You don’t have to be a first-time homebuyer to be eligible, but you must have at least a 620 credit score and meet income and purchase price limits based on county, size of your household and whether you’re buying in a targeted or non-targeted area.

TSAHC Homes for Texas Heroes Program

If you work in a public service profession — such as a teacher, police officer or firefighter — or are an eligible veteran, you might qualify for TSAHC’s Homes for Texas Heroes Program. This program offers a 30-year mortgage along with down payment assistance up to 5 percent. Like the Home Sweet Texas Home Loan Program, the assistance can be either a grant or second mortgage.

You don’t have to be a first-time homebuyer, but your income and the home’s price can’t exceed income and purchase price limits. You can view a list of eligible occupations here.

Texas down payment assistance

While TDHCA’s and TSAHC’s programs can be paired with down payment assistance, certain cities in Texas might also have their own assistance programs, which are worth checking out if you’re buying a home in the area.

For instance, the city of Dallas offers the Dallas Homebuyer Assistance Program, which is a zero-percent deferred loan that can help with your down payment and closing costs.

Other Texas homebuyer assistance programs

Local Texas homebuyer assistance programs

First-time homebuyers in Austin could qualify for up to $40,000 in down payment and closing cost assistance via a forgivable loan through the city. To qualify, your income must be below $55,400 if you’re a one-person household (the limits increase for bigger households), and you must be buying a home within the city’s limits. That home also can’t cost more than $295,000.

Eligible borrowers in Corpus Christi could receive up to $25,000 in down payment assistance and up to $10,000 for closing costs from the city in the form of a zero percent interest forgivable loan, with a term of either five or 10 years. The home must be located within the city’s limits and not cost more than $238,000. There are also income limitations.

In Houston, Wells Fargo’s NeighborhoodLIFT program provides up to $15,000 in down payment assistance and up to $5,000 in closing cost help to borrowers within income limits and who complete a homebuyer education course.

Mortgage credit certificate (MCC)

A mortgage credit certificate (MCC) is a federal tax credit for a percentage of your annual mortgage interest. The credit is equal to either 20 percent or 30 percent of the interest, depending on how much you borrowed for your mortgage, up to $2,000 per year.

You can combine the MCC with a My First Texas Home loan, but you’re not required to have that type of loan in order to be eligible. It is only available to first-time homebuyers and veterans who are within income and price limits.

Other first-time homebuyer loan programs

In addition to Texas state homebuying programs, consider any of the nationally available first-time homebuyer loan programs, including:

• FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment as little as 3.5 percent.
• VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
• USDA loan – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.

Get started

If you’re interested in a Texas Department of Housing and Community Affairs program, find an approved mortgage lender to help you get the process started. It’s helpful to have your documentation handy ahead of time, including three months’ worth of bank statements and two months’ worth of recent pay stubs.

If you’re considering a program through the Texas State Affordable Housing Corporation, begin by taking this eligibility quiz. You can then browse through the organization’s list of lenders to learn more.

Whichever lender or loan program you decide on, be sure to compare mortgage rates and loan offers across multiple lenders. This can help you find the most affordable mortgage for your first home purchase.

First-time homebuyer programs in nearby states

• Arkansas first-time homebuyer programs
• Louisiana first-time homebuyer programs
• New Mexico first-time homebuyer programs
• Oklahoma first-time homebuyer programs