Buying A Home For The First Time?

Here are some different types of first time homebuyer mortgage loan programs available in Texas, as well as some helpful tips, just for you.

The My First Texas Home loan program, or Texas Mortgage Program (TMP) 79 as it is more formally known, offers first time homebuyers in Texas more competitive interest rates and down payment assistance that can add up to almost 5% of their loan amount. This program has different maximum income requirements depending on where the home is located.


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The other program offered by the Texas Department of Housing & Community Affairs (TDHCA) is theTMP 77, or Texas First Time Homebuyer Program. This program also offers competitive interest rates for Texas's first time homebuyers and down payment/closing cost assistance, but in the form of a 30 year fixed 2nd lien.

Both programs are designated for first time home buyers (or borrowers who have not owned a home in the last 3 years) with low to moderate incomes that need assistance with down payment and closing costs. However, as you will see below, most buyers will be eligible for other programs that are more beneficial to the home buyer.

For further information and details you can visit the Texas First Time Homebuyer Bond Programs page.



Loan Programs With Zero (0) Down Payment
Though not programs specifically geared toward first time homebuyers in Texas, USDA and VA loans offer very competitive rates and no down payment options.

With a USDA loan, a first time homebuyer can finance the entire value (100%) of the property, as well as have the closing costs rolled into the loan. There are, however, income limitations, as well as restrictions on which cities/counties are eligible for a USDA loan. This type of loan favors those individuals seeking to purchase a home in more rural areas. For more details visit our USDA Mortgage Loans page.

If a first time homebuyer is a member of the armed services, or once was, they may be eligible for a VA loan. VA loans are backed by the U.S. Department of Veteran Affairs and offer benefits to both former and active military personnel, and their family. This program also allows the homebuyer to finance 100% of the property value. There is a funding fee with this program; however the fee can be financed with the rest of the loan amount so that it is possible to purchase the home with zero down payment. For a more complete description of guidelines and restrictions visit our VA Mortgage Loan page.

If the first time home buyer (or property) cannot qualify for a USDA or VA loan, they may still qualify for a FHA loan. FHA loans are insured by the U.S. Federal Housing Administration. Because of this “insurance”, first time home buyers can purchase the home with a minimum of 3.5% down payment, as opposed the 5% minimum on conventional loans. FHA loans are also (typically) much more lenient on borrowers with lower credit scores and/or higher debt-to-income ratios. An FHA loan does come with limitations/restrictions such as maximum loan amount and housing types. Additionally, there is a 1.75% upfront fee and a lifetime Private Mortgage Insurance (PMI) that, when combined, can be more expensive than a Conventional loan. For more information visit our FHA Mortgage Loan page.

Helpful First Time Home Buying Tips:

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