Texas State First-Time Buyer Programs: TDHCA, My First Texas Home & More
Texas helps first-time buyers through the Texas Department of Housing and Community Affairs (TDHCA) and local partners. These programs provide down payment assistance, fixed rate loans and help with closing costs for buyers across the state.
💰 Top Texas Programs (Updated November 2025)
My First Texas Home
- • Maximum Assistance: Down payment and closing cost help up to a set percentage of the loan
- • Loan Type: Fixed rate FHA, VA or USDA mortgages
- • Eligibility: First-time buyers meeting income and price limits
- • Application: Through TDHCA approved lenders
My Choice Texas Home
- • Structure: Fixed rate loan with optional down payment assistance
- • Perfect For: Repeat buyers and those who do not meet first-time definition
- • Features: Can be used with FHA, VA or conventional financing
Home Sweet Texas Home
- • Maximum Assistance: Percentage of the loan amount for down payment and costs
- • Target: Low and moderate income households across Texas
- • Benefits: May offer a grant style benefit that does not need to be repaid
🔍 Check Your Texas Program Eligibility
See which TDHCA and local Texas programs you may qualify for based on your income, credit and target price.
Check Texas Eligibility →Federal Programs Available In Texas: FHA, VA, USDA Loans
Federal loan options combine well with Texas assistance. FHA, VA and USDA programs are widely used across the state, from big metros to small towns.
🏠 FHA Loans
- Down Payment: 3.5 percent minimum
- Credit Score: Flexible for mid range scores
- Perfect For: First-time buyers in cities and suburbs
🇺🇸 VA Loans
- Down Payment: Zero down for eligible veterans and active duty buyers
- Best Markets: Areas with large military populations, such as San Antonio and Killeen
- Benefits: No monthly mortgage insurance and flexible guidelines
🌾 USDA Loans
- Down Payment: Zero down in eligible rural and semi rural areas
- Locations: Many communities outside major metros qualify
- Perfect For: Buyers open to small towns and exurbs
💡 Texas Program Stacking Strategy
You can often combine Texas and federal options:
- • FHA + My First Texas Home: Lower down payment plus assistance for cash to close
- • VA + Local Grant: Zero down loan plus help with closing costs
- • USDA + TDHCA Assistance: Rural eligibility plus extra support for fees
A lender who regularly closes these programs can help you stack benefits without getting lost in paperwork.
City & County Programs In Texas: Extra Help In Big Metros
Many Texas cities and counties offer additional help for first-time buyers, especially in places where prices have climbed the fastest.
| City Or County | Program Name | Maximum Assistance | Target Group |
|---|---|---|---|
| Houston | Houston Homebuyer Assistance | Down payment help up to a set cap | Low and moderate income buyers |
| Dallas | Dallas Homebuyer Program | Assistance toward down payment and costs | City residents meeting income limits |
| Austin | Austin Down Payment Assistance | Help for first-time buyers in targeted areas | Working households and essential workers |
| San Antonio | San Antonio Homeownership Incentive | Support for down payment and repairs | First-time buyers within city limits |
🚨 Special Programs For Texas Workers
Teacher, Police & Firefighter Support
- • Extra assistance in some school districts
- • Priority processing for first responders
- • Potential tax benefits or fee reductions
Rural & Small Town Initiatives
- • Grants and loans to encourage homeownership in smaller communities
- • Additional support when you buy near your place of work
Texas First-Time Buyer Eligibility Requirements
Texas programs use income limits, purchase price caps and basic credit guidelines to focus help on buyers who need it most. Knowing the rules early makes your application smoother.
