Texas First-Time Home Buyer Grants: 7 Programs That Can Put a Down Payment Within Reach

Charming brick starter home with a welcoming front walkway and mature shade tree

If you’ve been searching for Texas first-time home buyer grants, you may be closer to homeownership than you think.

First, a quick note: “grants” is the word many buyers use, but not every program works exactly like a traditional grant. Some assistance is a forgivable second lien, while other options are true grants that don’t have to be repaid. Either way, these are real, current 2026 programs designed to help eligible Texas buyers with their down payment and closing costs.

As a Texas real estate agent and a mom of two, I know buying a home is about more than numbers. You want a safe, comfortable place that works for your family, your budget, and your everyday life. Let’s look at the programs that may help make that possible.

1. TDHCA My First Texas Home

My First Texas Home is one of the main Texas Department of Housing and Community Affairs programs for first-time homebuyers.

It offers:

  • Down payment assistance of up to 5% of the loan amount
  • A 30-year, low-interest mortgage
  • Assistance as either a 30-year deferred repayable second lien or a 3-year deferred forgivable second lien
  • Exceptions to the first-time buyer requirement in certain targeted areas and for qualified veterans

The assistance can help with your down payment and closing costs, which is important because closing costs can be the part of the purchase many buyers don’t plan for.

The actual amount you may receive depends on your loan amount, county, household income, and program guidelines. It isn’t a guaranteed dollar amount for every buyer, but it can make a meaningful difference.

2. TDHCA My Choice Texas Home

Have you owned a home before? You may still have options.

My Choice Texas Home offers the same basic structure as My First Texas Home:

  • Down payment assistance of up to 5% of the loan amount
  • A 30-year, low-interest mortgage
  • A 30-year deferred repayable second lien or a 3-year deferred forgivable second lien

The big difference is that you do not have to be a first-time homebuyer.

That makes this program worth exploring if you’re a growing family, a repeat buyer, or someone who wants to move into a home with more space. Your needs may have changed since your last purchase, and assistance may still be available.

Bright single-story Texas home with a wide driveway and blue sky

3. TSAHC Home Sweet Texas Home Loan Program

The Home Sweet Texas Home Loan Program is available to eligible low- and moderate-income buyers, including both first-time and repeat homebuyers.

It offers:

  • A fixed-rate mortgage
  • Down payment assistance of up to 5% of the loan amount
  • A choice between a grant that never has to be repaid or a forgivable second lien
  • A no-DPA option with a very competitive interest rate

The forgivable second lien is fully forgiven after three years as long as you don’t sell, refinance, or move out of the home during that time.

Eligible properties may include:

  • Single-family homes
  • Condos
  • Townhomes
  • Manufactured homes, if eligible under program guidelines

The home must be your primary residence.

TSAHC lists a minimum credit score of 620 for government loans, such as FHA, VA, or USDA, and 640 for conventional loans. Homebuyer education is also required.

If you’re a first-time buyer, you may be able to pair this program with a Mortgage Credit Certificate, which we’ll cover below.

4. TSAHC Homes for Texas Heroes

The Homes for Texas Heroes Home Loan Program is designed for Texans who serve their communities.

Eligible Texas Heroes may include:

  • Public K-12 teachers, teacher aides, school librarians, counselors, and school nurses
  • Allied health and nursing faculty
  • Police officers and peace officers
  • Firefighters
  • EMS personnel
  • County jailers
  • Corrections and juvenile corrections officers
  • Public security officers
  • Veterans

This program offers:

  • A fixed-rate mortgage
  • Down payment assistance of up to 5% of the loan amount
  • A grant that never has to be repaid or a forgivable second lien forgiven after three years
  • Help with down payment and closing costs

You don’t have to be a first-time buyer to qualify based on the profession requirements. Income, purchase price, credit, and property rules still apply.

If you’re a first-time buyer and combine DPA with an MCC through the program, the MCC is free. A $400 savings.

That’s one more reason to ask a participating lender to compare the options instead of assuming one program is automatically best.

5. Texas Mortgage Credit Certificate

A Mortgage Credit Certificate, or MCC, is different from down payment assistance. It does not provide cash up front for your closing.

Instead, TDHCA’s Texas Mortgage Credit Certificate Program offers a federal income tax credit equal to 15% of the mortgage interest you pay each year. It creates a dollar-for-dollar reduction on your federal tax liability, subject to applicable tax rules.

