First Time Home Buyer Programs in Texas 2022CASAPLORERTrusted & Transparent
Texas offers a variety of programs to home buyers through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing & Community Affairs (TDHCA), some of which target first-time home buyers. TSAHC is a non-profit organization that was created to follow the direction of the Texas Legislature, so while they are not technically a government organization, their mission is to create affordable housing throughout Texas. TDHCA is a government agency that sponsors mortgages through The Texas Homebuyer Program. These programs offer lower mortgage rates, down payment assistance, and cheaper mortgage insurance premiums to make housing available to everyone. You can also take advantage of federal home buyer programs that provide similar benefits.
First-Time Home Buyer Eligibility Calculator
Texas State Programs
|1||My First Texas Home Program||Main Programs||Texas State|
|2||Home Sweet Texas Home Loan Program|
|3||Mortgage Credit Certificate (MCC) Program||Optional Add-On|
|4||Homes for Texas Heroes Program||Restricted Eligibility to Certain Professions|
|I||Conventional Mortgage||Fannie Mae and Freddie Mac||Federal|
|II||FHA Loan||Federal Housing Administration|
|III||VA Loan||US Department of Veterans Affairs|
|IV||USDA Loan||U.S. Department of Agriculture|
Texas State Programs
TSAHC offers easy-to-use assistance for home buyers and helps with the home buying process. They have recommended real-estate agents familiar with their programs to help you take full advantage of the opportunities available. Of their many services, they provide home buyer assistance through their two main programs: My First Texas Home Program and Home Sweet Texas Home Loan Program.
1. My First Texas Home Program
The My First Text Home Program offers government-insured loans sponsored by Texas through The Texas Homebuyer Program. These loans have a 30-year fixed-term and low mortgage rates. You can also receive a grant or forgivable second-lien loan of up to 5% to help meet your minimum down payment requirement and pay for closing costs with their Down Payment Assistance (DPA). You can also expect lower mortgage insurance premiums since the loan is insured by the government. TSAHC programs are only accessible through participating lenders.
- Property located within Texas
- A first-time home buyer (You have not owned a home in the last 3 years), a certified Veteran, or buying a property within a federally-designated target area
- You must meet the income limits and property value limits set by your county
- A minimum credit score of 620
- Take an online home buyer education course
- You must be purchasing either a single-family unit, a single unit in condominium developments and planned unit developments, or a duplex unit (exceptions apply)
Visit the official My First Texas Home page for more information.
2. Home Sweet Texas Home Loan Program
The Home Sweet Texas Home Loan Program is another program offered by TSAHC. These loans are also government-insured and offer a 30-year fixed-mortgage with a low mortgage rate. These loans have the same requirements as the My First Texas Home Program, except you do not need to be a first-time home buyer, veteran, or targetted area home buyer. Instead, this program aims to help home buyers with low to moderate incomes. Your income could make you eligible for certain TSAHC programs without having to meet the basic home buyer classification requirement.
TSAHC offers first-time home buyers an optional add-on program that will not interfere with other benefits: Mortgage Credit Certificates (MCC) Program.
3. Mortgage Credit Certificate (MCC) Program
In addition to the DPA program, first-time home buyers have access to TSAHC’s Mortgage Credit Certificate (MCC) program. This program aims to help first-time home buyers save on taxes using an MCC tax credit. Your monthly mortgage payment contains a portion going toward paying interest to your lender instead of buying your home’s equity. This portion can be used as a federal tax credit and you can reduce your federal taxes by up to $2000 per year.
- First-time home buyer (You have not owned a home in the last 3 years)
- Eligible for the Home Sweet Texas Home Loan Program or the Homes for Texas Heroes Program
- No minimum credit score required
- $500 upfront cost (exceptions exist)
Visit TSAHC’s official MCC savings page to see how much you can save throughout your mortgage term.
Restricted Eligibility to Certain Professions
The TSAHC expands its program benefits to certain public sector professions in addition to certified veterans through a restricted mortgage program: Homes for Texas Heroes Program.
4. Homes for Texas Heroes Program
The Homes for Texas Heroes Program gives the same benefits to home buyers as the My First Texas Home Program, which provides a 30-year fixed-rate mortgage with low mortgage rates and down payment assistance. You do not need to be a first-time home buyer to be eligible for this program. However, as a first-time home buyer, you are eligible for an MCC and if you qualify, it is free.
You must be one of the following:
- Police Officers
- Firefighters and EMS Personnel
- Corrections Officers:
The federal government offers an additional mortgage option for low-income home buyers. They also have targeted mortgages insured by different government departments. These include FHA Loans, VA Loans, USDA Home Loans, and loans from the Good Neighbor Next Door Program.
I. Conventional Loan
Fannie Mae and Freddie Mac are federally-backed associations that provide liquidity, stability, and affordability in the housing market. Each association has specific loan programs to improve mortgage affordability. Mortgages that meet minimum purchase standards and loan amounts are considered conforming loans and are insured by private lenders and government-sponsored agencies. Fannie Mae’s HomeReady program only has a minimum down payment of 3% and Freddie Mac’s HomePossible program offers low mortgage rates with minimal down payment requirements and has no credit score requirement.
II. FHA Loan
The Federal Housing Administration (FHA) is a U.S. government agency that insures FHA mortgages issued by FHA-approved lenders. FHA loans are targeted toward low to moderate-income earners and have lower requirements than other loans. They are available as fixed or adjustable-rate loans but have fixed mortgage terms of 15 or 30 years. The FHA mortgage rates are determined by lenders and are affected by your credit score. Visit the FHA Loans page for more information.
III. VA Loan
The United States Department of Veterans Affairs (VA) is a U.S. government agency that insures mortgages strictly issued to certified veterans by approved lenders. These loans typically have lower mortgage rates and the only down payment required is how much the home’s price exceeds its market value. Visit the VA Loans page for more information.
IV. USDA Home Loan
The United States Department of Agriculture (USDA) is a U.S. government agency that insures USDA mortgages issued by USDA-approved lenders. USDA loans are targeted toward properties within locations designated as rural areas and have lower requirements than other loans. They are available as fixed or adjustable-rate loans but have fixed mortgage terms of 15 or 30 years. The mortgage rates are lower than conventional loans and have lower mortgage insurance premiums.