Buying your first home in Texas is one of the most significant financial decisions you will make. The good news is that you do not have to navigate it alone or fund it entirely on your own. The state of Texas, through both the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC), offers a range of programs specifically designed to help first-time homebuyers enter the market with less out-of-pocket expense and more favorable loan terms.
At Novus Texas, we work with DFW buyers every day to identify which programs they qualify for and how to assemble the optimal combination of loan types and assistance. Here is what every Texas first-time buyer should understand before they start their search.
What Qualifies You as a First-Time Home Buyer in Texas?
In Texas, most state-sponsored programs define a first-time home buyer as someone who has not owned a primary residence in the past three years. This means that even if you have owned a home before, you may still qualify if enough time has passed. Veterans are often exempt from this requirement entirely, making several programs accessible regardless of prior homeownership history.
Key Texas First-Time Home Buyer Programs
TDHCA My First Texas Home
The My First Texas Home program is administered by the Texas Department of Housing and Community Affairs and is one of the most widely used assistance programs in the state. It provides down payment assistance of up to 5% of the total loan amount, which can be applied toward both the down payment and closing costs. The program pairs that assistance with a 30-year fixed-rate mortgage, offering buyers stability from the very beginning.
Eligibility is limited to first-time buyers, or those who have not owned a home in the past three years, who meet income and purchase price limits that vary by county. A minimum credit score of 620 is typically required.
TDHCA My Choice Texas Home
My Choice Texas Home mirrors many of the benefits of the first-time buyer program but removes the first-time buyer restriction. Repeat buyers and veterans can access the same down payment assistance of up to 5% and a fixed-rate mortgage. This makes it a strong option for Texans who previously owned a home and are re-entering the market.
TSAHC Home Sweet Texas
The Texas State Affordable Housing Corporation’s Home Sweet Texas program is designed for low- to moderate-income buyers across the state. Down payment assistance ranges from 3% to 5% and is structured as either a grant (which does not need to be repaid) or a forgivable second lien. If structured as a second lien, repayment is only triggered if the borrower sells or refinances within three years of closing.
TSAHC Homes for Texas Heroes
This program is reserved for Texas public servants: teachers, school counselors, nurses, first responders, corrections officers, and veterans. Homes for Texas Heroes offers the same DPA structure as Home Sweet Texas, with the added benefit of targeting those who serve the community in high-need professions.
Texas Mortgage Credit Certificate (MCC)
The MCC is not a loan program; it is a federal tax credit. Eligible buyers receive a dollar-for-dollar credit on a portion of the mortgage interest they pay each year, up to $2,000 annually. The MCC can be used in conjunction with other assistance programs and reduces the buyer’s overall tax liability for the life of the loan, making it one of the most cost-effective benefits available.
Program Eligibility Requirements at a Glance
- Program DPA Amount Who Qualifies Min. Credit Score
- My First Texas Home Up to 5% First-time buyers 620
- My Choice Texas Home Up to 5% All buyers, veterans 620
- TSAHC Home Sweet Texas 3%–5% Low-mod income buyers 620
- Homes for Texas Heroes 3%–5% Educators, first responders, veterans 620
- Texas MCC Tax credit up to $2,000/yr, First-time buyers 620
How These Programs Work with Different Loan Types
- Texas first-time buyer programs are not standalone products: they layer on top of an underlying mortgage. The most common loan types used alongside these programs are:
- FHA Loans: Minimum 3.5% down payment with a credit score of 580 or above. A strong choice for buyers still building credit.
- VA Loans: Available to eligible veterans and active-duty service members. Zero down payment required, and no private mortgage insurance.
- USDA Loans: For buyers purchasing in eligible rural and suburban areas. Also offers zero down payment options.
- Conventional loans typically require a higher credit score and down payment, but avoid FHA mortgage insurance once equity thresholds are met.
In many cases, down payment assistance from TDHCA or TSAHC can be combined with an FHA or conventional loan to reduce or eliminate out-of-pocket closing costs.
Common Qualification Requirements
While specific requirements vary by program and county, buyers should generally expect to meet the following thresholds:
- Minimum credit score of 620 (some programs may allow flexibility for specific loan types)
- Income limits that vary by county, lower-cost counties typically have lower caps than DFW metros
- Purchase price limits that reflect local market conditions
- Completion of an approved homebuyer education course
- Occupancy of the purchased home as a primary residence
Why Work with a Mortgage Broker at Novus Texas for These Programs?
Not all lenders participate in TDHCA and TSAHC programs, and not all lenders are equally knowledgeable about structuring loans to maximize available assistance. At Novus Texas, we are independent mortgage brokers, which means we shop dozens of lenders on your behalf to find the most competitive rate and pair it with the right assistance program tailored to your situation.
Whether you are a teacher in Frisco, a veteran in McKinney, or a first-time buyer in Plano trying to figure out how much home you can actually afford, our team will walk you through your options clearly and completely, with no surprises at closing.
Ready to Find Out What You Qualify For?
Texas has some of the most accessible first-time homebuyer programs in the country, but navigating them requires knowing what to apply for, how to qualify, and how to structure the loan correctly from the outset.
Speak with a Novus Texas loan officer today to determine which programs are best suited to your situation. Call us at 469-737-5733, email InfoNow@NovusHomeMortgage.com, or visit novustexas.com to get started.
Novus Home Mortgage, a division of Ixonia Bank | Equal Housing Lender | NMLS #423065 | Not an offer to lend. All loans are subject to credit approval, program requirements, and guidelines.