What is First Time Home Buyer in Texas?

A first-time home buyer in Texas is someone who has not bought a house in the last three (3) years. If you previously bought and owned a house but haven’t done so in the last 3 years, you’re considered a first time home buyer; even though you are not a first time home owner.

First Time Home Buyers Texas


What are the Qualifications for First Time Home Buyers in Texas?


Here’s a list of qualifications for first time home buyers in Texas:

  • A minimum credit score of 620
  • You must meet TDHCA’s income and loan requirements
  • Property being purchased must be located in Texas and meet purchase price restrictions
  • Property must also be a single-family home or single-unit condominium
  • Some multi-plexes and manufactured housing is allowed

How does the First Time Home Buyers Program Work in Texas?

Here is how the First Time Home Buyers Program works in Texas. The First Time Home Buyers Programs offers a 30 year, low, fixed rate interest mortgage for first time home buyers through a network of participating lenders. Through this program, you can get down payment assistance and closing cost assistance of up to 5% o the mortgage value as a no interest, no monthly payment second lien.

The My First Texas Home loan program is available throughout Texas, although purchase price and income limits are higher for properties located in areas where most families earn less than 80% of the state’s median income, aka “targeted areas.” Learn how to determine if a property is within a targeted area on the TDHCA website.

Is there a Mortgage Credit Certificate for First Time Buyers in Texas?

Yes the Mortgage Credit Certificate loan makes it so first time home buyers in Texas get a chance to recuperate a portion of the interest they pay lenders throughout the year, since what they pay towards interest doesn’t actually pay own your loan balance. This tax credit usually includes 40% of your annual mortgage interest, up to $2,000/year, and the credit is valid for the lifetime of your loan so long as your home remains your primary residence.

Who offers First Time Home Loans in Texas?

Houston’s Housing and Community Development Department (HCDD) offers and services Houston’s Homebuyer Assistance Program (HAP) for eligible low to moderate income families. These funds may be used to assist an approved applicant in paying their down payment, closing costs, and principal buydown.

What programs are available for first time home buyers in Texas?

No matter where you live, these loan programs have benefits that may help you buy your first home, like low down payment and credit score requirements.

Here is a list of first time home buyers programs in Texas:

  • Conventional mortgage. National program.
  • FHA loans. National program.
  • VA loans. National program.
  • USDA loans.
  • My First Texas Home loan.
  • Texas mortgage credit certificate.

What are requirements for a First-Time Home Buyer in Texas?

Here are the Down Payment requirements for a First-Time Home Buyer in Texas:
  1. Provide a 3% down payment is required for Conventional Loans
  2. Achieve at least a 620 FICO score for Conventional Loans
  3. Provide a 3.5% down payment is required for FHA Loans
  4. Achieve at least a 580 FICO score for FHA Loans
  5. Possess a debt-to-income ratio below 50%.


What is the First Time Home Buyer tax credit in Texas?

The First-Time Home Buyer Tax Credit is the federal first-time home buyer tax credit is no longer available, but many states offer tax credits you can use on your federal tax return.


Is there a First Home Buyers Grant in Texas?

Yes. If you have a minimum 580 credit score you can qualify for an FHA loan with just 3.5% down. For a $200,000 house that means you will just need $7,000 for your down payment. The best thing for first-time home buyers is that your down payment for an FHA loan can be a gift from a family member or friend.


Contact the Texas Mortgage Pros today to get started on your First Time Home Buyers loan in Texas.


First time home buyer near Texas