Texas First-Time Home Buyer Grants 2026: How to Qualify

TSAHC, TDHCA and the Southeast Texas Housing Finance Corporation (SETH) run the statewide programs. The table compares their first-time rules, assistance amounts, repayment terms and credit minimums.

Texas programs count you as a first-time buyer if you haven't owned all or part of a home you lived in (your principal residence) in the past 3 years. Many programs skip that rule. You don't need first-time status for TSAHC's standard assistance, TDHCA's My Choice Texas Home or SETH 5 Star.

TSAHC applies the 3-year rule only when you add a mortgage credit certificate (MCC), a federal tax credit on part of your mortgage interest, or use its bond-funded loan option. Both TSAHC and TDHCA's My First Texas Home waive it for qualified veterans and for homes in designated targeted areas. Targeted areas are lower-income census tracts the IRS lists. TSAHC also counts IRS-listed areas of chronic economic distress.

Income limits depend on the program, your county and, for some programs, your household size. TSAHC allows up to $165,450 in Tarrant and Johnson counties and $181,650 in Dallas and Ellis counties, with higher limits for Homes for Texas Heroes.

My First Texas Home's limits are lower. My Choice Texas Home allows up to $187,510 in Tarrant and Johnson counties and $205,870 in Dallas and Ellis counties on FHA, VA and USDA loans, which are government-backed. Most city and county programs cap income at 80% of area median income (AMI).

TDHCA programs and TSAHC government loans need a 620 credit score, while SETH 5 Star and TSAHC conventional loans need 640. TSAHC requires at least 1 borrower to finish a homebuyer education course before closing. My First Texas Home has every borrower take a course certified by the Department of Housing and Urban Development (HUD).

The state programs figure your assistance as a percentage of the total loan amount, not the purchase price. A $350,000 home with 3% down means a $339,500 loan, so 3% assistance comes to $10,185.

The money comes as a grant or as a second loan that sits behind your main mortgage. A TSAHC grant comes only with an FHA, VA or USDA loan, and you don't repay it once 6 months have passed after closing. TSAHC forgives its 3-year second loan on the third anniversary unless you sell or refinance before then.

TDHCA's forgivable second loan charges 0% interest with no monthly payments, and TDHCA forgives it after 36 months if you stay current and still live in the home. TDHCA, SETH 5 Star and TSAHC's bond option also offer a 30-year second with no monthly payments that you have to pay back.

The City of Fort Worth's Homebuyer Assistance Program provides up to $25,000 for homes inside Fort Worth city limits. You can split the money between closing costs and the down payment, or put it all toward the down payment.

You need to be a first-time buyer or not have owned a home in the last 3 years. Income must be at or below 80% of AMI, which is $88,250 for a household of 4. Fort Worth forgives the money if you keep the home as your primary residence for the required period.

Tarrant County's program, run by Housing Channel, offers up to $50,000 for homes in Tarrant County outside Fort Worth, Arlington and Grand Prairie. It uses the same 3-year and 80% AMI rules. Arlington's $20,000 program is paused, and the city has no administration partner right now.

The City of Dallas Homebuyer Assistance Program (DHAP), now run by BCL of Texas, offers up to $50,000, or $60,000 in designated High Opportunity Areas. Standard DHAP covers existing homes up to $342,000 for households at or below 80% of AMI ($96,900 for 4), and it needs a mortgage lender's approval.

A second track, DHAP 10, serves buyers who have lived in Dallas at least 10 years and buy in a designated targeted area. It allows incomes from 50% to 120% of AMI, sets no home price limit and offers up to $50,000. The money is a deferred, forgivable loan that you repay if you sell early, and funds go first come, first served.

Dallas County's Upfront Cost Assistance Program (UPCAP) offers qualified buyers up to $15,000 for down payment and closing costs. The home must be in one of its participating suburban cities or in unincorporated Dallas County. If you also want state assistance, ask whether the programs can be combined.

For prices, schools and taxes in each city, see the Mansfield buyer's guide, the Midlothian buyer's guide or the Waxahachie buyer's guide. To compare all 6 cities, read South DFW suburbs compared.

TSAHC and TDHCA assistance comes with a 30-year fixed first mortgage from a participating lender. FHA loans allow 3.5% down, with a 2026 limit of $563,500 for one-unit homes in Dallas and Tarrant counties.

VA loans need no down payment if the price doesn't exceed the appraised value, and USDA guaranteed loans cover homes in eligible rural areas. Conventional HomeReady loans start at 3% down. The 2026 conforming loan limit, the largest loan Fannie Mae and Freddie Mac buy, is $832,750.

The 2008 federal first-time buyer credit has ended, so the mortgage credit certificate is the federal credit Texas programs offer in 2026. It gives you a tax credit equal to 15% of the mortgage interest you pay, for each year you live in the home as your main residence.

Unused credit carries forward up to 3 years. TSAHC offers the certificate only with its loans and waives the $400 fee for Heroes buyers. TDHCA charges $400 with its loan or $1,000 for a stand-alone certificate.