Texas › First-time homebuyer
Buying your first home in Texas: the help, the limits and the costs.
Every number sourced. Checked this month.
Texas has two statewide housing finance agencies, and Houston, Dallas, Austin and San Antonio each have their own down payment programs on top. State help tops out at 5% of your loan, and city programs can add tens of thousands more if your income qualifies. Some Texas closing costs work differently from other states: the state sets title insurance premiums, the standard contract has a paid option period, and the property tax rate is seventh-highest in the U.S. by WalletHub’s count. Here is what each piece costs and who qualifies as of this month.
Numbers last checked October 31, 2026State programs
Two state-level agencies run homebuyer loans with down payment help. You apply through a participating lender, not the agency, and both require a homebuyer education course before closing.
| Program | Who it is for | Assistance | Terms | Source |
|---|---|---|---|---|
| TDHCA (Texas Department of Housing and Community Affairs) | ||||
| My First Texas Home | First-time buyers: no ownership interest in a primary residence in the past 3 years. Exceptions for targeted areas and qualified veterans | Up to 5% | FHA, VA or USDA loan; 620 minimum credit score; 50% maximum debt-to-income | TDHCA program chart, checked Oct 31, 2026 |
| My Choice Texas Home | Any buyer; no first-time requirement | Up to 5% | FHA, VA, USDA or conventional (Fannie Mae HFA Preferred); 620 minimum credit score | TDHCA program chart |
| TDHCA fees | Charged on both programs; waived for veterans and in qualified targeted census tracts | $510 | $275 compliance review + $150 loan review + $85 tax service ($400 more if you add a TDHCA MCC) | TDHCA program chart |
| TSAHC (Texas State Affordable Housing Corporation) | ||||
| Homes for Texas Heroes | Full-time public school teachers, aides, librarians, counselors and nurses; police, fire and EMS; corrections officers; nursing and allied health faculty; veterans and active military | Up to 5% | A grant, a second lien forgiven after 3 years, or a repayable deferred second lien | TSAHC, checked Oct 31, 2026 |
| Home Sweet Texas | Buyers who don’t fall under a hero profession | Up to 5% | Same grant and second-lien options | TSAHC |
| TSAHC income limit | Home Sweet Texas | 150% of AMFI | Raised in 2026 | TSAHC, Jul 10, 2026 |
| TSAHC income limit | Homes for Texas Heroes | 170% of AMFI | Raised in 2026 | TSAHC, Jul 10, 2026 |
TSAHC’s written guidelines say the grant version works only with FHA, VA and USDA loans, and the 3-year forgivable second lien works with every loan type. They also set a 640 minimum credit score for conventional HFA loans, against 620 for government loans (TSAHC guidelines, revised May 20, 2022; current lender terms may differ).
What 5% is worth, and what it costs
On a $290,000 loan, 5% assistance is $14,500. It isn’t free money, though: the loans that come with assistance carry a higher rate. On TDHCA’s Oct 30, 2026 rate notice, a bond-funded FHA, VA or USDA loan was 6.625% with no assistance and 7.125% with 5%. By our math, on $290,000 that half point raises principal and interest from $1,856.90 to $1,953.78 a month, or $96.88 more. Hold the loan 30 years and that adds up to more than twice the $14,500. Most buyers refinance or sell well before then, so the trade can still make sense. Run both versions with your lender. Rates on the notice change often.
Income and price limits by metro
My First Texas Home limits took effect July 13, 2026. Income limits show two figures: households of 1 to 2 people, and households of 3 or more. Higher “targeted area” limits apply only in certain census tracts.
| Area | My First Texas Home income (1–2 / 3+) | My First Texas Home max price | TSAHC Home Sweet Texas income | TSAHC Texas Heroes income | Source |
|---|---|---|---|---|---|
| Houston (Harris) | $104,000 / $119,600 | $566,354 | $156,000 | $176,800 | TDHCA; TSAHC |
| Dallas | $121,100 / $139,265 | $589,596 | $181,650 | $205,870 | TDHCA; TSAHC |
| Fort Worth (Tarrant) | $110,300 / $126,845 | $589,596 | $165,450 | $187,510 | TDHCA; TSAHC |
| Austin (Travis) | $134,400 / $154,560 | $598,019 | $201,600 | $228,480 | TDHCA; TSAHC |
| San Antonio (Bexar) | $104,725 / $120,434 | $583,580 | $157,358 | $178,339 | TDHCA; TSAHC |
| Rest of Texas (TDHCA default) | $101,500 / $116,725 | $566,354 | Varies by county | Varies by county | TDHCA, effective Jul 13, 2026 |
TSAHC limits are from its Jul 10, 2026 post, which gives metro figures and says county limits vary. Its eligibility quiz shows your county. My Choice Texas Home uses separate limits by income band; the full table is in TDHCA’s limits PDF.
