TDHCA My First Texas Home Down Payment Assistance

The Texas Department of Housing and Community Affairs (TDHCA) runs the TDHCA My First Texas Home program, which offers down payment assistance to help low-to-moderate income homebuyers purchase their first home in Texas.

The down payment assistance you get through My First Texas Home can also be combined with the Texas Mortgage Credit Certificate (MCC). 

Eligibility requirements

To qualify for the TDHCA My First Texas Home, you must meet the following eligibility requirements:

1. You must be a first-time homebuyer or have not owned a home within the past three years. This requirement is waived if you are a veteran.
2. The home you buy must be in the state of Texas.
3. You’ll need a credit (FICO) score of 620 or higher.
4. Your total household income must be below program thresholds, which currently fall between $63,040 and $163,520 depending on the type of loan, household size, and the location of the home.
5. Your total debts after closing must be 55% or less of your monthly income.

*For all DPA programs, income and purchase price limits are regularly reviewed and updated. These amounts were correct at publication but may change with time.

Type of loan

TDHCA My First Texas Home offers two options: 

Three-year forgivable lien: This assistance is fully forgiven, meaning you don’t have to pay any of the money back if you live in the house for three years, make your mortgage payments on time, and don’t refinance or rent the house out during that period.

30-year deferred lien:  This assistance does have to be repaid, but it’s structured to be affordable for buyers who qualify for the program. This lien accrues zero interest, and you don’t have to repay any of the money until the end of your initial 30-year mortgage. 

Amount of down payment assistance

TDHCA My First Texas Home offers up to 5% of your home’s purchase price in down payment assistance. This is a strong benefit, since making a 5% down payment usually helps lower your interest rate.

Minimum borrower contribution

There is no minimum borrower contribution for this program, which means you don’t need to pay anything out of pocket to get the down payment assistance. 

Purchase price limits

There is no purchase price limit for this program. That being said, your household income will essentially serve as a cap because you must qualify for a mortgage loan based on that income.

Income limits

Your income must be at or below the program threshold, which currently ranges from $63,040 to $163,520, depending on your loan type, household size, and where in Texas you buy.

Income limits are regularly reviewed and adjusted. To see if your income qualifies you for this program, use our free down payment assistance finder.

How to qualify for the TDHCA My First Texas Home Down Payment Assistance

To be eligible for this down payment assistance program, you must meet the eligibility criteria explained in this article. Use our free down payment assistance finder to confirm your eligibility.

How to apply for the TDHCA My First Texas Home Down Payment Assistance 

To get down payment assistance through TDHCA My First Texas Home, you must apply through an approved lender who works with TDHCA. Use our free down payment assistance finder to locate approved lenders who can help you apply.