If you are buying your first home in Texas, you have probably noticed there is no single “first-time buyer program.” Instead, there is a mix of loan types, state down payment assistance, and a tax credit, each with its own rules. The good news is that you may be able to combine more than one. This guide explains the main options in plain English and helps you figure out where to start.
First, understand the two layers of help
- Your mortgage loan type. The loan itself, such as FHA, VA, USDA, or conventional.
- Extra help on top. Down payment and closing cost assistance from a state housing agency, plus a federal tax credit called a Mortgage Credit Certificate.
Think of the loan as the foundation and the assistance as an add-on. A loan officer can help you check which combinations may work for you.
Loan types first-time buyers often consider
FHA loans
FHA loans are made by private lenders and insured by the Federal Housing Administration, which is part of HUD. They are known for more flexible credit guidelines than many other loans, which is why first-time buyers often look at them. FHA loans include mortgage insurance, so ask your loan officer how that affects your total cost. Learn more at HUD.gov.
VA loans
If you are a veteran, a service member, or an eligible surviving spouse, a VA-backed loan may be worth a close look. VA loans are made by private lenders, and the VA guarantees part of the loan. The VA does not require a down payment, although a lender may require one for some borrowers. VA loans do not require monthly private mortgage insurance, but most borrowers pay a one-time VA funding fee unless they are exempt. You will need a Certificate of Eligibility. See the VA home loan page for details.
USDA loans
USDA loans are for homes in eligible rural areas. Qualifying buyers may be able to buy with no down payment. You must meet household income limits and plan to live in the home as your primary residence. You can check a specific address on USDA’s property eligibility map, and read the program basics on the USDA Rural Development page. The map is informational; USDA makes the final eligibility decision.
Conventional loans
Conventional loans are not backed by a government agency. Some state assistance programs can be paired with them, though TSAHC states a higher minimum credit score for conventional than for government loans.
Texas down payment assistance: TSAHC and TDHCA
Two state agencies run the main statewide programs. Both work through approved lenders.
TSAHC: Home Sweet Texas and Homes for Texas Heroes
The Texas State Affordable Housing Corporation (TSAHC) offers programs that pair a fixed-rate mortgage with down payment and closing cost assistance. Assistance is a percentage of your loan amount and may come as:
- a grant that does not have to be repaid if you follow the program rules,
- a forgivable second lien that is forgiven over time if you stay in the home and do not sell or refinance, or
- a deferred repayable second lien that is paid back when you sell, refinance, or pay off the first mortgage.
Home Sweet Texas is open to low- and moderate-income households, including first-time and repeat buyers. Homes for Texas Heroes is for people in certain public-service roles, such as full-time public-school educators, police officers, firefighters and EMS personnel, corrections officers, and veterans or active-duty military. TSAHC requires a minimum credit score of 620 for government loans and 640 for conventional loans. Income and purchase price limits vary by county and household size, so check TSAHC’s official limits table or take its Path Finder Quiz.
TDHCA: My First Texas Home and My Choice Texas Home
The Texas Department of Housing and Community Affairs (TDHCA) Homebuyer Program has two main options:
- My First Texas Home is for first-time buyers. TDHCA generally defines this as not having owned and lived in a primary residence in the last three years, with exceptions for qualified veterans and certain targeted areas. It has both income and purchase price limits, and it may be subject to a federal recapture tax.
- My Choice Texas Home has no first-time buyer requirement and no purchase price limit, but income limits still apply.
Both programs require a minimum middle credit score of 620 and a HUD-certified homebuyer education course. Assistance is offered as a percentage of the loan amount, either as a deferred repayable second lien or a forgivable second lien. Current limits are in TDHCA’s income and purchase price limits table.
City and county programs
Many Texas cities and counties run their own assistance programs, and some may be combined with a state program. Rules and funding differ widely, so ask about the specific city or county where you want to buy.
The Mortgage Credit Certificate (MCC)
A Mortgage Credit Certificate is a federal tax credit for eligible first-time buyers. Per TSAHC, it equals 15% of the mortgage interest you pay each year, and TSAHC states there is no $2,000 annual maximum. A few things to know:
- It is a credit, not a deduction, so it directly reduces your federal income tax. It cannot exceed the tax you owe, but TSAHC guidelines allow unused credit to carry forward for up to three years.
