What first-time homebuyer programs are available in Texas? Texas offers several statewide programs for first-time buyers, including TDHCA’s My First Texas Home (up to 5% down payment assistance), TSAHC’s Home Sweet Texas and Homes for Texas Heroes programs, and the Texas Mortgage Credit Certificate, which can be combined for significant savings.
Texas Has More Assistance Available Than Most Buyers Realize
Many first-time buyers assume down payment assistance and special programs are only for very low-income households — but Texas’s statewide programs are often available to buyers earning solidly middle-class incomes, especially in the DFW area. Here’s a rundown of what’s actually available and how it works.
My First Texas Home (TDHCA)
Run by the Texas Department of Housing and Community Affairs, My First Texas Home is the state’s flagship program for first-time buyers.
Combines a competitive fixed-rate 30-year mortgage with down payment and closing cost assistance of up to 5% of your loan amount.
The assistance is structured as a deferred, zero-interest second mortgage — no monthly payment, repaid when you sell, refinance, or pay off the home.
Available with FHA, VA, and USDA first mortgage options through TDHCA-approved lenders.
Income and purchase-price limits vary by county — in the DFW area, purchase-price limits typically run well above the median home price, so don’t assume you’re priced out without checking.
Home Sweet Texas & Homes for Texas Heroes (TSAHC)
The Texas State Affordable Housing Corporation runs a parallel set of programs:
Home Sweet Texas offers down payment assistance similar to TDHCA’s program, with slightly different income limits (up to 115% of area median income for some products).
Homes for Texas Heroes extends the same down payment assistance plus a below-market mortgage rate to teachers, firefighters, law enforcement, EMS personnel, corrections officers, veterans, and nurses.
The Texas Mortgage Credit Certificate (MCC)
The MCC is a federal tax credit, not a grant — but it can add up to significant annual savings:
Converts a percentage (typically 20–30%) of your annual mortgage interest into a direct federal income tax credit, rather than just a deduction.
Can be combined with either TDHCA or TSAHC down payment assistance for buyers who qualify for both.
Available for the life of the loan as long as you live in the home as your primary residence.
Who Qualifies as a “First-Time” Buyer?
Most Texas programs define a first-time buyer as someone who hasn’t owned a home as their primary residence in the past three years — which means many people assume they don’t qualify but actually do:
If you owned a home more than three years ago, you likely still qualify.
If you owned an investment property but never lived in it, you likely still qualify.
Veterans are often exempt from the first-time buyer requirement entirely under several programs.
How to Apply
Check your eligibility through TDHCA or TSAHC’s online tools, since income and purchase-price limits vary by county.
Find a TDHCA- or TSAHC-approved participating lender — not every lender offers these programs.
Complete a required homebuyer education course, which is mandatory for most programs.
Get pre-approved with your down payment assistance built into the application.
FAQ
Do I have to be low-income to qualify for Texas down payment assistance? Not necessarily — income limits vary by county and household size, and in the DFW area they’re often higher than buyers expect. It’s worth checking rather than assuming you don’t qualify.
Can I combine down payment assistance with a tax credit program? Yes — the Texas Mortgage Credit Certificate can typically be paired with TDHCA or TSAHC down payment assistance for buyers who qualify for both.
Do these programs work with FHA loans? Yes, most Texas assistance programs are available alongside FHA, VA, and USDA first mortgages through approved participating lenders.
Let’s See What You Qualify For
These programs change eligibility limits periodically, and not every lender is approved to offer them. I can point you toward local lenders who specialize in Texas first-time buyer programs so you don’t leave assistance on the table. Call or text Ashley at 817-791-5574.
Ashley Galica, Realtor, DFW’s Finest Real Estate Group at ARC Realty DFW.
Sources: TDHCA program overview via The Mortgage Reports, Texas First-Time Homebuyer Programs 2026 Guide
