My First Texas Home is the Texas Department of Housing and Community Affairs (TDHCA) program for first-time buyers. It pairs a 30-year fixed-rate FHA, VA, or USDA loan with down payment and closing cost help of up to 5% of the loan amount, delivered as a 0% second lien. You'll need a 620 middle credit score, a HUD-certified homebuyer course, and income and price within TDHCA's limits.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton. My broader guides cover every Texas program. This one stays on My First Texas Home only, built from TDHCA's own program documents as I read them on October 16, 2026.
Wondering if you qualify? Get Pre-Approved or Book a Free Consultation.
What My First Texas Home Is (and Isn't)
- Loan types: FHA, VA, or USDA, as a 30-year fully amortizing fixed-rate loan.
- Not conventional. TDHCA's conventional options sit under a separate program, My Choice Texas Home, which has no first-time buyer requirement.
- Through participating lenders. You don't apply to TDHCA directly.
Options change daily. TDHCA publishes a daily Rate Notice, and what's offered Monday may be gone by Friday. Confirm the current menu on the TDHCA Homebuyer Programs page.
Who Qualifies for My First Texas Home
The First-Time Buyer Rule
You're a first-time buyer to TDHCA if you haven't owned and occupied a primary residence in the last three years. The rule covers every borrower and any non-purchasing spouse, and all must be on the title and Deed of Trust. Your lender checks three years of tax returns or IRS transcripts.
Two Exceptions
You can skip the first-time rule if:
- You're a qualified veteran. You or your spouse was honorably discharged (shown on a DD-214) and hasn't already used the mortgage revenue bond veteran exception.
- The home is in a Qualified Targeted Census Tract.
First-time buyers also sign a Texas Residency Affidavit showing a current Texas address.
Credit and Debt-to-Income
- Minimum middle credit score: 620.
- Debt-to-income follows automated underwriting findings; manual underwriting allows a 45% maximum DTI for FHA, VA, and USDA.
- TDHCA notes that additional credit requirements apply.
Income and Purchase Price Limits
Household income counts everyone who signs the Deed of Trust, including a non-purchasing spouse. Bell, Coryell, and McLennan fall under TDHCA's "Balance of State" row.
| Area (2026) | Income, 1-2 persons | Income, 3+ persons | 1-unit price limit |
|---|---|---|---|
| Bell, Coryell, McLennan | $101,500 | $116,725 | $566,354 |
| Bell, Coryell, McLennan (targeted area) | $121,800 | $142,100 | $692,211 |
| Williamson, Travis | $134,400 | $154,560 | $598,019 |
| Williamson, Travis (targeted area) | $161,280 | $188,160 | $730,912 |
Source: TDHCA Income and Purchase Price Limits, effective July 13, 2026. Targeted limits apply only if the home is in a qualified targeted census tract.
How the Assistance Works: 30-Year Deferred vs. 3-Year Forgivable
TDHCA describes the help as 2% to 5% of the total loan amount, funding permitting, as one of two second liens:
| Feature | 30-Year Deferred Repayable | 3-Year Deferred Forgivable |
|---|---|---|
| Interest rate on the second | 0% | 0% |
| Required monthly payment | None (voluntary payments allowed) | None |
| When it's due | Sale, refinance, transfer, or payoff of the first lien | Sale, refinance, or payoff of the first lien before forgiveness |
| Forgiveness | None; repaid in full | Fully forgiven after 36 months if you're current on the first lien and still live there |
| Costs and penalties | Recording fees only; no prepayment penalty | Recording fees only; no prepayment penalty |
Source: TDHCA My First Texas Home Program Matrix, August 2026.
Availability shifts. On the October 15, 2026 Rate Notice, the 3-year forgivable option appeared only in the My First Texas Home + MCC Combo. Expect up to 5%, depending on the option and what's available that day. There's also an Un-Assisted option with no down payment help; it can't be combined with an MCC.
Choosing Between Them
The forgivable second makes sense if you're confident you'll stay three years. The repayable second never goes away on its own, so plan to pay it back when you sell or refinance.
A buyer in Georgetown planning to stay long term wanted to compare grants, forgivable seconds, and repayable seconds. We weighed the rate, payment, upfront costs, and exactly what would trigger repayment, so the trade-off was clear before they made an offer.
Illustrative scenario, not an actual client transaction. Forgiveness and repayment terms depend on the specific program.
