Every First-Time Homebuyer Program in Texas (2026 Complete List)

Texas has some of the most generous first-time homebuyer assistance programs in the country, and most people have no idea they exist. Between state programs, federal loan options, and city-level grants in Dallas, Fort Worth, and surrounding cities, qualifying buyers can access tens of thousands of dollars in assistance that never has to be repaid.

This guide covers every major program available to homebuyers in Texas as of 2026, including eligibility requirements, income limits, and exactly how to apply. If you are buying your first home in the Dallas-Fort Worth area, one or more of these programs could save you $10,000 to $25,000 or more.

Texas State Programs

My First Texas Home (MFTH) Program

Run by the Texas Department of Housing and Community Affairs (TDHCA), the My First Texas Home program is the largest and most popular state-level homebuyer assistance program. It combines a competitive fixed-rate mortgage with down payment and closing cost assistance.

How it works: The program provides a 30-year fixed-rate mortgage through approved lenders at below-market interest rates. On top of that, it offers down payment assistance (DPA) of up to 5% of the loan amount as a deferred, forgivable second lien. That means if you stay in the home and keep the mortgage for the required period, you never pay the assistance back.

• Down payment assistance: Up to 5% of the mortgage amount (on a $350,000 loan, that is $17,500)
• Interest rates: Typically 0.25-0.50% below conventional market rates
• Loan types: FHA, VA, and USDA loans are all eligible
• Income limits: Vary by county and family size. In the DFW area, the 2026 limit is approximately $97,000-$120,000 for a household of 1-2 people
• Purchase price limits: Up to $472,030 in most DFW counties (this adjusts annually)
• First-time buyer requirement: Must not have owned a home in the past 3 years (exceptions for veterans and targeted areas)
• Credit score: Minimum 620 for government loans

TSAHC (Texas State Affordable Housing Corporation) Programs

TSAHC offers two programs that are often even more generous than MFTH, and they are available to both first-time and repeat buyers in many cases.

Homes for Texas Heroes: Designed for teachers, firefighters, EMS workers, police officers, corrections officers, and veterans. This program provides down payment assistance of 3-5% of the loan amount as a grant (free money, no repayment required) or as a deferred forgivable second lien.

Home Sweet Texas: Available to all eligible buyers who meet income and purchase price limits. Offers the same 3-5% down payment assistance as a grant or forgivable second lien.

• Grant option: Up to 5% of the loan amount that never needs to be repaid
• Income limits: Generally match MFTH limits, around $97,000-$120,000 in DFW depending on household size
• Credit score: Minimum 620
• Homebuyer education: Required (free online courses available through TSAHC)
• Loan types: Works with FHA, VA, USDA, and conventional loans

The key advantage of TSAHC over MFTH is the outright grant option. With TSAHC, you can receive up to 5% as a gift that requires zero repayment, period. MFTH's assistance is structured as a second lien that is forgivable over time.

Federal Loan Programs Available in Texas

FHA Loans

Federal Housing Administration loans are the most popular choice for first-time buyers in Plano, Frisco, and across DFW because of their lower credit and down payment requirements.

• Down payment: 3.5% with a credit score of 580+, or 10% with a score of 500-579
• Credit score: Minimum 580 for 3.5% down (some lenders require 620)
• Mortgage insurance: Required for the life of the loan (upfront premium of 1.75% plus annual premium of 0.55-1.05%)
• Loan limits: $498,257 in most DFW counties for 2026
• Property requirements: Must meet FHA minimum property standards
• No first-time buyer requirement: Anyone can use FHA loans

FHA loans are especially useful for buyers with credit scores between 580 and 680, where conventional loan rates would be significantly higher. The trade-off is the mortgage insurance premium, which adds $150-$300 per month on a typical DFW purchase.

VA Loans

For veterans, active-duty service members, and eligible surviving spouses, VA loans are the single best mortgage product available. Texas has one of the largest veteran populations in the country, and DFW is home to multiple military installations.

• Down payment: 0% required
• Mortgage insurance: None (a one-time VA funding fee of 1.25-3.3% applies, which can be rolled into the loan)
• Credit score: No VA minimum, but most lenders require 620+
• Interest rates: Typically 0.25-0.50% lower than conventional loans
• Loan limits: No limit for borrowers with full entitlement
• Can be combined with: My First Texas Home, TSAHC, and local assistance programs

USDA Loans

United States Department of Agriculture loans offer 0% down payment for homes in eligible rural and suburban areas. While "rural" sounds limiting, several DFW-area communities qualify, particularly in outer suburbs and smaller cities.

• Down payment: 0% required
• Income limits: Household income cannot exceed 115% of area median income (approximately $105,000-$115,000 for a household of four in DFW)
• Location requirement: Property must be in a USDA-eligible area
• Credit score: Minimum 640 for automatic approval
• Guarantee fee: 1% upfront plus 0.35% annual fee (much lower than FHA mortgage insurance)
• DFW-eligible areas: Parts of McKinney, Waxahachie, Ennis, Terrell, and other outer-ring communities

Check the USDA eligibility map online before house hunting. Boundaries change periodically, and some areas that were eligible last year may no longer qualify. A USDA-approved lender can verify whether specific properties are in eligible zones.

