First-Time Homebuyer Checklist
Check your credit score (aim for 620+ for conventional loans)
Save for a down payment (3.5% FHA, 20% conventional to avoid PMI)
Get pre-approved for a mortgage
Find a licensed Texas real estate agent
Research neighborhoods and school districts
Tour homes and make an offer
Schedule a home inspection
Secure homeowner's insurance
Review closing documents with your attorney
Close on your new home!
Understanding Mortgage Types
Conventional loans are not insured by the federal government. They typically require a higher credit score (620+) and a down payment of at least 3-5%. With 20% down, you avoid private mortgage insurance (PMI). These loans offer competitive rates and flexible terms of 10, 15, 20, or 30 years.
FHA loans are insured by the Federal Housing Administration and are popular with first-time buyers. They allow credit scores as low as 580 with just 3.5% down. The trade-off is mandatory mortgage insurance premiums (MIP) for the life of the loan in most cases.
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. They require no down payment and no PMI, making them one of the best mortgage options available. Texas has a large military presence, making VA loans very common in the state.
USDA loans are designed for rural and suburban homebuyers who meet income eligibility requirements. They offer 100% financing with no down payment. Many areas outside of Texas's major metros qualify for USDA loans.
Texas-Specific Programs
My First Texas Home
Down payment assistance up to 5% for first-time buyers through the Texas Department of Housing.
30-year fixed rate, below-market interestMy Choice Texas Home
Available to repeat buyers as well. Provides competitive interest rates and down payment help.
No first-time buyer requirementTexas Mortgage Credit Certificate
Federal tax credit of up to $2,000/year on mortgage interest paid. Available for eligible buyers.
Can be combined with other programsHomebuyer Education Course
Free HUD-approved courses that help you prepare for homeownership and may qualify you for better rates.
Available online and in-person