Texas First Time Homebuyers Program

If you are a first-time homebuyer (or you have not owned a home within the past three years) and you have a low to moderate income, you may be eligible for assistance through the Texas First-Time Homebuyer Program. Assistance is available in different forms such as:

  • 1.) First lien mortgage loans (although the interest rate is generally higher than market rates).
  • 2.) Funds for down payment and closing costs (up to 4% of the loan amount). These funds are in the form of a second lien, 30 year, zero interest loan that is not repayable until after the first lien is paid off. If the home is sold, these funds are required to be paid back at that time.
  • 3.) You cannot earn more than 115% of the area median family income.
Other Notable Items:
  • 1.) The home must be a primary residence.
  • 2.) Any new or existing home applies, including certain manufactured homes.
  • 3.) Borrowers must complete one of two homebuyer education counseling courses.
  • 4.) Certain tax implications could apply if:
    • a.) The home is sold within three years.
    • b.) The borrower’s income increases significantly during the time the house is owned.
    • c. There is profit from the sale of the home.
  • 5.) The first time homebuyer requirement is waived for qualified veterans.
For more information on this program, please visit http://www.tdhca.state.tx.us/homeownership/fthb.