Texas First-Time Homebuyer Calculator
2026Estimate home affordability and first-time homebuyer benefits in Texas. Explore TX down payment assistance programs, income limits, and calculate how much house you can afford with Texas's 1.68% avg property tax rate.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Max Home Price
$380,500.00
Max Mortgage
$320,500.00
Monthly Payment
$2,499.57
Affordability Breakdown
| Monthly Gross Income | $8,333.33 |
| Max Housing Payment (36% DTI) | $2,500.00 |
| Existing Monthly Debts | - $500.00 |
| Max Home Price | $380,500.00 |
| Down Payment | - $60,000.00 |
| Mortgage Amount | $320,500.00 |
| Principal & Interest | $2,025.78 |
| Property Tax | $348.79 |
| Insurance | $125.00 |
| Total Monthly Housing | $2,499.57 |
| Actual DTI | 35.99% |
How Interest Rates Affect Your Budget
5.5%
$411,800.00
+$31,300.00
6.0%
$395,600.00
+$15,100.00
6.5%
$380,500.00
7.0%
$366,400.00
-$14,100.00
7.5%
$353,300.00
-$27,200.00
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
What programs help first-time homebuyers in Texas?
Texas first-time buyers can typically combine federally backed loan programs with state-housing-finance-agency (HFA) assistance. Common federal options include the FHA loan (3.5% down with 580+ credit score), the VA loan (zero down for eligible veterans), USDA loans (zero down in rural areas), and conventional loans backed by Fannie Mae's HomeReady and Freddie Mac's Home Possible (3% down with income limits).
The Texas HFA generally offers below-market 30-year fixed-rate first mortgages bundled with down-payment assistance — usually a second mortgage (deferred or forgivable after 5–10 years), a grant, or a tax-credit-style mortgage credit certificate (MCC) that reduces federal income tax owed. Income limits, purchase-price caps, and a homebuyer-education course are typical requirements. Programs vary by county and often have stricter income caps in metro vs. rural areas.
Beyond loan and DPA programs, watch for property-tax homestead exemptions, transfer-tax exemptions for first-time buyers, and federal first-time-homebuyer IRA penalty waivers (up to $10,000 from a Traditional IRA without the 10% early-withdrawal penalty). The 2026 conforming loan limit is $832,750 for one-unit properties in most counties, with high-cost area caps up to $1,249,125. Consult a HUD-approved housing counselor for Texas-specific program eligibility.
Texas HFA programs and first-time-buyer specifics
- State HFA
- Texas Department of Housing and Community Affairs (TDHCA) + Texas State Affordable Housing Corporation (TSAHC)
- Median home price (Q4 2025)
- $360,000
- Flagship DPA / first-mortgage programs
- My First Texas Home (DPA + MCC), TSAHC Homes for Texas Heroes (5%-7% DPA), TSAHC Home Sweet Texas, Mortgage Credit Certificate
TDHCA's My First Texas Home program provides a competitive 30-year fixed mortgage with up to 5% in down-payment assistance (forgivable after 3 years) plus an optional Mortgage Credit Certificate (MCC) converting up to 40% of mortgage interest into a federal tax credit (capped at $2,000/year). TSAHC's Homes for Texas Heroes program offers DPA up to 7% of the loan amount to teachers, firefighters, EMS, peace officers, corrections officers, school district employees, and military veterans. TSAHC's Home Sweet Texas serves general first-time buyers with similar DPA. TDHCA-approved homebuyer education required.
Texas Homebuyer Key Facts (2026)
| Avg. Property Tax Rate | 1.68% |
| State Income Tax | None |
| State Sales Tax | 6.25% |
| Estate Tax | No |
Texas first-time homebuyer — frequently asked questions
What first-time homebuyer programs are available in Texas?
Two state agencies run programs: TDHCA's My First Texas Home offers a 30-year fixed mortgage with up to 5% DPA forgivable after 3 years, plus an optional Mortgage Credit Certificate converting up to 40% of mortgage interest into a federal tax credit (capped at $2,000/year). TSAHC's Homes for Texas Heroes provides up to 7% DPA for teachers, firefighters, EMS, peace officers, and military veterans. TSAHC's Home Sweet Texas serves general first-time buyers. TDHCA-approved homebuyer education is required.
How much down payment do I need to buy a house in Texas?
Texas's median home price is about $360,000 in 2026, so 3.5% down (FHA) equals roughly $12,600 and 20% conventional is $72,000. Most Texas buyers stay within the $806,500 conforming loan limit, avoiding jumbo. TSAHC's Homes for Texas Heroes (5%-7% DPA) and TDHCA's My First Texas Home (5% DPA, forgivable after 3 years) can effectively cover the down payment for income-qualified first-time buyers — a major advantage given Texas has no state income tax to fund housing trust funds.
Does Texas have a homestead exemption for new homeowners?
Yes. Texas Proposition 4 (2023) raised the school-district homestead exemption to $100,000 (up from $40,000), reducing typical bills by $1,000+ annually. Many counties layer additional homestead exemptions of $5,000-$25,000. Owners 65+ qualify for an additional $10,000 school exemption plus a school-tax freeze (Tax Ceiling). File the Homestead Exemption Application with your county appraisal district by April 30 of the year after closing — Texas's 1.68% effective property tax rate makes this essential.