Texas First Time Homebuyers: The Down Payment Assistance Program Most People Miss
If you are buying a home in Texas and you have been stuck on the down payment, there is a state program a lot of first time buyers overlook: My First Texas Home, offered through the Texas Department of Housing and Community Affairs (TDHCA).
It is designed to help eligible buyers with down payment assistance and a 30-year fixed, low-interest mortgage option, which can be a big deal when cash is the main obstacle.
Below is a clear breakdown of how it works, who it is for, and what to check before you assume you do not qualify.
What is My First Texas Home?
My First Texas Home is part of the TDHCA Homebuyer Program and is built for first time homebuyers (with some exceptions). TDHCA describes it as offering down payment assistance and 30-year, low-interest mortgage rates.
There are also exceptions to the first-time homebuyer requirement in targeted areas and for qualified veterans, which helps more Texans qualify than many people realize.
What kind of down payment help can it provide?
The program uses down payment assistance options that are often structured as a second lien (and the exact structure depends on the option you select). In the TDHCA rate notice, down payment assistance is commonly shown in tiers like 2%, 3%, 4%, or 5%.
That matters because for many buyers, closing becomes possible when assistance bridges the gap between “I can afford the payment” and “I cannot save fast enough for the cash to close.”
What about the interest rate you mentioned?
Rates change, so the best habit is to check the current TDHCA Rate Notice (it updates as pricing changes).
For example, TDHCA’s Rate Notice dated 1/15/2026 shows a “Bond Funded Loan (FHA, USDA, VA)” with different rates depending on the down payment assistance percentage. One of the published combinations includes 5.875% at the 4% DPA level.
That is why you may hear specific numbers in conversations, but the real takeaway is: the rate is tied to the chosen assistance option and can change with the rate notice.
Do you have to make under $100,000 to qualify?
Not always. A lot of people use “under $100K” as a rough rule of thumb, but TDHCA qualification uses income limits and purchase price limits that vary by location.
TDHCA publishes a limits document showing that income limits differ by county and whether the home is in a targeted area. The document also states the effective dates for limits (for example, one table shows income and purchase price limits effective May 27, 2025).
So instead of guessing, the right move is to check your county and household situation against TDHCA’s published limits.
A big requirement most people miss: homebuyer education
TDHCA requires completion of an approved homebuyer education course to qualify for assistance through the program.
This is usually straightforward, but it can take time, so it is smart to handle it early if you are planning to buy.
One important fine print item: recapture tax
TDHCA notes that My First Texas Home (MFTH) is subject to recapture tax.
Recapture does not apply to everyone, but it is worth understanding before you commit. If you qualify for this program, ask your loan officer to explain how recapture works and when it can apply, and consider checking with a tax professional for your situation.
Who should look into this?
This is worth a quick eligibility check if you are:
A first time homebuyer in Texas
Buying in a targeted area (or you are a qualified veteran)
Able to qualify for the mortgage payment, but short on cash for the down payment
Willing to complete the required homebuyer education
Bottom line
A lot of Texas buyers assume they have to wait years to save a down payment. My First Texas Home is one of the programs that can shorten that timeline when the numbers fit.
If you want me to point you to the current limits for your county and the latest rate notice options, comment TXHOME and I will send the info.
