Texas offers a wide range of programs for first-time homebuyers at the federal, state, and local levels.
Federal: FHA (3.5% down), VA (zero down for veterans), USDA (zero down in eligible areas), Conventional (3% down).
State: TSAHC grants (up to 5% of loan), TDHCA My First Texas Home (below-market rates + DPA up to 5%), Texas MCC (tax credit).
Federal Programs
FHA: 3.5% down, 580+ credit, higher DTI allowed. VA: zero down, no PMI, flexible credit. USDA: zero down in rural/suburban areas, low rates. Conventional: 3% down with 620+ credit.
State Programs (TSAHC)
TSAHC (Texas State Affordable Housing Corporation): offers down payment assistance grants up to 5% of the loan amount. These are true grants that don't need to be repaid as long as you stay in the home. Available in many Texas counties.
State Programs (TDHCA)
TDHCA My First Texas Home: below-market rates plus DPA up to 5%. Texas MCC: federal tax credit worth 20-40% of mortgage interest. Both are available through participating lenders with income and purchase price limits.
City and County Programs
Some cities offer local assistance: San Antonio offers homebuyer assistance programs, Houston has multiple programs, and Dallas also has assistance. Check with your local housing authority.
Program Stacking
Many programs can be combined. Example: FHA loan + TSAHC DPA grant + MCC tax credit. Stacking programs maximizes your benefits and minimizes your out-of-pocket costs.
Eligibility Tips
Most programs require: first-time buyer status, completion of homebuyer education, income within limits, purchase price within limits, and use of a participating lender.