Texas gives first-time buyers two agencies pulling in the same direction: TDHCA and the sister nonprofit TSAHC both offer home loans bundled with down payment help, plus a well-known program for teachers, police, firefighters, and other everyday heroes.
This guide covers what is actually available to first-time buyers in Texas in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Texas first-time home buyer guide.
The TDHCA and its home loan programs
Texas’s first-time buyer programs are run by the Texas Department of Housing and Community Affairs (TDHCA), with additional programs from the Texas State Affordable Housing Corporation (TSAHC). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- My First Texas Home (TDHCA) — 30-year fixed FHA/VA/USDA loan for first-time buyers, with assistance attached
- My Choice Texas Home (TDHCA) — similar help with no first-time requirement
- Homes for Texas Heroes & Home Sweet Texas (TSAHC) — loans with grants or forgivable seconds for eligible workers and buyers
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Texas
Down payment assistance is the heart of what TDHCA offers, and Texas gives buyers more than one way to get it. Between the two agencies, help usually lands around 5% of the loan — delivered either as a deferred second or, through TSAHC, as a grant or forgivable second.
- TDHCA Down Payment & Closing Cost Assistance — no-interest deferred second, up to 5% of the mortgage amount, paired with My First or My Choice Texas Home.
- TSAHC Down Payment Assistance — grant or forgivable second (forgiven after 3 years), up to 5% of the loan amount.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $300,000 home in Texas, 5% assistance works out to about $15,000. Through TDHCA that typically comes as a no-interest deferred second you repay only when you sell, refinance, or pay off the loan; through TSAHC it can come as a grant you never repay, or a second that is forgiven after three years. Either way, 5% is often enough to cover an FHA down payment and a chunk of closing costs. Confirm the current percentage and any county limits with the agency before you plan around it.
Who qualifies in Texas?
Every program sets its own rules, and they change periodically, but the common requirements in Texas look like this:
- Income limits. Both agencies set income limits by program and county, tied to area median income.
- First-time status. My First Texas Home requires first-time status (with veteran and targeted-area exceptions); My Choice Texas Home and the TSAHC programs do not.
- Credit score. A minimum score around 620 is typical, though it varies by program. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. A homebuyer education course is required to use the assistance.
- Purchase price limits. County purchase-price limits apply.
Texas programs worth knowing about
Beyond the standard offerings, Texas aims extra help at specific buyers and places. Watch for:
- Homes for Texas Heroes — for teachers, police, firefighters, EMS, corrections officers, and veterans
- Home Sweet Texas — for low-to-moderate-income buyers in any occupation
- Texas Mortgage Credit Certificate — offered by both agencies (see below)
Mortgage Credit Certificates in Texas
Both TDHCA and TSAHC offer a Texas Mortgage Credit Certificate, and a standalone MCC option can carry no minimum credit score — though supply is limited, so ask early. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Texas assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Texas program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates TDHCA loans, so ask directly which TDHCA programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: TDHCA program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with TDHCA before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Texas first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Texas?
My First Texas Home requires first-time status (with veteran and targeted-area exceptions); My Choice Texas Home and the TSAHC programs do not.
What credit score do I need for TDHCA programs?
A minimum score around 620 is typical, though it varies by program. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Texas assistance with an FHA, VA, or USDA loan?
Yes. TDHCA assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
Who counts as a hero under Homes for Texas Heroes?
TSAHC’s Homes for Texas Heroes program covers a broad list of public-service professions, including teachers and school staff, police officers, firefighters, EMS personnel, corrections officers, and veterans. Eligible buyers get a home loan paired with a grant or forgivable second toward the down payment. Check TSAHC for the current occupation list and assistance amount.
City guides for Texas
Several Texas metros run their own local down payment programs on top of the statewide help above. See our city guides for Houston, San Antonio, Dallas, and Austin.
More Texas city guides
Buying in a specific Texas metro? See our first-time buyer guides for Fort Worth and El Paso, each covering the city’s own local down payment programs.
Looking specifically for grants in Texas?
If you want to zero in on grant and forgivable money — the help you do not pay back — see our focused guide to first-time home buyer grants in Texas.