First-Time Home Buyer Programs in Texas
Buying your first home in Texas? The Texas Department of Housing and Community Affairs runs the state's flagship program — My First Texas Home (TDHCA) — and it stacks with federal loans and local DPA. Here's the full picture, plus how to qualify.
My First Texas Home (TDHCA)
Below-market first mortgage from TDHCA paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Texas first-time buyers meeting income and purchase-price caps.
How first-time homebuyer programs work in Texas
"First-time buyer" in Texas usually means you haven't owned a principal residence in the past three years — a wider net than most people expect. TDHCA programs typically pair a competitive first mortgage with down payment and closing-cost assistance, often as a forgivable second lien or grant, plus an optional Mortgage Credit Certificate (MCC) that converts a portion of mortgage interest into a federal tax credit for the life of the loan.
Eligibility hinges on three inputs: your credit score (typically 620–640 for conventional, 580 for FHA), your household income relative to program caps that vary by county in Texas, and the purchase price of the home. Completing a HUD-approved homebuyer education course is required before closing on most TDHCA products.
The best part: Texas first-time buyer programs stack with FHA, VA, USDA, and conventional first mortgages, so an FHA borrower with a 620 score can still access TDHCA DPA. And city or county programs in Texas often layer on top for even larger totals — see the Grant Finder for your ZIP-specific total.
How to qualify: Texas first-time buyer steps
- 1
Check your credit for TX program eligibility
Most Texas first-time buyer programs require a minimum credit score (typically 620–640 for conventional, 580 for FHA). Pull your score for free with a soft inquiry so you know where you stand before applying.
- 2
Confirm Texas first-time buyer status
TDHCA defines "first-time buyer" as someone who hasn't owned a principal residence in the past three years. Some Texas targeted areas waive this rule.
- 3
Take a TX approved homebuyer education course
TDHCA requires a HUD-approved homebuyer education course before closing on most first-time programs. Most run 6–8 hours and can be completed online.
- 4
Apply through a TDHCA-approved lender
My First Texas Home (TDHCA) is originated by participating TX lenders, not by the HFA directly. Your loan officer submits the DPA package alongside your main mortgage application.
- 5
Close on your Texas home
First mortgage funds and DPA come to closing together. Keep documentation of the assistance terms — some Texas DPA is forgivable after a residency period.
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Start my TX readiness checkTexas first-time buyer programs: FAQ
What is the flagship first-time buyer program in Texas?▾
My First Texas Home (TDHCA) is the headline first-time homebuyer product from the Texas Department of Housing and Community Affairs (TDHCA). Below-market first mortgage from TDHCA paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Texas first-time buyers meeting income and purchase-price caps.
What credit score do I need for Texas first-time buyer programs?▾
Most Texas first-time buyer programs require a minimum credit score of typically 620–640 for conventional, 580 for FHA. Higher scores unlock better interest rates and more DPA options. If your score is below the floor, use HomeApproach's Credit Readiness tool to see the fastest path to qualifying.
Do Texas first-time buyer programs work with FHA or VA loans?▾
Yes. My First Texas Home (TDHCA) and most TDHCA products layer on top of FHA, VA, USDA, and conventional first mortgages. Your lender submits the DPA application alongside your first mortgage — no separate credit pull required.
Can I stack Texas first-time buyer programs with local city or county DPA?▾
In most cases, yes. Texas buyers regularly combine TDHCA state assistance with city or county DPA and federal loans. Home Approach's Grant Finder waterfalls through all four layers by ZIP to show your specific total.
Do I have to be a Texas resident to qualify?▾
My First Texas Home (TDHCA) requires the home you're buying to be in Texas and to become your primary residence. You do not typically need to be a current Texas resident to apply, but check program-specific residency rules.