Buying your first home in Texas is exciting, but the financial side can feel overwhelming. Between saving for a down payment, understanding loan options, and navigating the application process, it is easy to wonder where to start.
The good news is that Texas offers some of the most generous first time home buyer texas programs in the country. State agencies like TDHCA and TSAHC provide down payment assistance Texas buyers can use to reduce upfront costs significantly, and several loan programs are designed specifically for people entering the market for the first time.
This guide walks you through the major programs available, who qualifies, and how to take the first step toward homeownership.
What Counts as a First-Time Buyer in Texas?
In Texas, you qualify as a first-time home buyer if you have not owned a home as your primary residence in the past three years. This definition is more flexible than many people realize. If you previously owned a home but have been renting for three or more years, you qualify. Veterans are often exempt from the three-year rule for many programs.
For married couples, both spouses must meet the first-time buyer requirement. If one spouse has owned a home within the past three years, the couple may not be eligible for certain first-time buyer programs, though other options may still be available.
Texas Down Payment Assistance Programs
Texas has two major state agencies that provide down payment assistance and affordable mortgage options for qualifying buyers. Both operate through networks of approved lenders across the state.
TDHCA: My First Texas Home Program
The Texas Department of Housing and Community Affairs offers the My First Texas Home program, which provides a 30-year fixed-rate mortgage with down payment assistance of up to 5 percent of the loan amount. The assistance comes as a forgivable second lien that does not need to be repaid if you stay in the home for at least three years.
TDHCA also offers the My Choice Texas Home program, which is open to repeat buyers as well, making it a good option for anyone who needs help with upfront costs regardless of whether they have owned before.
TSAHC: Home Sweet Texas and Homes for Texas Heroes
The Texas State Affordable Housing Corporation offers two programs. Home Sweet Texas is available to all eligible buyers and provides up to 5 percent in down payment assistance as either a grant or a forgivable loan. Homes for Texas Heroes is designed specifically for teachers, firefighters, police officers, nurses, veterans, and other public service workers.
Both TSAHC programs require a minimum credit score of 620 and have income limits that vary by county. Completing an approved homebuyer education course is required.
📖 Related: Low Down Payment Mortgage Options — Explore purchase programs that require as little as 3% down.
Loan Options for First-Time Texas Buyers
Beyond state assistance programs, first-time buyers have several loan types to consider. Each has different requirements for credit score, down payment, and mortgage insurance.
● FHA loans — Require as little as 3.5 percent down with a credit score of 580 or higher. FHA loans Dallas TX buyers use are popular because of their flexible qualification standards.
● Conventional loans — Available with as little as 3 percent down for first-time buyers through programs like HomeReady and Home Possible. Private mortgage insurance is required below 20 percent down but can be removed once you reach that threshold.
● VA loans — For eligible veterans and active-duty service members, VA loans offer zero down payment and no mortgage insurance.
● USDA loans — Zero down payment option for homes in eligible rural and suburban areas of Texas.
A licensed mortgage consultant at Texaslending can help you compare these options and identify which programs you qualify for based on your specific financial situation.
Steps to Buying Your First Home in Texas
● Check your credit — Review your credit report for errors and understand where your score falls relative to program requirements.
● Set your budget — Use a Mortgage Calculator Texas tool to estimate monthly payments at different price points and down payment levels.
● Get pre-approved — Pre-approval gives you a clear number to shop with and shows sellers you are a serious buyer. At Texaslending, pre-approval is fast, free, and comes with personalized guidance.
● Complete a homebuyer education course — Required for most Texas assistance programs and available online for a modest fee.
● Work with a trusted lender — Choose a lender approved to originate TDHCA and TSAHC loans so you can access every program you qualify for.
Frequently Asked Questions
What is the minimum credit score to buy a home in Texas?
It depends on the loan program. FHA loans require a minimum of 580 for the 3.5 percent down payment option. Conventional loans typically start at 620. State assistance programs like TDHCA and TSAHC also require a minimum of 620.
How much down payment assistance can I get in Texas?
State programs through TDHCA and TSAHC offer up to 5 percent of the loan amount in down payment assistance. Some local city and county programs offer additional grants that can be combined with state assistance.
Do I have to be a first-time buyer to get help in Texas?
Not always. Programs like My Choice Texas Home and Home Sweet Texas are open to repeat buyers as well. However, certain benefits like the Mortgage Credit Certificate are limited to first-time buyers and veterans.
Can I combine down payment assistance with an FHA loan?
Yes. Both TDHCA and TSAHC programs can be paired with FHA, VA, USDA, or conventional loans. Your lender can help you find the combination that works best for your situation.
How long does it take to close on a first-time buyer loan in Texas?
The timeline is similar to any other mortgage, typically 30 to 45 days from application to closing. Working with a lender who is already approved for state assistance programs can help avoid delays.