💼 Income Requirements (2025)
TDHCA Programs:
- • Limits vary by county and household size
- • Higher caps in big metros such as Houston and Dallas
- • More modest limits in rural and small town areas
City & County Programs:
- • Often set between 80 percent and 120 percent of area median income
- • Some programs offer additional room for essential workers
📊 Credit Score Requirements
FHA Loans:
- • Many buyers qualify starting in the high 500s or low 600s
- • 580 and above is a common target for 3.5 percent down
Conventional With Assistance:
- • Typical minimum 620 score
- • Better pricing in the mid 600s and above
- • Clean recent payment history is more important than perfection
🏠 First-Time Buyer Definition In Texas
You are typically considered a first-time buyer in Texas if:
- • You have not owned a principal residence in the last three years
- • You previously owned a home only with a spouse or partner you are no longer with
- • You are a single parent who only owned jointly in the past
If you bought a home many years ago but have been renting recently, you may still qualify under this definition.
🎯 Check Your Eligibility For Texas Programs
Answer a few basic questions about income, debts and target areas to see which Texas and federal programs fit your situation.
Check Your Eligibility →Texas Housing Market 2025: Growing But Still Reachable
Texas has grown quickly over the past decade, but it still offers more affordable options than many coastal states. Market conditions vary widely between metros and small towns.
📈 Texas Market Snapshot (Late 2025)
- Median Home Price: Roughly mid $300,000s statewide
- 30 Year Mortgage Rate: Around 6.35 percent average
- Inventory: Improving in many suburbs and smaller towns
- Demand: Strong in job centers but more balanced elsewhere
🎯 Markets Where Texas First-Time Buyers Succeed
- San Antonio Area: Mix of affordability and job growth
- Houston Suburbs: Wide range of price points and new construction
- Dallas Fort Worth Outer Suburbs: More choices and less competition
- Smaller Cities: Places like Waco, Lubbock and Amarillo with lower entry prices
⏰ Why 2025 Can Work For Texas First-Time Buyers
More Inventory
More homes on the market mean you have options and some negotiation room.
Balanced Conditions
Many Texas markets have shifted from intense bidding wars to more balanced buyer seller dynamics.
Active Programs
State and city programs remain funded and focused on first-time buyers.
Best Texas Mortgage Lenders For First-Time Buyers
Texas has a deep bench of banks, credit unions and online lenders. The best choice for you is a lender who understands TDHCA programs and is willing to take time to walk you through options.
🏆 Lender Types To Consider
Regional Texas Banks
Mid sized banks based in Texas often have strong TDHCA experience and local underwriting.
- • Familiar with Texas specific title and tax rules
- • Relationships with local real estate agents
- • Strong track record with first-time buyers
National Lenders With Texas Teams
Some national lenders have dedicated teams for Texas, combining digital convenience with local knowledge.
- • Easy online applications and upload tools
- • Competitive pricing when you shop around
- • Support for FHA, VA, USDA and conventional loans
Credit Unions & Community Lenders
Member focused institutions sometimes offer special terms for first-time buyers or certain employers.
- • Potentially lower fees for members
- • Education programs and counseling
- • Willingness to take time on complex files
🛡️ What To Ask A Texas Lender
When you interview lenders, ask questions like:
- • Are you approved for TDHCA programs such as My First Texas Home
- • How many first-time buyer loans have you closed in the past year
- • How do you help buyers compare FHA, VA, USDA and conventional options
- • What is your average time from contract to closing
Get quotes from at least two or three lenders and compare the full Loan Estimate, not just rate.
🔍 Compare Texas Lenders & Get Quotes
Use an online marketplace to see offers from multiple Texas lenders in one place. Then follow up directly with those that best match your goals.
Compare Lender Quotes →Step-by-Step Guide: Buying Your First Home In Texas
The steps to buy in Texas look familiar, but specific details like title companies, tax prorations and option periods are unique. Here is a high level roadmap.
Get Pre-Approved With Texas Programs
Start with pre approval so you know your price range, estimated payment and which state or city programs are realistic for you.
Texas Pre-Approval Benefits:
- • Shows Texas sellers that you can actually close
- • Lets you target homes that fit both budget and program rules
- • Gives you time to resolve any credit or documentation issues
Choose A Texas Buyer Agent
Select an agent who regularly works with first-time buyers and understands local contract norms, including option periods and inspection timelines.
