First-Time Homebuyer Programs in Texas: Grants and Down Payment Assistance
The down payment is often the biggest barrier to homeownership for first-time buyers. Texas has several programs designed to lower or eliminate this barrier, and many buyers who could qualify do not because they are unaware these resources exist. Here is what is available in Texas.
Texas State Affordable Housing Corporation (TSAHC)
TSAHC offers the Homes for Texas Heroes program for teachers, police, firefighters, veterans, EMS workers, and other public servants, and the Home Sweet Texas program for all first-time buyers (and non-first-time buyers in targeted areas). Both programs offer 30-year fixed-rate mortgages with down payment assistance of 3-5% of the loan amount. The assistance comes as a grant (which does not need to be repaid) or as a second lien with 0% interest that is forgiven after a period.
TSAHC programs have income limits that vary by county and household size, purchase price limits, and minimum credit score requirements (typically 620+). The programs work with conventional, FHA, VA, and USDA loans.
Texas Department of Housing and Community Affairs (TDHCA)
TDHCA's My First Texas Home program provides down payment and closing cost assistance up to 5% of the loan amount as a 30-year, 0% interest second lien. Repayment is only required when the home is sold, paid off, or refinanced. There are also My Choice Texas Home programs for those who may have owned a home previously. Income limits apply, and borrowers must complete a homebuyer education course.
Local and Municipal Programs
Many Texas cities and counties offer their own down payment assistance programs, often with more generous terms than state programs for residents of those specific areas. Houston's Housing Finance Corporation, the City of Dallas housing assistance programs, and San Antonio's Homebuyer Assistance Program all offer varying levels of support. These local programs sometimes stack with state programs, providing additional assistance on top of TSAHC or TDHCA funds.
VA Loans for Texas Veterans
VA loans remain the most powerful homebuyer benefit available — 0% down payment, no private mortgage insurance (PMI), competitive interest rates, and flexible qualification standards. Texas has one of the largest veteran populations in the nation, yet many eligible veterans never use their VA loan benefit. The Texas Veterans Land Board (VLB) also offers a state benefit for veterans with discounted interest rates on home loans, land loans, and home improvement loans.
Explore all available programs with our resources or contact us to connect with a Texas mortgage specialist who can identify which programs you qualify for.