First-Time Homebuyer Programs
Special programs and down payment assistance for first-time buyers in Houston.
As low as 3% down with grants and tax credits available.
3% Down
Low down payment options for qualified buyers
Free Education
Homebuyer courses and expert guidance included
Grants Available
Up to $15K down payment assistance programs
First-Time Homebuyer Resources
First-time homebuyer programs offer special benefits and assistance to help you purchase your first home. In Houston and throughout Texas, numerous federal, state, and local programs provide low down payments, down payment assistance grants, tax credits, and flexible qualifying guidelines. Whether you're using FHA (3.5% down), Conventional 97 (3% down), or Texas-specific programs with grants, we'll help you find the best path to homeownership.
Houston's real estate market offers diverse opportunities for first-time buyers, from affordable starter homes in Cypress and Pearland to townhomes near Downtown and Energy Corridor. With programs like TSAHC, TDHCA, and Mortgage Credit Certificates, you can reduce your upfront costs and monthly payments significantly. Our first-time buyer specialists guide you through the entire process, from education courses to closing day, ensuring you make informed decisions and maximize available benefits.
First-Time Buyer Requirements
First-Time Buyer Status
Haven't owned home in past 3 years (most programs)
Down Payment Options
As low as 0-3.5% depending on program
Credit Score
580-620 minimum depending on loan type
Income Limits
Varies by program (some have no limits)
Homebuyer Education
8-hour course required for some grant programs
Property Requirements
Must be primary residence within income/price limits
Available First-Time Buyer Programs
FHA Loans (3.5% Down)
Most popular first-time buyer loan. Only 3.5% down with 580 credit score. Flexible underwriting, gift funds allowed.
Conventional 97 (3% Down)
Fannie Mae's first-time buyer program. Just 3% down with 620 credit. Lower PMI than FHA for good credit scores.
TSAHC Programs
Texas State Affordable Housing Corporation offers down payment assistance grants and competitive rates for Texas buyers.
TDHCA MCC & DPA
Texas Department of Housing offers Mortgage Credit Certificates (tax credit) and down payment assistance up to $15K.
USDA Loans (0% Down)
Zero down payment for eligible Houston suburban areas. No monthly PMI. Income limits apply.
HomeReady / Home Possible
Fannie Mae / Freddie Mac programs for moderate-income buyers. 3% down, flexible income sources, lower PMI.
First-Time Buyer Benefits
Frequently Asked Questions
Who qualifies as a first-time homebuyer in Houston?
Most programs define first-time homebuyer as someone who hasn't owned a primary residence in the past 3 years. This includes: individuals who have never owned a home, those who sold their previous home 3+ years ago, single parents who previously co-owned with ex-spouse, and displaced homemakers. Some Texas programs have additional specific criteria.
What down payment assistance programs are available in Houston?
Houston first-time buyers can access several programs: TSAHC offers down payment assistance grants, TDHCA provides up to $15,000 in assistance with income limits, Harris County programs offer local grants, and various lender-sponsored DPA programs. Many programs require homebuyer education courses. Assistance may be forgivable (becomes a grant) after 5-10 years of occupancy.
What is a Mortgage Credit Certificate (MCC) and how much can I save?
An MCC is a federal tax credit that allows you to claim a percentage of your mortgage interest (typically 20-40%) as a direct dollar-for-dollar tax credit instead of a deduction. For example, with a $300K loan at 7% interest and 30% MCC rate, you could save approximately $2,100 per year in federal taxes. MCCs are available through TDHCA and increase your purchasing power significantly.
Do I need to take a homebuyer education course?
It depends on the program. FHA and Conventional loans do NOT require education courses. However, most down payment assistance programs (TSAHC, TDHCA, Harris County) DO require an 8-hour homebuyer education course. These courses cover budgeting, mortgage products, the home buying process, and home maintenance. Courses are available online or in-person and typically cost $75-100.
Can I buy any home with first-time buyer programs in Houston?
Most programs have some restrictions. FHA and Conventional allow you to buy any home within loan limits ($766,550 in Harris County). Down payment assistance programs often have purchase price limits (typically $350K-450K depending on program and county) and income limits (usually 80-140% of area median income). Properties must be your primary residence and meet minimum property standards.
Ready to Buy Your First Home?
Our first-time buyer specialists will help you explore all available programs and grants. Get pre-approved and start your homeownership journey today.
Quick Facts: 3-3.5% down • Down payment grants • MCC tax credits • 580-620 credit • Free education • Expert guidance • Licensed in Texas • NMLS #2701989