First-Time Home Buyer in Texas: The Complete 2026 Guide
Texas has more first-time buyer programs than most states. The problem is nobody explains them clearly. Here's the full breakdown of down payment assistance, grants, and programs available in 2026, plus what actually qualifies you.
Program Cheat Sheet
| Program | Max Assistance | Credit Min | Key Requirement |
|---|---|---|---|
| TDHCA My First Texas Home | 5% of loan | 640 | Income limits by county |
| TSAHC Home Sweet Texas | 5% grant | 620 | 80% AMI income limit |
| TSAHC Heroes Program | 5% grant | 620 | Teacher, police, fire, EMS, veteran |
| Tarrant County HOME | $50,000 | 620 | Outside Fort Worth/Arlington city limits |
| Fort Worth HAP | $25,000 | 620 | Within Fort Worth city limits |
| Arlington AHAP | $20,000 | 620 | Within Arlington city limits |
Who Qualifies as a First-Time Buyer?
The definition is more flexible than you think. In Texas, you qualify if:
- You have not owned a home as your primary residence in the past 3 years
- You owned a home before but have been renting for 3+ years
- You're a veteran (many programs waive the 3-year rule)
- You're buying in a targeted area (certain census tracts have expanded eligibility)
This matters. If you owned a condo in 2020 but have rented since 2022, you qualify in 2026.
State Programs: TDHCA and TSAHC
Texas has two major agencies offering first-time buyer assistance. They're different programs with different requirements.
TDHCA My First Texas Home
Up to 5% DPA- 30-year fixed-rate mortgage through participating lenders
- Down payment assistance up to 5% of loan amount
- 0% interest, deferred for 30 years or forgivable after 3 years
- Minimum credit score: 640 (FHA/VA/USDA) or 680 (conventional 95%+ LTV)
- Income limits vary by county and household size
- Must complete HUD-approved homebuyer education
- Can combine with Mortgage Credit Certificate (MCC) for tax credits
Apply through: welcomehome.tdhca.texas.gov
TSAHC Home Sweet Texas
Up to 5% Grant- Down payment and closing cost assistance as a non-repayable grant
- 30-year fixed-rate mortgage
- Minimum credit score: 620
- Income must be at or below 80% of Area Median Family Income
- Must complete homebuyer education
- Can combine with MCC for additional tax savings
Apply through: tsahc.org
TSAHC Homes for Texas Heroes
Up to 5% Grant- Same benefits as Home Sweet Texas
- Available to: teachers, police officers, firefighters, EMS, corrections officers, veterans
- Slightly higher income limits in some cases
- Veterans may qualify regardless of prior homeownership
Local DFW Programs
County and city programs can add to state assistance. Your location determines which programs you can access.
Tarrant County Homebuyer Assistance
Up to $50,000- Zero-interest deferred loan, forgivable after 10-20 years
- Home must be outside Fort Worth, Arlington, and Grand Prairie city limits
- Household income at or below 80% AMI
- Liquid assets under $25,000
- Must invest at least $1,500 of your own funds
- Two months mortgage payments in reserve required
- Must complete HUD-certified homebuyer workshop through Housing Channel
This works for: Mansfield, parts of Arlington ETJ, unincorporated Tarrant County
Fort Worth Homebuyer Assistance Program (HAP)
Up to $25,000- For first-time buyers within Fort Worth city limits
- Income limits based on HUD guidelines by household size
- Must occupy as primary residence
Arlington Homebuyer Assistance Program (AHAP)
Up to $20,000- For qualified first-time buyers in Arlington city limits
- Household income cannot exceed 80% AMI (family of 4: ~$82K–$94K depending on county; check HUD limits)
Loan Types Compared
| Loan Type | Down Payment | Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580+ | Lower credit scores, smaller down payment |
| Conventional | 3-5% | 680+ | Higher credit scores, avoid PMI faster |
| VA | 0% | 620+ | Veterans, active military, eligible spouses |
| USDA | 0% | 640+ | Rural areas, income limits apply |
2026 Loan Limits (DFW Area)
- FHA limit: $541,287 - $563,500 (varies by county)
- Conforming limit: $832,750
- VA limit: No limit for eligible borrowers with full entitlement
Down Payment Math: Real Examples
Here's what first-time buyer programs look like in practice for South DFW home prices.
Example: $400,000 Home with TDHCA
Purchase Price
$400,000
FHA Down Payment (3.5%)
$14,000
TDHCA Assistance (5%)
-$20,000
Closing Costs (estimate 3%)
$12,000
Cash Needed at Closing
$6,000
Example: $475,000 Home with Tarrant County + TSAHC
Purchase Price
$475,000
Conventional Down Payment (5%)
$23,750
TSAHC Grant (5%)
-$23,750
Closing Costs (estimate 3%)
$14,250
Cash Needed at Closing
$14,250
Note: Closing costs vary. Some programs allow assistance to cover closing costs too. A lender credit or seller concessions can further reduce cash needed.
Bonus: Mortgage Credit Certificate (MCC)
The MCC is a tax credit, not a loan or grant. It reduces your federal income tax each year you own the home.
- Credit equals 40% of annual mortgage interest paid, up to $2,000/year
- Can carry unused credits forward for 3 years
- Must be a first-time buyer (3-year rule)
- Can combine with TDHCA or TSAHC down payment assistance
- One-time fee at closing (varies by lender)
Example: On a $400,000 loan at 7%, you pay ~$28,000 in interest year one. 40% = $11,200, capped at $2,000 tax credit. That's $2,000 back on your taxes every year.
These Programs Are NOT For...
- Buyers who owned a home in the past 3 years. Most programs require you to be a true first-time buyer (exception: veterans and targeted areas).
- Those with credit scores below 580. Even FHA requires 580 minimum. Most DPA programs require 620-640.
- Self-employed less than 2 years. You can still buy, but documentation requirements are stricter. Plan for delays.
- Buyers wanting to close in under 30 days. DPA programs add processing time. 45-60 days is more realistic.
- Household income above 80% AMI. Most assistance programs have income limits around $82,000–$94,000 for a family of 4 (varies by county; check current HUD limits).
- Investors or non-primary residence. All programs require owner-occupancy.
Frequently Asked Questions
What counts as a first-time home buyer in Texas?
In Texas, you qualify as a first-time home buyer if you have not owned a home as your primary residence in the past 3 years. This means you could have owned a home before and still qualify if you've been renting for 3+ years. Veterans qualify regardless of prior ownership for many programs. This definition does NOT apply if you owned a home within the past 3 years, even if it was in another state.
How much down payment assistance can I get in Texas?
The consensus among Texas lenders: 3-5% of loan amount from state programs, plus local grants. TDHCA and TSAHC offer up to 5%. Local programs add more: Tarrant County up to $50,000, Fort Worth up to $25,000, Arlington up to $20,000. These programs are NOT available to buyers with household incomes above 80% AMI (roughly $82K-$94K for a family of 4, varies by county).
What credit score do I need for first-time buyer programs in Texas?
Most Texas first-time buyer programs require a minimum 620-640 credit score. FHA loans can go as low as 580. TDHCA My First Texas Home requires 640 for FHA/VA/USDA loans. TSAHC requires 620. Conventional loans typically require 680+. Programs are NOT available if your credit score is below 580, even with a large down payment.
Can I combine multiple down payment assistance programs?
Yes, in some cases. You can combine TDHCA or TSAHC with the Mortgage Credit Certificate (MCC) for tax credits. You typically cannot stack multiple down payment grants. Local programs like Tarrant County and Fort Worth usually cannot be combined with state DPA. Your lender will determine which combinations work for your situation.
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