- "First-time buyer" includes anyone who hasn't owned in 3+ years — many returning buyers qualify
- Texas TDHCA My First Texas Home offers up to 5% DPA on the loan amount
- TSAHC provides non-repayable grants plus federal tax credits up to $2,000/year
- FHA + DPA can produce $0 out of pocket for many qualifying Texas buyers
- Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down with reduced PMI
- USDA and VA loans offer 0% down for eligible buyers in qualifying areas
A first-time homebuyer is defined under most program guidelines as anyone who has not owned a primary residence in the past 3 years — meaning many returning buyers qualify. Texas programs include TDHCA My First Texas Home (up to 5% DPA) and TSAHC grants (3–5%, no repayment). Nationally, FHA + DPA stacking can enable $0 out-of-pocket closings for qualifying buyers.
Buying your first home is one of the most exciting — and most overwhelming — financial milestones of your life. The good news: there are more programs designed to help first-time buyers than most people realize. From $0 down payment options to closing cost grants, Texas and national programs can dramatically reduce what you need to bring to closing.
Who Counts as a "First-Time Homebuyer"?
Ready to Get Pre-Qualified?
Dustin Carlson · NMLS #193009 · First Colony Mortgage · NMLS #3112
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The definition is broader than you might think. A first-time homebuyer is generally anyone who has not owned a primary residence in the past 3 years. This means:
- True first-timers who have never owned a home
- Previously divorced individuals who haven't owned since the divorce
- Anyone who owned a home more than 3 years ago but has been renting since
This "3-year rule" opens the door for many returning buyers who've experienced financial setbacks or life transitions.
Texas First-Time Homebuyer Programs
TDHCA — My First Texas Home
The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program, which provides:
- Down payment assistance of up to 5% of the loan amount
- Competitive 30-year fixed interest rates
- Available with FHA, VA, USDAand conventional loans
- Income limits vary by county and household size
- Purchase price limits apply
TSAHC — Home Sweet Texas
The Texas State Affordable Housing Corporation (TSAHC) offers grants and mortgage credit certificates (MCCs) to first-time and repeat buyers in targeted areas:
- Down payment grants of 3–5% — no repayment required
- Mortgage Credit Certificate (MCC): a federal tax credit worth up to $2,000/year for the life of the loan
- No first-time buyer requirement in targeted areas
Houston and Local Programs
The Houston area, including The Woodlands, Springand surrounding communities, has additional city and county programs. Dustin stays current on all local DPA availability — call for the latest.
National First-Time Homebuyer Programs
FHA Loans — 3.5% Down
The most popular first-time buyer program nationally. FHA requires just 3.5% down with a 580+ credit score. When layered with DPA, buyers can close with $0 out of pocket. See our FHA Loan Requirements 2026 guide →
Fannie Mae HomeReady — 3% Down
Fannie Mae's HomeReady program offers 3% down for first-time buyers (and qualified repeat buyers) with income at or below 80% of area median income (AMI). Benefits include reduced PMI rates and flexibility around household income sources.
Freddie Mac Home Possible — 3% Down
Similar to HomeReady, Freddie Mac's Home Possible program allows 3% down with no minimum borrower contribution for 1-unit properties. Gift funds and DPA can cover the entire down payment.
USDA Loans — 0% Down in Rural Areas
USDA Rural Development loans require zero down payment for eligible buyers in rural and suburban areas. Many communities near major Texas cities qualify. Income limits apply.
VA Loans — 0% Down for Veterans
Active duty military, veteransand eligible surviving spouses can purchase with zero down and no mortgage insurance. See our VA Loan Benefits guide →
Down Payment Assistance (DPA) Programs
DPA programs are one of the most underutilized resources in home buying. They come in several forms:
| DPA Type | How It Works | Best For |
|---|---|---|
| Grant | Complimentary money — no repayment ever | Buyers who plan to stay 5+ years |
| Forgivable Loan | Forgiven after 3–10 years in home | Buyers planning to stay medium-term |
| Deferred Loan | No payments until sale or refi | Buyers with tight monthly budgets |
| Second Mortgage | Low-rate repayable second lien | Buyers with capacity to repay over time |
Find Out Which Programs You Qualify For
Dustin will identify every DPA program available in your county, stack them with the optimal loan type and tell you exactly how much you need to bring to closing. Many Texas buyers close with $0 down. Get your no-obligation pre-qualification today.
Find My First-Time Buyer Programs →Dustin Carlson NMLS #193009 · First Colony Mortgage Corporation NMLS #3112