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First-Time Homebuyer Programs in Texas: Your 2026 Guide 

Buying your first home in Texas is more achievable than most people think. Between statewide assistance programs, veteran-specific loans, and city-level grants, qualifying buyers can access tens of thousands of dollars in support before they even step foot in a home. 

This guide breaks down the major programs available to Texas for first-time homebuyers in 2026, including options specifically for veterans, so you know exactly where to start. 

What Counts as a “First-Time Homebuyer” in Texas? 

You do not have to be a literal first-time buyer to qualify for most of these programs. In Texas, you are generally considered a first-time homebuyer if you have not owned a primary residence in the past three years. That means if you sold a home years ago and have been renting since, you likely still qualify. 

Veterans are often exempt from the first-time buyer requirement entirely across multiple programs. 

Statewide Programs 

My First Texas Home (TDHCA) 

Run by the Texas Department of Housing and Community Affairs, this is the largest state-level program for first-time buyers. It pairs a 30-year fixed-rate mortgage with up to 5% in down payment and closing cost assistance. The loan supports FHA, VA, USDA, and conventional financing options. 

To qualify: 

  • Must be a first-time buyer (or veteran) 
  • Meet county-specific income limits: Income limits vary by county and household size across the DFW region (Collin, Dallas, Denton, Tarrant, Rockwall, and others each have their own figures). Check the current limit for your county on TDHCA’s Income and Purchase Price Limits table. 
  • Purchase price limits also vary by county: see the same TDHCA limits table for current figures in your area. 
  • Credit score of 620 or higher 
  • Complete a HUD-approved homebuyer education course 

Funds are allocated on a first-come, first-served basis, so applying earlier in the calendar year gives you a better shot at the full 5% assistance. 

My Choice Texas Home (TDHCA) 

This program mirrors My First Texas Home but is open to repeat buyers as well. It offers the same 30-year fixed mortgage and up to 5% in down payment assistance, with higher income limits than the first-time buyer version. A solid option if you have owned a home before but are still looking for financial support. 

Home Sweet Texas Home Loan Program (TSAHC) 

Offered through the Texas State Affordable Housing Corporation, this program provides a 30-year fixed-rate mortgage at below-market interest rates for low- and middle-income buyers. It also comes with down payment assistance in the form of a grant or a deferred second lien. 

A minimum credit score of 620 is required, and income must fall within program limits for your county. The down payment assistance does not have to be repaid if you stay at the home for at least three years. 

Homes for Texas Heroes (TSAHC) 

This TSAHC program is specifically designed for people who serve their communities. It offers the same competitive mortgage rates and down payment assistance as Home Sweet Texas, but targets specific professions: 

  • Veterans and active-duty military members 
  • Teachers and allied health faculty 
  • Firefighters and EMS personnel 
  • Police officers and corrections officers 
  • County jailers 

Assistance is available as a grant or forgivable loan equal to 3% to 5% of the mortgage amount. Unlike many programs, Homes for Texas Heroes is not limited to first-time buyers. 

Texas Mortgage Credit Certificate (MCC) 

The MCC is a federal tax credit that allows qualifying buyers to claim a portion of their annual mortgage interest as a credit on their federal taxes, up to $2,000 per year for the life of the loan. It is a long-term benefit that stacks with most other assistance programs and is often overlooked. 

Note: Program availability and credit percentages can change, so confirm current terms with a TDHCA-approved lender before applying. 

Veteran-Specific Programs 

Texas offers some of the most comprehensive homebuying benefits in the country for veterans and military members. Here is what is available beyond the federal VA loan. 

VA Loan (Federal) 

The VA loan is one of the most powerful tools available to eligible veterans, active-duty service members, and surviving spouses. Key advantages: 

  • No down payment required 
  • No private mortgage insurance (PMI) 
  • Competitive interest rates 
  • Flexible credit requirements 

Veterans with a VA service-connected disability rating of 10% or higher are also exempt from the VA funding fee, which typically runs 2.15% to 3.30% of the loan amount. That is a meaningful upfront savings on any purchase. 

