First-Time Home Buyer Loans in Texas
We’re an independent, veteran-owned Texas mortgage broker. We shop multiple lenders so they compete for your loan, we explain every option in plain English, and there’s no upfront credit check to start the conversation. No pressure — just answers.
Last updated: July 27, 2026 — reviewed by Adam Bartling, NMLS #2213358
What loan programs help first-time home buyers in Texas?
First-time home buyer loans in Texas help anyone who hasn’t owned a primary residence in the last three years buy with a low down payment. The main options are VA loans (0% down for eligible veterans), FHA loans (3.5% down), and conventional loans (as low as 3% down) — often paired with Texas down payment assistance from TSAHC or TDHCA that can cover up to 5% of your loan amount.
Key Takeaways
- You may qualify as a “first-time buyer” if you haven’t owned a home in the last 3 years.
- Down payments range from 0% (VA) to 3% (conventional) to 3.5% (FHA) — not 20%.
- Texas DPA programs (TSAHC, TDHCA) can cover up to 5% of your loan for down payment and closing costs. Program terms change — we’ll confirm current limits for your county.
- 2026 loan limits: FHA up to $541,287 in most Texas counties; conventional up to $832,750.
- As a broker, we shop multiple lenders so they compete — you’re not stuck with one bank’s rate.
- Texas has no state income tax, but property taxes are high — always budget the full monthly payment.
Who Qualifies as a First-Time Home Buyer in Texas?
Under the rules most Texas programs follow, a first-time home buyer is anyone who has not owned a primary residence in the past three years — even if you owned a home before. If you sold years ago, rented, or are coming out of a divorce, you may have first-time buyer status again.
That definition 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 — including TDHCA’s My Choice Texas Home — welcome repeat buyers, so it’s always worth asking before you assume you’re excluded.
Most first-time buyers share the same three questions: How much do I need saved? What will my monthly payment be? What could go wrong? This page answers all three. When you want numbers for your exact situation, our free interactive First-Time Home Buyer’s Guide has a budget worksheet, checklists, and a built-in calculator.
What Loan Programs Are Best for First-Time Buyers in Texas?
There’s no single “best” first-time buyer loan in Texas — the right fit depends on your military service, credit, savings, and goals. VA loans offer 0% down for eligible veterans, FHA allows 3.5% down with flexible credit, and conventional loans start at 3% down with removable mortgage insurance.
| Program | Min. Down | Credit (typical) | Mortgage Insurance | Best For |
|---|---|---|---|---|
| VA Loan | 0% | 620+ | None | Eligible veterans & active-duty |
| FHA Loan | 3.5% | 580+ | Yes (MIP) | Lower credit or limited savings |
| Conventional | 3% | 620+ | PMI (removable at 20% equity) | Stronger credit; drop PMI later |
| DPA (paired) | Reduced | 620+ | Depends on first loan | Buyers short on down payment/closing costs |
A quick note on mortgage insurance: FHA loans carry MIP — an upfront fee plus a monthly amount that, with minimum down, lasts for the life of the loan unless you refinance later. Conventional PMI can be removed once you reach roughly 20% equity. That difference often tips the decision for buyers with scores in the mid-600s and up.
Credit minimums and down payments are typical guidelines and vary by lender and program. We don’t quote rates on this page because an honest quote requires your actual scenario.
How Much Down Payment Do First-Time Buyers Need in Texas?
Most Texas first-time buyers need far less than the 20% they assume: 0% down with a VA loan, 3% down on first-time-buyer conventional programs like HomeReady and Home Possible, or 3.5% down with FHA. Down payment assistance can then cover part or all of that amount.
On a $300,000 Texas home, that’s the difference between $0 (VA), about $9,000 (conventional 3%), and roughly $10,500 (FHA 3.5%) — not the $60,000 many renters believe they need. The “20% down” rule is a myth for most first-time buyers; 20% only matters if you want to avoid mortgage insurance entirely.
Beyond the down payment, plan for closing costs of roughly 2% to 5% of the price and an earnest money deposit (usually 1% to 3%) that applies toward your costs at closing. Sellers can often contribute toward closing costs, and gift funds from family are allowed on every major program. Run real numbers through our Texas Mortgage Calculator.
