Texas First-Time Home Buyer Programs of 2023

Phil Metzger
By Phil Metzger 
Updated
Edited by Mary Makarushka

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Buying a house is a huge financial decision. If you’ve never done it before, it’s easy to feel like you’re in over your head. Loan programs for first-time home buyers can make the process easier, especially if you’ve had credit issues or found it hard to save up a down payment.

The Texas Department of Housing and Community Affairs (TDHCA) offers first-time home buyer programs to assist qualified borrowers in the Lone Star State. Some national loan programs also have features that can benefit first-time home buyers. Browse the options below to find the right mortgage for your needs.

TDHCA highlights and eligibility requirements

If you haven’t owned a home as your primary residence within the past three years, you’re considered a first-time home buyer by the TDHCA. This requirement is waived if you’re an honorably discharged veteran, and one state program is available to some repeat home buyers.

Highlights

  • Down payment and closing cost assistance.

  • Tax credit possible for annual interest paid on mortgage loan.

  • Some programs can be combined for maximum benefit.

  • Homes in “targeted areas” enjoy higher income and purchase price limits.

Eligibility

  • Borrowers must have a minimum credit score of 620.

  • Borrowers must meet income requirements.

  • Property must be in Texas and not exceed purchase price limits.

  • Property can be a single-family home, condo or townhome, manufactured home or other eligible dwelling.

Mortgage loans from our partners

New American Funding - PURCHASE logo
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4.5

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New American Funding - PURCHASE logo

4.5

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Min. credit score 
500

Min. down payment 
3.5%

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4.5

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Better - PURCHASE logo

4.5

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Min. credit score 
620

Min. down payment 
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NBKC - PURCHASE logo
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4.5

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4.5

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Min. credit score 
620

Min. down payment 
3%

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Rocket Mortgage - PURCHASE logo
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on Rocket Mortgage

Rocket Mortgage

4.0

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Rocket Mortgage - PURCHASE logo

4.0

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Min. credit score 
620

Min. down payment 
1%

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on Rocket Mortgage

Guaranteed Rate - PURCHASE logo
Check Rate

on Guaranteed Rate

Guaranteed Rate

5.0

NerdWallet rating 
Guaranteed Rate - PURCHASE logo

5.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on Guaranteed Rate

Mortgage loans from our partners

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

Better - PURCHASE logo
Check Rate

on Better

Better

4.5

NerdWallet rating 
Better - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on Better

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC