Helping Texas First-Time Homebuyers Make Homeownership a Reality
Expert guidance, personalized mortgage options, and step-by-step support designed specifically for first-time home buyers across the Lone Star State.
What is a First-Time Home Buyer?
A first-time home buyer is defined as an individual who has not owned a principal residence within the past three years. This definition is commonly used by various government housing agencies and financial institutions offering programs and incentives for those buying their first home.
However, the definition often includes exceptions to accommodate specific circumstances. You may still be considered a first-time home buyer even if you have previously held ownership in a home under certain conditions, such as:
- A single parent who has only owned a home with a former spouse while married.
- An individual who is a displaced homemaker and has only owned property with a spouse.
- An individual who has only owned a principal residence that was not permanently affixed to a permanent foundation under applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local, or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
Why Texas Is an Ideal State for First-Time Homebuyers
Texas offers a wide range of first-time buyer benefits, including flexible home loans, grants, tax credits, and educational resources. Whether you have limited savings, a moderate income, or a less-than-perfect credit history, you’re not alone.
Texas continues to attract new residents for good reason. As a first-time homebuyer, you’ll benefit from:
- No state income tax, allowing you to put more of your earnings toward building equity.
- Diverse housing markets exist across major metropolitan areas, suburbs, and rural communities.
- Strong job growth across multiple industries, creating economic stability.
- Relatively affordable housing compared to coastal markets.
- Abundant first-time homebuyer programs are specifically designed for Texas residents.
With median home prices varying significantly across regions, from approximately $200,000 to over $400,000, you’ll find options that match your budget and lifestyle needs.
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"We believe homeownership in Texas is a milestone worth celebrating."
What We Offer
Loan Options and State-Sponsored Programs
FHA Loans
VA Loans
For eligible veterans and active-duty service members, VA loans offer zero down payment and no private mortgage insurance.
USDA Loans
Conventional Loans
Real Stories From Homebuyers
First Time Home Buyer Texas Requirements
Embarking on the journey to homeownership as a first-time home buyer, Texas residents can find the process both exciting and overwhelming. Understanding the key requirements and available assistance programs is essential for making confident decisions. Here’s a guide to help you navigate every step.
How It Works
What are the first-time home buyer Texas requirements?
To qualify as a first-time homebuyer in Texas, you generally need to meet the following criteria:
Step 1
First-Time Homebuyer Status
You must not have owned a home in the past three years.
Step 2
Credit Score
A minimum credit score of 620 is typically required.
Step 3
Income Limits
Some programs for first-time homebuyers have income restrictions based on county guidelines, while others have no income limits, offering more flexibility.
Step 4
Occupancy
The home must be your primary residence.
Grants and Assistance Programs for Texas First-Time Buyers
Texas offers several programs designed to assist first-time homebuyers in achieving homeownership. These programs provide benefits such as down payment assistance, closing cost assistance, and favorable loan terms.
Texas State Affordable Housing Corporation (TSAHC) offers programs that offer grants and deferred forgivable loans. The TSAHC offers several valuable programs tailored to first-time home buyers:
- My First Texas Home Program is a 3-year forgivable second lien that offers flexible down payment and closing costs assistance. It provides competitive interest rates and up to 5% of your loan amount in down payment assistance.
- Home for Texas Heroes Home Loan Program: Designed for teachers, firefighters, police and correctional officers, EMS personnel and veterans.
- Home Sweet Texas Home Loan Program: Specifically designed for Texas home buyers with low-to-moderate income.
- Texas Mortgage Credit Certificate: The MCC allows you to claim a tax credit for a portion of the mortgage interest you pay each year.
- Texas Down Payment Assistance: Offers grants and low-interest loans to help with your down payment and closing costs.
Texas Department of Housing and Community Affairs (TDHCA) offers several programs under the State of Texas Homebuyer Program. These programs include:
- My Choice Texas Home Program is offered to borrowers with credit scores of 620 and above. Being a first-time home buyer is not a requirement, but borrowers must meet the income and property value limits.
- Texas Neighborhood Stabilization Program (SNP: The purpose of the Neighborhood Stabilization Program is to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight. NSP provides funds to purchase foreclosed, vacant or abandoned homes and residential properties.
- Local city and county programs are designed to support specific communities and revitalization efforts.
These programs can significantly reduce your out-of-pocket expenses, helping you become a homeowner faster and more affordably. In addition to state-sponsored initiatives, many Texas cities and counties offer local incentives for first-time buyers:
- Houston – The City of Houston offers assistance programs that provide up to $30,000 in down payment help depending on household income.