Adding a Mortgage Credit Certificate
The My First Texas Home + MCC Combo adds a federal tax credit. TDHCA's October 15 Rate Notice lists a 15% credit rate for the Combo, with a $400 issuance fee (waived for the Military Combo) and a $225 compliance review fee.
Extra Gift Funds in Williamson County
Buying in Round Rock, Georgetown, Cedar Park, or Leander? Capital Area HFC offers a $2,500 gift in Williamson (and Hays) County. It must be combined with a TDHCA product, isn't repaid, and is first come, first served (details).
Homebuyer Education Requirement
Each borrower must complete a HUD-certified pre-purchase course; financial-literacy-only classes don't count. TDHCA lists Finally Home!, Freddie Mac CreditSmart Homebuyer U, and Fannie Mae HomeView. Non-occupying co-signers are exempt.
Other Rules to Know
- Move in as your principal residence within 60 days of closing. The home must be in Texas.
- Eligible homes: single-family, condo, PUD, manufactured (real property), and owner-occupied duplexes.
- Recapture tax: these loans may be subject to federal recapture tax. Ask a tax professional.
My First Texas Home vs. TSAHC Programs
The Texas State Affordable Housing Corporation (TSAHC) runs the other statewide option:
| Feature | My First Texas Home (TDHCA) | Homes for Texas Heroes / Home Sweet Texas (TSAHC) |
|---|---|---|
| First-time buyer required? | Yes, with veteran and targeted-tract exceptions | No; first-time and repeat buyers |
| Loan types | FHA, VA, USDA | FHA, VA, USDA, HFA conventional |
| Assistance | Up to 5%: 30-year deferred repayable or 3-year forgivable second | Up to 5%: grant, 3-year forgivable second, or (when available) 30-year deferred repayable second |
| Minimum credit | 620 middle score | 620 government loans, 640 conventional |
| MCC | Available through the Combo | First-time buyers, paired with a TSAHC loan |
Sources: TDHCA Program Matrix (Aug 2026) and TSAHC Guidelines (Sept 9, 2026).
Steps to Use My First Texas Home
- Check your first-time status for the last three years, or an exception.
- Talk with a participating lender to check the loan and assistance together.
- Confirm your county's limits, including targeted tracts.
- Take the HUD-certified course (every borrower).
- Pick your assistance from that day's Rate Notice.
- Shop within the price limit, close, and move in within 60 days.
Questions for TDHCA directly? Call 1-800-792-1119 or email txhomebuyer@tdhca.texas.gov.
Frequently Asked Questions
Is My First Texas Home assistance a grant?
No. It comes as a 0% second lien. The 30-year deferred option is repaid when you sell, refinance, transfer, or pay off the first loan. The 3-year option is fully forgiven after 36 months if you stay current on the first loan and keep living in the home.
Who counts as a first-time buyer for My First Texas Home?
Anyone who hasn't owned and occupied a primary residence in the last three years, including a non-purchasing spouse. TDHCA waives the rule for qualified veterans with a DD-214 and for homes in a Qualified Targeted Census Tract.
What credit score do I need for My First Texas Home?
TDHCA requires a minimum middle credit score of 620. Debt-to-income follows automated underwriting, and manual underwriting is allowed for FHA, VA, and USDA loans with a 45% maximum DTI.
Can I use My First Texas Home with a conventional loan?
No. My First Texas Home uses FHA, VA, or USDA loans only. TDHCA offers conventional financing through its My Choice Texas Home program, which does not require first-time buyer status.
What happens to the 3-year forgivable second if I sell early?
If you sell, refinance, or pay off the first loan before the 36-month forgiveness date, the second lien is due in full. There are no monthly payments before then and no prepayment penalty.
Ready to See If My First Texas Home Fits?
I'll compare it with TSAHC and standard low-down-payment loans using your real numbers.
Get Pre-Approved | Book a Free Consultation
Related Guides
- Down Payment Assistance in Texas
- Texas First-Time Home Buyer Programs
- FHA Loans
- FHA vs. Conventional in Texas
- VA Loan Limit in Texas
- VA Loans and USDA Loans
Taylor Ring, NMLS #2809683 | Fairway Independent Mortgage Corporation, NMLS #2289 | The Wood Group of Fairway, 127 Lake Rd Ste 300, Belton, TX 76513 | Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval and program guidelines, and approval, rates, and program availability are not guaranteed. Not affiliated with or endorsed by TDHCA, TSAHC, or any government agency.