Moving is one thing. Moving to Texas is another. There’s a reason the Lone Star State has rapidly become one of the most popular states to move to. Why is that? From first-time home buyer grants in Texas to affordable home prices from builders like NHC, the state has positioned itself as an ideal option for those who may be purchasing property for the first time. In this comprehensive guide, we’ll break it all down, starting with why Texas has become one of the top destinations in the U.S. for home buyers.

Why Do So Many People Move to Texas?

Before we discuss the first-time home buyer grants in Texas that you could take advantage of, let’s first establish why the real estate market in this state is booming. Many factors make the Lone Star State an appealing option, including affordability and its strong economy. Let’s briefly discuss them.

1. Affordable Housing

Compared to other major states like California and New York, Texas offers a significantly lower cost of living. Just take our communities across the state, for example. With prices as low as $75 per square foot, we can get you and your family into a spacious home for hundreds of thousands LESS than the market average. Be sure to check out our available homes today before they sell out!

2. Competitive Job Market

Texas is home to a thriving economy with job opportunities across multiple industries, including technology, healthcare, finance, and energy. Cities like Austin have become tech hubs, attracting major companies such as Tesla, Apple, and Oracle. Meanwhile, Houston remains a leader in energy and healthcare, and Dallas-Fort Worth continues to expand as a financial and corporate powerhouse.

3. No State Income Tax

Another benefit on top of Texas’s first-time home buyer grants and affordable housing is no state income tax. This means residents take home more of their paycheck compared to those living in states with higher rates. Young professionals, families, retirees, and even entrepreneurs can all maximize their earnings in the Lone Star State.

4. Thriving Entertainment Scene

Finally, Texas provides residents with a wide range of entertainment options—from professional sports to live music to its unique food culture. Outdoor enthusiasts can also enjoy hiking, fishing, and other activities in Texas’ vast landscapes. Now, let’s shift our focus back to first-time home buyer grants in Texas.

Are You a First-Time Home Buyer?

Not everyone will qualify for first-time home buyer grants and programs in Texas. So, before we cover each individual program, let’s first establish what qualifies a person as a first-time home buyer. While the term might seem straightforward, its definition can vary depending on the loan or assistance program.

In many cases, buyers who meet certain criteria—even if they’ve owned a home before—may still qualify for first-time home buyer grants in Texas. Understanding these qualifications is essential when applying for first-time homebuyer programs. Even if you don’t fit the traditional definition, you might still be eligible for assistance that can make purchasing a home more affordable.

• Never owned a home before: In many cases, a first-time home buyer is someone who has never owned a home before. If you’ve only rented or lived with family and are now looking to purchase your first property, you will likely qualify for most first-time home buyer programs in Texas. These programs aim to help new buyers enter the housing market with lower financial barriers.
• Haven’t owned a home in the last three years: What many don’t know is that some programs, both on the federal and state level, may define a first-time home buyer as someone who simply hasn’t owned a primary residence for at least the last three years. This rule helps people who previously owned a home but have been renting or living elsewhere regain access to special loan programs and grants.
• Active or Former Military Service Member or First Responder: Some first-time home buyer programs and grants in Texas offer additional flexibility for veterans, active-duty service members, and certain public service professionals. Even if they’ve owned a home before, they may still be eligible for programs that offer down payment assistance, low-interest loans, or other financial benefits.

What First-Time Home Buyer Grants Are Available in Texas?

So, what first-time home buyer programs in Texas can qualifying individuals and families take advantage of? Whether you need financial assistance or a loan with better terms, these programs can make homeownership more accessible. Let’s break them down one by one.

My First Texas Home Program

This first-time Texas home buyer program is designed to give eligible recipients assistance on closing costs and down payments, up to 5% of the total loan amount. The down payment assistance comes as a second loan with no interest and deferred payments. Buyers must meet income and credit score requirements and purchase a home in Texas with a 30-year mortgage.

