First-Time Home Buyer
Loans in Texas

First-time home buyer loans in Texas help buyers who haven’t owned a primary residence in the last three years purchase a home with a low down payment. The main options are VA loans (0% down for veterans), FHA loans (3.5% down), and conventional loans (as low as 3% down) — often paired with Texas down payment assistance to cover upfront costs.

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Who Qualifies as a First-Time Home Buyer in Texas?

Here’s the good news that surprises most people: you don’t have to be young, and it doesn’t have to be the very first home you’ve ever bought. Under the guidelines most Texas programs follow, a first-time home buyer is anyone who has not owned a primary residence in the past three years. If you sold a home years ago, rented for a while, or are coming out of a divorce, you may have “first-time buyer” status again.

That distinction matters because it unlocks low-down-payment loans and Texas down payment assistance that repeat buyers sometimes can’t access. And even if you don’t technically qualify as a first-timer, several assistance programs welcome repeat buyers too — so it’s always worth asking rather than assuming you’re excluded.

Most first-time buyers share the same three questions: How much do I need saved? What will my monthly payment be? And what could go wrong? The rest of this page answers all three. When you’re ready for numbers specific to your situation, our free interactive First-Time Home Buyer’s Guide has a budget worksheet, checklists, and a mortgage calculator built in.

What Loan Programs Are Best for First-Time Buyers in Texas?

There’s no single “best” loan — the right one depends on your service history, credit, savings, and goals. Here’s how the main programs compare for Texas first-time buyers.

Credit minimums and down payments are typical guidelines and vary by lender and program. Interest rates vary by lender, credit profile, and market conditions.

How Much Do You Need for a Down Payment in Texas?

The “20% down” rule you’ve heard is a myth for most first-time buyers. In reality, the down payment depends entirely on your loan program. An eligible veteran can buy with nothing down using a VA loan. An FHA loan asks for 3.5%, and several conventional programs designed for first-time buyers start at just 3%.

On a $300,000 Texas home, that’s the difference between $0, roughly $10,500, and about $9,000 — not the $60,000 many buyers assume they need. And that’s before down payment assistance, which can shrink your out-of-pocket cost even further.

Beyond the down payment, plan for closing costs of roughly 2% to 5% of the price and a small earnest money deposit (usually 1% to 3%) that applies toward your costs at closing. Want to see real numbers for a price range you have in mind? Run them through our Texas Mortgage Calculator.

See What You Can Afford — With No Upfront Credit Check

Pre-approval is the first real step. We’ll evaluate your goals, structure the right strategy, and shop multiple lenders so they compete for your loan.

What Down Payment Assistance Is Available in Texas?

Texas has some of the most active down payment assistance (DPA) programs in the country. These don’t replace your mortgage — they pair with a VA, FHA, or conventional first loan to help cover your down payment and closing costs, either as a grant or a second-lien loan. The two biggest statewide sources are:

Eligibility hinges on income limits (which vary by county and household size), the property location, and credit. The programs change periodically, and not every lender offers every one — part of our job is matching you to the assistance you actually qualify for. We’ll walk you through what’s realistic before you get your hopes set on a specific program.

What Credit Score Do You Need to Buy a Home in Texas?

Lower than you probably think. Many first-time buyers get approved with a credit score in the low-to-mid 600s, and FHA financing can go into the upper 500s with compensating factors like steady income or a larger down payment. You do not need perfect credit to own a home in Texas.

That said, your score directly affects your interest rate, and the rate drives your monthly payment for years. This is exactly why we start with an education-first review and no upfront credit check. If your score is ready, we move forward. If a few targeted moves — paying down a card, disputing an error, waiting on a specific account — would meaningfully improve your rate, we’ll tell you before you apply, not after.

We also help buyers who are self-employed or have non-traditional income document their earnings the right way. If tax returns don’t tell your full story, ask us about a bank statement loan.

Get the full step-by-step guide with checklists & worksheets →

What Should Texas First-Time Buyers Know That Others Don’t?

Buying in Texas comes with a few quirks worth planning around. First, Texas has no state income tax — a real advantage — but it balances that with some of the highest property taxes in the nation, often around 2% of a home’s value per year. That tax is folded into your monthly payment through escrow, so a modest sticker price can still carry a meaningful payment. Always look at the full monthly number, not just principal and interest.

Second, after you close on your primary residence, file your Texas Homestead Exemption with your county appraisal district. It reduces your taxable value and can lower your annual tax bill — but it isn’t automatic, so many new owners miss it. Veterans may qualify for additional exemptions based on disability rating.

Third, keep the future in mind. Texas has unique home-equity rules under Section 50(a)(6) of its constitution, which affect how you can tap equity later through a cash-out refinance. It won’t change your purchase today, but it’s one reason it helps to work with a Texas-focused broker who plans your strategy for the long term — not just this one transaction. When the time comes, we cover it on our cash-out refinance and refinance pages.

Ready to Buy Your First Home in Texas?

Start with a free, no-pressure conversation — no upfront credit check. We’ll evaluate your goals, find the right program, and shop multiple lenders so they compete for your loan.

🎆 Veteran-Owned  |  Serving All of Texas