Overview
Texas's housing market offers opportunities for first-time buyers, with a median home price of approximately $300,000. The Texas Department of Housing and Community Affairs (TDHCA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The My First Texas Home Program is a texas department of housing and community affairs's key offering for first-time buyers, providing below-market rate 30-year fixed mortgage with up to 5% of loan amount in dpa as a forgivable second lien. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
My First Texas Home Program
Below-market rate mortgage with DPAMy Choice Texas Home
Down payment assistanceFederal Programs Available in Texas
These nationwide programs can be combined with Texas state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Texas
The My Choice Texas Home extends additional support through up to 5% of the loan amount as dpa (available to repeat buyers). Texas has no state income tax. However, property taxes are among the highest nationally at about 1.68%. TDHCA programs with up to 5% forgivable DPA help offset high property tax burdens.
Federal programs complement state offerings in Texas. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Fort Cavazos, Joint Base San Antonio, Fort Bliss. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Texas.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.