First-Time Home Buyer Programs in Texas: Down Payment Assistance & More

One of the biggest hurdles for first-time buyers is the down payment. The good news: Texas has several statewide programs built to get you into a home with less money out of pocket. (If you're shopping specifically around Houston, my Houston down payment assistance guide covers the local programs in depth — this post covers the state-level toolbox.)

My First Texas Home

Offered through the Texas Department of Housing and Community Affairs (TDHCA), My First Texas Home pairs a 30-year fixed-rate mortgage with down payment and closing cost assistance of up to 5% of the loan amount.

To qualify, you generally need to:

• Be a first-time buyer (or not have owned a home in the past 3 years)
• Meet income limits for your county
• Purchase within the program's price limits
• Have a minimum 620 credit score

Texas Mortgage Credit Certificate (MCC)

The MCC is a federal tax credit — not just a deduction — that can let eligible first-time buyers claim a percentage of their annual mortgage interest directly against their tax bill, potentially for the life of the loan. Program availability and terms change from time to time, so ask about current MCC availability when we talk — when it's on the table, it's one of the most powerful tools a Texas buyer has.

My Choice Texas Home

Unlike most programs, My Choice Texas Home is not restricted to first-time buyers. It offers the same up-to-5% assistance and competitive rates — a great option for repeat buyers, especially in higher-cost Texas markets.

Homes for Texas Heroes

Texas takes care of its heroes. This program serves teachers, firefighters, police and correctional officers, EMS personnel, and veterans with below-market rates and up to 5% down payment assistance. If you work in one of these professions, this program can save you thousands.

City and County Programs

Beyond the state level, cities like Houston have their own assistance — often income-based grants or forgivable loans, subject to funding availability. These change frequently, which is why checking with a local loan officer beats a stale internet list. My DPA service page stays current on what's active around Houston.

FHA Loans: The Low-Down-Payment Workhorse

If a grant program isn't the right fit, an FHA loan allows down payments as low as 3.5% with a 580+ credit score — and many assistance programs can be layered on top of an FHA loan.

How to Get Started

Navigating these programs alone is overwhelming — matching buyers to the right one is a big part of what I do every week. Contact me for a free consultation and let's find out what you qualify for.

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Daisy Castro · NMLS #2592627 · Equal Housing Lender. This article is general information for Texas buyers — not financial, tax, or legal advice, and not a commitment to lend. Program availability, income limits, and terms change and vary by county; verify current details before relying on them. Figures current as of July 2026.