By Ziya Y. · 23 Years Banking & Mortgage · Updated May 2026
📖 Real Scenario
Thomas and Maria are buying their first home in Dallas. They have $18,000 saved but need $26,000 for a 5% down payment on a $520,000 home. Through Texas TDHCA's My First Texas Home program, they get a 30-year fixed at below-market rates PLUS $7,800 in down payment assistance. They close with money to spare.
Q: What first-time homebuyer programs exist?
Every state has a Housing Finance Agency (HFA) offering below-market rates and/or down payment assistance (DPA). Federal programs include FHA (3.5% down), USDA (0% down for rural), VA (0% down for veterans), and Fannie/Freddie's 3% down conventional programs.
Q: Do first-time buyer grants have to be repaid?
It depends on the program. Some are forgivable loans (if you stay 5-10 years, the loan is forgiven). Some are deferred payment loans (repaid when you sell). Some are outright grants (no repayment ever). Always read the fine print.
Q: What's the income limit for first-time buyer programs?
Most state programs cap at 80-120% of area median income (AMI). For a family of 4 in Dallas, that's roughly $65,000-$97,000. Higher earners may not qualify for state DPA but can still access federal low-down-payment loan programs.
Q: How do I find first-time buyer programs in my state?
Search '[your state] Housing Finance Agency' — e.g., 'Texas TDHCA', 'California CalHFA', 'Florida HFA'. HUD.gov also lists every state and local program. A HUD-approved housing counselor (free service) can walk you through options in 45 minutes.
Not financial advice. Educational content based on 23 years of mortgage and lending experience. Consult a licensed professional for your situation.