Texas is one of the best states in the country for first-time homebuyers. Between state-run assistance programs, competitive housing prices in many metros, and no state income tax eating into your budget, the Lone Star State rolls out the red carpet for new homeowners.
But with so many programs available, it can be hard to know which one is right for you. In this guide, we break down every major first-time homebuyer program available in Texas for 2026 — including how much assistance you can get, who qualifies, and how to apply.
What Counts as a "First-Time Homebuyer" in Texas?
Good news: the definition is more generous than you might think. For most Texas programs, a "first-time homebuyer" is someone who has not owned a home in the past three years. So even if you owned a home a decade ago, you likely qualify as a first-time buyer.
Additionally, some programs don't require first-time buyer status at all — especially for veterans, buyers purchasing in targeted areas, or those using specific TSAHC programs.
TDHCA: My First Texas Home Program
The Texas Department of Housing and Community Affairs (TDHCA) operates one of the state's flagship homebuyer programs. My First Texas Home provides below-market interest rates and down payment assistance to qualifying buyers.
How It Works
- Down payment assistance: Up to 5% of the loan amount, provided as a deferred forgivable second lien
- Loan types: Available with FHA, VA, and USDA first mortgages
- The DPA second lien is forgiven after you live in the home for 3 years — meaning you never pay it back
- Interest rates are set by TDHCA and are often comparable to or slightly above market rates
Eligibility Requirements
- First-time buyer (no homeownership in past 3 years) — exception for veterans and targeted areas
- Income limits: Vary by county and household size. In most Texas counties, the limit for a 1-2 person household is approximately $85,000-$99,000. Larger households and high-cost counties have higher limits.
- Purchase price limits: Generally $350,000-$420,000 depending on the county
- Credit score: Minimum 620
- Homebuyer education: Must complete a HUD-approved course
- Primary residence: You must live in the home
Best For
Buyers with moderate income who want forgivable assistance and are comfortable with FHA, VA, or USDA loan products.
TSAHC: Home Sweet Texas Program
The Texas State Affordable Housing Corporation (TSAHC) offers two popular programs that are favorites among Texas loan officers — largely because they offer grants that never need to be repaid.
Home Sweet Texas Program
- Down payment assistance: Up to 5% of the loan amount as a grant (free money)
- Loan types: FHA, VA, USDA, and Conventional
- The grant covers down payment and/or closing costs
- No repayment required — it's a true grant
Homes for Texas Heroes
TSAHC's Heroes program offers the same benefits but is specifically designed for teachers, police officers, firefighters, EMS workers, corrections officers, and veterans. If you're in one of these professions, you may get a slightly lower interest rate compared to the standard program.
TSAHC Eligibility
- Not limited to first-time buyers in targeted areas (check TSAHC's website for targeted census tracts)
- Income limits: Up to 115% of area median income (typically $90,000-$130,000+ depending on county and household size)
- Purchase price limits: Vary by county
- Credit score: Minimum 620
- Homebuyer education: Required
Which Texas Program Is Right for You?
Take our free 2-minute quiz and we'll match you with the programs you're most likely to qualify for.
Take the Quiz →SETH: 5 Star Texas Advantage Program
The Southeast Texas Housing Finance Corporation (SETH) operates statewide despite its regional name. The 5 Star program is popular because of its flexibility and generous assistance.
Program Details
- Down payment assistance: Up to 5% of the loan amount
- Provided as: A forgivable deferred second lien (typically forgiven after living in the home 3 years)
- Loan types: FHA, VA, USDA
- Available statewide — not just Southeast Texas
SETH Eligibility
- First-time buyer requirement applies (unless veteran or targeted area)
- Income limits: Similar to TDHCA — varies by county
- Credit score: Minimum 620
- Homebuyer education: Required
Best For
Buyers who want forgivable assistance and whose lender participates in SETH programs. Many lenders offer SETH alongside TDHCA and TSAHC, giving you multiple options to compare.
Comparing Texas DPA Programs
| Feature | TDHCA | TSAHC | SETH |
|---|---|---|---|
| Max DPA | Up to 5% | Up to 5% | Up to 5% |
| Type | Forgivable 2nd lien | Grant | Forgivable 2nd lien |
| Repayment | Forgiven after 3 years | Never | Forgiven after 3 years |
| First-time buyer? | Yes (exceptions) | Not always | Yes (exceptions) |
| Min credit score | 620 | 620 | 620 |
| Loan types | FHA, VA, USDA | FHA, VA, USDA, Conv | FHA, VA, USDA |
| Heroes program? | No | Yes | No |
Our recommendation: Apply through a lender who participates in all three programs. They can run the numbers for each and show you which one gives the best overall deal — sometimes the interest rate on one program is lower, while another offers better assistance terms.
Federal Loan Programs Available in Texas
FHA Loans
FHA loans are popular with first-time buyers because of their low 3.5% down payment and 580 minimum credit score. When combined with a Texas DPA program, the 3.5% down can be fully covered, making it effectively a zero-down purchase.
