What's the minimum credit score for first-time home buyer programs in Texas?

Most Texas first-time home buyer programs — TSAHC, TDHCA, and all major city programs (Houston HAP, Dallas MAP, Austin DPA, San Antonio HIP) — require a minimum FICO score of 620. A handful of participating lenders will go down to 580 on FHA-backed loans, but most DPA programs are unavailable below 620.

How much down payment assistance can I get in Texas?

It depends on where you live and which programs you can stack. State-level DPA through TSAHC or TDHCA provides up to 5% of the loan amount. City programs layer on top: Houston HAP up to $30,000, Dallas MAP up to $60,000, Austin DPA up to $40,000, San Antonio HIP up to $20,000. A buyer in Dallas stacking TDHCA plus Dallas MAP can receive approximately 5% plus $60,000 — often enough to cover the entire down payment and most closing costs.

Do I have to be a first-time buyer to use TSAHC or TDHCA?

TSAHC's Home Sweet Texas program and Homes for Texas Heroes do NOT require first-time buyer status — any qualifying Texan can apply. TDHCA's My First Texas Home requires first-time buyer status (no primary residence ownership in the past 3 years, with standard federal exceptions for veterans and targeted areas). TDHCA's My Choice Texas Home is their alternative for non-first-time buyers.

Can I stack a city program on top of a state program in Texas?

Yes, usually. A common stack is TDHCA My First Texas Home (state-level 5% DPA) plus Houston HAP, Dallas MAP, Austin DPA, or San Antonio HIP (city-level forgivable DPA). You cannot stack two state DPA programs (TSAHC + TDHCA), and you generally cannot stack a county program with a city program in the same jurisdiction. Your loan officer will confirm the specific stack that applies to your scenario.

What's the difference between TSAHC and TDHCA?

Both are state agencies running first-time buyer DPA programs, but they serve different income brackets. TSAHC (Texas State Affordable Housing Corp) has more generous income limits — up to about 250% AMI in most counties — which makes it accessible to middle-income buyers. TDHCA (Texas Department of Housing and Community Affairs) is tighter at 80%–115% AMI depending on area, but often has slightly better interest rates when you qualify. If your income is over 115% AMI, TSAHC is your only state option.

What's an MCC and is it worth it?

A Mortgage Credit Certificate (MCC) is a federal tax credit equal to 20% of the mortgage interest you pay each year, capped at $2,000 annually, for the life of the loan. It's a dollar-for-dollar reduction in your federal tax bill, not a deduction. For a borrower keeping the home 10+ years and paying enough federal tax to use the credit, an MCC is typically worth more than most single-use DPA grants. The one-time issuance fee runs $500–$700. Both TSAHC and TDHCA issue MCCs, and you can stack an MCC with DPA.

What happens if I don't qualify for any of these programs?

Three paths. First, credit repair if your score is under 620 — a 40-to-60-point jump in six months is realistic if the underlying issue is revolving balance utilization. Second, a larger down payment (10%+) that unlocks conventional financing without first-time buyer eligibility. Third, a rent-to-own contract that locks in a purchase price while you build credit and savings over a 24–36 month lease term. Texas has the strongest rent-to-own consumer protections in the country, so the structure can work for a tenant-buyer on a clear improvement trajectory.

First-Time Home Buyer in Texas: Which of the 14 Programs Is Actually Right for You

TL;DR

Texas has more first-time home buyer programs than almost any other state — the two big state programs (TSAHC and TDHCA), a Mortgage Credit Certificate (MCC) tax credit, targeted programs for teachers, veterans, and first responders, plus county programs in Harris, Travis, Dallas, and Bexar and city programs in Houston, Dallas, Austin, and San Antonio. The right program depends on where you live, your income relative to Area Median Income (AMI), your credit score (620 is the most common minimum), and whether you're in a priority occupation. Most state and city programs can be stacked; most require the property to be your primary residence for at least three years. If none of these programs fit you yet, a rent-to-own contract can serve as a qualifying bridge while you improve your credit and save a down payment.

The four types of first-time buyer assistance in Texas

Every Texas program falls into one of four buckets. Knowing which bucket you need narrows the 14 options down to 2–3.

