Can I combine a VLB loan with a VA loan?

Yes, veterans can combine VLB and VA loans to access lower interest rates, minimal or no down payments, and avoid private mortgage insurance (PMI). This is especially useful for veterans purchasing higher-value properties or seeking flexible loan terms.

What types of properties are eligible?

The VLB program supports the purchase of primary residences in Texas, including single-family homes, townhouses, and condominiums. The property must meet appraisal standards, safety guidelines, and be used as the borrower's primary residence.

Can surviving spouses apply?

Yes, surviving spouses of veterans may qualify if the veteran passed away due to a service-connected cause and the spouse has not remarried. Residency and property requirements must also be met.

How do VLB interest rates compare to other loans?

VLB loans offer interest rates that are often lower than conventional loans and comparable to VA loan rates. This can result in significant long-term savings for veterans.

Can I refinance my current home with a VLB loan?

Yes, refinancing through the VLB is possible if the home is your primary residence and meets program requirements. Refinancing can help lower interest rates, consolidate debt, or adjust loan terms for better affordability.

What fees are associated with the loan?

Standard closing costs, such as appraisal fees, title insurance, and lender fees, apply to VLB loans. However, private mortgage insurance (PMI) is not required, which helps reduce overall costs.

Do I have to live in Texas to qualify?

Yes, applicants must be Texas residents and provide proof of residency, such as a Texas driver’s license or utility bill. The purchased home must also be within Texas and serve as the applicant’s primary residence.

My First Texas Home Program: A Complete Guide

Q: Is there a credit score requirement?

The VLB does not set a strict minimum credit score, but lenders typically prefer a score of 620 or higher for better loan terms. Working with an approved lender familiar with VLB and VA loans is recommended.

Purchasing your first home is an exciting milestone, but it can also feel overwhelming.

That’s where the My First Texas Home Program comes in. Designed by the Texas Department of Housing and Community Affairs (TDHCA), this initiative offers financial assistance and fixed-rate mortgages to eligible first-time homebuyers.

With tools like down payment and closing cost assistance, it helps ease the financial burden of buying a home.

In this guide, we’ll break down how the program works, who qualifies, and how it compares to other homebuyer programs.

Get Pre-Approved for a VA Loan Today

What Is the My First Texas Home Program?

The My First Texas Home Program is specifically tailored for low- and moderate-income first-time homebuyers. It offers 30-year fixed-rate mortgages paired with up to 5% of the loan amount in assistance to cover down payments and closing costs. The program partners with approved lenders across the state to provide affordable home financing options.

“This program is a game-changer for many Texans,” says Julie Tanner, a TDHCA representative. “It opens the door to homeownership for those who might not otherwise afford it.”

Key Benefits:

Fixed-rate 30-year mortgages to ensure predictable payments.
Down payment and closing cost assistance up to 5% of the loan amount.
Support for various loan types, including FHA, USDA, VA, and conventional loans.

Eligibility Requirements

Before applying, it’s crucial to understand the program’s eligibility criteria. The My First Texas Home Program is intended for first-time homebuyers, though certain exceptions exist for veterans.

Basic Requirements:

Applicants must not have owned a home in the last three years (with exceptions for veterans).
Income limits vary based on household size and location.
Purchase price limits apply and depend on the county.
Applicants must complete a homebuyer education course.

Income and Purchase Price Limits by Region

Region	Income Limit (2+ Persons)	Income Limit (1 Person)	Purchase Price Limit
Houston Area	$89,250	$76,750	$349,525
Austin Area	$91,000	$77,000	$374,500
Dallas Area	$85,000	$72,250	$325,000
Rural Counties	$75,000	$65,000	$250,000

These limits vary annually. Check the TDHCA website for updated information.

How Does the Program Work?

The program combines affordable fixed-rate mortgage loans with financial assistance for eligible buyers. Here’s a step-by-step look at the process:

Find an Approved Lender: Start by locating a lender that participates in the My First Texas Home Program.
Complete Homebuyer Education: Attend a TDHCA-approved course to prepare for homeownership.
Apply for Pre-Approval: Work with your lender to get pre-approved for a loan amount that fits your budget.
Secure Financial Assistance: Receive up to 5% of the loan amount for your down payment or closing costs.
Purchase Your Home: Use the assistance to cover costs and finalize your home purchase.

Comparing the My First Texas Home Program to Other Programs

Several other programs offer similar benefits, but understanding the distinctions can help you make the best decision for your needs.