2026 FHA loan limits in Texas:
- Most counties: $524,225
- High-cost counties: Up to $600,000+
FHA loans do require mortgage insurance — both an upfront premium (1.75% of loan amount, financeable) and an annual premium (0.55% for most borrowers). This is the trade-off for the low down payment and flexible credit requirements.
VA Loans
For Texas veterans and active-duty military, VA loans offer true zero-down with no PMI. Texas has a massive military population, and VA loans are incredibly popular in areas near Fort Cavazos (formerly Fort Hood), Joint Base San Antonio, Fort Bliss, and Naval Air Station Corpus Christi.
VA loans can be combined with TSAHC's Homes for Texas Heroes program for additional closing cost assistance.
USDA Loans
Large portions of Texas — including many suburban communities near Houston, Dallas-Fort Worth, San Antonio, and Austin — qualify for USDA zero-down loans. The eligibility map may surprise you; areas you'd never consider "rural" often qualify.
Conventional 97
Fannie Mae and Freddie Mac offer conventional loans with just 3% down for first-time buyers (the "Conventional 97" program). While this isn't zero-down on its own, the 3% can often be covered by TSAHC grants or other DPA programs.
Advantages of Conventional 97:
- PMI can be removed once you reach 20% equity (unlike FHA's permanent MI)
- No upfront mortgage insurance premium
- May offer better rates for borrowers with 700+ credit scores
- Higher loan limits than FHA in some areas
Understanding Income Limits
Income limits are one of the most common sources of confusion with Texas homebuyer programs. Here's what you need to know:
- Limits are based on household income — all adults in the home, not just the borrower on the loan
- Limits vary by county and household size — higher-cost areas like Austin and Dallas have higher limits
- Income is based on gross (pre-tax) income
- Limits are updated annually — check with your lender for the most current figures
Approximate 2026 income limits for popular Texas metros (1-2 person household):
| Metro Area | TDHCA Limit | TSAHC Limit |
|---|---|---|
| Houston (Harris County) | ~$95,000 | ~$105,000 |
| Dallas (Dallas County) | ~$99,000 | ~$110,000 |
| Austin (Travis County) | ~$110,000 | ~$125,000 |
| San Antonio (Bexar County) | ~$90,000 | ~$100,000 |
| Fort Worth (Tarrant County) | ~$99,000 | ~$110,000 |
Note: These are approximate figures. Actual limits depend on household size and are updated periodically. Always verify current limits with your lender or program administrator.
Homebuyer Education Requirement
Nearly all Texas DPA programs require completion of a homebuyer education course. This is actually a good thing — studies show that buyers who complete education courses are significantly less likely to default on their mortgages.
Options for completing the requirement:
- Online courses: Framework (frameworkhomeownership.org) and eHome America offer HUD-approved courses you can complete in 6-8 hours from home
- In-person classes: Local HUD-approved counseling agencies offer classroom sessions
- Cost: Typically $50-$100 for online courses; some in-person classes are free
Complete this early in the process — it's one less thing to worry about when you're ready to make an offer.
Ready to Buy Your First Texas Home?
Our free Readiness to Buy quiz takes 2 minutes and shows you which programs match your situation.
Start the Quiz →How to Maximize Your Benefits
Here's our step-by-step approach for Texas first-time buyers:
- Take our readiness quiz to get an initial assessment of your options
- Check your credit — aim for 620+ to qualify for most programs
- Complete homebuyer education early to check that box
- Find a participating lender who works with TDHCA, TSAHC, and SETH
- Get pre-approved and compare program options side by side
- Work with a knowledgeable real estate agent who understands DPA timelines
- Negotiate seller concessions to cover remaining closing costs
The buyers who save the most are those who explore all their options with a lender who participates in multiple programs. Don't settle for the first option — compare and choose the best fit.
Frequently Asked Questions
What first-time homebuyer programs are available in Texas?
Texas offers several programs including TDHCA My First Texas Home (up to 5% DPA), TSAHC Home Sweet Texas (up to 5% grant), SETH 5 Star Program (up to 5% DPA), plus federal options like FHA, VA, USDA, and Conventional 97 loans.
What are the income limits for Texas homebuyer programs?
Income limits vary by program and county. TDHCA limits typically range from $85,000-$125,000+ for a household. TSAHC and SETH have similar ranges. Limits are higher in high-cost counties like Travis and Harris. Limits are based on total household income.
Do I have to be a first-time buyer to use Texas homebuyer programs?
Not always. While TDHCA's My First Texas Home requires first-time buyer status (no homeownership in past 3 years), TSAHC programs are available to repeat buyers in targeted areas or with veteran status. Veterans are generally exempt from first-time buyer requirements across all programs.
Related reading: Can You Buy a Home With No Money Down? · VA Loan Requirements 2026 · Zero Down Payment Home Loans: Complete Guide