Type	What it gives you	Typical eligibility	Example
Income-limited DPA	Grant or forgivable loan for down payment / closing costs	Income ≤ 115%–250% AMI depending on program, primary residence	TSAHC Home Sweet Texas, TDHCA My First Texas Home
Mortgage Credit Certificate (MCC)	Federal tax credit on mortgage interest, up to $2,000/yr for life of loan	First-time buyer, income + price limits	TSAHC and TDHCA both issue MCCs
Special-occupation programs	DPA + preferred rates for teachers, police, firefighters, nurses, veterans	Current employment in qualifying role	TSAHC Homes for Texas Heroes
City / county DPA	Forgivable second loans for down payment, usually 5-year residency requirement	Income ≤ 80% AMI typical, property must be inside the jurisdiction	City of Houston HAP, Harris County HFC, San Antonio HIP

You can often stack one state program with one city or county program, but you cannot stack two city programs or two state DPA programs.

Who counts as a "first-time buyer" in Texas

The federal definition, which Texas programs follow:

You have not owned a principal residence in the past three years
You are buying a home as your principal residence
You meet program-specific income and purchase-price limits

Exceptions that waive the 3-year rule:

You are a qualified veteran
The home is in a federally-designated targeted area (HUD-Qualified Census Tracts or Areas of Chronic Economic Distress)
You are a displaced homemaker or single parent who owned only jointly with a former spouse

If any of those apply, you can still qualify for "first-time buyer" programs even as a previous homeowner.

State-level programs: TSAHC vs TDHCA

Texas has two separate state housing agencies. Both run first-time buyer programs. They are not the same, and the one you qualify for depends on income and occupation.

TSAHC — Home Sweet Texas Home Loan

Run by the Texas State Affordable Housing Corporation, a state-chartered nonprofit. Open to any Texan meeting the income and credit limits (not only first-time buyers, despite the name).

Down payment assistance: up to 5% of the loan amount as a grant (non-repayable) or forgivable second lien
Income limit: up to roughly 250% of AMI in most counties — generous compared to TDHCA
Credit score minimum: 620
Purchase price limit: varies by county, typically $500K–$750K in major Texas metros
MCC available: yes, can be combined for additional tax credit

TDHCA — My First Texas Home

Run by the Texas Department of Housing and Community Affairs. Restricted to first-time buyers only (with the exceptions above).

Down payment assistance: up to 5% of the loan amount as a deferred-payment second lien
Income limit: 80% AMI in targeted areas, 115% AMI in non-targeted areas — tighter than TSAHC
Credit score minimum: 620
Purchase price limit: county-specific FHFA limits
MCC available: yes

TDHCA — My Choice Texas Home

TDHCA's program for buyers who don't qualify as first-time buyers. Same DPA structure as My First Texas Home, but no first-time restriction — useful for divorced or displaced homeowners who don't meet a waiver.

Which of the three to apply to

You are…	Apply to
Household income > 115% AMI	TSAHC Home Sweet Texas (only state option)
First-time buyer, income ≤ 115% AMI	TDHCA My First Texas Home (often better rates than TSAHC)
Non-first-time, income ≤ 115% AMI	TDHCA My Choice Texas Home
A teacher, firefighter, police officer, nurse, EMT, corrections officer, or veteran	TSAHC Homes for Texas Heroes (5% DPA plus below-market interest rate)

Mortgage Credit Certificate (MCC)

An MCC is a federal tax credit — not a deduction — on mortgage interest. Separate from DPA. Both TSAHC and TDHCA issue them.

Credit size: 20% of annual mortgage interest paid, capped at $2,000/year
Duration: for the life of the loan, as long as you live in the home as your primary residence
Eligibility: first-time buyer (with exceptions), income ≤ county limit, purchase price ≤ county limit
Cost: one-time MCC issuance fee, typically $500–$700

An MCC is worth more over time than most DPA grants if you plan to keep the home for 10+ years. Stack it with DPA where eligible.

Special-occupation programs (Homes for Texas Heroes)

TSAHC's Homes for Texas Heroes extends Home Sweet Texas DPA and preferred rates to:

Professional educators (teachers, counselors, librarians, nurses in schools)
Veterans and active-duty military
Police officers and public security officers
Correctional officers
Firefighters and EMS personnel

Same income limits as Home Sweet Texas (generous, up to ~250% AMI in most counties), same 620 credit minimum, same 5% DPA. Typically offered at an interest rate 0.25%–0.50% below standard TSAHC products.

County programs

County programs stack with state programs. They are geography-restricted and usually income-restricted to 80% AMI.

