First-Time Home Buyer Programs in Texas

Texas Department of Housing and Community Affairs (TDHCA) Programs:

My First Texas Home:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas; veterans exempt from first-time requirement.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; includes up to 5% of the loan amount as assistance for down payment and closing costs.
Requirements:

• Income must not exceed county-specific limits (e.g., $114,240 for a 1-2 person household in Travis County as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

My Choice Texas Home:

Benefits: Offers a 30-year fixed-rate mortgage with up to 5% assistance (0% interest second loan, repayable over 30 years) for down payment and closing costs; open to first-time and repeat buyers.
Eligibility: Must use a TDHCA first mortgage; income and purchase price limits apply (same as My First Texas Home).

Texas Mortgage Credit Certificate (MCC):

Description: Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) to reduce tax liability; combinable with TDHCA loans.
Requirements: Must meet TDHCA income and purchase price limits; credit score of 620; fee applies; first-time buyer status not required with My Choice.

Local Programs:

Austin

Austin Down Payment Assistance: Offers up to $40,000 as a 0% interest deferred loan (repayable upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $77,350 for a family of four).

Houston

Houston Homebuyer Assistance: Provides up to $30,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

San Antonio

San Antonio First-Time Homebuyer Program: Offers up to $15,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with TDHCA loans as a standalone option.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Texas areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.