Program	Key Features	Best For
My First Texas Home	Fixed-rate mortgages, 5% assistance	First-time buyers in Texas
Homes for Texas Heroes	Targeted at public service professionals	Teachers, firefighters, veterans
San Antonio HIP Program	Grants for low- to moderate-income buyers	Residents of San Antonio
Texas Bootstrap Loan Program	Self-help housing loans up to $45,000	Low-income homebuilders

If you’re a veteran or public servant, programs like Homes for Texas Heroes might be more advantageous due to their targeted benefits.

Advantages of the My First Texas Home Program

Why choose this program over traditional mortgage options? Here’s what sets it apart:

Low Upfront Costs: The down payment and closing cost assistance significantly reduce the amount of cash needed at closing.
Predictable Payments: Fixed-rate mortgages make budgeting easier by locking in a consistent monthly payment.
Flexibility: The program accommodates various loan types, from VA loans for veterans to FHA loans for first-time buyers.
Statewide Availability: Whether you live in a bustling city or a quiet rural area, this program is available across Texas.

Tips for Maximizing Your Benefits

Make the most of the My First Texas Home Program by keeping these tips in mind:

Start Early: Funds are limited, so applying early increases your chances of approval.
Compare Lenders: Not all participating lenders offer the same rates or service quality. Shop around to find the best fit.
Combine Programs: Use the program alongside others, like the Texas Mortgage Credit Certificate, to maximize savings.
Understand Long-Term Costs: While the program reduces upfront costs, it’s essential to budget for property taxes, insurance, and maintenance.

Alternative Programs for Veterans Similar to My First Texas Home Program

Veterans in Texas have several excellent alternatives to the My First Texas Home Program, each tailored to address their specific needs. Below are a few standout programs that provide financial assistance and unique benefits for veteran homebuyers.

Texas Veterans Land Board (VLB) Veterans Housing Assistance Program

The Texas Veterans Land Board Veterans Housing Assistance Program offers low-interest home loans exclusively for veterans and their families. This program allows veterans to purchase primary residences in Texas with minimal or no down payment, making homeownership more accessible.

Competitive interest rates exclusive to veterans.
Minimal or no down payment requirements.
Designed specifically for veterans, active military, and surviving spouses.

Homes for Texas Heroes Program

Administered by TSAHC, the Homes for Texas Heroes Program provides down payment and closing cost assistance to public servants, including veterans. With up to 5% of the loan amount available as a grant or forgivable loan, this program helps reduce upfront costs for buying a home.

Grants or deferred forgivable loans for down payment assistance.
Compatible with VA, FHA, USDA, and conventional loans.
Specifically targets veterans and other public servants.

San Antonio Homeownership Incentive Program (HIP)

The San Antonio Homeownership Incentive Program (HIP) helps first-time homebuyers, including veterans, with grants of up to $15,000 to cover down payments and closing costs. This program prioritizes veterans and supports affordable homeownership within San Antonio city limits.

Offers up to $15,000 in grant funds for eligible buyers.
Focused on low- to moderate-income households.
Prioritizes veterans for financial assistance.

Habitat for Humanity Veterans Build

The Habitat for Humanity Veterans Build Program helps veterans and their families construct affordable homes while offering financial and construction support. This initiative combines community assistance with sweat equity to make homeownership attainable.

Provides affordable housing with veteran-focused support.
Requires sweat equity for reduced costs.
Includes financial education and counseling services.

Frequently Asked Questions

Who qualifies as a first-time homebuyer?
A first-time homebuyer is someone who hasn’t owned a home in the last three years. Veterans may qualify as first-time buyers even if they previously owned a home.

Can I use the program with a VA loan?
Yes, the program supports VA loans, which are particularly advantageous for veterans. Combining the two can lower your interest rate and eliminate PMI.

What types of homes are eligible?
Eligible homes include single-family residences, townhouses, and condos in Texas. The home must be your primary residence.

Are there additional costs associated with the program?
Standard closing costs apply, but no additional fees are charged for using the program. Down payment assistance helps offset these expenses.

Is there a credit score requirement?
The program doesn’t specify a minimum credit score, but most lenders require at least 620. Higher scores improve your chances of approval and better rates.

Can I combine this program with other assistance?
Yes, you can combine it with other programs like the Homes for Texas Heroes or Texas Bootstrap Loan Program to increase your financial support.

What happens if I sell the home early?
Selling the home within a specified period could require repayment of the assistance. Consult your lender for details.

How do I apply?
Start by finding a participating lender through the TDHCA website and complete the homebuyer education course.