Questions To Ask Potential Agents:
- • How many first-time buyers have you helped in the past year
- • What price bands and neighborhoods do you work in most
- • How do you structure offers in competitive situations
Tour Homes, Make Offers & Enter Option Period
Once an offer is accepted, Texas contracts often include an option period where you can inspect the home and still cancel if major issues surface.
Key Steps During Option Period:
- • Complete general inspection and any specialty inspections your agent recommends
- • Negotiate repairs or credits based on findings
- • Finalize your loan terms with your lender
Appraisal, Underwriting & Final Approval
Your lender orders an appraisal and completes underwriting. You provide any final documents they request.
Close At The Title Company & Get Keys
On closing day you meet at the title company or sign electronically, bring your remaining funds and receive the keys once the transaction funds.
Texas Closing Costs & Ongoing Expenses
Closing costs and property taxes are key parts of the Texas homeownership equation. Some costs are negotiable, while others are standard across most transactions.
💰 Typical Texas Closing Costs (Late 2025)
| Cost Category | Typical Amount | Share Of Price | Who Pays |
|---|---|---|---|
| Origination & Lender Fees | $2,500 to $4,500 | Around 0.5 to 1.0 percent | Buyer |
| Title Insurance & Escrow | $1,800 to $3,500 | Around 0.3 to 0.6 percent | Often split or negotiated |
| Recording Fees & Miscellaneous | $400 to $900 | Small fraction of price | Buyer and seller |
| Appraisal & Inspections | $700 to $1,200 combined | Around 0.1 to 0.2 percent | Buyer |
| Estimated Total | Roughly 2 to 4 percent of price | Varies by county and loan type | Mostly buyer, with possible seller credits |
🏠 Ongoing Costs Of Owning In Texas
- Property Taxes: Often higher rates, but no state income tax
- Homeowners Insurance: Varies by region and weather risk
- HOA Dues: Common in newer subdivisions and condo communities
- Maintenance: Plan for regular repairs and updates over time
💡 Budgeting Tips
- • Build a small emergency fund before and after closing
- • Get quotes for insurance and utilities when you are in contract
- • Choose a payment that leaves room for savings and surprises
Insider Tips For Texas First-Time Home Buyers
Working with Texas buyers over the years, I have seen a few simple habits consistently lead to smoother closings and better long term outcomes.
🎯 Top Tips For Texas Buyers
- 1
Focus On Payment, Not Just Price
Between taxes, insurance and HOA dues, two homes with the same price can have very different payments. Always compare the full monthly picture.
- 2
Take Advantage Of Local Knowledge
Ask your agent and lender which programs work best in your specific county or city instead of trying to guess from general articles alone.
- 3
Get Pre-Approved Before Serious House Hunting
Texas sellers and listing agents want to see a strong pre approval letter. Showing up with one can move you to the top of the list.
🚨 Mistakes Texas Buyers Should Avoid
Common Pitfalls:
- • Skipping inspections during a hot market
- • Ignoring property tax impact on monthly payment
- • Underestimating commute times from far suburbs
Costly Errors:
- • Choosing a payment that leaves no room in the budget
- • Not checking whether assistance funds are still available
📚 More First-Time Buyer Resources
Complete First-Time Buyer Guide 2025
Nationwide strategies that work alongside Texas programs and assistance.
Read More →Closing Costs Calculator 2025
Estimate your closing costs and total cash to close before you make offers in Texas.
Read More →Mortgage Pre-Approval Guide
Learn how to get pre-approved with confidence, even if your credit file is not perfect.
Read More →Home Inspection Guide 2025
Understand inspections, repairs and how to protect yourself as a first-time buyer.
Read More →Ready To Start Your Texas Home Buying Journey
Texas offers a strong combination of job growth, relatively affordable housing and real assistance for first-time buyers. With the right team and programs, you can move from renting to owning sooner than you might think.
