🏠 Texas First Time Home Buyer Programs 2025
Category: State Programs | Published: September 11, 2025 | Reading Time: 12 minutes
🎯 Quick Summary: Texas offers excellent first-time home buyer assistance through the My First Texas Home Program providing up to $15,000 in down payment assistance, competitive interest rates, and various tax benefits. This complete guide walks you through every step with a free printable checklist.
🏛️ Texas First-Time Home Buyer Programs Overview
My First Texas Home Program
Up to $15,000 assistance
The flagship program administered by Texas State Affordable Housing Corporation (TSAHC) providing down payment and closing cost assistance.
- Down payment assistance: Up to $15,000 for qualified buyers
- Interest rate: Competitive fixed rates
- Loan terms: 30-year fixed rate mortgages
- Repayment: Assistance may be forgiven over time
Texas Bootstrap Loan Program
Self-help construction
Low-interest construction loans for those willing to provide sweat equity in building their home.
- Loan amount: Up to $525,000
- Down payment: As low as 3%
- Construction: Self-help with professional supervision
- Interest rate: Below market rates
Texas Mortgage Credit Certificate
Annual tax credit
Federal tax credit program that reduces your federal income tax liability dollar-for-dollar.
- Credit amount: Up to 20% of mortgage interest paid
- Maximum credit: $2,000 per year
- Duration: Life of the loan
- Availability: Limited funding, first-come basis
✅ Step-by-Step Process for Texas First-Time Buyers
1
Determine Your Eligibility
First-Time Buyer Definition:
- Haven't owned a home in the past 3 years
- Single parent who owned with former spouse only
- Displaced homemaker
- Individual who owned non-real property only
Income Limits (2025):
- Harris County (Houston): Up to $109,800 (1-person) / $157,000 (4-person)
- Dallas County: Up to $109,800 (1-person) / $157,000 (4-person)
- Travis County (Austin): Up to $119,700 (1-person) / $171,000 (4-person)
- Bexar County (San Antonio): Up to $97,300 (1-person) / $139,000 (4-person)
2
Complete Homebuyer Education
Required for all TSAHC programs:
- Choose HUD-approved counseling agency
- Complete 8-hour homebuyer education course
- Obtain certificate of completion
- Course must be completed within 2 years of application
💡 Tip: Texas Housing Impact has free online courses available 24/7. Budget 2-3 days to complete the full course at your own pace.
3
Gather Required Documents
Income Documentation:
- Pay stubs for past 30 days
- W-2 forms for past 2 years
- Tax returns for past 2 years
- Bank statements for past 2 months
- Employment verification letter
Asset Documentation:
- Savings account statements
- Checking account statements
- Investment account statements
- Retirement account statements
- Gift letter (if applicable)
4
Find TSAHC-Approved Lender
Use TSAHC's Lender Directory:
- Visit TSAHC.org lender directory
- Search by your county or city
- Contact multiple lenders for rate quotes
- Verify lender offers your desired program
⚠️ Important: Only TSAHC-approved lenders can originate My First Texas Home loans. Working with non-approved lenders will disqualify you from the programs.
5
Apply for Pre-Approval
Submit Complete Application Package:
- TSAHC loan application
- My First Texas Home assistance application
- All required documentation
- Homebuyer education certificate
- Pre-approval fee (varies by lender)
Timeline: Pre-approval typically takes 3-5 business days
6
Shop for Homes
Property Requirements:
- Must be your primary residence
- Single-family homes, condos, townhomes eligible
- Property must meet TSAHC inspection standards
- Purchase price must not exceed county limits
2025 County Loan Limits:
- Harris County: $498,257
- Dallas County: $498,257
- Travis County: $647,200
- Bexar County: $498,257
- Other counties: $498,257
7
Submit Purchase Contract
After Offer Acceptance:
- Submit signed purchase contract to lender
- Order home inspection and appraisal
- Finalize loan application
- Provide any additional documentation requested
Timeline: Standard 30-45 day closing period
8
Complete Final Loan Processing
Underwriting Process:
- Lender submits file to TSAHC for approval
- Final income and asset verification
- Property appraisal review
- Clear any final conditions
Timeline: 7-14 days for final approval
9
Close on Your Home
Closing Day Tasks:
- Review all closing documents
- Sign loan documents and deed
- Receive keys to your new home
- Down payment assistance funds applied at closing
💡 Pro Tip: Bring a cashier's check for any down payment amount not covered by assistance programs. Personal checks are typically not accepted at closing.
📋 Printable Texas First-Time Buyer Checklist
💰 Texas Tax Benefits for First-Time Buyers
Mortgage Credit Certificate (MCC) Program
Annual Tax Credit: Receive up to 20% of your mortgage interest as a federal tax credit each year, with a maximum of $2,000 annually. For example, if you pay $12,000 in mortgage interest, you could receive a $2,000 tax credit.
Property Tax Benefits
- Homestead exemption reduces taxable value by up to $25,000
- Additional exemptions for seniors and disabled veterans
- Mortgage interest deduction on federal taxes
- No state income tax in Texas
📞 Important Texas Contacts
Texas State Affordable Housing Corporation (TSAHC)
- Phone: (512) 477-3555
- Website: TSAHC.org
- Hours: Monday-Friday, 8:00 AM - 5:00 PM CST
Texas Housing Impact
- Phone: (800) 284-0969
- Website: TexasHousingImpact.org
- Service: Free homebuyer education and counseling
❓ Frequently Asked Questions
How long does the My First Texas Home loan process take?
From application to closing typically takes 30-45 days, similar to conventional loans. Allow extra time for homebuyer education completion if not already done.
Can I use Texas programs for condominiums?
Yes, condos are eligible if they meet TSAHC requirements and are located in approved developments. Your lender can verify eligibility.
Is the down payment assistance forgivable?
Yes, the My First Texas Home assistance may be forgiven over time if you remain in the home and meet program requirements. Specific terms vary by program.
Are there credit score requirements?
Minimum credit scores vary by loan type: typically 620 for conventional loans, 580 for FHA loans. Higher scores may qualify for better rates.
🏠 Ready to Calculate Your Texas Mortgage?
Use our advanced mortgage calculator to estimate your monthly payments with current Texas interest rates and down payment assistance.
Calculate Your Payment →
Conclusion
Texas's first-time home buyer programs provide excellent assistance to help you achieve homeownership. The My First Texas Home Program can provide up to $15,000 in down payment assistance, while the state's various loan programs offer competitive rates and flexible terms.
Success with these programs requires careful preparation, especially completing homebuyer education early and working with TSAHC-approved lenders. Use the printable checklist above to stay organized throughout your home buying journey.
Remember that program requirements and benefits can change, so always verify current details with TSAHC or your approved lender before making decisions.
💡 Need help with your mortgage calculations?
Our mortgage calculator includes Texas-specific features to help you plan your home purchase with state assistance programs.
Try Our Calculator →