Buying your first home in Texas in 2026? You’re in luck. The Lone Star State offers some of the most generous first-time homebuyer assistance programs in the country. From down payment help that can reach five figures to federal tax credits worth up to $2,000 every year, there’s support available whether you’re buying in Houston, Dallas, Austin, San Antonio, Fort Worth, or anywhere in between.

In this guide, I’ll walk you through every major program available to Texas first-time homebuyers in 2026 — including income limits, eligibility requirements, and how to apply. As a Texas mortgage broker who works with lenders participating in TDHCA and TSAHC programs, I’ll also share which programs tend to work best for different situations. For the full homebuying roadmap, start with our Texas First-Time Homebuyer cornerstone guide.

Texas State Housing Programs (TDHCA)

The Texas Department of Housing and Community Affairs (TDHCA) is the primary source for statewide homebuyer programs. These are available regardless of which Texas city or county you’re buying in, and they pair with the loan types we broker every day — FHA, VA, USDA, and Conventional.

Down Payment Assistance Options in Texas (2026)

The down payment is the biggest hurdle for most first-time buyers. The good news: Texas has multiple layers of help — statewide, county, and city programs that can cover some or all of your down payment and closing costs.

City & County Programs (2026 Amounts)

Texas’s major metros run their own assistance programs on top of the state offerings. Most are structured as 0% interest, forgivable second loans for buyers at or below area income limits:

• City of Houston Homebuyer Assistance Program: Up to $50,000 as a no-interest, forgivable loan — fully forgiven after five years in the home
• Harris County Down Payment Assistance: Up to $23,800 for homes in Harris County outside Houston city limits
• Dallas Homebuyer Assistance Program: Up to $60,000 as a 0% interest, forgivable second loan within Dallas city limits
• San Antonio Homeownership Incentive Program (HIP): Up to $15,000 in no-payment second loans — pairs well with an FHA loan in San Antonio’s affordable market
• Austin Down Payment Assistance: Up to $40,000 for eligible buyers within Austin’s full-purpose city limits
• Fort Worth Homebuyer Assistance: Up to $20,000 — often combined with an FHA or conventional loan

Forgivable Second Liens & Statewide Grants

• SETH 5 Star Program: Up to 5% assistance through the Southeast Texas Housing Finance Corporation, forgiven after three years
• TSAHC Home Sweet Texas: Up to 5% assistance for lower-to-moderate income buyers statewide — no first-time requirement
• TSAHC Homes for Texas Heroes: Up to 5% assistance for teachers, first responders, veterans, corrections officers, and healthcare workers
• TDHCA HOME Program: Income-based assistance, often forgivable after 5–10 years

Program	Assistance	Repayment	Best For
My First Texas Home	Up to 5%	Deferred, 0% interest	First-time buyers & veterans
My Choice Texas Home	Up to 5%	Deferred, 0% interest	Repeat buyers
MCC Tax Credit	Up to $2,000/year	None (tax credit)	Long-term owners
SETH 5 Star	Up to 5%	Forgiven in 3 years	Staying 3+ years
Homes for Texas Heroes	Up to 5%	Grant or forgivable	Teachers, nurses, police, vets
City & County Programs	$15K–$60K	Usually forgivable	Income-qualified metro buyers

Income Limits & Eligibility Requirements (2026)

Most Texas homebuyer programs use income limits that vary by county and household size. Here’s the general framework:

2026 TDHCA Income Limits

These are approximate 2026 baselines — limits are set by county and updated by TDHCA, so always verify your exact county before applying:

Area	1–2 Person Household	3+ Person Household
Most Texas counties (incl. Houston & San Antonio metros)	~$97,000	~$111,550
High-cost metros (Austin, Dallas–Fort Worth)	Higher — often $110,000+	Higher — often $125,000+
State-designated targeted areas	Higher limits + first-time buyer requirement waived

Purchase price limits also apply and vary by county — in most counties they run well above $340,000, with higher caps in metro and targeted areas. Current county-by-county limits are published on the TDHCA programs page. City programs typically use a lower bar — usually 80% of area median income — so a household can exceed a city limit and still qualify for state help.

Special Programs for Texas Heroes

If you’re a teacher, first responder, veteran, or healthcare worker, the Texas State Affordable Housing Corporation (TSAHC) offers enhanced benefits built specifically for you:

Veterans have even more options. A Texas VA loan offers $0 down and no monthly mortgage insurance, and it can be combined with state assistance programs. If you’re stationed at Fort Hood, our Killeen VA loan guide covers the local market, and Houston-area veterans can start with our Houston VA loan guide.

How to Apply: Step-by-Step Process

1. Check Your Credit: Most programs require a minimum 620–660 score. If you’re below that, we can help you build a plan to improve it — with no upfront credit check to start the conversation.
2. Calculate Your Income: Add up your household’s gross annual income to see which programs fit.
3. Complete Homebuyer Education: Most programs require a HUD-approved course. Online options run around $75–$100 and take 6–8 hours; certificates are typically valid for one year.
4. Work With a Broker Who Knows the Programs: Not every lender participates in TDHCA or TSAHC programs. As a Texas mortgage broker, I shop multiple participating lenders — they compete for your business, and we match the program to the lender that prices it best.
5. Get Pre-Approved: We’ll review your finances and lock in which programs and loan types fit your situation.
6. Find Your Home: Work with your real estate agent to stay within the program’s purchase price limits — going over the cap can cost you your assistance reservation.
7. Close on Your New Home: Assistance funds are applied at closing toward your down payment and closing costs.

Use our mortgage calculator to estimate monthly payments with different down payment scenarios, or the FHA loan calculator if you’re leaning FHA. For the complete process from pre-approval to closing day, read our Texas First-Time Homebuyer Guide.

Common Questions From Texas First-Time Buyers

Can I use these programs with any type of loan?

Most Texas programs work with FHA, VA, USDA, and Conventional loans. Some are restricted to certain loan types, so we match you with the best combination.

I’ve owned a home before. Am I out of luck?

No. My Choice Texas Home and TSAHC’s Home Sweet Texas have no first-time buyer requirement, and veterans are exempt from the first-time rule in most programs. If it’s been three or more years since you owned, you count as a first-time buyer again anyway.

Do I have to be a Texas resident?

You don’t need to currently live in Texas, but the purchased home must become your primary residence.

Can I buy a condo or townhome?

Yes. Single-family homes, townhomes, and approved condos are all eligible. Manufactured homes on permanent foundations may also qualify.

What if I make too much for state programs?

You may still qualify for a conventional loan with as little as 3% down, or an FHA loan at 3.5% down. For 2026, the standard conforming loan limit is $832,750 and the FHA floor is $541,287 — plenty of room for most Texas price points.

How long does the process take?

From application to closing, expect 30–45 days. Program-specific paperwork can add a few days, so starting early is always smart.

The Bottom Line

Buying your first home in Texas doesn’t have to mean draining your savings. Between state programs, city assistance, and the MCC federal tax credit, there’s likely a combination that gets you into a home sooner than you think — and every buyer’s best combination is different depending on income, credit, career, and where you’re buying.

As a Texas mortgage broker, I’m not locked into one bank’s products. I shop multiple lenders who compete for your business, then layer in the assistance programs you qualify for — saving you money both at closing and over the life of your loan. Start with our Texas First-Time Homebuyer hub to see everything in one place.