⭐ TEXAS FIRST-TIME BUYER GUIDE — MAY 2026

Texas First-Time Home Buyer Programs 2026 — Up to 5% Down Payment Aid

Sarah Mitchell, Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell
Senior Mortgage Advisor & VA Loan Specialist
10 minExpert
VA LoansFHA LoansFirst-Time Buyer Programs

⚡ TEXAS QUICK FACTS 2026

  • 💰 Best grant: TSAHC up to 5% — never repaid
  • 📋 Credit minimum: 620 (FHA) or 640 (conventional)
  • 💵 Income limit: ~$78,500-$110,400 (varies by county)
  • 🏠 Home price limit: $647,200 (most areas)
  • ⭐ Heroes: Teachers/nurses/police get 0.5% better rate

Texas has some of the most generous first-time buyer programs in the country. The TSAHC Home Sweet Texas grant gives you up to 5% of the loan amount — and it's a grant (never repaid). Here's exactly how to qualify.

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Texas First-Time Buyer Programs Compared

ProgramAssistanceTypeMin CreditIncome LimitBest For
My First Texas Home (TDHCA) Up to 5%Deferred 0% loan620+$78.5K-$110KBest overall program
Homes for Texas Heroes (TSAHC) Up to 5%Grant OR 0% loan620+$85K-$105KTeachers, firefighters, nurses
Home Sweet Texas (TSAHC) ⭐ BESTUp to 5%Grant (free!)620+$85K-$105KBest: grant = never repaid
My Choice Texas Home (TDHCA) Up to 5%Deferred 0% loan620+Same limitsRepeat buyers OK
Good Neighbor Next Door 50% off priceHUD discount580+NoneTeachers, police, firefighters

How to Apply for Texas First-Time Buyer Programs

1

Check your eligibility

Verify you haven't owned a home in 3+ years (or are buying in a targeted area). Check your income against county limits at tdhca.state.tx.us or tsahc.org.

2

Choose your program (TSAHC grant = best)

For most buyers: TSAHC Home Sweet Texas grant (up to 5%, never repaid). For heroes (teachers, nurses, police): Homes for Texas Heroes. Use the TSAHC eligibility tool at tsahc.org.

3

Find an approved lender

Both TDHCA and TSAHC require you to use an approved lender. Not all lenders participate. Use the lender directory on their websites, or compare through our link below.

4

Get pre-approved

The lender submits your application through the state program. Timeline: 30-45 days to close. Get pre-approved before making offers — sellers take pre-approved buyers more seriously.

5

Close and get your assistance

DPA and grants are applied at closing. With a 5% grant on a $300K home: $15,000 free. You only need to bring the remaining down payment (or nothing if FHA + 3.5% = 5% grant covers it all).

Find TSAHC/TDHCA-Approved Lenders in Texas

Not all lenders offer Texas DPA programs. Compare approved lenders to find your best rate + maximum assistance.

Get Pre-Approved (Texas) →Compare TX Lenders →

Texas First-Time Buyer FAQ

What are the best first-time home buyer programs in Texas in 2026?
Top Texas first-time buyer programs 2026: (1) My First Texas Home (TDHCA) — down payment + closing cost assistance up to 5% of loan, 30-year fixed, 620+ credit. (2) Homes for Texas Heroes — same as above but for teachers, firefighters, police, healthcare workers with 0.5% better rate. (3) Texas Home Buyer Program (TSAHC) — up to 5% DPA grant (free money, not repaid). (4) Good Neighbor Next Door — 50% off HUD homes for eligible public servants. Most require income under $90K-$118K (varies by county).
What are the income limits for Texas first-time buyer programs?
TDHCA My First Texas Home income limits (2026): 1-2 person household: $78,500-$96,000. 3+ person household: $90,300-$110,400. Limits vary by county — Austin and Dallas areas have higher limits. TSAHC income limits: generally $85,000-$105,000 depending on area. There is no income limit for the TSAHC 5% DPA if you have a 640+ credit score in some programs.
Does Texas have down payment assistance?
Yes. Texas has multiple down payment assistance programs: (1) TDHCA My First Texas Home — up to 5% of the loan as a 0% interest, deferred second lien (repaid when you sell/refi). (2) TSAHC Home Sweet Texas — up to 5% as a grant (never repaid) OR a 0% deferred loan. (3) Homes for Texas Heroes — same as TDHCA but for eligible professions. Most buyers use TSAHC grants because they're free money.
Do I need to be a first-time buyer for Texas programs?
For TDHCA My First Texas Home: yes, you must not have owned a home in the past 3 years (or buy in a targeted area). For Homes for Texas Heroes: no first-time buyer requirement — open to repeat buyers in eligible professions (teachers, first responders, healthcare workers). For TSAHC programs: some are first-time buyer only, others are open to all. My Choice Texas Home (TDHCA) is specifically designed for repeat buyers.
What credit score do I need for Texas first-time buyer programs?
Minimum credit scores for Texas programs: TDHCA My First Texas Home: 620 (FHA/VA/USDA), 640-660 (conventional). TSAHC: 620-640. Homes for Texas Heroes: 620. Higher credit score = better rate. For the best rate on Texas programs, aim for 680+. If you have 580-619 credit, FHA directly may be your best option while you improve your score.

Related Guides

All 50 States Hub

Compare first-time buyer programs across all states.

FHA Loan Requirements 2026

Combine FHA with Texas DPA for max savings.

Pre-Approval Guide 2026

Get pre-approved before applying for TX programs.

Sarah Mitchell - Senior Mortgage Advisor & VA Loan Specialist

Meet Sarah

Senior Mortgage Advisor & VA Loan Specialist

12+ years Experience45+ ArticlesNMLS Licensed

Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.

EXPERTISE:

VA LoansFHA LoansFirst-Time Buyer ProgramsDown Payment Assistance

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Helped 2,500+ veterans secure home loans

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