See What You Can Afford — With No Upfront Credit Check
Veteran-Owned | Serving All 254 Texas Counties. 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.
LET’S TALKWhat Down Payment Assistance Is Available in Texas?
Texas has two major statewide down payment assistance sources: TSAHC (Home Sweet Texas and Homes for Texas Heroes) and TDHCA (My First Texas Home and My Choice Texas Home). Both pair a VA, FHA, USDA, or conventional first mortgage with help covering your down payment and closing costs — as a grant or a second-lien loan.
TSAHC — Texas State Affordable Housing Corporation
TSAHC’s Home Sweet Texas program serves low-to-moderate-income buyers statewide; Homes for Texas Heroes serves teachers, police officers, firefighters, EMS personnel, corrections officers, and veterans. Assistance runs up to 5% of your loan amount, as either an outright grant or a three-year deferred forgivable second lien. Typical minimum scores are 620 (FHA/VA/USDA) or 640 (conventional), and — a detail many buyers miss — TSAHC’s down payment assistance is not limited to first-time buyers. First-time buyers who take TSAHC assistance may also add a Mortgage Credit Certificate (MCC) for an annual federal tax credit.
TDHCA — My First Texas Home & My Choice Texas Home
The state housing agency’s My First Texas Home combines a low-rate first mortgage with down payment and closing-cost assistance for first-time buyers (and qualifying veterans). My Choice Texas Home offers similar help without the first-time requirement. TDHCA also still offers the Texas Mortgage Credit Certificate, a dollar-for-dollar federal tax credit on part of your mortgage interest. One requirement to plan for: TDHCA borrowers must complete an approved homebuyer education course before closing — we’ll point you to it early so it never delays your file.
Eligibility for both hinges on income limits and purchase-price limits that vary by county and household size, plus credit and property location. Program terms change regularly — TSAHC updated its limits as recently as June 2026 — so treat every dollar figure you read online as a starting point and confirm current limits before you set your heart on a program. Not every lender offers every program; part of our job as a broker is matching you to the assistance you actually qualify for — and telling you honestly when a program isn’t worth its trade-offs.
What Credit Score Do You Need to Buy a House in Texas?
Many Texas first-time buyers are approved with credit scores in the low-to-mid 600s. FHA financing can reach into the upper 500s with compensating factors, while conventional loans typically want 620 or higher. You do not need perfect credit to buy a home.
Your score directly affects your interest rate, and your rate drives your monthly payment for years. That’s exactly why we start with an education-first review and no upfront credit check — nothing hits your credit report just to have a conversation. If a few targeted moves would meaningfully improve your rate, we’ll tell you before you apply, not after.
We also help self-employed buyers document earnings the right way. If tax returns don’t tell your full story, ask about a bank statement loan.
How Much Can First-Time Buyers Borrow in Texas in 2026?
For 2026, conventional conforming loans allow up to $832,750 in every Texas county, and FHA loans allow up to $541,287 in most of the state. VA loans have no set loan limit for eligible veterans with full entitlement.
Those ceilings are far above the typical first-time purchase, so the practical question isn’t “what’s the limit?” — it’s “what payment fits my budget?” Texas property taxes and insurance make two identical loan amounts feel very different in different counties, which is why we quote full monthly payments, never just principal and interest. Loan limits reset each January; figures per HUD and FHFA for 2026.
How Does Buying Your First Home in Texas Work?
Buying your first Texas home takes six steps: pre-approval, choosing a loan program, shopping with a Realtor, going under contract, inspection and underwriting, and closing. From accepted offer to keys typically takes 30 to 45 days; the full journey usually runs 60 to 90 days.
- Get Pre-Approved Know your real budget. No upfront credit check to start the conversation.
- Choose Your Program Compare VA, FHA, conventional, and DPA options against your credit, savings, and goals.
- Shop With a Realtor Your pre-approval strengthens your offer in a competitive market.
- Go Under Contract Submit your offer and earnest money (usually 1–3%), then open your option and inspection period.
- Inspect & Underwrite Inspection, appraisal, and underwriting verify the home and your finances. Your dedicated processor keeps everything moving.
- Close & Get Your Keys Sign at the title company, funds are distributed, and the home is yours.