That can help improve your year-round affordability. It may also help you qualify because it can free up more monthly income.

The MCC is available to first-time homebuyers and veterans, either with an eligible first mortgage through the program or as a stand-alone option. The stand-alone option does not have a minimum credit score requirement, but supplies are limited.

An MCC isn’t the same as money in your bank account at closing. Your lender and tax professional can help you understand how it may fit your situation.

6. TDHCA Gift Funds and Additional Assistance

TDHCA also identifies gift funds and additional down payment assistance in eligible counties.

These extra funds may help some buyers reach the finish line when they are close to having enough for their down payment and closing costs. Availability varies by county and can change, so this is where local guidance matters.

When you’re ready, we can check what may be available in the county where you want to buy and whether it can work with your loan and other assistance.

7. Local City and County Programs

Statewide programs aren’t the only place to look.

Many Texas cities and counties offer their own down payment assistance programs. Some are designed for:

  • Teachers
  • First responders
  • Veterans
  • First-time buyers
  • Buyers within specific income limits
  • Buyers purchasing within certain neighborhoods or city boundaries

Local assistance may or may not stack with state programs. The rules depend on the location, funding source, household income, and property.

That’s why your target area matters when you’re learning how to buy a house in Texas. We can look at the city or county program, compare it with TDHCA or TSAHC options, and help you ask the right questions before you make an offer.

Do You Qualify?

Eligibility depends on more than being a first-time buyer.

Most programs review:

  • Your household income
  • Your household size
  • The county where you’re buying
  • The purchase price
  • Your credit score
  • Whether the home will be your primary residence
  • Whether you work with a participating or approved lender

Income and purchase price limits vary by county and household size. Generally, households earning up to 80% of area median income may be considered low-income, while moderate-income limits may reach approximately 150% to 170% of area median income, depending on the program and location.

Common credit score baselines include:

  • 620 for government loans
  • 640 for conventional loans

TDHCA and TSAHC programs also require an approved homebuyer education course. That course can help you understand the mortgage process, monthly payment, closing costs, and responsibilities of owning a home.

How to Get Started

Here’s a simple path forward:

  1. Check your county’s income and purchase price limits.
    Limits can change by location and household size.

  2. Take a homebuyer education course.
    This is required for TDHCA and TSAHC assistance programs.

  3. Connect with an approved lender.
    Start with the TDHCA Eligibility Quick Check or the TSAHC Path Finder Quiz.

  4. Get a mortgage pre-approval.
    Your lender can compare loan products, DPA options, estimated closing costs, and your monthly payment.

  5. Shop with a local agent who understands the programs.
    Some property types, locations, and program rules may affect your choices.

As of September 2026, interest rates for these programs have recently ranged roughly from 5.625% to 7.500%, depending on the loan product, DPA level, and location. Rates can change, so check current options with a participating lender.

Questions I Hear From Buyers

“I owned a home before, so I can’t qualify.”

That isn’t always true. My Choice Texas Home and TSAHC’s Home Sweet Texas program are available to eligible repeat buyers. Certain exceptions may also apply to first-time buyer rules.

“These programs are only for very low-income buyers.”

Not necessarily. Programs use county-specific income limits, and some moderate-income households may qualify. It’s worth checking before you count yourself out.

“There’s too much paperwork.”

There is paperwork, but you don’t have to figure it out alone. Your lender will guide you through the financial documents, and I’ll help you understand the home search, offer, inspection, and closing process.

Modern Texas home with a clean white exterior and spacious front lawn

Let’s Find Your Place

The Texas housing market can feel like a lot to take in, especially when you’re trying to understand prices, interest rates, assistance programs, and neighborhoods all at once.

I’m here to make it feel more manageable.

You can start with my Advanced Search tool to explore homes by location, price, features, and more. You can also request a local market report or get an instant property valuation if you already own a home and are planning your next move.

Visit my home buying page, or reach out directly when you’re ready. I can help you check which programs may apply in your county, connect you with trusted lenders, get your pre-approval started, and search for homes that fit your family.

You don’t have to have every answer today. Take it one step at a time, and we’ll figure it out together.

Program details in this article are based on TDHCA and TSAHC program guidelines and 2026 published limits. Program details, income limits, purchase price limits, available funds, and interest rates can change. Confirm your eligibility and current options with a participating lender. Review the TDHCA Homebuyer Program, TSAHC Home Sweet Texas, and TSAHC Homes for Texas Heroes for the latest information.