First-Time Home Buyer Programs in Texas

What Texas first-time buyers qualify for, how property taxes change your payment, and how to get pre-approved before you shop Houston, Dallas or Austin.

The short answer for Texas buyers

Texas first-time buyers typically use TDHCA's My First Texas Home program, a 3%-down conventional loan, or FHA at 3.5% down. Texas has no state income tax but relatively high property taxes, so your monthly escrow is a bigger share of the payment than in most states — budgeting from the full payment rather than principal and interest alone is essential. Some counties and cities add their own assistance on top of state programs.

Texas first-time buyer numbers at a glance

Typical minimum down payment

3% conventional / 3.5% FHA / 0% VA

Typical credit minimum

620 conventional, 580 FHA

Property taxes

High — budget the full escrowed payment

Assistance

State plus city and county programs

Programs available in Texas

  • My First Texas Home (TDHCA) Fixed-rate first mortgage with down payment and closing-cost assistance for eligible first-time buyers.

    • My First Texas Home (TDHCA)

    Fixed-rate first mortgage with down payment and closing-cost assistance for eligible first-time buyers.

  • Texas Mortgage Credit Certificate A federal tax credit on a portion of the mortgage interest you pay each year.

    • Texas Mortgage Credit Certificate

    A federal tax credit on a portion of the mortgage interest you pay each year.

  • Local city and county assistance Houston, Dallas, Austin and San Antonio run their own buyer assistance programs.

    • Local city and county assistance

    Houston, Dallas, Austin and San Antonio run their own buyer assistance programs.

  • Conventional 97 / HomeReady 3% down conventional financing with reduced mortgage insurance for eligible incomes.

    • Conventional 97 / HomeReady

    3% down conventional financing with reduced mortgage insurance for eligible incomes.

  • FHA and VA financing 3.5% down FHA, or zero down VA for eligible veterans — Texas has a large veteran population.

    • FHA and VA financing

    3.5% down FHA, or zero down VA for eligible veterans — Texas has a large veteran population.

    How to buy your first home in Texas

  • 1 Get a no-SSN quote See a rate and full payment estimate including taxes and insurance.

    • Get a no-SSN quote

    See a rate and full payment estimate including taxes and insurance.

  • 2 Get pre-approved A verified pre-approval keeps you competitive in Texas metro markets.

    • Get pre-approved

    A verified pre-approval keeps you competitive in Texas metro markets.

  • 3 Layer assistance We check TDHCA plus any city or county program where you are buying.

    • Layer assistance

    We check TDHCA plus any city or county program where you are buying.

  • 4 Lock and close Rate lock, appraisal, underwriting and signing, managed end to end.

    • Lock and close

    Rate lock, appraisal, underwriting and signing, managed end to end.

    Texas first-time buyer questions

    What is My First Texas Home?

    It is TDHCA's first-time buyer program, offering a fixed-rate first mortgage plus down payment and closing-cost assistance to buyers who meet income and purchase-price limits.

    How much down payment do Texas buyers need?

    3% on a conventional loan, 3.5% on FHA, and zero on a VA loan for eligible veterans. Assistance programs can reduce your out-of-pocket further.

    Do Texas property taxes affect what I qualify for?

    Yes. Texas property taxes are among the highest in the country, and lenders count the escrowed tax payment in your debt-to-income ratio, which lowers your maximum price.

    Is there a Texas first-time buyer tax credit?

    The Texas Mortgage Credit Certificate provides an annual federal tax credit on part of the mortgage interest you pay, for buyers who qualify.

    Where we lend in Texas

    Mortgage pre-approval guide

    What pre-approval requires and how long it takes.

    How much down payment you need

    Real minimums by program and what PMI costs.

    First-time buyer guides in other states we serve

    California

    First-time buyer programs in California

    Colorado

    First-time buyer programs in Colorado

    Washington

    First-time buyer programs in Washington

    Ready to see what you qualify for in Texas?

    Get a real rate and payment estimate from a licensed mortgage broker. No SSN required to start.

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