Mortgage credit certificates
A mortgage credit certificate (MCC) gives you a federal tax credit each year equal to a share of the mortgage interest you pay. It isn’t a deduction: it comes straight off your federal tax bill. Both TDHCA and TSAHC issue them to first-time buyers (TDHCA also to qualified veterans), either alongside their own loans or as a stand-alone certificate with a regular mortgage. TDHCA says its stand-alone version has no minimum credit score, and warns that supply is limited.
- The rate. TSAHC’s guidelines set the credit at 20% of interest paid, with no annual cap. Unused credit carries forward three years. TDHCA’s program manual starts at 20%, and its rate notices can change that. A $2,000-a-year cap applies only if the rate is set above 20%.
- An example. By our math, a $290,000 loan at the current 7.24% average rate pays about $20,904 in interest in year one. At 20%, the credit would be about $4,181, but only as much as you owe in federal tax can be used that year.
- The income limit is lower. The MCC limit is set federally at 115% of AMFI. If you pair a TSAHC MCC with down payment help, you have to meet the lower MCC limit.
- The fee. TDHCA charges a $400 MCC issuance fee.
City programs
City programs are funded separately from the state ones and are far larger, but they are capped at lower incomes and prices, and funding runs out. All four below are zero-interest second liens with no monthly payment, and all four require a HUD-approved homebuyer class.
| City | Program | Up to | Income limit | Price limit | Source |
|---|---|---|---|---|---|
| Houston | Homebuyer Assistance Program (HAP). New applications on hold: funds exhausted | $75,000 | At or below 80% of AMI | No fixed cap; housing payment 33% or less of income, total debt 45% or less | City of Houston HCD, checked Oct 31, 2026 |
| Dallas | Dallas Homebuyer Assistance Program (DHAP) | $60,000 high-opportunity areas; $50,000 elsewhere | 80% of AMI: $65,700 (1 person) to $93,850 (4 people) | $342,000 | City of Dallas; income limits effective Jun 1, 2025 |
| Dallas | Anti-Displacement Homebuyer Assistance (Dallas residents of 10+ years) | $50,000 | 50% to 120% of AMI: up to $140,760 for 4 people | None set by the city | City of Dallas |
| Austin | Down Payment Assistance (full-purpose city limits) | $40,000 | 80% of MFI: $74,800 (1 person) to $106,800 (4 people) | $440,000 | City of Austin, checked Oct 31, 2026 |
| San Antonio | HIP 80, forgiven over 5 years (first $15,000) or 10 years (the rest) | $30,000 | 2026 limits: $56,350 (1 person) to $80,500 (4 people) | $260,000 existing; $284,000 new | City of San Antonio NHSD |
| San Antonio | HIP 120, 75% forgiven over 10 years; the other 25% is repaid when you sell or refinance with cash out | $15,000 | 2025 limits: $84,500 (1 person) to $120,700 (4 people) | $301,700 existing; $332,800 new | City of San Antonio NHSD |
What to know before you count on city money
- Houston. The city’s homebuyer page still says HAP is open first come, first served, but newer notices on the same page say funds are exhausted and applications without a pre-approval are on hold. The city has also paused assistance inside the Fifth Ward/Kashmere Gardens UPRR sampling zone during the EPA investigation. The page lists an applicant workshop on Nov 10, 2026 and a Realtor and lender workshop on Nov 18. HAP requires an 8-hour homebuyer class and a home inside Houston city limits.
- Dallas. Since May 1, 2026, Business and Community Lenders of Texas has run DHAP, not the city. The home has to appraise at or above the sale price, and your housing payment has to stay under 35% of gross income. Money for the separate Targeted Occupations program has run out.
- Austin. Austin’s assistance can cover down payment, closing costs and prepaid items. The required homebuyer course costs $99 plus a handbook, and you apply through one of the city’s participating loan officers. Austin’s $440,000 price cap sits well under the city’s $560,000 median sale price (Unlock MLS, Aug 2026), so expect condos and smaller homes; see Austin costs.