You’ll have the same dedicated processor from application to closing — one person who knows your file, not a call center. Get the full step-by-step guide with checklists & worksheets.
What Should First-Time Buyers Know About Buying in Texas Specifically?
Texas has no state income tax but some of the nation’s highest property taxes — roughly 1.6% to 2% of a home’s value per year depending on county. Taxes are escrowed into your monthly payment, so always judge affordability by the full monthly number, not the sticker price.
Second, after you close on your primary residence, file your Texas Homestead Exemption with your county appraisal district. It reduces your taxable value and caps how fast your assessed value can rise — but it isn’t automatic, and many new owners miss it. Veterans may qualify for additional exemptions based on disability rating.
Third, think past the purchase. Texas has unique home-equity rules under Section 50(a)(6) of its constitution that affect how you can tap equity later through a cash-out refinance. It’s one reason a Texas-focused broker who plans long-term matters — we’re your lender for life, including an annual real estate review, not a one-transaction shop. When the time comes, our refinance pages cover it.
First-Time Home Buyer Help by Texas City
Every Texas market is different — prices, local programs, property tax rates. Choose your city: Austin, Dallas, Fort Worth, Frisco, Houston, Killeen, or San Antonio. We serve all 254 Texas counties, so if your city isn’t listed, call us anyway.
First-Time Home Buyer FAQ
Do first-time buyers in Texas really not need 20% down?
Correct — 20% down is optional, not required. VA loans allow 0% down, conventional first-time-buyer programs start at 3%, and FHA requires 3.5%. Putting less down means paying mortgage insurance, but down payment assistance can cover part or all of the upfront amount for buyers who qualify.
What income limits apply to Texas down payment assistance?
TSAHC and TDHCA both set income and purchase-price limits that vary by county and household size, and they’re updated regularly — TSAHC revised its limits in June 2026. Rather than trusting a dollar figure online, have a lender check your county’s current limits; many middle-income Texas families are surprised to find they qualify.
Can family gift money count toward my down payment?
Yes. VA, FHA, and conventional loans all allow gift funds from family members for your down payment and closing costs, with a simple gift letter documenting that repayment isn’t expected. Gifts can also stack with down payment assistance, which is how many Texas first-time buyers close with almost nothing from savings.
Is mortgage insurance permanent on a first-time buyer loan?
It depends on the loan. Conventional PMI can be removed once you reach about 20% equity. FHA’s MIP, with minimum down payment, lasts for the life of the loan — but you can refinance out of it later once you have equity. VA loans never charge monthly mortgage insurance.
How long does it take to buy a first home in Texas?
From accepted offer to closing is typically 30 to 45 days, and the full journey from first conversation to keys usually runs 60 to 90 days. Getting pre-approved before you shop is the single biggest time-saver — and with us it starts with no upfront credit check.
Why use a mortgage broker instead of a bank for my first home?
A bank can only offer its own products and rates. As an independent broker, we shop multiple lenders so they compete for your loan — often meaning better pricing and more program options, including down payment assistance many banks don’t offer. We work for you, not for a bank.
Can I buy my first home while stationed at Fort Hood or another Texas base?
Yes. Active-duty service members and veterans can use a VA loan with 0% down and no monthly mortgage insurance, and Homes for Texas Heroes adds assistance for veterans. As a veteran-owned brokerage, we understand PCS timelines, BAH budgeting, and buying on military schedules.
About Adam Bartling & Team
Loan Officer · NMLS# 2213358 · Retired U.S. Army Captain
Adam Bartling is a retired U.S. Army Captain — 22 years in the U.S. Army — and licensed Texas mortgage loan officer (NMLS #2213358), and Bartling Lending is a veteran-owned mortgage business sponsored by Texas Lending Pro (NMLS #2322982). Adam takes an education-first approach with every first-time buyer — evaluating structure and strategy, not just quoting a rate. He’s an independent mortgage broker who shops multiple lenders so they compete for your business, with a dedicated processor on every file and an annual real estate review for life — your lender for life. Office: 28111 S Firethorne Rd #703, Katy, TX 77494 · 713-301-0007 (calls answered until 8pm) · Serving all 254 Texas counties.
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. Call 713-301-0007 (we answer until 8pm) or tap LET’S TALK.