Dallas-Fort Worth Local Programs

City of Dallas Homebuyer Assistance Program

The City of Dallas offers one of the most substantial local programs in the metroplex, providing direct financial assistance to income-qualifying buyers purchasing homes within the Dallas city limits.

• Assistance amount: Up to $60,000 for down payment, closing costs, and principal reduction
• Structure: Forgivable loan (forgiven over a 5-10 year compliance period while you live in the home)
• Income limits: Household income must be at or below 80% of Area Median Income (approximately $65,000-$78,000 for a family of four)
• Purchase price limit: Varies by property type, generally up to $300,000-$375,000
• Requirements: Must complete HUD-approved homebuyer education, must be a primary residence, buyer must contribute at least $1,500 of their own funds
• Location: Property must be within Dallas city limits

City of Fort Worth Homebuyer Assistance

Fort Worth runs a similar program through its Neighborhood Services Department, providing assistance to buyers purchasing within city limits.

• Assistance amount: Up to $14,999 for down payment and closing costs
• Structure: Deferred forgivable loan, forgiven after a compliance period of living in the home
• Income limits: Must be at or below 80% AMI
• Requirements: HUD-approved homebuyer education, primary residence, satisfactory credit
• Location: Property must be within Fort Worth city limits

City of Arlington HOME Program

Arlington offers assistance through its federally funded HOME program, helping income-qualifying buyers with down payment and closing costs for homes within city limits.

• Assistance amount: Up to $14,999 in down payment and closing cost assistance
• Income limits: Household income at or below 80% AMI
• Requirements: Homebuyer education, primary residence, minimum credit score of 620

Plano and Collin County Programs

Collin County, which includes Plano, Frisco, McKinney, and Garland (partially), administers HOME funds that provide down payment and closing cost assistance to eligible buyers.

• Assistance amount: Varies by funding availability, typically $5,000-$15,000
• Income limits: 80% AMI for the county
• Coverage: Homes within participating Collin County cities

Tarrant County and Mesquite Programs

Tarrant County (which includes Fort Worth, Arlington, and surrounding cities) and the City of Mesquite also administer HOME Investment Partnership funds that can be used for homebuyer assistance. Contact the Tarrant County Housing Assistance Office and the City of Mesquite Community Development Department for current availability and application details.

Which Program Fits Your Situation?

With so many options, choosing the right program can feel overwhelming. Here is a quick guide based on common buyer profiles:

If You Are a Veteran or Active Military

Start with a VA loan (0% down, no PMI) and layer on My First Texas Home or TSAHC Homes for Texas Heroes for an additional 3-5% in down payment assistance. This combination can get you into a home with virtually no out-of-pocket cost.

If You Are a Teacher, Firefighter, or First Responder

TSAHC Homes for Texas Heroes is designed specifically for you. The 5% grant option combined with an FHA or conventional loan is the most popular combination. You may also qualify for local city programs on top of this.

If You Earn Under $78,000 (Family of Four)

City-level programs like Dallas Homebuyer Assistance (up to $60,000) or Fort Worth's program (up to $14,999) offer the most generous local assistance. Combine these with MFTH or TSAHC at the state level for maximum benefit. You could potentially receive $25,000-$75,000 in combined assistance.

If You Earn $78,000-$120,000

You likely qualify for state programs (MFTH or TSAHC) but may exceed income limits for local city programs. Focus on the state-level 5% DPA combined with an FHA or conventional loan. On a $365,000 home, that is $18,250 in assistance.

If You Are Buying in a Suburban or Rural Area

Check USDA loan eligibility first. If your target area qualifies, a USDA loan with 0% down and low fees combined with state DPA assistance is an exceptional deal. Some outer DFW suburbs still qualify for USDA financing.

Common Mistakes to Avoid

• Not checking income limits early: Income limits are based on gross household income, including all adults. Check limits before you start house hunting to avoid disappointment.
• Using a lender who does not participate: State programs require approved lenders. Using a random online lender means losing access to MFTH and TSAHC benefits.
• Skipping homebuyer education: This is required by almost every program and takes 6-8 hours. Complete it before you start the application process.
• Assuming you make too much: Income limits in DFW are higher than many people expect. A household earning $100,000 can still qualify for state programs. Always check.
• Applying too late in the fiscal year: Both state and local programs have limited funding. Apply early in the year for the best chance of receiving full assistance amounts.
• Forgetting about the compliance period: Most forgivable assistance requires you to stay in the home for a set number of years. If you sell early, you may need to repay a prorated portion of the assistance.

The Bottom Line

Texas provides an exceptional safety net for first-time homebuyers who take the time to research and apply for available programs. Between state-level assistance from MFTH and TSAHC, federal loan programs like FHA and VA, and local grants from cities across the Dallas-Fort Worth metroplex, qualifying buyers can reduce their out-of-pocket costs by $10,000 to $75,000 or more.

The key is starting early, working with an approved lender who knows these programs inside and out, and completing your homebuyer education course before you begin house hunting. These programs exist to help people like you become homeowners. Do not leave free money on the table.