First-Time Homebuyer Programs in Texas: Down Payment Help & Grants (2026)
Help Is Available for First-Time Buyers in Texas
Buying your first home in Texas doesn't have to mean draining your savings. There are several state, local, and federal programs that offer down payment assistance, grants, and low-interest loans specifically for first-time homebuyers in Texas.
1. My First Texas Home (TDHCA)
The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program:
30-year fixed-rate mortgage at competitive interest rates
Down payment and closing cost assistance up to 5% of the loan amount
Available for FHA, VA, and USDA loans
Eligibility: First-time buyers (or those who haven't owned in 3 years), income limits apply by county, credit score of 620+ typically required.
2. Texas Mortgage Credit Certificate (MCC)
The MCC program allows first-time buyers to claim a federal income tax credit of up to 20% of annual mortgage interest paid — a dollar-for-dollar reduction in federal taxes (not just a deduction). Can be combined with My First Texas Home for maximum benefit.
3. My Choice Texas Home (Repeat Buyers)
If you've owned a home before, the My Choice Texas Home program offers similar down payment assistance (up to 5%) without the first-time buyer requirement.
4. TSAHC Home Sweet Texas
The Texas State Affordable Housing Corporation (TSAHC) offers:
Down payment assistance as a grant (never repaid) of 3%–5%
Available for first-time and repeat buyers in targeted areas
Works with FHA, VA, USDA, and conventional loans
5. Local City and County Programs
Austin: Down Payment Assistance Program (DAP) with forgivable loans
Dallas: Dallas Homebuyer Assistance Program (DHAP)
Houston: Harvey Homebuyer Assistance Program and city DPA programs
San Antonio: Homeownership Incentive Program (HIP)
6. FHA, VA, and USDA Loans
FHA loans: As low as 3.5% down for buyers with 580+ credit score
VA loans: 0% down for eligible veterans and active-duty military
USDA loans: 0% down for homes in eligible rural/suburban areas of Texas
How These Programs Work with a Flat Fee Agent
At KAT Realty, our flat $4,999 fee is designed to work within the rules of most assistance programs. In many cases, the buyer commission offered by the seller pays our fee, and you still receive a rebate. Even when program rules limit rebates, our flat fee often saves buyers thousands compared to traditional agents. Talk to us about your situation — we'll help you figure out what programs you qualify for.
