The State of Texas's first-time homebuyer program — a competitive 30-year fixed mortgage plus up to 5% of the loan amount for down payment and closing cost assistance, with an optional Mortgage Credit Certificate layered on top.
My First Texas Home is run by the Texas Department of Housing and Community Affairs (TDHCA). It combines a competitive fixed-rate 30-year mortgage with down payment and closing cost assistance of up to 5% of the loan amount, delivered as a deferred, forgivable second lien. It's designed for first-time buyers (and veterans), and can be combined with a Mortgage Credit Certificate for an ongoing annual tax credit.
"First-time buyer" means no ownership interest in a primary residence in the past 3 years. This requirement is waived for veterans and for homes in qualified targeted census tracts.
If you've owned a home in the past 3 years, the sister program My Choice Texas Home offers the same up-to-5% assistance with no first-time buyer requirement (and also allows conventional financing). Ask me which fits.
The up-to-5% assistance is delivered as a second lien with 0% interest and no monthly payment. It sits quietly behind your first mortgage and is forgiven over time as long as you keep the home. Selling or refinancing within the set period may trigger repayment of a prorated amount — I'll walk you through the exact terms for your structure.
The 5% can be applied to both, which is what allows many first-time buyers to get into a home with minimal cash out of pocket.
My First Texas Home uses FHA, VA, or USDA first mortgages. Conventional financing is available through the My Choice Texas Home program instead.
Rough estimate for illustration only. Closing costs assumed ~3% of price. Not an offer or approval — your real numbers depend on rate, county limits, seller credits, and underwriting.
| Program | Who It's For | Assistance | First-Time Buyer? | Loan Types |
|---|---|---|---|---|
| Homes for Texas Heroes | Teachers, police, fire, EMS, corrections, veterans | 3–5% DPA | Not required | FHA·VA·USDA·Conv |
| Home Sweet Texas | Any profession, low–moderate income | Up to 5% DPA | Not required | FHA·VA·USDA·Conv |
| TDHCA My First Texas Home | First-time buyers & veterans | Up to 5% DPA | Required* | FHA·VA·USDA |
| Texas MCC | First-time buyers wanting an annual tax credit | Up to $2,000/yr credit | Required* | FHA·VA·USDA·Conv |
A down payment assistance program (Heroes, Home Sweet Texas, or My First Texas Home) covers your cash to close, while an MCC adds an annual federal tax credit on top. I'll model the right combination for your situation.
*First-time buyer = no primary-residence ownership in the past 3 years; waived for veterans and qualified targeted areas. Income and purchase-price limits apply by county for all programs.
Let's check your county's income and price limits, see your assistance amount, and price out the MCC combo. No cost, no obligation. English & Turkish.