Buying your first home is a big milestone—and in a competitive housing market like Texas, it’s important to be informed, prepared, and supported every step of the way. At Lone Star Financing, we’ve helped hundreds of first-time buyers across cities like Austin, San Antonio, Houston, and beyond. This guide breaks down the most popular loan programs for first-time homebuyer loans in Texas, how to qualify, and a few insider tips we share with our own clients.
Why Texas Is a Great Place to Buy Your First Home
Texas continues to draw first-time buyers thanks to its strong job market, diverse cities, and relatively affordable housing options. Whether you’re shopping in the suburbs of Dallas or a small town like Temple, many communities also offer access to statewide and local down payment assistance programs.
Top Loan Programs for First-Time Buyers in Texas
- FHA Loan (Federal Housing Administration)
- Requires as little as 3.5% down
- Minimum credit score of 580
- A good fit for buyers with limited credit history
- Conventional Loan (Fannie Mae or Freddie Mac)
- Down payments as low as 3% for qualified buyers
- Strong credit can secure better interest rates
- PMI applies if you put down less than 20%
- VA Loan (for eligible military members and veterans)
- No down payment required
- No private mortgage insurance (PMI)
- Often lower interest rates than conventional loans
- USDA Loan (U.S. Department of Agriculture)
- 0% down for eligible rural and some suburban areas
- Income and location restrictions apply
- TDHCA Programs (Texas Department of Housing & Community Affairs)
- Offers down payment and closing cost assistance
- Can be layered with FHA, VA, or conventional loans
• • Ideal for moderate-income buyers across Texas
First Time Buyers - Things to Know
- Stable income and job history
- A credit score that meets the loan minimum (varies by program)
- A manageable debt-to-income (DTI) ratio
- Some funds for the down payment and closing costs (unless covered by assistance programs)
Real Advice from Local Loan Officers
In our experience, first-time buyers often ask:
- “How much home can I really afford?”
- “Is it better to put more money down or keep cash on hand?”
- “Can I buy a home with student loans?”
These are smart questions—and the answers vary based on your personal situation. That’s why getting pre-approved and speaking to a local loan expert early on can make a huge difference.
Tips for First-Time Buyers in Texas
- Get pre-approved early: It gives you a firm budget and makes you a stronger buyer.
- Explore down payment help: Texas has more resources than you might think.
- Don’t skip homebuyer education: TDHCA and other programs often require a short online course—plus, it’s genuinely helpful.
• • Factor in total costs: Taxes, insurance, HOA fees, and maintenance all impact affordability.
Let’s Make Homeownership Happen
At Lone Star Financing, we live and breathe Texas real estate. Whether you’re a teacher in Austin, a nurse in Houston, or a veteran in El Paso, we’re here to guide you with honest advice and loan solutions that work.
Contact us today (855) 314-8080 for a free consultation and let’s talk about getting you home.
Written by Ryan Collins, Business Development Manager at Lone Star Financing. Ryan has over 15 years of experience helping Texans finance their homes and is passionate about guiding first-time buyers through the process with clarity and confidence.
