First-Time Home Buyer Programs in Texas | 2025 Guide

Buying your first home in Texas is a huge milestone—and often a daunting one. With rising home prices and upfront costs like down payments and closing fees, many first-time home buyers wonder how they will afford it all.

The good news? There are several first-time home buyer programs in Texas—as well as national options—that are designed to make homeownership more accessible. These programs offer everything from down payment assistance and low-interest home loans to flexible credit requirements.

Whether you are searching for first-time home buyer loans in Texas or exploring ways to save on your first home, this guide breaks down your best options and how to qualify.

What Are First-Time Home Buyer Programs?

First-time home buyer programs are designed to help new buyers overcome some of the most common financial hurdles to owning a home. These programs often provide:

• Down payment assistance

• Reduced interest rates

• Grants or forgivable loans

• Help with closing costs

• Low or no mortgage insurance options

You will find these programs offered through:

• Federal government programs

• Texas state housing agencies

• Local governments

• Nonprofit organizations

 Who Qualifies as a First-Time Home Buyer in Texas?

To qualify as a first-time home buyer in Texas, you must meet certain criteria:

• First-time home buyer programs may have income guidelines. These guidelines vary by location and program, but they typically consider factors like household income, family size, and the area's median income.

• You have not owned a residential property in the past three years.

• You plan to live in the home as your primary residence.

• In some cases, you may also qualify if you are:

  • A single parent with at least one child (and no prior sole ownership in a residence)

  • A displaced homemaker who has not had consistent employment or property ownership due to divorce or separation

These guidelines follow many of the eligibility standards set by national and state housing programs, including those backed by Fannie Mae, Freddie Mac, and the Texas Department of Housing and Community Affairs (TDHCA).

Popular First-Time Home Buyer Programs in Texas

Looking to purchase your first home in Texas? Here are some of the top programs worth exploring:

1. Titanium Mortgage HomePath Buyer Ready Program

The Titanium Mortgage HomePath Buyer Ready Program offers eligible first-time homebuyers in Texas up to 3% of the purchase price in closing cost assistance. This program also provides full loan approval before house hunting, helping buyers stand out in competitive markets. With an approval in hand, buyers can present stronger offers and potentially close on their new home in 10 days or less, giving sellers confidence in a smooth, fast transaction.

2. My First Texas Home Program (TDHCA)

Offers down payment and closing cost assistance with competitive 30-year fixed-rate mortgages. Perfect for low- and moderate-income buyers.

3. Texas Mortgage Credit Certificate (MCC)

Provides a dollar-for-dollar tax credit of up to $2,000 annually, reducing the overall cost of homeownership.

4. FHA Loans in Texas

Ideal for first-time buyers with lower credit scores or limited savings. Requires just 3.5% down.

 5. VA Loans for Texas Veterans

Available for eligible veterans and active-duty service members—no down payment or private mortgage insurance required.

6. USDA Loans in Rural Texas

Zero-down home loans for properties located in USDA-eligible rural areas.

Why Texas Is a Great Place for First-Time Buyers

Texas remains one of the best states for new homeowners, thanks to:

• No State income tax

• A variety of affordable housing markets

• Strong job growth in cities like Austin, Dallas, San Antonio, and Houston

• Numerous local grants and incentives for first-time buyers

  
  

Final Thoughts: Start Your Homeownership Journey in Texas

If you are ready to buy your first home in Texas but are concerned about costs, do not let that stop you. With the help of these Texas first-time home buyer programs, you can get the support you need to make homeownership a reality.

From low-interest home loans to generous down payment assistance, there is a program that fits your financial situation and goals.

Ready to Find Out What You Qualify For?

Let's connect! Call Sheldan Perry now to explore the best first-time home loan options in Texas and get expert guidance through every step of your home buying journey. 713-524-4242