Texas is one of the states where “first-time home buyer grant” is not just marketing — through TSAHC, the state offers an actual grant you never repay, alongside other assistance.
This guide covers what actually counts as grant money for first-time buyers in Texas in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in Texas?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. Texas stands out because its state-affiliated agency TSAHC offers a genuine grant option, not just a forgivable loan — so real no-repay money is on the table here.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
Texas grant and forgivable-money programs
Between two agencies, Texas offers a true grant plus deferred help. Here is the grant-like money:
- TSAHC Down Payment Assistance (grant option) — through the Homes for Texas Heroes and Home Sweet Texas programs, up to 5% of the loan as a true grant you never repay — or, if you choose, a second that is forgiven after 3 years
- TDHCA Down Payment & Closing Cost Assistance — a no-interest deferred second of up to 5% of the mortgage — a loan repaid when you sell or refinance, not a grant, but with no monthly payment
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to Texas first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in Texas or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the Texas programs above are real, available now, and often just as valuable.
How to qualify for a grant in Texas
Grant and forgivable programs in Texas share a familiar set of rules:
- Income limits. Both TSAHC and TDHCA set income limits by program and county.
- First-time status. My First Texas Home requires first-time status; My Choice Texas Home and the TSAHC programs do not, so repeat buyers can often still get the grant.
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in Texas
Ask a TSAHC- or TDHCA-participating lender specifically about the TSAHC grant option, which is the closest thing to no-strings money — and note the well-known Homes for Texas Heroes program for teachers, police, firefighters, and EMS.
Several Texas cities also run their own grant and forgivable programs on top of the state help — see our city guides for Houston, San Antonio, Dallas, Austin, Fort Worth, and El Paso.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
Texas first-time buyer grants FAQ
Do first-time home buyer grants in Texas have to be repaid?
Not always — Texas is unusual in offering a true grant through TSAHC (up to 5% you never repay, or a second forgiven after 3 years). TDHCA’s assistance, by contrast, is a deferred loan repaid at sale or refinance. Confirm which structure you are getting with your lender.
Is there a $25,000 grant for first-time buyers in Texas?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in Texas or any state today. What is available are Texas’s real grant and forgivable programs described above, plus the statewide options in our Texas programs guide.
Who qualifies for down payment grants in Texas?
My First Texas Home requires first-time status; My Choice Texas Home and the TSAHC programs do not, so repeat buyers can often still get the grant. Both TSAHC and TDHCA set income limits by program and county. You will also complete a homebuyer education course and use a participating lender.
What is the Homes for Texas Heroes grant?
Homes for Texas Heroes is a TSAHC program that pairs a home loan with down payment help — available as a grant (up to 5% you never repay) or a forgivable second — for a broad list of public-service workers, including teachers and school staff, police, firefighters, EMS, corrections officers, and veterans. There is no first-time buyer requirement. Ask a TSAHC-participating lender about current amounts and eligible occupations.