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.
Free Texas First-Time Buyer Checklist
Download our comprehensive printable checklist to track your progress through every step of the Texas first-time home buyer process.
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 First-Time Home Buyer Checklist
Pre-Application Preparation
Verify first-time buyer eligibility (no home ownership in past 3 years)
Check income limits for your county
Complete HUD-approved homebuyer education course
Obtain homebuyer education certificate
Document Collection
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years (complete with schedules)
Bank statements for past 2 months (all accounts)
Employment verification letter
Social Security card and driver's license
Investment/retirement account statements
Gift letter and gift funds documentation (if applicable)
Lender Selection & Pre-Approval
Research TSAHC-approved lenders in your area
Contact multiple lenders for rate quotes
Submit complete loan application
Apply for My First Texas Home assistance
Receive pre-approval letter
Home Shopping & Purchase
Find qualified real estate agent
Verify properties meet TSAHC requirements
Confirm purchase price within county limits
Submit purchase offer and negotiate terms
Order home inspection
Review inspection report and negotiate repairs
Loan Processing & Closing
Submit signed purchase contract to lender
Complete loan application and provide additional docs
Review appraisal report
Clear all underwriting conditions
Schedule final walk-through
Review closing disclosure
Prepare cashier's check for closing costs
Attend closing and sign documents
Post-Closing
Set up homeowner's insurance
Transfer utilities to your name
Register for loan servicing account
Keep all loan documents for tax purposes
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.
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.