Texas First-Time Home Buyer Programs 2026
Down payment assistance, grants, and low-rate mortgages for first-time home buyers in Texas. Updated June 2026.
Texas First-Time Home Buyer Overview
Texas offers several programs through Texas Department of Housing (TDHCA) to help first-time buyers achieve homeownership:
- Median home price in Texas: $252,100
- Minimum down payment: 5% ($12,605 on median home)
- Down payment assistance: Up to 5% of purchase price (grant)
- DPA interest rate: 0% (grant — no repayment)
- Maximum income limit: $105,000
- Estimated monthly P&I: $1,506 (on median home with 6.45% rate)
Texas Down Payment Assistance Programs
The primary source of first-time buyer assistance in Texas is Texas Department of Housing (TDHCA). Key benefits:
- Down payment assistance: Up to 5% of purchase price (grant)
- Repayment terms: 0% (grant — no repayment)
- Income limit: $105,000
- Credit score minimum: Typically 620-640 (varies by program)
- First-time buyer definition: Haven't owned a primary residence in the past 3 years
- Homebuyer education: Required — typically a free online course
How to Buy a Home in Texas with Little Money Down
- Step 1: Check eligibility — Contact Texas Department of Housing (TDHCA) to verify income limits and program availability
- Step 2: Get pre-approved — Work with an approved lender who offers Texas bond programs
- Step 3: Complete homebuyer education — Most Texas programs require a HUD-approved counseling course
- Step 4: Apply for DPA — Your lender submits the down payment assistance application with your mortgage
- Step 5: Close on your home — DPA funds are applied at closing, reducing your out-of-pocket costs
Types of Texas First-Time Buyer Programs
- Down payment grants: Free money that never needs to be repaid. Typically $5,000-15,000. Available in Texas through federal HOME/SHOP funds
- Forgivable loans: 0% interest loans forgiven after 5-15 years. Texas's primary DPA program uses this structure (0% (grant — no repayment))
- Deferred loans: 0% interest, no payments until you sell, refinance, or pay off the first mortgage
- Below-market rate mortgages: First mortgages at 0.25-0.5% below market rate, saving $8+/month
- MCC (Mortgage Credit Certificate): Federal tax credit of 20-30% of mortgage interest — worth $1,500-3,000/year
Texas First-Time Buyer Income Limits
Most Texas programs have income limits to ensure assistance goes to those who need it:
- Maximum income: $105,000 (varies by household size and county)
- Higher limits may apply in targeted areas (census tracts with lower homeownership rates)
- Income types counted: All household members' gross income from all sources
- Exceptions: Some programs have no income limits in targeted areas
Frequently Overlooked Texas Programs
- Good Neighbor Next Door: 50% off home price for teachers, firefighters, EMTs, police in revitalization areas
- HUD $1 Homes: Foreclosed HUD homes sold at $1 to qualifying nonprofits and government agencies
- Section 8 Homeownership: Use your Section 8 voucher toward mortgage payments instead of rent
- Native American programs: Section 184 loans with 1.25% down for eligible tribal members
- Employer assistance: Some Texas employers offer homebuyer grants — check with HR
Frequently Asked Questions
What first-time home buyer programs are available in Texas?
Texas offers programs through Texas Department of Housing (TDHCA) including Up to 5% of purchase price (grant) at 0% (grant — no repayment) interest. Income limit is $105,000. Programs include low-rate mortgages, down payment grants, and Mortgage Credit Certificates.
How much down payment do I need to buy a house in Texas?
As little as 3-5% down on conventional, or 3.5% on FHA. With Texas DPA programs, your out-of-pocket could be near $0. Median home in Texas is $252,100 — minimum down at 5% is $12,605.