Harris County HFC — Harris County Housing Finance Corporation offers DPA and below-market loans for homes in unincorporated Harris County (not inside Houston city limits, which has its own program).
Travis County — DPA for homes in Travis County outside Austin city limits.
Dallas County — DPA through the Dallas County HFC for homes outside Dallas city limits.
Bexar County — DPA outside San Antonio city limits.

If the home you're buying is inside a major Texas city, the city program usually gives more than the county program — apply to the city one.

City programs by metro

Houston Homebuyer Assistance Program (HAP)

DPA: up to $30,000 as a forgivable second lien, forgiven over 5 years of residency
Income limit: 80% AMI (roughly $65,000 for a family of four in 2025)
Credit score minimum: 620
Purchase price limit: approximately $275,000 (varies year to year)
Geography: home must be within Houston city limits
Link: houstontx.gov/housing/hap.html

Dallas Mortgage Assistance Program (MAP)

DPA: up to $60,000 as a forgivable second lien, 10-year forgiveness schedule
Income limit: 80% AMI
Credit score minimum: 620
Geography: home must be within Dallas city limits
Can be stacked with TDHCA or TSAHC programs

City of Austin Down Payment Assistance

DPA: up to $40,000 as a forgivable second lien
Income limit: 80% AMI (Austin has high AMI, so 80% still reaches many middle-class buyers)
Credit score minimum: 620
Geography: home must be within Austin city limits
Long waitlist typically — apply early

San Antonio Homeownership Incentive Program (HIP)

DPA: up to $10,000 to $20,000 as a deferred-payment loan
Income limit: 80% AMI
Credit score minimum: 620
Geography: home must be within San Antonio city limits

Credit score requirements across programs

The vast majority of Texas first-time buyer programs require a minimum FICO score of 620. A few lenders participating in these programs will go down to 580 on FHA-backed loans, but with higher mortgage insurance costs.

Your credit score	What's available
620+	All state, county, and city programs listed above
580–619	FHA-backed loans through TSAHC-participating lenders; most DPA programs unavailable
Under 580	No first-time buyer DPA program in Texas will take you at this score

If you're under 620, the honest answer is that the fastest path is 6–12 months of aggressive credit repair, not shopping for a program that will accept you as-is.

If no program fits you yet: the alternatives

Three realistic options if you're priced out of every program:

Credit repair, then retry in 6–12 months — Pull your report from all three bureaus. Pay down revolving balances below 30% utilization. Dispute inaccuracies. A 40-to-60-point score increase in six months is realistic if the underlying issue is utilization rather than collections.
Save a larger down payment and skip DPA — If you can put 10%+ down, you unlock conventional loans and private mortgage programs that don't depend on first-time buyer status. This takes longer but avoids income caps.
Rent-to-own as a qualifying bridge — A well-structured rent-to-own contract in Texas locks in a purchase price, gives you a defined window to build credit and savings, and credits part of your rent toward the eventual down payment. Texas rent-to-own law is the most protective in the country for the tenant-buyer — see the Texas rent-to-own laws guide for the specific statutory protections.

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Related guides

Rent-to-own laws in Texas — Texas statutory protections, the 14-day cooling-off period, and what the 40% executory-contract rule means
Rent-to-own laws in Georgia — how Georgia compares if you're considering a move
Reading a rent-to-own home contract — the eight clauses to check before you sign, any state

Frequently asked questions

Data sources

Texas State Affordable Housing Corporation (TSAHC) — program terms, income limits, and DPA sizes cited from tsahc.org as of 2026.
Texas Department of Housing and Community Affairs (TDHCA) — My First Texas Home, My Choice Texas Home program details from welcomehome.tdhca.texas.gov.
Harris County Housing Finance Corporation — county DPA program details.
City of Houston Housing and Community Development — Houston Homebuyer Assistance Program (HAP) terms.
City of Dallas — Mortgage Assistance Program (MAP).
City of San Antonio — Homeownership Incentive Program (HIP).
US Census Bureau, ACS 5-year 2023 — Texas median household income (~$74,000) and median home value (~$240,000).
HUD Area Median Income tables 2025 — AMI limits used by Texas city and county programs.

Legal disclaimer

This page is educational and is not financial or tax advice. First-time home buyer programs in Texas are administered by separate state, county, and city agencies with program terms that change year to year. Income limits, purchase price limits, credit score minimums, and DPA amounts cited here are accurate as of the published date but should be confirmed against the administering agency's current program documents before application. Consult a qualified Texas loan officer and tax advisor before committing to any specific program combination.