Buying a first home in Texas is both exhilarating and stressful. Apart from looking for an affordable house, you will have to save some money towards the down payment, closing costs, home inspections, appraisals, and other home buying costs.
In some cases, home buyers can take advantage of home buyer grants in Texas to decrease the upfront costs of buying a home.
Nevertheless, the term ‘grant’ can be quite deceiving since not all the Texas home buyer programs pay out cash grants that you keep in your pocket. There are some Texas programs where you get help with the down payment and closing costs in the form of second liens, while others provide gift funds that should be used with approved assistance programs.
Some statewide home buyer programs offered by the Texas Department of Housing and Community Affairs (TDHCA) can help home buyers in their quest for financing and upfront costs. The TDHCA’s current programs include the My First Texas Home, which is a down payment assistance and 30-year low-interest mortgage program for eligible first-time home buyers.
What Are First-Time Home Buyer Grants in Texas?
Typically, first-time home buyer grants have the purpose of providing financial assistance to eligible home buyers with the starting cost of buying a home.
The assistance can include:
- Down payment assistance
- Closing cost assistance
- Some prepaid assistance
- Other types of assistance
According to the TDHCA, their homebuyer program will offer down payment and closing cost assistance and low-interest mortgages. It is very important for you to remember that not all the assistance dollars are free dollars.
My First Texas Home Program
Another one of the most popular statewide programs for first-time buyers is the My First Texas Home program.
Currently, according to TDHCA, My First Texas Home is a program that provides down payment assistance and a 30-year low-interest mortgage rate to first-time homebuyers. There are certain exceptions to the first-time homebuyer rule for eligible veterans and homes in target areas.
The program is especially helpful for homebuyers who already have an income to get a mortgage but need extra support with other costs.
General Eligibility Criteria
The matrix for the 2026 My First Texas Home program includes such criteria as:
- First-time homebuyer status in accordance with program requirements and exceptions
- Household income and home sale price limitations
- Housing is situated in the state of Texas
- Household will use the housing as the main place of residency
- Timely occupancy usually takes place within 60 days after closing
- Eligible mortgage financing
- Required pre-purchase homebuyer education
- Minimum middle FICO score of 620 according to the program matrix
The specific criteria may vary depending on the selected loan type and program option.
Who Counts as a First-Time Home Buyer?
The expression “first-time home buyer” may not necessarily imply that you have never owned any property in your whole life.
According to the present-day My First Texas Home program requirements, a borrower can be considered a first-time buyer if they have not been occupying their own residence for the preceding three years. There are some exceptions for qualified veterans and targeted areas within the program.
It means that a person who has owned their own home before can qualify for the same program according to the proper first-time-buyer definition.
Due to the specificity of the program rules, do not think that you are automatically not eligible because of owning any property earlier.
Down Payment Assistance vs. Grant
One of the most critical differentiations for Texas homeowners.
Grant/Gift Assistance
In most cases, a grant or a qualifying gift will not function as a regular loan that needs to be repaid by its recipient.
Currently, through partnerships with local housing finance agencies in specific Texas regions, TDHCA makes additional down-payment gift dollars available. The available regions according to TDHCA are sections of Bastrop, Blanco, Burnet, Caldwell, Fayette, Hays, Lee, Llano, and Williamson counties, certain Harris County regions, and the city of McKinney.
Availability is subject to location, funding, and other criteria.
Down Payment Assistance via a Second Lien
Other forms of assistance are different.
According to the 2026 Texas state housing plan, down payment assistance via a second lien is one of the options provided by TDHCA homebuyer programs, which are described as 30-year fixed-rate mortgage financing.
It is important to know that the second-lien form of assistance might have certain repayment requirements.
My Choice Texas Home
One does not have to be a first-time homebuyer in order to receive housing assistance in Texas.
The My Choice Texas Home program of TDHCA is open to both first-time and non-first-time homebuyers. It includes 30-year low-interest mortgages and down payment assistance options.