- San Antonio. Both HIP programs require at least $500 in earnest money in your contract and a city inspection of the home. HIP 80’s income limits are dated 2026, but the HIP 120 table still shows 2025 figures.
State and city help can sometimes be combined, but each program has its own rules about stacking. Ask your lender to confirm before you sign a contract.
Texas closing costs that work differently
Title insurance: the state sets the price
In Texas, the Department of Insurance sets title insurance premiums, so every title company charges the same base premium for the same policy. The current chart took effect March 1, 2026, and it lowered premiums from the 2019 chart. Shopping around won’t change the premium, but escrow and other fees still differ by company.
| Policy amount | How TDI’s formula works | Owner’s premium | Source |
|---|---|---|---|
| $100,000 | Straight from the table | $780 | TDI, eff. Mar 1, 2026 |
| $250,000 | $780 + 0.00494 × $150,000 | $1,521 | Our math from TDI’s chart |
| $300,000 | $780 + 0.00494 × $200,000 | $1,768 | Our math from TDI’s chart |
| $350,000 | $780 + 0.00494 × $250,000 | $2,015 | Our math from TDI’s chart |
| $400,000 | $780 + 0.00494 × $300,000 | $2,262 | Our math from TDI’s chart |
| Lender’s (loan) policy issued at the same time | Flat premium per loan policy under Rate Rule R-5 | $100 | TDI Rule R-5, eff. Nov 1, 2024 |
These are base premiums. Endorsements your lender requires cost extra. Who pays for the owner’s policy is negotiated: the state resale contract has a checkbox for buyer or seller (TREC 20-19, paragraph 6A). The buyer pays for the loan policy (paragraph 12).
Option fee, earnest money, survey and appraisal
Most Texas resales use the Texas Real Estate Commission’s resale contract. The current version is TREC No. 20-19, dated May 4, 2026, which replaces 20-18. The form leaves dollar amounts and most day counts blank, so they’re negotiated deal by deal. We haven’t found a reliable statewide source for “typical” amounts, so we don’t quote one. What the form sets:
- Delivery deadline. Earnest money and the option fee go to the escrow agent, usually the title company, within 3 days of the effective date.
- Option period. For the option fee, you get the unrestricted right to back out for any reason during the option period, if you give notice by 5:00 p.m. local time. If you terminate in time, you get your earnest money back but not the option fee. If you close, the option fee is credited toward the price. If you don’t pay the option fee on time, you don’t get that right to terminate.
- Survey. The buyer picks one of three options in paragraph 6C: the seller provides an existing survey with a T-47 affidavit (or T-47.1 declaration), the buyer orders a new survey at the buyer’s expense, or the seller orders a new one at the seller’s expense.
- Appraisal. Appraisal fees are listed as a buyer’s expense (paragraph 12A(2)). An optional TREC addendum gives you a right to terminate over a low lender appraisal; ask your agent about it.
- Repairs the lender requires. If they would cost more than 5% of the sale price, the buyer can terminate and get the earnest money back (paragraph 7E).
Property tax, escrow and the homestead exemption
Property tax is usually the largest cost of owning a Texas home after the loan itself. Many buyers pay it through an escrow account, so the monthly payment includes 1/12 of the yearly tax. When your mortgage company pays from escrow, the tax office sends the bill to the mortgage company. Bills start going out in October and most are due by Jan 31. Unpaid bills get a 6% penalty plus 1% interest on Feb 1, and the penalty grows to 12% by July 1. For local rates, see Texas property taxes.
- Homestead exemption. Once the home is your main residence, school districts must exempt $140,000 of its value. The Comptroller’s example: a $300,000 home is taxed as if it were worth $160,000 for school purposes. The exemption doesn’t apply to city or county taxes.
- How to file. Filing is free on Form 50-114 with your county appraisal district. You need a Texas driver’s license showing the home’s address, and the deadline is April 30 (Texas Tribune, Oct 20, 2026).
- Buying mid-year. If you buy after January 1, you can get the exemption for the rest of that tax year, as long as the previous owner didn’t already claim it for that year (Comptroller).
- Watch your first escrow estimate. Your first escrow payment is usually estimated from the seller’s last tax bill. If the seller had exemptions you won’t get, or your new appraisal comes in higher, the estimate can be short. Ask your lender how they figured it.
