Texas First Time Home Buyer Guide: Programs and Tips for 2026
Everything Texas first-time home buyers need to know about programs, down payment assistance, loan options, and the home buying process in 2026.
Who Qualifies as a First-Time Home Buyer?
In Texas, you are considered a first-time homebuyer if you have not owned a primary residence in the past 3 years. This means even if you owned a home previously, you may qualify as a first-time buyer again.
First-Time Buyer Status
- Never owned a primary residence
- No ownership in past 3 years
- Divorced or separated who only owned with former spouse
- Single parent who only owned with former partner
- Displaced homemaker who only owned with spouse
First-Time Buyer Loan Programs
FHA Loans
- 3.5% down payment
- 580 minimum credit score
- Gift funds accepted
- Flexible qualifying guidelines
Conventional 97
- 3% down payment
- 620 minimum credit score
- First-time buyers only
- PMI removable at 20% equity
VA Loans (Veterans)
- 0% down payment
- No mortgage insurance
- Competitive rates
- Available to eligible veterans and active duty
USDA Loans
- 0% down payment
- For eligible rural and suburban areas
- Income limits apply
- Low mortgage insurance
Down Payment Assistance for First-Time Buyers
My First Texas Home
- Up to 5% down payment assistance
- Forgivable after 5 years
- Below-market interest rates
- Statewide availability
Local City Programs
- Houston, Dallas, Austin, San Antonio programs
- Grants and forgivable loans available
- City-specific eligibility requirements
- Can be combined with state programs
Steps to Buying Your First Home in Texas
- Get Pre-Approved: Contact a lender to determine how much you can afford and get pre-approval letter
- Complete Homebuyer Education: Required for many DPA programs and helpful for all first-time buyers
- Find a Real Estate Agent: Work with an experienced buyer agent who knows the Texas market
- Search for Homes: Look for properties within your budget and that meet your needs
- Make an Offer: Your agent helps you write a competitive offer with appropriate contingencies
- Home Inspection: Hire professional inspector to evaluate property condition
- Final Underwriting: Lender completes loan processing and verification
- Close on Your Home: Sign final paperwork and receive keys to your new home
Frequently Asked Questions
What credit score do I need as a first-time buyer in Texas?
Minimum credit scores vary by program: FHA accepts 580, conventional typically requires 620, VA does not mandate a minimum, and USDA recommends 640.
How much do I need for a down payment?
Down payment requirements range from 0% (VA, USDA) to 3.5% (FHA) to 3% (conventional). With down payment assistance, many first-time buyers purchase with minimal out-of-pocket costs.
Can I use gift money for my down payment?
Yes, most loan programs allow 100% of your down payment to come from gift funds from family members with proper documentation.
Ready to Buy Your First Home in Texas?
Ken Harmon specializes in helping first-time home buyers throughout Texas navigate the home buying process, access down payment assistance, and find the right loan program.
Get pre-approved today and start your journey to homeownership.