If you’re thinking about buying a home again or for the first time and planning to restart your search after the first of the year, you’re asking the right questions at the right time.
One of the biggest hurdles for buyers is coming up with the down payment and closing costs. The good news is that Texas offers more first time homebuyer and down payment assistance programs than most people realize, including some programs created specifically for buyers impacted by major disasters.
This guide walks through statewide programs, local options, and lesser known assistance opportunities that may apply to you.
What Qualifies as a First Time Homebuyer in Texas?
In Texas, a first time homebuyer is typically defined as someone who has not owned a home in the last 3 years, not necessarily someone who has never owned a home.
You may still qualify if you:
• Owned a home several years ago
• Are divorced and no longer on a mortgage
• Are buying in a targeted area
• Qualify under profession based programs
Each program has its own eligibility rules, so qualification depends on income, location, and purchase price.
Major Statewide Texas Programs
Texas State Affordable Housing Corporation Programs
The Texas State Affordable Housing Corporation offers some of the most widely used down payment assistance programs in the state.
Key benefits often include:
• Down payment assistance up to 5 percent of the loan amount
• 30 year fixed rate mortgages
• Funds that can be used toward down payment and closing costs
Popular options include:
• Home Sweet Texas Home
• Homes for Texas Heroes for teachers, healthcare workers, veterans, firefighters, law enforcement, and military members
My First Texas Home Program
The My First Texas Home Program, administered by the Texas Department of Housing and Community Affairs, offers:
• Competitive mortgage rates
• Up to 5 percent down payment assistance
• Assistance structured as a second lien
Local City and County Assistance Programs
Many cities and counties across Texas offer their own programs, sometimes with higher assistance limits.
Examples include:
• Houston homebuyer programs offering up to $60,000
• Dallas and Fort Worth forgivable loan options
• San Antonio and Bexar County deferred payment assistance
Availability depends on funding cycles and location.
Special Assistance for Buyers Impacted by Hurricane Harvey
In addition to traditional first time homebuyer programs, Texas also offers assistance specifically for households impacted by Hurricane Harvey through disaster recovery funding.
The Hurricane Harvey Homebuyer Assistance Program, administered by the Texas Department of Housing and Community Affairs, was created to help eligible buyers who were affected by the storm purchase safe, resilient housing.
This program is often overlooked, and eligibility is not limited to having lost a home. Income limits, county eligibility, and documentation requirements apply.
I previously published a detailed breakdown of this program, including who qualifies and how assistance works. If Hurricane Harvey impacted you in any way, that guide is worth reviewing before assuming you do not qualify.
To learn more go here:
Other Programs Buyers Commonly Overlook
Mortgage Credit Certificate Programs
These provide a federal tax credit for a portion of mortgage interest paid each year, improving affordability over time.
Lender Sponsored Assistance
Many lenders offer grants, forgivable second liens, and temporary interest rate buy downs that can be layered with state or local programs.
Federal Loan Programs
FHA, VA, and USDA loans are frequently paired with Texas assistance programs to reduce upfront costs.
Final Thoughts
Whether you’re buying again or purchasing your first home, Texas offers a wide range of down payment and homebuyer assistance options, including programs tied to disaster recovery.
The key is understanding which programs apply to your situation and how to combine them correctly.
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