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First-Time Homebuyer Programs in Texas-2024

February 2, 2024

First-time homebuying in Texas-2024 is an essential step towards achieving the dream of homeownership. Texas boasts a wealth of fantastic first-time homebuyer programs in 2024 specifically designed to lend a helping hand to homebuyers.
From down payment assistance and low-interest loans to grants and tax credits, these programs can significantly ease the financial burden and bring your dream home within reach.
Whether it's financial assistance or educational support, Texas offers multiple resources to ensure homeownership becomes a concrete and achievable goal for first-time homebuyers in 2024.
The process for first-time homebuyers involves more than just finding the perfect home. It requires understanding the difficulties of the buying process, from mortgage options to closing costs. Homebuying programs in 2024 address these aspects, providing comprehensive guidelines to help first-time homebuyers feel confident in their decisions.

Key Takeaways

  • First-time homebuyers can explore FHA, USDA, and VA homebuying programs, each offering unique advantages to suit individual needs.
  • Programs like Homes for Texas Heroes honor teachers, firefighters, and more with down payment help.
  • Texas programs like My First Texas Home offer up to 5% down payment assistance for first-timers.

First-Time Homebuying Programs In Texas

The Texas Department of Housing and Community Affairs (TDHCA) offers several programs for the first-time homebuyer in Texas.
If you have not purchased a home in the past three years as your primary residence, you will be considered a first-time homebuyer by TDHCA. This requirement is waived if you are an honorable discharged veteran, and you may be considered for the program.

Criteria for TDHCA

  • You should have a minimum Credit Score = 620.
  • Brower should meet household income limits.
  • Purchase a home within a specified price limit.
  • Be accepted for a mortgage with one of The Texas Homebuyer Program's Approved lenders.
  • Other requirements may apply.

Benefits Of TDHCA Programs

  • Down payment and closing cost assistance
  • Potential tax credit for mortgage loan interest paid annually
  • Combining some programs to maximize their benefits.
  • Homes in "targeted areas" enjoy higher income and purchase price limits.

TDHCA First Time Homebuyer Loan Programs

Here are a few programs TDHCA offers for first-time homebuyers.

1. My First Texas Home

This popular program boasts low interest rates on 30-year fixed mortgages and offers up to 5% assistance with down payment and closing costs. It's ideal for eligible first-time buyers and veterans.

2. My Choice Texas Home

Like My First Texas Home, this program provides low-interest mortgages and up to 5% assistance with closing costs and down payment. It also allows for conventional loans alongside government-backed options like FHA and VA loans.

3. Home Sweet Texas Home Loan Program

This program caters to first-time and repeat buyers, offering competitive interest rates and down payment assistance of up to 5%. It can be paired with various loan types, including HFA conventional and government-backed options.

4. Homes for Texas Heroes

This program honors the service of teachers, firefighters, police officers, nurses, and EMS personnel by offering closing costs and downpayment assistance of up to 5%. Additionally, it features competitive interest rates and flexible eligibility requirements.

National First-Time Homebuyer Programs

No matter where you live, several excellent resources and programs are offered by the federal government and various organizations that can provide significant assistance to homeowners nationwide. Here are some of the most notable options.
  1. Federal Housing Administration (FHA) Loans
If you're a first-time homebuyer in Texas, one option worth considering is an FHA loan. FHA loan is a government agency's insured mortgage. It's designed to make homeownership more accessible, particularly for those with limited credit scores or a lower down payment (as low as 3.5%).
  1. USDA (United States Department Of Agricultural) Loans
USDA loans offer a unique opportunity if you are in Texas and considering a home in rural areas. With features like zero down payment and competitive interest rates, USDA loans aim to make homeownership more achievable for those in eligible locations.
  1. Veterans Affairs (VA) Loans
VA loans are mortgages backed by the U.S. Department of Veterans Affairs (VA). These loans are for veterans, active-duty military personnel, and their spouses. With features like zero down payment, no PMI, and competitive interest rates, VA loans aim to honor the service of military personnel by providing accessible and affordable housing solutions.

Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae)

These government-sponsored enterprises (GSEs) don't directly offer loans to borrowers but purchase mortgages from lenders and package them into securities, making them more appealing to investors and lowering mortgage rates for borrowers. They also offer affordable loan programs for first-time homebuyers, such as the Home Possible and HomeReady programs, which require low down payments and flexible credit score requirements.

Native American HUD Homes

This program helps eligible Native American families purchase homes on tribal land or in certain reservation areas. Down payment assistance and grants are available through this program.

Good Neighbor Next Door Program

This program by the Department of Housing and Urban Development (HUD) offers discounts on homes in revitalization areas to teachers, police officers, firefighters, and emergency medical technicians. Down payment assistance is also available through this program.

Federal Housing Finance Agency (FHFA) First-Time Homebuyer Mortgage Rate Discount

Announced in February 2023, this program offers a reduced mortgage rate for qualified low-to-moderate-income first-time homebuyers. This discount, combined with other first-time homebuyer programs, offers even greater savings.


It's important to remember that each homebuying program in Texas has specific eligibility requirements and limitations, so researching and comparing options are important. Consider your income, credit score, desired location, and property type when selecting the best program for your needs.
In addition to these federal programs, several non-profit organizations and state agencies offer down payment assistance programs and other resources for first-time homebuyers. Don't hesitate to explore all available options and seek guidance from a qualified mortgage lender or housing counselor to make informed decisions.


1. Can I use homebuying programs in Texas if I've owned a home in another state?

Generally, first-time homebuyer programs consider your current homeownership status. You may still be eligible if you meet the criteria as a first-time buyer in Texas.

2. Are there any special considerations for first-time homebuyers with unique circumstances, such as self-employment?

Individuals with unique circumstances, like self-employment, may have specific considerations. Mortgage advisors can guide you on the most suitable programs based on your situation.

3. How long does the application process for first-time homebuyer programs typically take?

The application process duration can vary. It's advisable to start early and work with mortgage professionals to ensure a smooth and timely process for your first-time homebuying in Texas.

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