Texas First-Time Home Buyer Guide 2026
TDHCA and TSAHC down payment assistance, income limits, step-by-step buying process, and the best loan programs for first-time buyers across the Texas housing market.
Who Qualifies as a First-Time Home Buyer in Texas?
For most Texas state programs, a “first-time home buyer” is defined as anyone who has not owned a primary residence in the past three years. This means previous homeowners who have rented for three or more years may still qualify.
TDHCA My First Texas Home Program
The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program — the state’s primary first-time buyer assistance program. It pairs a 30-year fixed-rate first mortgage with down payment and closing cost assistance.
| Feature | Details |
|---|---|
| Who qualifies | First-time buyers (no ownership in 3 years) and veterans statewide |
| Assistance amount | Up to 5% of the loan amount as a 0%, deferred second lien |
| Min credit score | 620 |
| Max income limit | Varies by county and household size (80% of Area Median Income) |
| Max purchase price | Varies by county; generally $350,000–$500,000+ in major metros |
| Loan types supported | FHA, VA, USDA, and Conventional |
| Homebuyer education | Required — must be completed before closing |
| Repayment | Deferred until sale, refinance, or end of loan term |
TSAHC Homes for Texas Heroes
The Texas State Affordable Housing Corporation (TSAHC) operates two first-time buyer programs. The Homes for Texas Heroes program targets essential workers, while the Home Sweet Texas program is open to all first-time buyers regardless of profession.
| Program | Who Qualifies | Assistance | Key Feature |
|---|---|---|---|
| Homes for Texas Heroes | Teachers, law enforcement, firefighters, EMS, nurses, veterans, corrections officers | 3–5% DPA (grant or DPA loan option) | Grant option does not require repayment |
| Home Sweet Texas | All first-time buyers and buyers who haven’t owned in 3 years | 3–5% DPA (grant or DPA loan option) | No occupation requirement |
TSAHC offers two assistance structures: a grant (no repayment required) or a 2nd lien DPA loan at a slightly lower mortgage rate. The grant is typically the better value unless the rate reduction on the DPA loan option outweighs the repayment obligation — run the numbers with your lender.
Texas Veterans Land Board (VLB) Home Loans
The Texas Veterans Land Board offers a unique state-funded home loan program exclusively for Texas veterans, active duty members, and surviving spouses. This is separate from the federal VA loan program and provides additional below-market rate financing options.
| Feature | VLB Home Loan Details |
|---|---|
| Eligible borrowers | Texas veterans, active duty, surviving spouses (must have TX as home of record or be current TX resident) |
| Loan type | 30-year fixed rate, below-market rate |
| Max loan amount | $726,200 (standard); $1,089,300 in high-cost counties |
| Min credit score | 620 |
| Down payment | 0% available in combination with VA loan |
| Land Board assistance | Can also be used for land purchase and home improvement loans |
Down Payment Assistance Summary for Texas First-Time Buyers
| Program | Amount | Type | Requirement |
|---|---|---|---|
| TDHCA My First Texas Home | Up to 5% of loan | Deferred 0% second lien | Income limits; 620+ score; first-time or veteran |
| TSAHC Homes for Texas Heroes | 3–5% of loan | Grant or deferred loan | Essential worker or veteran occupation |
| TSAHC Home Sweet Texas | 3–5% of loan | Grant or deferred loan | First-time buyer or 3-year non-owner |
| Texas Veterans Land Board | Below-market rate loan | State-funded first mortgage | Texas veteran, active duty, or surviving spouse |
| City/County DPA programs | $5,000–$25,000+ | Varies by jurisdiction | Varies; check your city’s housing authority |
Step-by-Step: Buying Your First Home in Texas
| Step | What to Do | Texas-Specific Notes |
|---|---|---|
| 1 | Check your credit score | 620+ for TDHCA/TSAHC; 580+ for FHA without DPA |
| 2 | Calculate your DTI | Max 45–50% DTI for most programs; Texas property taxes raise your PITI significantly |
| 3 | Complete homebuyer education | Required for TDHCA; recommended for TSAHC; 6–8 hours online |
| 4 | Find a participating lender | TDHCA and TSAHC loans must be originated through approved lenders — not all lenders are approved |
| 5 | Get pre-approved | Ask your lender to evaluate both program-assisted and standard loan options |
| 6 | Identify DPA programs you qualify for | Check TDHCA, TSAHC, and your city/county housing authority |
| 7 | Make an offer with pre-approval | Texas sellers expect full pre-approval; include survey contingency in your offer |
| 8 | Order a survey | Most Texas lenders require a current survey — budget $400–$700 |
| 9 | Open escrow and inspect | Never waive inspection; Texas has significant weather-related risk (foundation, HVAC, roof) |
| 10 | Close and file homestead exemption | File with your county appraisal district after closing — saves $800–$1,500/year on taxes |
Texas First-Time Buyer FAQs
For most first-time Texas buyers with a 640 credit score, FHA paired with TDHCA My First Texas Home down payment assistance is typically the strongest combination. FHA allows 3.5% down at 580+ credit, and TDHCA can provide up to 5% of the loan amount as a deferred 0% second lien — effectively covering your down payment and some closing costs. Veterans should always evaluate a VA loan first, which requires zero down payment and no mortgage insurance.
No — TDHCA income limits vary significantly by county and household size, based on 80% of the Area Median Income for each county. Urban counties like Travis (Austin) and Collin (Dallas suburbs) have higher limits than rural counties. A household that is over-income in a rural county may qualify in a metro county. Always check your specific county’s current limits at tdhca.state.tx.us before assuming you do or don’t qualify.
Yes. TSAHC’s Homes for Texas Heroes program specifically includes public school teachers (pre-K through 12th grade), teacher aides, school librarians, school counselors, and school nurses among its eligible professions. Heroes program participants receive 3–5% down payment assistance, available as either a grant (no repayment) or a slightly discounted rate with a deferred second lien. Teachers must work for a Texas public school to qualify.
