Buying your first home in Texas—or your first in a while—can feel like a lot. But there are significant discounts, grants, and tax credits awaiting qualified buyers.
At Federal Hill Mortgage, we help connect Texas buyers like you with:
- TSAHC
- TDHCA’s My First Texas Home
- Texas Mortgage Credit Certificate (MCC)
These programs can cover up to 5% of your down payment and save you up to $2,000 a year on taxes. As a licensed Texas lender, we simplify the entire process.
What First‑Time Homebuyer Programs Are Available in Texas?
Overview of TSAHC and TDHCA
Texas housing assistance primarily comes from two agencies:
- TSAHC (Texas State Affordable Housing Corporation)
- TDHCA (Texas Department of Housing and Community Affairs)
These agencies offer competitive down payment assistance, 30-year fixed-rate loans, and the MCC tax credit to eligible homebuyers across the state.
Why These Programs Matter for You
These options reduce upfront costs, increase buying power, and lower long-term tax liability—especially valuable in cities like Austin, Dallas, Houston, and San Antonio.
What Is TSAHC and How Does It Help Buyers?
TSAHC Home Buyer Programs (First‑Time & Repeat)
- Loan Type: 30-year fixed conventional mortgage
- Assistance: Up to 5% of the loan as a forgivable grant or 0% second-lien loan
- Who Qualifies:
- First-time buyers or those who haven’t owned a home in 3+ years
- Minimum credit score: 620
- Income and purchase price caps (vary by county; e.g., ~$87K–$95K for a family of 4)
- Completion of homebuyer education
How to Apply
- Get pre-approved through a TSAHC-approved lender like Federal Hill Mortgage
- Choose between forgivable grant or repayable DPA loan
- Submit documentation and proof of education completion
- We’ll handle the paperwork and coordinate submission with TSAHC
What Is the “My First Texas Home” Program?
Program Summary
- Provider: TDHCA (Texas Department of Housing and Community Affairs)
- Loan Type: 30-year fixed-rate mortgage
- Assistance: Optional down payment assistance up to 5% as a 0% second-lien grant
Benefits, Eligibility & How to Apply
- Who Qualifies:
- First-time or returning buyers (no homeownership in past 3 years)
- Credit score ≥ 620
- Must complete homebuyer education
- Income/purchase limits vary by region (e.g., $128K income cap in Travis County)
How to Apply:
- Apply with a TDHCA-approved lender like Federal Hill Mortgage
- Opt into the DPA option (if needed)
- Submit income and property documentation
- Complete homebuyer education; we’ll submit your full file
What Is the Texas Mortgage Credit Certificate (MCC)?
Program Summary
- Provider: TDHCA (Texas Department of Housing and Community Affairs)
- Loan Type: 30-year fixed-rate mortgage
- Assistance: Optional down payment assistance up to 5% as a 0% second-lien grant
Benefits, Eligibility & How to Apply
- Who Qualifies:
- First-time or returning buyers (no homeownership in past 3 years)
- Credit score ≥ 620
- Must complete homebuyer education
- Income/purchase limits vary by region (e.g., $128K income cap in Travis County)
- How to Apply:
- Apply with a TDHCA-approved lender like Federal Hill Mortgage
- Opt into the DPA option (if needed)
- Submit income and property documentation
- Complete homebuyer education; We’ll submit your full file
What Is the Texas Mortgage Credit Certificate (MCC)?
Program Summary
The Texas MCC Program provides a federal tax credit of up to $2,000 annually (maximum $24,000 lifetime) based on the mortgage interest you pay—effectively reducing your IRS bill each year.
Benefits, Eligibility & How to Apply
- Tax Benefit: Up to $2,000/year credit, reducing your federal tax liability
- Pairing Options: Works well with conventional, FHA, VA, or USDA loans
- Who Qualifies:
- Must meet income and purchase price limits by county
- May require an FHA/VA/USDA mortgage depending on scenario
- Homebuyer education required
- How to Apply:
- Start your mortgage application with an approved lender like Federal Hill Mortgage
- Indicate interest in the MCC during pre-approval
- We’ll submit the MCC paperwork to TDHCA along with your loan file
Who Qualifies for Texas First‑Time Homebuyer Programs?
- Buyer status: First‑time buyer or haven’t owned a home in 3+ years
- Credit score: Minimum 620
- Income limits: Vary by program & county (for a family of 4, $80k–$128k annual)
- Purchase price caps: Typically $290k–$360k; higher in big metros
- Homebuyer education: Required by TSAHC and TDHCA
- Property types: Primary residence only; eligible single‑family, condos, townhomes
- Location: No strict “target areas”—available statewide
How Do These Programs Compare?
program | loan type | dpa / tax credit | forgivable? | eligibility |
|---|---|---|---|---|
TSAHC | Conventional 30-year | Up to 5% DPA | Yes (if staying 5+ years) | ≥ 620 credit, income cap, education |
My First Texas Home | Conventional 30-year | Up to 5% DPA | Yes | Similar to TSAHC |
Texas MCC | Works with any 30-year | Up to $2,000/year federal credit | No (tax savings) | Use with FHA/VA/USDA, income limits |
How Does the Application Process Work?
- Chat with a licensed Texas lender (like Federal Hill Mortgage)
- Get pre-approved
- Choose best assistance program
- Submit documents & education certificate
- Your lender handles submission and follow-up
Frequently Asked Questions (FAQ)
What are the first-time homebuyer programs in Texas?
TSAHC, My First Texas Home, and MCC offer grants, low-interest loans, and tax credits to eligible buyers.
Who is eligible for TSAHC down payment assistance?
First-time or returning buyers (who haven’t owned a home in the past 3 years), with a credit score ≥ 620, income within program limits, and completed homebuyer education.
How much can I get from My First Texas Home?
You may receive up to 5% of your loan amount as down payment assistance (DPA).
What is the MCC and how does it help?
The Mortgage Credit Certificate provides a federal tax credit of up to $2,000 per year based on mortgage interest paid.
Can repeat buyers apply for TSAHC grants?
Yes—if you haven’t owned a home in the past three years, you’re considered a first-time buyer under TSAHC rules.
What credit score is needed?
You’ll typically need a minimum credit score of 620 to qualify for Texas assistance programs.
How do I apply for these programs?
Apply through a TSAHC or TDHCA-approved lender like Federal Hill Mortgage. Complete the required documentation and homebuyer education course.
Is homebuyer education required?
Yes—it’s a standard requirement for both TSAHC and My First Texas Home programs.
Do TSAHC grants need to be repaid?
Not if you stay in the home for a required time period (typically 5–10 years); then the grant is forgiven.
Can I combine MCC with other assistance?
Yes, the MCC tax credit can be combined with TSAHC or TDHCA down payment assistance for greater savings.
Next Steps & How Federal Hill Mortgage Can Help
At Federal Hill Mortgage, we are your partner in navigating Texas first-time homebuyer programs. We specialize in pairing you with the best first‑time homebuyer programs:
- Get pre‑approved to explore DPA and full rate options
- Apply for TSAHC, My First Texas Home, or MCC
- Close quickly and confidently with our expert guidance
Apply now or check eligibility today with our loan experts. You can also explore related options like Conventional Loans, FHA Loans, VA Loans, USDA Loans, and ITIN Loans to build a personalized financing plan.
