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.
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 owned-and-occupied primary residence in 3 years), qualified veterans, and buyers in targeted census tracts |
| Assistance amount | 2%–5% of the loan amount, as a 0% second lien |
| Min credit score | 620 |
| Income and purchase price limits | Set by county |
| Loan types supported | FHA, VA and USDA |
| Homebuyer education | Required for each borrower, including a non-purchasing spouse |
| Repayment | 30-year deferred option: due on sale, refinance, transfer or payoff of the first mortgage; 3-year forgivable option: forgiven after 36 months |
Source: TDHCA My First Texas Home program matrix and TDHCA homebuyer programs.
TSAHC Homes for Texas Heroes
The Texas State Affordable Housing Corporation (TSAHC) operates two homebuyer programs. Homes for Texas Heroes serves eligible professions, while Home Sweet Texas is open to low- and moderate-income buyers, including first-time and repeat buyers, who don’t meet the Heroes profession requirements.
| Program | Who Qualifies | Assistance | Key Feature |
|---|---|---|---|
| Homes for Texas Heroes | Full-time public K-12 teachers, teacher aides, school librarians, certified school counselors and school nurses; nursing and allied health faculty; peace officers; firefighters; EMS personnel; corrections and juvenile corrections officers; county jailers; public security officers; veterans | Up to 5% of the loan amount (grant or forgivable second lien) | Grant option never has to be repaid |
| Home Sweet Texas | Low- and moderate-income buyers, first-time and repeat | Up to 5% of the loan amount (grant or forgivable second lien) | No occupation requirement |
TSAHC offers two assistance structures: a grant that never has to be repaid, or a second lien loan that is fully forgiven after three years if you don’t sell, refinance or move out. TSAHC requires a minimum credit score of 620 on government loans and 640 on conventional loans.
Texas Veterans Land Board (VLB) Home Loans
The Texas Veterans Land Board offers low-interest home loans for eligible Texas veterans, military members and their spouses. This is separate from the federal VA loan program.
| Feature | VLB Home Loan Details |
|---|---|
| Eligible borrowers | Veterans, military members and their spouses who are bona fide Texas residents when they apply |
| Loan type | Fixed rate; 15-, 20-, 25- or 30-year terms |
| Max loan amount | $832,750 |
| Credit | Subject to credit approval |
| Down payment | Little or no down payment |
| 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 | 0% second lien, deferred or 3-year forgivable | Income limits; 620+ score; first-time, veteran or targeted area |
| TSAHC Homes for Texas Heroes | Up to 5% of loan | Grant or forgivable loan | Eligible profession or veteran |
| TSAHC Home Sweet Texas | Up to 5% of loan | Grant or forgivable loan | Income limits; first-time or repeat buyers |
| Texas Veterans Land Board | Low-interest loan | State first mortgage | Texas veteran, military member or spouse |
| City/County DPA programs | $5,000–$25,000+ | Varies by jurisdiction | Varies; check your city’s housing authority |
Who Qualifies as a First-Time Home Buyer in Texas?
TDHCA’s My First Texas Home defines a first-time home buyer as someone who has not owned and occupied a primary residence in the last three years, including a non-purchasing spouse (TDHCA program matrix). This means previous homeowners who have rented for three or more years may still qualify.
Step-by-Step: Buying Your First Home in Texas
| Step | What to Do | Texas-Specific Notes |
|---|---|---|
| 1 | Check your credit score | 620+ for TDHCA; 620+ (government) or 640+ (conventional) for 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 | Ask whether the seller has a recent survey your title company will accept |
| 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 — the school district exemption is $140,000 |
