First Time Home Buyer Texas Programs for San Antonio Buyers

If you are a first time home buyer in Texas shopping in San Antonio, two state agencies run the main assistance programs: the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC). Neither agency lends to you directly. You apply through an approved loan officer, and the assistance is layered on top of a regular 30-year mortgage. Once you know how the programs differ, you can ask lenders the right questions and keep your offer timeline realistic.

Who counts as a first time home buyer in Texas?

For TDHCA's My First Texas Home, "first time" means something specific. Under the program matrix published August 17, 2026, borrowers and non-purchasing spouses qualify as first-time homebuyers only if they have not owned and occupied a primary residence during the last three years. If you sold a home more than three years ago and have rented since, you may qualify again.

TDHCA lists two exemptions from the first-time requirement:

• Qualified veterans. The borrower or spouse is a qualified veteran, honorably discharged as shown on a DD-214, who has not already used this veteran exemption for a mortgage revenue bond loan.
• Qualified Targeted Census Tracts. Homes inside these tracts are exempt from the first-time rule.

If you have owned a home recently and neither exemption fits, TDHCA's My Choice Texas Home program states that "you do not have to be a First Time Homebuyer to qualify."

TDHCA My First Texas Home requirements for San Antonio buyers

Here is what the current My First Texas Home matrix requires:

• Loan type: FHA, VA or USDA, 30-year fully amortized fixed rate.
• Assistance: 2% to 5% of the total loan amount, funding permitting, for down payment and closing costs.
• Credit: minimum middle credit score of 620.
• Debt-to-income: follows automated underwriting findings. Manually underwritten loans are capped at 45% DTI.
• Education: every borrower must complete a pre-purchase HUD-certified homebuyer education course and provide a certificate.
• Limits: household income and purchase price limits apply. Household income counts anyone who will live in the home and sign the deed of trust, including a non-purchasing spouse.
• Occupancy: every borrower must move in as a principal residence within 60 days of closing.
• Paperwork: three years of IRS transcripts or signed tax returns for all borrowers, including a non-purchasing spouse, plus a Texas Residency Affidavit at closing.

Eligible properties include new or existing single-family homes, condominiums, planned unit developments, qualifying manufactured homes and duplexes where you live in one unit. The matrix also says the program may be subject to federal income tax recapture provisions. Ask your loan officer to explain that notice before you sign it.

Repayable vs. forgivable assistance

TDHCA delivers assistance as a second lien in one of two forms. Both carry 0% interest and no required monthly payments:

• 30-year deferred repayable: due in full when you sell, refinance, transfer or pay off the first mortgage.
• 3-year deferred forgivable: fully forgiven after 36 months if you stay current on the first mortgage and keep the home as your principal residence. If you sell or refinance before then, it is due.

If you might move within three years, plan around the repayable version. That way your sale proceeds aren't a surprise.

My Choice Texas Home and the Texas Mortgage Credit Certificate

My Choice Texas Home pairs down payment assistance with a 30-year mortgage for buyers who are not first-timers. TDHCA also offers the Texas Mortgage Credit Certificate (MCC). The certificate gives you a dollar-for-dollar reduction in federal income tax. TDHCA says it is available to veterans and first-time homebuyers, both with a program first mortgage and as a stand-alone option, and the stand-alone option has no minimum credit score. TDHCA notes that supplies are limited.

TSAHC programs for San Antonio home buyers

TSAHC runs two main programs:

• Homes for Texas Heroes is for full-time public school educators, police and public security officers, firefighters and EMS personnel, veterans and active-duty military, correctional and juvenile corrections officers, and nursing and allied health faculty.
• Home Sweet Texas is for buyers who don't qualify under one of those professions.

Both offer assistance of up to 5% of your loan amount toward the down payment, closing costs or both. TSAHC offers three forms: a grant, a deferred forgivable second lien forgiven after three years, or a deferred repayable second lien. TSAHC serves first-time and repeat buyers, offers its own Mortgage Credit Certificate for first-time buyers who meet income and sales price limits, and recommends a TSAHC-approved homebuyer education course.

First time home buyer grants in Texas: what "grant" means

Many buyers search for grants and find second liens instead. Here is how the current options compare:

• TSAHC grant: TSAHC says a grant never has to be repaid. Read the program conditions with your lender. Bel's down payment assistance guide for San Antonio covers the early-refinance condition.
• TDHCA forgivable second lien: it works like a grant only if you keep the home and the first mortgage for 36 months.
• TDHCA gift funds: the August 2026 matrix lists gift funds through partner housing finance corporations in specific counties and cities. Bexar County is not on that list, so don't count on it for a San Antonio purchase unless your lender confirms a change.
• City of San Antonio: the city runs its own Homeownership Incentive Programs for homes inside city limits. The down payment assistance guide covers their rules.

Texas first time home buyer requirements: a step-by-step checklist

1. Pull your credit. If your middle score is under 620, fix that before you apply for My First Texas Home.
2. Gather three years of tax returns or IRS transcripts for everyone who will be on the loan, including a non-purchasing spouse.
3. Talk to an approved loan officer from TDHCA's or TSAHC's participating-lender list. Ask which program, which assistance form and what income and price limits apply to your household.
4. Complete homebuyer education early. TDHCA requires a HUD-certified course for every borrower, and you'll want the certificate before you're under contract.
5. Get pre-approved in writing with the assistance already built into the numbers.
6. Shop homes under the program's purchase price limit and in your target areas.
7. Ask about insurance early. TDHCA's matrix caps the homeowners hazard deductible at 2% and the wind and hail deductible at 5%, so get a quote that fits before your option period ends.

How Texas programs fit a San Antonio home purchase

Program loans run on the same contract, option period, appraisal and closing as any other purchase. The program adds steps to the lender's side. Tell your agent up front that you're using assistance so offer deadlines leave room for the lender's review. TDHCA does not allow excess cash back to the borrower, gift funds included. If a seller credit or assistance exceeds your actual costs, the extra can go toward principal reduction instead.

If you are a veteran or on active duty, compare these programs against a VA loan on its own. Bel's VA home loan guide for San Antonio explains that option. If you're still deciding where to buy, start with the best areas for first-time buyers in San Antonio. After closing, file your homestead exemption. The Bexar County homestead exemption guide walks through it. For the full process from pre-approval to keys, read the first-time home buyer guide for San Antonio.

Get help with your first San Antonio home

Bel Thanadabouth is a Texas-licensed real estate sales agent with Home Pros Real Estate Group who works with first-time buyers in English or Spanish. Bel is not a lender but can coordinate the contract timeline with your approved loan officer and help you shop homes that fit your program limits. Learn more about first-time buyer help in San Antonio, call or text (210) 932-3606, or send Bel a message to plan your first step.