- Dallas/Fort Worth – Programs such as the Homebuyer Assistance Program (DHAP) help cover down payments and closing costs.
- Austin – The Austin Homebuyer Assistance Program supports low- and moderate-income families with loans that become forgivable after a period of occupancy.
- San Antonio – The city offers programs tied to revitalization and community development goals, making it easier for buyers to invest in targeted areas.
- Rural Communities – USDA loans remain one of the best tools for buyers in less urban areas, offering favorable terms with no down payment.
Texas Home Buying Process: Steps to Homeownership
Here’s how home ownership in Texas works from start to finish:
Check Your Financial Readiness
Before house hunting in Texas, take these essential steps:
- Review your credit score: Most Texas loan programs require a minimum score of 620, though FHA loans may accept scores as low as 580.
- Calculate your debt-to-income ratio: Aim to keep your total monthly debt payments (including your future mortgage) below 43% of your gross monthly income.
- Save for upfront costs: Beyond your down payment, prepare for closing costs that typically range from 2-5% of your loan amount in Texas.
- Financial preparation tip: Texas property taxes rank among the highest in the nation (averaging around 1.8% of assessed value), so factor this into your budget calculations.
Get Pre-Approved for a Mortgage
Before shopping for homes in Texas’s competitive market:
- Gather necessary documents: Recent pay stubs, W-2s, tax returns, bank statements, and identification.
- Shop multiple lenders: Compare rates, terms, and fees from at least three Texas mortgage providers.
- Obtain a pre-approval letter: This strengthens your offer by showing sellers you’re financially qualified.
Pre-approval advantage: In hot Texas markets like Austin and Dallas, sellers often won’t consider offers without pre-approval.
Work with a Texas Real Estate Agent
Finding the right agent can make all the difference:
- Look for local expertise: Choose an agent familiar with your target neighborhoods and Texas real estate laws.
- Ask about first-time buyer experience: Find someone patient enough to explain the Texas-specific aspects of the process.
- Discuss communication style: Ensure they’re responsive and communicate in your preferred way.
- Agent selection tip: Interview at least three agents and ask for references from other first-time buyers they’ve helped in Texas.
Find Your Texas Dream Home
Consider these factors when house hunting:
- Location priorities: Research Texas school districts, commute times, flood zones, and neighborhood amenities.
- Property types: Decide between single-family homes, condos, townhouses, or new construction.
- Future needs: Consider how long you plan to stay and whether the home can accommodate changes in your lifestyle.
- HOA considerations: Many Texas neighborhoods have Homeowners Associations with specific rules.
Common Questions from Texas First-Time Buyers
You may need as little as 3% to 3.5%, and some assistance programs offer zero-down options.
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Yes. We assess your debt-to-income ratio, and student loans don’t automatically disqualify you.
Generally, if you haven’t owned a home in the past three years, you qualify.
Some programs do have income and home price caps, but many buyers qualify with room to spare.
We work with buyers of all income types, including 1099 and self-employed applicants.
Pre-Qualify
Get Pre-Qualified Now
Ready to take the next step toward homeownership? Get prequalified in just a few minutes and find out how much you can invest in your future.
- Find Out Your Loan Qualification Quickly
Discover your qualification amount in 10 minutes or less with our easy, online pre-qualification process.
- Instant Qualification Results at Your Fingertips
Get an instant estimate of how much you can qualify for, streamlining your home-buying journey.
- Work with Award-Winning Loan Officers
Partner with our experienced, local loan experts who are dedicated to providing personalized and knowledgeable support.
- Close Your Loan in 30 Days or Less
Count on us to guide you smoothly through the process, ensuring your loan closes on time, every time.
Start Here
Take the First Step Toward Owning a Home in Texas
With the right support, guidance, and programs, your first home is closer than you think. Our experienced team is here to answer your questions, simplify the process, and help you secure a home loan that fits your goals. We don’t just help you get a mortgage, we help you build a future.
Buying your first home in Texas marks an exciting milestone in your life, one that combines financial opportunity with the deep satisfaction of putting down roots in the Lone Star State. Whether you’re eyeing a modern condo in Austin, a family-friendly suburban home in Dallas-Fort Worth, or an affordable property in Houston, this comprehensive guide will help you navigate the Texas housing market with confidence.
Call us at (877) 280-4833 to speak with one of our Home Loan Specialists.
