What first-time home buyer programs exist in Texas? Josh White, a REALTOR® with Close Real Estate, points buyers to TDHCA and TSAHC programs offering up to 5% in down payment assistance.
The down payment is the wall most first-time buyers run into. You can afford the monthly payment, your credit is fine, but pulling together cash for the down payment and closing costs feels out of reach. Texas has programs built specifically to help with that, and a lot of Fort Worth buyers don't know they qualify.
Two state agencies run the main programs: the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC). Between them, they offer down payment assistance of up to 5% of the loan, which on a typical Fort Worth home is real money toward getting you in the door.
Here's how these programs work and how to figure out if they fit your situation.
Who counts as a first-time home buyer in Texas?
This trips people up. "First-time" doesn't always mean you've literally never owned a home. For most of these programs, it means you haven't owned a primary residence in the past three years. So if you owned a place years ago and have been renting since, you may still qualify.
Some programs also serve repeat buyers, especially TSAHC's offerings, which aren't limited to first-timers. So even if you've owned recently, it's worth checking.
TDHCA programs: My First Texas Home and My Choice Texas Home
TDHCA runs two main programs. My First Texas Home is geared toward first-time buyers and veterans, and it pairs a competitive mortgage rate with down payment and closing-cost assistance. My Choice Texas Home works similarly but is open to repeat buyers, not just first-timers.
Both provide assistance of up to 5%, structured as a second lien to help cover your down payment and closing costs. You can learn more and check current details at the TDHCA homebuyer site. These programs have income and purchase-price limits that vary by county, so what applies in Tarrant County may differ slightly elsewhere in North Texas.
TSAHC programs: Home Sweet Texas and Homes for Texas Heroes
TSAHC runs two well-known programs. Home Sweet Texas Home is open to a broad range of low-to-moderate-income buyers. Homes for Texas Heroes is targeted at specific professions, including teachers, first responders, peace officers, corrections officers, EMS personnel, and veterans.
Both offer down payment assistance of up to 5%, and TSAHC's programs are not limited to first-time buyers. You can find program details and eligibility tools at tsahc.org. As with the TDHCA programs, income and purchase-price limits apply and vary by county.
How does the down payment assistance actually work?
This is the part worth understanding clearly. The assistance generally comes one of three ways:
- A grant that you don't repay (TSAHC),
- A no-interest second lien that is forgiven after you live in the home for three years, or
- A no-interest deferred second lien with no monthly payment that you repay when you sell, refinance, or pay off the mortgage.
So if you take the second-lien version and stay in the home for at least three years, the assistance effectively becomes yours to keep. If you sell or refinance before then, you may have to repay it. The exact terms depend on the specific program and how it's structured, so confirm before you commit.
| Program | Agency | Open to repeat buyers? | Assistance |
|---|---|---|---|
| My First Texas Home | TDHCA | No (first-time/veterans) | Up to 5% |
| My Choice Texas Home | TDHCA | Yes | Up to 5% |
| Home Sweet Texas Home | TSAHC | Yes | Up to 5% |
| Homes for Texas Heroes | TSAHC | Yes (target professions) | Up to 5% |
What are the requirements?
The programs share a common set of basics. You'll generally need:
- A minimum credit score, usually around 620.
- Income within the program limit for your county, which varies.
- A purchase price within the program limit, which also varies by county.
- A homebuyer education course, which is required before closing.
That education course is non-negotiable for these programs, but it's genuinely useful. It walks through budgeting, the loan process, and what to expect at closing. For most buyers it's a few hours online.
How much could this save a Fort Worth buyer?
Run the numbers on a real Fort Worth scenario. The median sale price here is around $329,000 to $338,000. Five percent assistance on a loan that size is roughly $16,000 to $17,000 toward your down payment and closing costs. That's often the difference between buying this year and waiting another two or three years to save.
Pair that with Texas having no state income tax, and the math can work out better than buyers expect, even with property taxes that run higher than the national average. To see the full cost picture, look at my guides on USDA loans in Parker County and how much you need to make to buy a house in Fort Worth.
How do you apply?
You don't apply with the state directly. These programs run through approved lenders who participate in TDHCA and TSAHC. You'll work with a participating lender who confirms your eligibility, helps you choose the right program, and folds the assistance into your loan. I can't recommend a specific lender, but I'm happy to help you understand how the programs fit your purchase and connect the dots on timing.
Frequently Asked Questions
Do I have to be a first-time buyer to use Texas down payment assistance?
Not always. TDHCA's My First Texas Home is for first-time buyers and veterans, but My Choice Texas Home and both TSAHC programs are open to repeat buyers. And "first-time" usually just means you haven't owned a primary residence in the past three years.
How much down payment assistance can I get in Texas?
TDHCA and TSAHC programs offer up to 5% of the loan amount in down payment and closing-cost assistance. On a typical Fort Worth home, that can total roughly $16,000 to $17,000, offered as a grant, a forgivable no-interest second lien, or a deferred no-interest second lien repaid when you sell or refinance.
What credit score do I need for a Texas first-time buyer program?
Most TDHCA and TSAHC programs require a minimum credit score of around 620. You'll also need to meet county-specific income and purchase-price limits and complete a homebuyer education course before closing.
If you're buying or selling in Fort Worth or Parker County, call or text Josh White at 432.215.9177 or visit buysellfortworthhomes.com.