-interest rates and down payment assistance but with more flexibility.
| Eligibility Requirements | Benefits | Potential Drawbacks |
| Minimum 620 credit score | Available to repeat buyers | Must use an approved lender |
| Income & purchase price limits apply | Flexible assistance options | Repayment obligations apply |
Homes for Texas Heroes
This program, offered by the Texas State Affordable Housing Corporation (TSAHC), supports teachers, police officers, firefighters, and veterans. It provides 30-year fixed-rate loans and up to 5% down payment assistance in the form of grants or forgivable second mortgages.
| Eligibility Requirements | Benefits | Potential Drawbacks |
| Minimum 620 credit score | Tailored for community service workers | Limited to specific professions |
| Income & purchase price limits apply | Flexible loan & grant options | Repayment required if sold/refinanced before forgiveness period ends |
City-Specific First-Time Homebuyer Assistance
Many major cities in Texas offer localized homebuyer assistance programs, providing financial aid based on income and home price limits.
Austin – Down Payment Assistance Program
Austin offers up to $40,000 in down payment and closing cost assistance through a forgivable loan.
- Eligibility: Income limits apply, home price must not exceed $579,025, and buyers must complete a homebuyer education course.
- Benefits: High financial aid, forgivable loan terms.
- Potential Drawbacks Only applies to properties within Austin and requires adherence to program rules.
Dallas – Homebuyer Assistance Program (DHAP)
Dallas provides financial support to low- and moderate-income buyers purchasing homes within city limits.
| Requirements | Benefits | Potential Drawbacks |
| Meet income & property price limits | Helps cover down payment & closing costs | Homes must be within Dallas city limits |
| Homebuyer education course required | Additional financing options available | Properties must appraise for the sale price |
Fort Worth – Homebuyer Assistance Program
This program offers up to $25,000 for down payment and closing costs.
- Eligibility: Income and purchase price limits apply, and the home must be within Fort Worth city limits.
- Benefits: Large financial aid, flexible use of funds.
- Potential Drawbacks: Strict qualifying criteria and a required personal contribution from buyers.
Houston – Homebuyer Assistance Program
Houston provides up to $50,000 in homebuyer aid through a forgivable, zero-interest loan.
| Requirements | Benefits | Potential Drawbacks |
| Must meet income & asset limits | No minimum credit score required | If sold/refinanced within 5 years, repayment is required |
| Home must be within Houston city limits | No purchase price cap | Preapproval letters expire after 120 days |
San Antonio – Homeowner Incentive Programs (HIP 80 & HIP 120)
San Antonio offers two programs based on income:
- HIP 80: Provides up to $30,000 in a forgivable, zero-interest loan.
- HIP 120: Offers up to $15,000, with 75% forgivable after 10 years.
| Program | Max Assistance | Forgivable Terms |
| HIP 80 | $30,000 | Fully forgiven after 5-10 years |
| HIP 120 | $15,000 | 75% forgiven after 10 years |
National First-Time Homebuyer Loan Options
Texas buyers can also take advantage of federal home loan programs to further reduce costs.
| Loan Type | Benefits | Best For |
| FHA Loans | Low 3.5% down payment, 580+ credit score required | Buyers with lower credit scores |
| VA Loans | No down payment, competitive interest rates | Eligible military members & veterans |
| USDA Loans | No down payment, low rates | Homes in eligible rural areas |
| Good Neighbor Next Door | 50% discount on homes in select areas | Teachers, police, firefighters |
| Mortgage Credit Certificate (MCC) | Federal tax credit (up to $2,000/year) | Buyers looking to reduce tax liability |
Tips for First-Time Homebuyers in Texas
To improve your chances of qualifying for assistance, follow these strategies:
- Compare Programs: Research both statewide and local assistance options to find the best fit.
- Boost Your Credit Score: A higher credit score can unlock better mortgage rates and increase eligibility.
- Get Preapproved: Understanding your budget and mortgage limits can speed up the homebuying process.
- Take a Homebuyer Course: Most programs require homebuyer education, which provides valuable guidance.
Start Your Texas Homebuying Journey
Buying a home in Texas as a first-time homebuyer can be more affordable with the right financial assistance. Whether you’re looking for down payment aid, low-interest loans, or tax credits, Texas offers plenty of options to help you achieve homeownership.
To get started, check eligibility requirements, connect with an approved lender, and explore available resources to turn your homeownership dreams into reality.
FAQs: Texas First Time Home Buyer Programs
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