Texas First-Time Homebuyer Programs and Down Payment Assistance

Published: March 15, 2026 | Author: Editorial Team | Last Updated: March 15, 2026

Published on mortgageloantx.com | March 15, 2026

Texas offers one of the most robust landscapes of first-time homebuyer assistance programs in the country. Between state-administered programs, local housing authorities, and federal options, many Texas buyers qualify for assistance they are not aware of.

Texas State Affordable Housing Corporation (TSAHC)

TSAHC offers two major programs. The Homes for Texas Heroes program serves teachers, police officers, firefighters, veterans, and other public servants with down payment assistance of 3% to 5% as either a grant or a deferred second lien. The Home Sweet Texas program is available to any first-time homebuyer meeting income limits — generally $85,000 to $110,000 for a family of four in 2026. Both programs work with FHA, VA, USDA, and conventional loans, and grant assistance does not need to be repaid.

Texas Department of Housing and Community Affairs (TDHCA)

TDHCA's My First Texas Home program offers a 30-year fixed-rate mortgage at below-market interest rates plus down payment and closing cost assistance of up to 5% as a second lien at 0% interest, deferred for 30 years. Credit score minimums are typically 620, and an approved homebuyer education course is required.

Note: Both TSAHC and TDHCA update their income limits annually. Always check directly with the program administrator or a participating lender for current figures in your specific Texas county.

City and County Programs

Houston offers up to $30,000 in assistance in targeted areas. Dallas provides up to $60,000 in forgivable loan assistance for qualifying buyers in city limits. San Antonio and Austin also administer local down payment assistance programs. These programs often have limited budgets — applying early in the fiscal year is advisable.

VA Loans and USDA Loans

Texas veterans can access VA loans with zero down payment and no private mortgage insurance, plus Texas Veterans Land Board programs offering below-market rates. A significant portion of Texas geography qualifies for USDA Rural Development loans offering zero down payment — the USDA's definition of rural includes many smaller cities and suburban areas outside major metro centers.

Review our blog for more Texas homebuying guides, or contact us to connect with a lender familiar with all available assistance programs in your county.

Disclaimer: Program availability, income limits, and assistance amounts change frequently. This article provides general educational information. Contact the specific program administrator or a participating lender for current eligibility requirements. This does not constitute financial or legal advice.