TDHCA My First Texas Home

What is TDHCA My First Texas Home?

TDHCA My First Texas Home is a forgivable loan for homebuyers in Texas.

• The TDHCA My First Texas Home program provides first-time homebuyers a 30-year fixed-rate mortgage paired with up to 5% of the loan amount in down payment and closing cost assistance. The assistance is structured as a 0% interest forgivable second lien that is forgiven after 3 years of owner-occupancy. Available statewide in Texas, the program is administered by the Texas Department of Housing and Community Affairs (TDHCA) and offered through participating lenders.
• Up to 5% of the loan amount in down payment and closing cost assistance.
• 0% interest forgivable second lien forgiven after 3 years of owner-occupancy.
• Paired with a 30-year fixed-rate first mortgage at below-market interest rates.
• Available statewide in Texas for eligible first-time homebuyers.
• Compatible with FHA, VA, USDA, and conventional loans.
• No repayment required if borrower remains in home for 3 years.
• Funding comes from State.

How much assistance does it provide?

TDHCA My First Texas Home provides assistance worth 5% of the purchase price, as set by the program.

• Award tier “Standard”. Who qualifies: All eligible borrowers with income at or below 115% AMI (varies by county).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

TDHCA My First Texas Home is forgiven after 3 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, Refinance, No Longer Primary, and Transfer of Title.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

TDHCA My First Texas Home is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

TDHCA My First Texas Home limits household income to 115% of the area median income, which varies by county and household size.

• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

TDHCA My First Texas Home caps the purchase price at $350,000.

• Eligible property types include Single Family, Condo, and Townhouse.
• New construction is eligible.

Where does it apply?

TDHCA My First Texas Home serves buyers purchasing anywhere in Texas.

• The program targets specific areas: Federally designated targeted areas in Texas qualify for relaxed income and purchase price limits and exemption from the first-time homebuyer requirement.

How do you apply?

Applications for TDHCA My First Texas Home go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.