Texas first-time homebuyer grants and down payment assistance (2026)

TDHCA’s two loans and the three-year first-time test

My First Texas Home is for first-time buyers only. TDHCA counts you as first-time if neither you nor a non-purchasing spouse has owned and lived in a primary residence in the last three years. Qualified veterans with a DD-214 are exempt, and so are buyers in a Qualified Targeted Census Tract ⁠⁴. First-time buyers must also live in Texas and sign a Texas Residency Affidavit at closing ⁠¹. Income counts everyone who will live in the home and sign the deed of trust, including a non-purchasing spouse ⁠¹.

My Choice Texas Home drops the first-time rule and the purchase price limit, and it is not subject to federal recapture tax. Only the borrowers on the loan application count toward the income limit ⁠². It also allows HFA Preferred and HFA Advantage conventional loans; My First Texas Home is FHA, VA and USDA only ⁠¹⁠².

How TDHCA’s 2%-5% assistance is repaid or forgiven

Both TDHCA programs put the assistance in a 0% second lien with no monthly payment. You choose one of two versions ⁠¹⁠²:

• 30-year deferred repayable second lien. You owe it in full when you sell, refinance, transfer the home or pay off the first mortgage.
• 3-year deferred forgivable second lien. It is fully forgiven after 36 months if you stay current on the first mortgage and still live in the home. If you sell or refinance before then, you repay all of it.

The matrices offer 2% to 5% of the total loan amount, as funding allows, with no cash back to the buyer ⁠¹. More assistance means a higher first-mortgage rate. On TDHCA’s Oct. 19, 2026 rate notice, a bond-funded My First Texas Home FHA, VA or USDA loan was priced at 6.750% with no assistance, 7.000% with 3%, 7.125% with 4%, and 7.250% with 5% ⁠⁵. Rates change daily.

TDHCA also passes along first-come gift funds, never repaid, from three local housing finance corporations ⁠¹:

• Capital Area HFC: $7,500 in Bastrop, Blanco, Burnet, Caldwell, Fayette, Lee and Llano counties, or $2,500 in Hays and Williamson.
• Harris County HFC: $1,000 in Harris County outside Houston and eight other excluded cities.
• McKinney HFC: $5,000 in the City of McKinney.

TSAHC’s grant-or-forgivable choice and what it costs in rate

TSAHC’s two programs offer the same assistance. Homes for Texas Heroes is for public school teachers and staff, police, firefighters, EMS personnel, corrections officers, veterans and active military, and nursing faculty ⁠⁹. Home Sweet Texas covers low- and moderate-income buyers in any job. TSAHC’s September 2026 rate table showed three ways to take the money ⁠⁸:

Scroll the table sideways to see every column.

At the same percentage, the grant carried a rate three-eighths to half a point higher than the forgivable lien, so a buyer who stays past three years may pay less with the lien ⁠⁸. You repay the forgivable lien only if you sell or refinance within three years ⁠⁹. Lenders may charge a 1% origination fee, plus 0.25% on government loans for 620-639 scores ⁠⁸.

County income and purchase price limits for 2026

Each program has its own county limit table. For My First Texas Home and the Texas MCC, counties not listed use the “balance of state” row: $101,500 for 1-2 people and $116,725 for 3 or more, with a purchase price cap of $566,354. The highest figures are in Glasscock County: $145,920 and $170,240, with an $850,703 price cap ⁠³. Higher income and price limits apply if the home is in a Qualified Targeted Census Tract. You can check an address with the FFIEC geocoder linked from TDHCA’s lender page ⁠³⁠⁴. My Choice Texas Home on a government loan allows 170% of area median family income for any household size, from $172,550 to $248,064 ⁠³. TSAHC sets Home Sweet Texas at 150% of AMI ($152,250 to $218,880) and Homes for Texas Heroes at 170% ($172,550 to $248,064) ⁠¹⁰.

Scroll the table sideways to see every column.

TDHCA figures are effective July 13, 2026 ⁠³. TSAHC’s figures apply to non-bond government loans and conventional loans above 80% of AMI. Its conventional loans at or below 80% of AMI use lower limits, such as $84,080 in Harris County ⁠¹⁰.

Mortgage credit certificates: TDHCA still offers a stand-alone one

A Mortgage Credit Certificate (MCC) is a federal tax credit, not down payment cash. TDHCA issues it as a “combo” with My First Texas Home or stand-alone with an outside first mortgage. The stand-alone version has no minimum credit score for the certificate itself ⁠⁶. The credit rate was 15% on the Oct. 19, 2026 rate notice. TDHCA charges a $400 issuance fee for a combo MCC and $1,000 for a stand-alone one. The fee is waived for military buyers ⁠⁵. TSAHC discontinued its stand-alone MCC. It now issues MCCs only together with its down payment assistance, also at 15%, and the certificate is free for Texas Heroes ⁠⁸⁠⁹. Both My First Texas Home and MCCs can trigger federal recapture tax when you sell. My Choice Texas Home does not ⁠⁴.

City programs in Houston, San Antonio, Austin and Dallas

• Houston, Homebuyer Assistance Program (HAP). Up to $75,000 for first-time buyers at or below 80% of AMI, buying a home that pays City of Houston taxes. It is a 0% forgivable loan, satisfied after eight years in the home. If you sell or move out sooner, you repay part of it. As of Oct. 20, 2026, the city says program funds are exhausted and it is not accepting new applications. Its Harvey-related HbAP 2.0 program has also put applications on hold ⁠¹².
• San Antonio, Homeownership Incentive Program. HIP 80 lends $1,000 to $30,000 at 0%. Amounts up to $15,000 are forgiven over 5 years, and amounts from $15,001 to $30,000 over 10 years. The 2026 income limit is $80,500 for a family of four, and the price cap is $260,000 for an existing home or $284,000 for new construction. HIP 120 lends $1,000 to $15,000 and forgives 75% over 10 years; the other 25% is never forgiven. Its limits are $120,700 for four people and $301,700 for an existing home ($332,800 new). Both require an 8-hour HUD-approved class and at least $500 in earnest money ⁠¹³.
• Austin, Down Payment Assistance Program. Up to $40,000 for first-time buyers, or buyers who have been displaced or divorced, at or below 80% MFI. The income limit is $106,800 for four people. The home must be in Austin’s Full Purpose city limits and cost no more than $440,000. Your loan officer must be on the city’s participating lender list. The city’s page does not publish repayment terms ⁠¹⁴.
• Dallas, DHAP. Run by BCL of Texas since May 1, 2026. It pays up to $50,000, or $60,000 in High Opportunity Areas, to buyers at or below 80% of AMI ($96,900 for four people on BCL’s chart). The price cap is $342,000. It is a 0% deferred forgivable second lien. The affordability period is 5 years for amounts under $25,000, 10 years for $25,000 to $50,000, and 15 years above $50,000. You need a DHAP-approved lender, an 8-hour HUD-approved course and a $1,000 minimum investment ⁠¹⁵.

Credit, education and the participating-lender rule

Credit. TDHCA requires a 620 minimum middle FICO score on both loans. Manual underwriting on FHA, VA and USDA loans is capped at a 45% debt-to-income ratio, and FHA manual underwriting adds a 0.25% fee ⁠¹⁠². TSAHC requires 620 on government loans and 640 on conventional loans. It also requires 640 for manufactured homes and for FHA manual underwriting, which it caps at 43% DTI ⁠⁸.

Education. TDHCA requires a pre-purchase HUD-certified homebuyer education course for every borrower. It recommends Finally Home! and also accepts Freddie Mac CreditSmart Homebuyer U and Fannie Mae HomeView, both of which are free ⁠⁷. TSAHC requires only one person on the loan to finish an approved course before closing. Online courses on its list cost from $0 to $99 ⁠¹¹. City programs generally require an 8-hour class from a HUD-approved agency ⁠¹²⁠¹³⁠¹⁵.

Lenders. TDHCA’s Participating Lenders list (July 2026) names the approved mortgage companies, and any loan officer at one of them can originate its loans. Ask a loan officer who has not used the program to contact [email protected]. TSAHC also offers its loans only through its own network of approved lenders ⁠⁸.

Applying through a TDHCA or TSAHC lender, step by step

1. Pick the agency that fits

   First-time buyers can compare My First Texas Home with TSAHC. Repeat buyers can use My Choice Texas Home or TSAHC ⁠¹⁠⁹.

2. Check your county’s limits

   Use TDHCA’s July 13, 2026 table or TSAHC’s 2026 chart. If you are near the cap, check whether your address is in a targeted tract ⁠³⁠¹⁰.

3. Take the eligibility check

   TDHCA’s Eligibility Quick Check and TSAHC’s Eligibility Quiz both direct you to an approved loan officer ⁠⁷⁠⁹.

4. Complete homebuyer education

   TDHCA needs a certificate for each borrower ⁠⁷.

5. Gather documents

   Expect pay stubs, W-2s and bank statements. My First Texas Home and MCC files also need three years of IRS transcripts or signed returns for every borrower and non-purchasing spouse, plus a DD-214 for the veteran exemption ⁠¹.

6. Have the lender reserve funds

   Your loan officer locks the rate and assistance level in the agency’s portal. TDHCA requires the loan to be purchased within 60 days, or extension fees apply ⁠⁵.

7. Close and keep your paperwork

   Keep the second-lien note, any MCC and the recapture notice for a future sale or refinance ⁠¹⁠⁴.

If you are turned down, you can reapply through another participating lender. Houston buyers can join the city’s Nov. 10, 2026 applicant workshop to hear about reopening ⁠¹². Other states’ rules are on the first-time homebuyer grants page, and other Texas guides are on the Texas page.