Texas first-time homebuyer assistance Program

TDHCA My First Texas Home

For first-time homebuyers, the Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program, a 30-year mortgage with a low interest rate and up to 5 percent in interest-free down payment assistance. You can obtain an FHA, VA or USDA loan through this program.

The assistance must be repaid when you sell your home, or refinance or pay off your mortgage. These funds are then reused to help other homebuyers. You could be eligible for the program with a credit score as low as 620, but you must also meet the program’s income and purchase price requirements, which vary based on county. You must also take a homebuyer education course, available for free through Texas Homebuyer U.

This program is available to veterans as well as first-time buyers, or those who haven’t owned a home in the past three years.

TDHCA My Choice Texas Home

If you’re a first-time or repeat homebuyer, TDHCA’s My Choice Texas Home program offers a similar low-rate mortgage and up to 5 percent assistance to help cover your closing costs and down payment. This assistance is a zero-interest, no-monthly payment second mortgage.

In addition to an FHA, VA or USDA loan, you can also obtain a Fannie Mae HFA Preferred conventional loan through this program.

To qualify, your credit score can be as low as 620, but as is typical for these types of programs, you must be within income and purchase price limits.

TSAHC Home Sweet Texas Home Loan Program

The Home Sweet Texas Home Loan Program through the Texas State Affordable Housing Corporation (TSAHC) offers a 30-year fixed-rate mortgage and up to 5 percent down payment assistance, either as a grant or second mortgage. There’s no interest and no monthly payments on the second mortgage, and it’ll be forgiven after three years. (If you sell your home or refinance your mortgage before then, however, you’ll need to repay it.)

This program can be used to get a Fannie Mae HFA Preferred or Freddie Mac HFA Advantage conventional loan, an FHA loan, VA loan or USDA loan. You don’t have to be a first-time homebuyer to be eligible, but you must have at least a 620 credit score and meet income and purchase price limits based on county, size of your household and whether you’re buying in a targeted or non-targeted area.

TSAHC Homes for Texas Heroes Program

If you work in a public service profession — such as a teacher, police officer or firefighter — or are an eligible veteran, you might qualify for TSAHC’s Homes for Texas Heroes Program. This program offers a 30-year mortgage along with down payment assistance up to 5 percent. Like the Home Sweet Texas Home Loan Program, the assistance can be either a grant or second mortgage.

You don’t have to be a first-time homebuyer, but your income and the home’s price can’t exceed income and purchase price limits. You can view a list of eligible occupations here.

I hope this information helps families bridge the gap to homeownership, and would highly recommend taking advantage of these programs listed above. Be sure to hire a knowledgable real estate agent who can guide you throughout the home buying process & educate you on your options at hand!