TDHCA (Texas Department of Housing and Community Affairs) offers several programs to help Texas homebuyers afford their first home.
My First Texas Home: below-market fixed rates with down payment assistance up to 5% of the loan amount. Texas MCC: a federal tax credit reducing your tax bill by 20-40% of mortgage interest.
Programs work with FHA, VA, USDA, and Conventional loans. Income and purchase price limits apply. You must use a participating lender and complete homebuyer education.
My First Texas Home
My First Texas Home offers below-market interest rates (typically 0.25-0.5% below market) and down payment assistance of up to 5% of the loan amount as a forgivable grant (stays in the home for required period).
MCC Details
The Texas MCC provides a non-refundable federal tax credit. You can claim 20-40% of your annual mortgage interest as a tax credit, capped at ,000 per year. The credit is available for the life of the loan.
Eligibility
You must be a first-time buyer (no homeownership in 3 years). Income limits vary by county (typically 80-120% of area median). Purchase price limits apply. Minimum credit score of 620+ required.
How to Apply
Find a TDHCA-approved lender in your area. Your lender determines eligibility, completes the application, and reserves funds. Funds are limited and allocated on a first-come, first-served basis.
Income Limits
Income limits for Bexar County (San Antonio) in 2026: 1-2 person household approximately 5K, 3+ person household approximately 6K. Limits vary by county. Check current limits with your lender.
Benefits
Combined benefits: below-market rate saves 0-100/month, DPA reduces cash to close by up to 5%, MCC saves 25-165/month in taxes. Total savings can be 00-00/month.