HOAs are common
Texas had 23,500 community associations in 2025, covering about 2.3 million housing units and 6.4 million residents. That ranks third among states, behind California and Florida (Foundation for Community Association Research). In 2024, about 32% of Texas homes were in an association, and about 51% of Houston-area homes (Community Impact, Jul 8, 2025). The TREC contract asks whether the home requires HOA membership. If it does, you can get a resale certificate showing the dues and any lawsuits before you’re locked in (paragraph 6E(2) and the HOA addendum).
2026 loan limits in Texas
| Limit | Area | One-unit limit | Since | Source |
|---|---|---|---|---|
| Conforming (Fannie Mae and Freddie Mac) | ||||
| Baseline | Most of the U.S. | $832,750 | 2026 (up from $806,500) | FHFA, Nov 25, 2025 |
| FHA | ||||
| Floor | Most Texas counties, including Harris and El Paso | $541,287 | Case numbers from Jan 1, 2026 | HUD, Dec 11, 2025; county list from LendingTree |
| County | Dallas, Tarrant and Collin | $563,500 | 2026 | LendingTree, updated Jul 22, 2026 |
| County | Bexar | $557,750 | 2026 | LendingTree |
| County | Travis and Williamson | $571,550 | 2026 | LendingTree |
The county FHA figures come from a lender marketplace, not HUD directly. Confirm your county in HUD’s limit lookup, which also covers conforming limits by county. The 2026 conforming limits were announced Nov 25, 2025, so 2027 limits are likely to come out around late November 2026.
Mortgage rates right now
Freddie Mac’s weekly survey put the 30-year fixed at 7.24% for the week of Oct 29, 2026, down from 7.32% the week before but up from 6.17% a year ago. The 15-year was 6.60%. By our math, principal and interest on a $290,000 loan at 7.24% comes to $1,976.34 a month. TDHCA’s bond-funded rates from Oct 30 are listed above. Rates on the Freddie Mac survey and on agency loans aren’t measured the same way, so compare actual quotes. For prices and a full monthly payment with tax and insurance, see Texas home prices and our rent vs. buy calculator.
Out-of-date numbers you’ll still find online
The city’s homebuyer page now lists up to $75,000, and draft guidelines from June 2026 raise the cap from $50,000. Newer notices on the same page say funds are exhausted and new applications are on hold.
The 2025 floor was $524,225. HUD raised it for case numbers assigned from Jan 1, 2026.
FHFA raised the baseline $26,250 for 2026. The 2027 figure is due around late November.
That older figure is from TDI’s 2019 chart. The chart effective Mar 1, 2026 cut the premium by $118 at that amount, by our math.
Business and Community Lenders of Texas took over the program on May 1, 2026. Contact dhap@bcloftexas.org.
Voters raised the school-tax exemption in Nov 2025, and the Comptroller confirms the current amount.
The current resale contract is dated May 4, 2026 and replaces 20-18. Older guides walk through the previous version.
Dates that will change these numbers
- Thursday, Nov 5, 2026: next Freddie Mac PMMS rate.
- Nov 3, 2026: election day, including Dallas County’s tax rate election, which affects 2026 bills. See Texas property taxes.
- Nov 10 and Nov 18, 2026: Houston’s HAP applicant and Realtor/lender workshops (City of Houston).
- Late Nov 2026: likely FHFA announcement of the 2027 conforming limits (the 2026 limits came out Nov 25, 2025). HUD’s 2026 FHA limits followed on Dec 11, 2025.
- Jan 31, 2027: most 2026 property tax bills due (Comptroller).
- April 30, 2027: homestead exemption filing deadline for a home you owned and lived in on Jan 1, 2027 (Texas Tribune).
- Any time: TDHCA and TSAHC rate sheets change often, and city programs close when the money runs out.
Related pages
Moving from out of state? Start with moving to Texas, then check Texas insurance costs before you budget a payment; homeowners insurance is a big line item here. Coming from Illinois, see Texas vs. Illinois. If you’re also weighing a purchase in Chicago, our sister site chicagofirsttimehomebuyer.com covers the Illinois and Chicago programs the same way.
How we check
Every figure links to its source and shows the date it applies to. Program terms come from the agencies and cities that run them, and we label anything from a lender or marketplace. Where we did the math ourselves, we say so. This page isn’t loan advice: program funding and rates change weekly, so confirm with a participating lender. Read the full methodology.