Home Sweet Texas Loan Program

Offered by the Texas State Affordable Housing Corporation (TSAHC), this Texas first-time home buyer grant is aimed at low-to-moderate-income buyers. It provides down payment and closing cost assistance as either a grant or a forgivable second loan. Buyers must meet income and credit requirements, and the home must serve as their primary residence.

Homes for Texas Heroes Program

Also offered by the TSAHC, this first-time Texas home buyer program is designed for public service professionals—including teachers, police officers, firefighters, EMS personnel, and veterans. It offers competitive interest rates on loans and down payment assistance, up to 5% of the total loan amount. Like the Home Sweet Texas first-time buyer program, this assistance can be taken as a grant or second mortgage.

Texas Mortgage Credit Certificate (MCC) Program

This first-time Texas home buyer grant helps you save on your federal taxes every year. Qualified home buyers can recoup up to 15% of what they spend on their mortgage interest back each year when they file their federal tax returns. The best part? It’s available alongside the first-time Texas home buyer grants and programs listed above, significantly reducing the cost of homeownership over time.

City-Specific Programs

In addition to state-level programs, many Texas cities offer their own version of first-time Texas home buyer grants. Abilene, for example, offers up to $5,000 in assistance for eligible first-time buyers, further adding to Texas’s affordability. Be sure to research your desired city to see if they offer similar programs.

What Federal Programs Are Available?

In addition to Texas first-time home buyer grants and programs, can you get additional support from the federal government, too? The short answer: It’s complicated. For starters, the threat of tariffs could see home prices spike. And while the outlook for the First-Time Homebuyer Tax Credit Act is unclear at the moment, there are several federal programs designed to make homes more affordable for certain buyers.

• FHA Loans: FHA loans are a popular choice for first-time buyers because they require as little as 3.5% down with a credit score of 580 or higher. While they’re not a Texas first-time buyer grant, these loans have more lenient credit requirements, making them ideal for buyers with limited savings or lower credit scores.
• VA Loans: VA loans offer zero down payment financing for eligible military service members, veterans, and some surviving spouses. These loans also feature competitive interest rates, no private mortgage insurance (PMI), and flexible credit requirements. The VA guarantees a portion of the loan, making it easier for lenders to offer favorable terms.
• USDA Loans: Designed for low-to-moderate-income buyers in rural and some suburban areas, USDA loans require zero down payment and offer lower mortgage insurance rates than FHA loans.

NHC: America’s Affordable Home Builder

Are you looking to become a first-time homeowner in Florida, Alabama, or North Carolina? Like Texas, these states also have competitive first-time buyer grants and programs. And as the industry price leader, we’re on a mission to help every buyer get the space they deserve at a price they can truly afford. Browse our newly constructed communities to see how easy it is to achieve the American Dream at NHC! Plus, when you finance with our lending partner, NHC Mortgage, we offer low payments to go under contract. Check out our mortgage calculator to get a better picture of what you could be paying for a new home. You can also contact us today to learn more about our process.

FAQs

What are today’s mortgage rates in Texas?

At the time of writing this guide, the average mortgage rate in Texas has dropped to 6.61%, according to Zillow. This number can vary depending on which lender you use. Because rates can rise and fall daily, it is best to check with multiple lenders to see where you can find the most competitive offer.

Does Texas offer first-time home buyer programs?

Yes! Texas offers several first-time home buyer grants and programs that are designed to help make homes more affordable. These include the My First Texas Home Program and the Texas Mortgage Credit Certificate Program. These initiatives offer benefits such as down payment assistance and tax credits to make homeownership more accessible.

How much do first-time home buyers have to put down in Texas?

The required down payment for first-time homebuyers in Texas varies by loan program. For example, FHA loans may require as little as 3.5% down, while some state programs offer down payment assistance that can cover part or all of the required amount. Eligibility and assistance amounts depend on factors like income and credit score.

What is the income limit for Texas's first-time home buyer programs?

For Texas’s first-time home buyer grants and programs, income limits may vary. For example, the Texas State Affordable Housing Corporation (TSAHC) sets income limits that differ across regions. It's essential to consult the specific program's guidelines or contact a participating lender to determine the applicable income limits for your area.