Texas First-Time Home Buyer Programs and Assistance

Texas first-time buyer programs open now

Texas Department of Housing and Community Affairs (TDHCA) - The Texas Homebuyer Program is the state's housing finance agency (homebuyer programs page). It runs 3 down payment or closing-cost assistance programs alongside 2 below-market first mortgages. Generally has not owned a home used as a primary residence in the prior 3 years; exceptions available in targeted areas and for qualified Veterans (per welcomehome.tdhca.texas.gov/programs)

• My First Texas Home. Terms: 30-year low-interest first mortgage; DPA provided as a 30-year deferred repayable second lien or a 3-year deferred forgivable second lien at 0% interest Purchase price limit: Varies by county; see TDHCA county income and purchase price limits Homebuyer education: required Program page
• My Choice Texas Home. Terms: 30-year low-interest first mortgage with down payment assistance; open to repeat buyers, not limited to first-time homebuyers Purchase price limit: Varies by county; see TDHCA county income and purchase price limits Homebuyer education: required Program page
• Texas Mortgage Credit Certificate (TMCC) Program. Terms: Dollar-for-dollar federal tax liability reduction; available combined with a My First Texas Home loan or as a stand-alone option (no minimum credit score for stand-alone); supplies limited Homebuyer education: required Program page
• Homes for Texas Heroes Program (TSAHC). Terms: Fixed-rate mortgage loan plus down payment assistance as either a grant (no repayment) or a deferred forgivable second lien (repayable only if sold/refinanced within 3 years) Purchase price limit: Varies; see TSAHC purchase price limits by program Homebuyer education: required Program page
• Home Sweet Texas Home Loan Program (TSAHC). Terms: Fixed-rate mortgage loan plus down payment assistance as either a grant (no repayment) or a deferred forgivable second lien (repayable only if sold/refinanced within 3 years) Purchase price limit: Varies; see TSAHC purchase price limits by program Homebuyer education: required Program page

Mortgage credit certificate in Texas

Texas offers a mortgage credit certificate (TSAHC Mortgage Credit Certificate (MCC)), a federal tax credit worth 15% of the mortgage interest you pay each year, for as long as you live in the home. MCC program page

City and county programs in Texas

Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.

• City of Houston: Homebuyer Assistance Program (HAP). Up to $30,000. Forgivable second loan. Income limit: At or below 80% Area Median Income (income chart on the fetched page is dated 2020 and marked as an archived page;. First-time buyers only. Official page
• City of San Antonio: Homeownership Incentive Program (HIP). Between $1,000 and $12,000 (standard HIP); a related HIP120 track lends between $1,000 and $15,000. Forgivable second loan. First-time buyers only. Official page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Texas's median-priced home (about $341,800), 3% down is roughly $10,254. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Texas programs often add income and purchase-price limits, which is another reason to confirm the details with Texas Department of Housing and Community Affairs (TDHCA).

Stack a buyer rebate on top in Texas

Down-payment assistance and a buyer commission rebate are two different things, and in Texas you can use both. Assistance from Texas Department of Housing and Community Affairs (TDHCA) helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $6,836 on a median-priced home), which can cover much of your closing bill.

See Texas buyer rebates →   See Texas closing costs →

You may qualify for more help in your county

City and county governments in Texas run their own down payment programs on top of the state ones, and most can be combined with a state loan. Each county page lists the local programs, income limits and local closing costs alongside the state programs:

• Bexar County: local help up to $30,000
• Dallas County: local help up to $60,000
• Harris County: local help up to $75,000
• Tarrant County: local help up to $25,000
• Travis County: local help up to $40,000

Official sources

• Texas Department of Housing and Community Affairs (TDHCA) - The Texas Homebuyer Program
• Texas Mortgage Credit Certificate Program - The Texas Homebuyer Program
• Homes for Texas Heroes Program - Texas State Affordable Housing Corporation (TSAHC)
• Loans and Home Down Payment Assistance - TSAHC
• Welcome Home - The Texas Homebuyer Program
• Additional Grant Down Payment Assistance
• Mortgage Credit Certificates - TSAHC
• Homebuyer Assistance Program - City of Houston HCDD
• Homeownership Incentive Program (HIP) flyer - City of San Antonio
• Consumer Financial Protection Bureau: down payment options and how to prepare

Texas program details last verified against Texas Department of Housing and Community Affairs (TDHCA) on September 11, 2026.