Texas Veterans Land Board (VLB) Veterans Housing Assistance Program (VHAP) 

The VLB is a Texas-specific benefit that works alongside the federal VA loan. As of 2026, eligible veterans and military members can borrow up to $832,750 at competitive fixed rates through this program. 

Key details: 

  • Available for 15, 20, 25, or 30-year fixed terms 
  • Supports single-family homes, townhomes, and condominiums 
  • Veterans with a service-connected disability rating of 30% or greater receive an additional interest rate discount 
  • The home must remain the veteran’s primary residence for at least three years 
  • Can be combined with a VA loan for additional savings 
  • No first-time buyer requirement 

Eligibility requires Texas residency and meeting one of the following service criteria: active-duty military, Texas National Guard membership, reserve members with 20 qualifying retirement years, or veterans with at least 90 active duty days (or discharged sooner due to a service-connected disability). 

All VLB programs are self-funded and do not use public taxpayer money. 

VLB Land Loan Program 

Veterans can also borrow up to $150,000 to purchase land of one acre or more through the VLB, with only a 5% down payment required. This is particularly useful for veterans looking to build in rural Texas. 

VLB Home Improvement Loan Program 

The VLB has historically offered loans up to $50,000 for home repairs and energy-efficiency upgrades to a veteran’s primary residence. Note: As of April 30, 2026, the VLB placed a temporary moratorium on new Home Improvement Loan applications while the program is being reviewed. Check vlb.texas.gov for the current status. 

Texas Property Tax Exemptions for Disabled Veterans 

Texas law provides significant property tax relief based on a veteran’s VA disability rating. Exemptions apply to the assessed value of your home and can reduce annual ownership costs considerably. Contact your local County Appraisal District and file Form 50-114 to apply. 

City-Level Assistance Programs 

Beyond state programs, many Texas cities offer their own down payment and closing cost assistance. Here is a snapshot: 

City Maximum Assistance Notes 
Houston Up to $50,000 No-interest forgivable loan; income at or below 80% AMI 
Dallas Up to $60,000 For income-eligible first-time buyers within city limits 
Austin Up to $40,000 Forgivable loan; single-person income cap around $55,400 
Denton Up to $50,000 Within Denton city limits 
San Antonio Up to $30,000 HIP 80 program; stackable with VA and state benefits 
El Paso Up to $45,000 Higher amount in priority housing areas 
Arlington Up to $20,000 Income-eligible first-time buyers in city limits 

Most city programs require a homebuyer education course and income within a certain percentage of the area median income. Availability is subject to funding, so applying early matters. 

Can You Stack Multiple Programs? 

Yes, and in many cases you should. Veterans in particular can layer benefits effectively. For example, a veteran buying a home in San Antonio could combine a VA loan (no down payment), TSAHC Heroes assistance (3-5% toward closing costs), and local city grant funding, potentially closing with very little out of pocket. 

Just make sure your lender is experienced with program layering. Not all lenders know how to combine local and state assistance with VA or VLB financing, and using the wrong one can delay or complicate closing. 

Where to Start 

  • For VA loans, check your VA eligibility and obtain your Certificate of Eligibility (COE) at va.gov or through your PJMC lender
  • For VLB benefits, visit vlb.texas.gov or call 1-800-252-VETS 
  • Find a TDHCA or TSAHC-approved lender to explore state program options 
  • Look up your city’s housing department for local assistance programs 
  • Complete a HUD-approved homebuyer education course, which is required by most programs 

Texas has a lot to offer first-time buyers, and the programs above are a strong place to start. If you have questions about how these programs might work with your mortgage, reach out to a Perry Johnson Mortgage Company loan specialist. We work with buyers across Texas every day and can help you figure out which combination of benefits makes the most sense for your situation. 

Information current as of June 2026. Program terms, income limits, and funding availability are subject to change. Always verify details with a licensed lender or program administrator before applying.