First-time home buyer programs & help in DFW
Texas offers real help with down payments, closing costs and taxes. Here is every major program in plain language, plus how Thomson walks you from pre-approval to keys.
Texas and local programs
Programs are run by state agencies and cities, and they work through approved lenders. Amounts and limits change, so confirm current terms on each official page. Details below were checked in October 2026.
My First Texas Home
- Who
- First-time homebuyers and qualified veterans. Exceptions to the first-time rule are available in targeted areas.
- What you get
- Up to 5% of the loan for down payment and closing costs,.
- Requirements
- Minimum credit score of 620; homebuyer education required; income limits set by TDHCA.
My Choice Texas Home
- Who
- First-time buyers, repeat buyers and veterans.
- What you get
- Up to 5% of the loan for down payment and closing costs, with higher income limits than My First Texas Home.
- Requirements
- Minimum credit score of 620; homebuyer education required.
Texas Mortgage Credit Certificate
- Who
- First-time homebuyers and veterans.
- What you get
- A federal tax credit on part of the mortgage interest you pay each year. Can be paired with a TDHCA loan or used on its own.
- Requirements
- No minimum credit score with the stand-alone option; income and price limits apply.
Homes for Texas Heroes
- Who
- Teachers and school staff, police and security officers, firefighters, EMS personnel, veterans, active military, corrections officers, and nursing and allied health faculty.
- What you get
- Up to 5% of the loan for down payment and closing costs, as a grant or a deferred second lien (forgivable or repayable).
- Requirements
- Check current income and credit requirements with a TSAHC participating lender.
Home Sweet Texas Home Loan
- Who
- Homebuyers who do not qualify for Homes for Texas Heroes.
- What you get
- Up to 5% of the loan for down payment and closing costs, as a grant or a deferred second lien.
- Requirements
- Check current income and credit requirements with a TSAHC participating lender.
Mortgage Credit Certificate (MCC)
- Who
- First-time homebuyers (no ownership interest in a primary residence in the past three years) under county income limits.
- What you get
- A yearly federal tax credit equal to 20% of the mortgage interest you pay, for as long as you live in the home.
- Requirements
- Income and purchase price limits; program fees apply. A recapture tax can apply if you sell within nine years under certain conditions.
Down Payment Assistance Program
- Who
- Full-time employees of the City of Frisco or Frisco ISD (at least six months), generally first-time buyers, buying a home in Frisco.
- What you get
- A forgivable loan of up to $10,000 for down payment and closing costs.
- Requirements
- Household income up to $146,158 and purchase price up to $563,500 (as published by the city); 8-hour HUD-approved homebuyer class and counseling session.
Home Loan Counseling Center
- Who
- Low- to moderate-income families; counseling is free to anyone interested in homeownership.
- What you get
- Free homebuyer classes and one-on-one counseling, plus the Upfront Cost Assistance Program (UPCAP) for down payment and closing costs for eligible buyers.
- Requirements
- Call (214) 819-6060 for current eligibility and amounts. Services in English and Spanish.
After you buy: file your homestead exemption
Your primary home qualifies for a homestead exemption that lowers your school taxes. Starting with the 2025 tax year, the school district exemption is $140,000, and homeowners 65 or older or with a disability receive an additional $60,000.
- File Form 50-114 with your county appraisal district (most offer online filing).
- Applications postmarked by April 30 are processed in time for that fall's bill.
- Once you have a homestead, its taxable value can rise no more than 10% a year, plus improvements.
Find your appraisal district below, or estimate your taxes with and without the exemption.
How buying with Thomson works
- Consultation. Budget, monthly comfort zone, timeline and must-haves.
- Pre-approval. Connect with lenders who know the TDHCA and TSAHC programs.
- Touring and offers. Honest feedback on every home and offers backed by real comparable sales.
- Option period and inspection. Inspections coordinated, repairs negotiated, every deadline tracked.
- Closing and after. A reminder to file your homestead exemption, and a call whenever you need advice.
County appraisal districts
- Collin Central Appraisal DistrictWylie, Murphy, Anna, Princeton, Frisco (Collin side), Sachse (Collin side)
- Dallas Central Appraisal DistrictGarland, Sachse (Dallas side), Rowlett (Dallas side)
- Denton Central Appraisal DistrictThe Colony, Frisco (Denton side)
- Rockwall Central Appraisal DistrictRockwall, Rowlett (Rockwall side)
- Kaufman Central Appraisal DistrictForney
Popular areas for first-time buyers
Garland, Princeton, Anna, Forney and Rowlett draw many first-time buyers for their mix of resale and new construction homes. Compare them with the tax estimator.
Questions
How much do I need for a down payment in Texas?
It depends on the loan. Several Texas programs provide up to 5% of the loan amount for down payment and closing costs, and some loans allow small down payments. A participating lender can tell you exactly what you qualify for.
What counts as a first-time homebuyer?
For mortgage credit certificates, TSAHC defines a first-time buyer as someone with no ownership interest in a primary residence in the past three years. Some TDHCA programs make exceptions for veterans and targeted areas.
What is the option period in Texas?
In a standard Texas contract, the buyer pays an option fee for a set number of days during which they can inspect the home and back out for any reason. Thomson helps you choose the right length and use it well.
When should I file my homestead exemption?
File with your county appraisal district after you move in. Applications postmarked by April 30 are processed in time for that fall's tax bill. The school district homestead exemption is $140,000 starting with the 2025 tax year.
Ready to buy your first home?
Call or text Thomson to talk through programs, budget and next steps.