- It is generally for first-time buyers, with exceptions for qualified veterans and targeted areas, and it has income and purchase price limits.
- TSAHC currently offers the MCC only together with its down payment assistance or No-DPA options.
- You must apply before your loan closes. It cannot be added afterward.
Talk with a tax professional about how an MCC fits your situation.
Which program may fit you?
This table is a starting point, not an eligibility decision. Your options depend on your income, credit, location, the home you choose, and each program’s current rules.
| If this sounds like you | Programs to look at | Things to check |
|---|---|---|
| First home, limited savings, flexible credit needs | FHA loan; TSAHC Home Sweet Texas; TDHCA My First Texas Home | Mortgage insurance, county income and price limits, homebuyer education |
| Veteran, service member, or eligible spouse | VA loan; TSAHC Homes for Texas Heroes; TDHCA programs | Certificate of Eligibility, funding fee, program rules for veterans |
| Teacher, first responder, corrections officer, or similar role | TSAHC Homes for Texas Heroes | Full-time employment requirements and county limits |
| Buying outside a major city center | USDA loan | Address eligibility on USDA’s map and household income limits |
| Not a first-time buyer but want help | TDHCA My Choice Texas Home; TSAHC Home Sweet Texas | Income limits and credit score minimums |
| Want a yearly tax benefit | Mortgage Credit Certificate with eligible assistance | First-time buyer status, tax liability, apply before closing |
Not ready for any of these yet? The Rent-to-Own Loan Program lets you rent a home now while your monthly payments build earned equity.
A simple checklist before you apply
- Know your household income and how many people will live in the home.
- Pick the county or city where you want to buy, since limits depend on location.
- Check your credit reports to avoid surprises.
- Plan time for a homebuyer education course if you use a state program.
- Ask about assistance before you make an offer, since program rules can affect which homes qualify.
Frequently asked questions
Do I have to be a first-time buyer to get help in Texas?
Not always. TSAHC says some Home Sweet Texas borrowers may qualify even if they have owned a home before, and TDHCA’s My Choice Texas Home has no first-time buyer requirement. The Mortgage Credit Certificate and TDHCA’s My First Texas Home are generally for first-time buyers, with exceptions.
Does down payment assistance have to be repaid?
It depends on the form. A grant does not have to be repaid if you follow program rules. A forgivable second lien is forgiven over time if you stay in the home, and a deferred repayable lien is paid back later, such as when you sell or refinance. Ask which type applies before you choose.
Can I use assistance with FHA, VA, USDA, or conventional loans?
Often yes, depending on the program. TSAHC and TDHCA both list government loans and certain conventional options, but each has its own rules, and your lender must be approved for the program.
What credit score do I need?
Programs and lenders set their own minimums. TSAHC and TDHCA both state a 620 minimum for government loans, and TSAHC states 640 for conventional loans. A lender may require more.
Talk with a local loan officer
Every buyer’s numbers are different. A loan officer at The Texas Mortgage Pros can review your situation, explain which programs may apply to you, and answer your questions. You can start a pre-qualification, learn more on our Texas down payment assistance page, or call (877) 280-4833.
Official sources
- TSAHC down payment assistance and TSAHC Mortgage Credit Certificate
- TDHCA Homebuyer Program
- HUD: FHA loans
- U.S. Department of Veterans Affairs: home loans
- USDA Rural Development: guaranteed loan program
The Texas Mortgage Pros, NMLS #2665861. This article is for general information only. It is not a commitment to lend or extend credit, and it is not legal or tax advice. Programs, eligibility rules, limits, and funding are subject to change without notice. All loans are subject to credit approval and other restrictions. Assistance is available only through approved participating lenders and to eligible borrowers. The Texas Mortgage Pros is not affiliated with or endorsed by HUD, FHA, the U.S. Department of Veterans Affairs, USDA, TSAHC, or TDHCA, and this is not a government document. Last verified October 2, 2026.
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