Key takeaways
- Texas runs two state homebuyer agencies: TDHCA (My First Texas Home, My Choice Texas Home) and TSAHC (Home Sweet Texas, Homes for Texas Heroes).
- Both offer down payment and closing cost help of up to 5% of the loan, with credit scores from 620.
- A Mortgage Credit Certificate can cut your federal income tax every year you keep the loan.
- You’ll need an approved lender, a homebuyer education course, and income under your county’s limit.
Texas has some of the most generous statewide help for first-time buyers in the country. The Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC) both pair a 30-year fixed mortgage with down payment and closing cost assistance of up to 5% of the loan amount, and both accept credit scores as low as 620.
On a $290,000 loan, 5% is $14,500, enough to cover a 3.5% FHA down payment on a roughly $300,000 home with money left for closing costs. Here’s how each program works, who qualifies and how to apply.
Texas homebuyer programs at a glance
Rates and terms checked: Nov. 11, 2026. They change often, so confirm with the provider before you apply. How we review lenders
| Program | Run by | Help | Who it’s for |
|---|---|---|---|
| My First Texas Home | TDHCA | Up to 5% for down payment and closing costs | First-time buyers and qualified veterans; county income and price limits |
| My Choice Texas Home | TDHCA | Up to 5% for down payment and closing costs | First-time and repeat buyers and veterans; higher income limits |
| Home Sweet Texas | TSAHC | Up to 5% of the loan | Low- and moderate-income buyers |
| Homes for Texas Heroes | TSAHC | Up to 5% of the loan | Teachers, firefighters, EMS personnel, police and correctional officers, and veterans |
| Texas Mortgage Credit Certificate | TDHCA and TSAHC | Yearly federal tax credit on part of your mortgage interest | First-time buyers, qualified veterans and buyers in targeted areas |
TDHCA: My First Texas Home and My Choice Texas Home
TDHCA’s two programs work the same way: a 30-year, low-interest first mortgage through an approved loan officer, plus up to 5% assistance for the down payment and closing costs. The minimum credit score is 620 for both.
- My First Texas Home is for first-time buyers (generally, no home owned in the past three years) and qualified veterans. Buyers in targeted areas may be exempt from the first-time rule.
- My Choice Texas Home is open to repeat buyers too, and its income limits are higher.
Income and purchase price limits are set by county. TDHCA also lists local grant programs in eligible counties that can be added on top. Find an approved loan officer and the current limits at TDHCA’s homebuyer site.
TSAHC: Home Sweet Texas and Homes for Texas Heroes
TSAHC offers down payment and closing cost help of up to 5% of the loan amount. Home Sweet Texas is for low- and moderate-income buyers; Homes for Texas Heroes serves teachers, firefighters, EMS personnel, police and correctional officers, and veterans. Credit scores as low as 620 are accepted, and FHA loans that need manual underwriting require 640. Income limits vary by county, with higher limits in targeted areas.
Tip: TDHCA and TSAHC are separate agencies with separate lender lists. Ask each lender which program gives you the best combination of rate and assistance for your county; the program with the bigger grant isn’t always the cheaper loan over time.
The Texas Mortgage Credit Certificate
A Mortgage Credit Certificate (MCC) turns part of the mortgage interest you pay each year into a dollar-for-dollar federal tax credit, for as long as you keep the loan and live in the home. Lenders can also count the tax savings when they figure your debt-to-income ratio, which can help you qualify. TDHCA offers an MCC with its loans or on its own, and TSAHC’s MCC is combined with its down payment help and is free for Texas Heroes. Supply is limited, so ask about it early.
Who qualifies
- First-time buyer: for most programs, you haven’t owned your main home in the past three years. Veterans and buyers in targeted areas often get an exception.
- Credit score: 620 minimum for the down payment programs.
- Income and price limits: set by county and household size.
- Homebuyer education: required for TDHCA assistance; TDHCA runs a statewide education program.
- Owner-occupied: you must live in the home as your primary residence.
How to apply
- Check your budget with the home affordability calculator and your debt-to-income ratio.
- Find a TDHCA-approved loan officer or a TSAHC participating lender and ask which program fits.
- Take an approved homebuyer education course.
- Get preapproved, then shop for a home within the program’s price limit.
- Compare Loan Estimates and closing costs; estimate yours with the closing cost calculator.
Federal loan options that work with Texas programs
The state programs sit on top of standard loans: FHA (3.5% down), VA and USDA (0% down for eligible buyers) and conventional loans with as little as 3% down. Compare them in our first-time homebuyer programs guide and our FHA vs. conventional comparison, and run payments in the mortgage calculator.
First-time home buyer programs in other states
Frequently asked questions
How much down payment assistance can I get in Texas?
TDHCA and TSAHC programs offer up to 5% of the loan amount for the down payment and closing costs. On a $290,000 loan, that’s up to $14,500.
What credit score do I need for a Texas first-time buyer program?
Generally 620 for TDHCA and TSAHC down payment assistance. FHA loans that are manually underwritten through TSAHC require 640.
Do I have to be a first-time buyer?
Not always. My Choice Texas Home and TSAHC’s programs are open to repeat buyers who meet the income limits; My First Texas Home is for first-time buyers and qualified veterans.
Can I combine state help with a local program?
Often, yes. TDHCA lists additional grant programs in eligible counties, and many Texas cities run their own assistance. Your lender can tell you what can be layered.
Sources: Texas Department of Housing and Community Affairs (Texas Homebuyer Program pages and homebuyer assistance programs overview), Texas State Affordable Housing Corporation (homebuyer programs). Program terms checked Nov. 11, 2026; terms, limits and availability change, so confirm with an approved lender. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.