Texas first-time home buyer programs

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The TSAHC is a housing organization that operates statewide. It can help you set up a loan and provide advice and first-time buyer education courses. The corporation has two major home buyer assistance programs.

Borrowers need a credit score of at least 620 to qualify for either TSAHC program. There are also home purchase price limits.

Income limits for both programs vary by county. But there’s an online eligibility test that will tell you whether your application might succeed. Once you’ve gone through the form (it’s only four questions), you’re directed to a list of local participating lenders. You have to choose one of those to get TSAHC assistance.

The Home Sweet Texas Home Loan Program offers first-time home buyers a 30-year fixed-rate loan that can be used with either an HFA conventional loan or any government-backed mortgage.

This comes with up to 5% down payment assistance in a grant or zero-interest second mortgage. If you opt for assistance as a second mortgage, there are no monthly payments, and the balance is forgiven after three years, unless you sell or refinance before then.

TheThe Homes for Texas Heroes Home Loan Program offers 30-year fixed-rate mortgage loans to public service professionals, including teachers, firefighters, EMS personnel, police officers, correctional officers, and veterans. You don’t need to be a first-time home buyer to qualify; anyone is welcome to apply.

Similar to the above TSAHC program, this loan also comes with up to 5% down payment assistance as either a grant or a zero-interest second mortgage.

he TDHCA helps moderate- and low-income families achieve homeownership in Texas. For qualified buyers, the TDHCA offers two programs: My First Texas Home program and the My Choice Texas Home loan.

You can pair either of these programs with the Texas Mortgage Credit Certificate (MCC), which provides tax credits for interest paid on mortgage loans.

TDHCA considers buyers who haven’t owned a home as their primary residence in the past three years “first-time buyers.” And for Texans who are honorably discharged veterans, the primary residence guideline is waived.

To qualify for TDHCA loans, most Texans must meet these requirements:

• Minimum credit score of 620
• Must conform to income and purchase price limits (vary by program and location)
• Must purchase a single-family property or single-unit condo
• Property must be a primary residence

Some benefits of TDHCA loans include:

• Down payment and closing cost assistance
• Mortgage tax credits 
• Higher income and purchase price limits for homes in the program’s target areas
• Some manufactured homes are eligible

TDHCA offers first-time home buyers in Texas a 30-year fixed-rate mortgage loan with a below-market interest rate. FHA, VA, and USDA loans are all eligible through this program. You may also qualify for down payment and closing cost assistance of up to 5% of the loan amount. This is a no-interest deferred loan that must be paid in full when the homeowner refinances, sells, or pays off the mortgage.

Borrowers interested in a conventional loan can use My Choice Texas Home. In addition to government-backed loans, this home buying program allows financing through a Fannie Mae HFA Preferred conventional loan. It also provides down payment and closing cost assistance up to 5% of the loan amount. The program is not restricted to first-time buyers.

If you’re a veteran or service member, the Veterans Land Board Housing Assistance Program might provide you with low-interest loans to buy a home or land.

These VLB loans frequently do not require a down payment. If the loan term is between 15 and 30 years, you can borrow up to $726,200, and veterans with a VA disability score of 30% or higher are eligible for even lower interest rates.

Remember that in order to be eligible for the loan program, the property you intend to buy must also meet certain standards. For example, you will need to purchase a condominium or single-family home. Additionally, a multi-family property you buy must have been constructed at least five years before the loan was underwritten. Visit the VLB program website7 to find out more.

If you’re a veteran or service member, the Veterans Land Board Housing Assistance Program might provide you with low-interest loans to buy a home or land.

These VLB loans frequently do not require a down payment. If the loan term is between 15 and 30 years, you can borrow up to $726,200, and veterans with a VA disability score of 30% or higher are eligible for even lower interest rates.

Remember that in order to be eligible for the loan program, the property you intend to buy must also meet certain standards. For example, you will need to purchase a condominium or single-family home. Additionally, a multi-family property you buy must have been constructed at least five years before the loan was underwritten. Visit the VLB program website7 to find out more.

Each down payment assistance program (DPA) can set its own rules and offer its own benefits. You may find the one serving your area better or worse than TSAHC’s. So be sure to compare all the programs for which you’re eligible, and see which offers the best deal.

Of course, if you can put 20% down and have good credit, you might not need home buyer assistance at all. In this case, a standard conventional loan is likely your best and most affordable option.