Additional Gift Funds in Certain Texas Areas
Texas does not depend solely on one form of statewide help scheme. TDHCA currently works in collaboration with local housing finance agencies to give additional gift funds in certain eligible areas. It claims that such funds are available in association with TDHCA down payment assistance programs
Current listed areas include:
| Area | Additional Gift Funds Listed by TDHCA |
| Bastrop County | Available in eligible areas |
| Blanco County | Available in eligible areas |
| Burnet County | Available in eligible areas |
| Caldwell County | Available in eligible areas |
| Fayette County | Available in eligible areas |
| Hays County | Available in eligible areas |
| Lee County | Available in eligible areas |
| Llano County | Available in eligible areas |
| Williamson County | Available in eligible areas |
| Certain Harris County areas | Available in designated service areas |
| City of McKinney | Available for eligible buyers |
These assistance schemes have their eligibility requirements and funding restrictions. It is important to know that TDHCA strongly suggests checking the eligible areas and current program details.
How to Apply for First-Time Home Buyer Assistance in Texas
The application process always starts with finding the right program to apply to.
Step 1: Check Your Eligibility
You need to start by checking your eligibility using the TDHCA Homebuyer Program’s tools.
The state program suggests taking the eligibility quick check and contacting an approve loan officer.
Step 2: Evaluate Your Finances
When considering houses, you should be aware of:
- Credit score
- Monthly income
- Debt obligations
- Savings
- Housing budget per month
- Expected closing costs
Step 3: Find an Accredited Lender
The mortgage lender is the means through which TDHCA programs are implemented.
The lender will also help identify eligible mortgage and assistance programs.
Step 4: Take Homebuyer Education Course
Ensure that you complete the required accredited course before closing.
Step 5: Find a Qualifying Property
Once you have determined your financing range, it is time to engage a real estate agent to find a qualifying property.
Step 6: Apply for the Mortgage and Assistance Programs
The lender can help you apply for the mortgage and assess the assistance program for your finances.
Step 7: Evaluate the Final Details
Before closing, ensure that you fully understand all liens, loans, grants, gifts, tax-credit benefits, and repayment terms.
How Much Money Will You Receive?
There is no set amount of Texas first-time homebuyer grant that you will receive.
The amount of financial assistance will depend on:
- Program type
- Household income
- County
- Buying price
- Mortgage type
- Funding
- Local assistance
- Qualifying property
In the Texas Bootstrap program from TDHCA, the maximum loan amount you can get is $45,000. However, it is a 0% interest self-help construction loan.
Frequently Asked Questions
Are there first-time home buyer grants in Texas?
Yes. There are homebuyer assistance programs in Texas which could provide down payment and closing cost assistance. In addition, TDHCA provides additional information regarding gift funds in certain eligible regions. However, all assistance programs are not necessarily grant programs.
Which is the major Texas program for first-time buyers?
The My First Texas Home program by TDHCA is among the major first-time buyers programs in Texas which provide down payment and 30-year low-interest mortgage opportunities.
If I have already owned a home before, can I qualify?
Possibly. According to the My First Texas Home guidelines, a borrower will qualify as a first-time buyer where they have not owned and lived in their own residence within the last three years.
What credit score do I need?
The current My First Texas Home program matrix shows that the minimum middle FICO score should be at least 620.
Should I complete a homebuyer education course?
Approved homebuyer education is mandatory in order to get assistance from TDHCA Homebuyer Program.
Is there any way to get help with my closing costs?
Yes. TDHCA notes that their programs assist in paying the down payment and closing costs, depending on the program.
Final Thought
Locating first-time homebuyer grants in Texas will be helpful in reducing the cost of buying a house at the beginning, but one needs to be aware of the kind of assistance they are getting.
Texas state programs like My First Texas Home will assist eligible first-time buyers by providing down payment assistance and mortgage financing at reduced rates. Other options available are the My Choice Texas Home, Texas Mortgage Credit Certificate, local gift fund partnership, and other specialty programs like the Texas Bootstrap Loan Program.
One should start from their own personal financial situation instead of considering a certain amount. Check one’s eligibility, analyze one’s credit and income, go through the needed education, talk to participating lenders, and find out if there is any need to repay the assistance at some point in time.
