Texas First-Time Home Buyer FAQ
Everything first-time buyers need to know about purchasing a home in Texas.
Getting Started
How much money do I need to buy my first home in Texas?
You can buy a home in Texas with as little as 0-3.5% down. FHA loans require 3.5%, VA loans require 0%, and conventional loans can go as low as 3%. On a $300,000 home, that's $0-$10,500 down, plus 2-5% for closing costs. Down payment assistance programs can cover much of this.
What credit score do I need to buy a house in Texas?
Minimum credit scores vary by loan type: FHA loans require 580+ (or 500 with 10% down), VA loans have no minimum but lenders typically want 620+, and conventional loans require 620+. Higher scores get better interest rates. If your score needs work, start improving it 6-12 months before buying.
What is the first step to buying a home in Texas?
Start by getting pre-approved for a mortgage. This tells you exactly how much you can afford and shows sellers you're serious. Gather pay stubs, tax returns, bank statements, and W-2s. Then find a buyer's agent to represent your interests. Read our complete Buying Guide.
How long does the home buying process take in Texas?
From starting your search to closing, expect 2-6 months. The search phase varies, but once you have an accepted offer, closing typically takes 30-45 days. The process includes: pre-approval, house hunting, offer, option period, inspections, appraisal, and closing.
Down Payment & Assistance Programs
What down payment assistance programs are available in Texas?
Texas offers several programs: TSAHC (Texas State Affordable Housing Corporation) provides up to 5% in down payment and closing cost assistance. My First Texas Home offers 30-year fixed-rate mortgages with assistance. Local programs exist in Austin, Dallas, Houston, and San Antonio as well.
Can I use gift money for my down payment in Texas?
Yes, most loan programs allow gift funds for down payments. FHA, VA, and conventional loans all permit gifts from family members. You'll need a gift letter documenting that the money is a gift and not a loan. Some programs also allow gifts from employers or charitable organizations.
What is the TSAHC program and how do I qualify?
The Texas State Affordable Housing Corporation offers down payment assistance of up to 5% of the loan amount as a grant or forgivable second lien. To qualify: must be a first-time buyer (or haven't owned in 3 years), meet income limits (varies by county), and have a 620+ credit score.
Do I have to pay back down payment assistance?
It depends on the program. TSAHC offers a grant option that never needs repayment. Their second lien option is forgiven after 3 years. Some local programs require repayment if you sell within 5-10 years. Always review program terms carefully before accepting assistance.
Mortgage & Financing
What types of mortgages are available for first-time buyers in Texas?
Common options include: FHA loans (3.5% down, flexible credit), VA loans (0% down for veterans), USDA loans (0% down in rural areas), and conventional loans (3-20% down). Each has different requirements and benefits. Use our Mortgage Calculator to estimate payments.
Should I get a fixed-rate or adjustable-rate mortgage?
Most first-time buyers benefit from a 30-year fixed-rate mortgage for predictable payments. Adjustable-rate mortgages (ARMs) offer lower initial rates but can increase after the fixed period. ARMs may work if you plan to sell or refinance within 5-7 years.
What is PMI and how can I avoid it?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% on conventional loans. It typically costs 0.5-1% of the loan amount annually. To avoid it: put 20% down, use a VA loan (no PMI required), or explore lender-paid PMI options where the cost is built into the rate.
How much can I afford on a first-time buyer salary?
The general rule is your monthly housing costs shouldn't exceed 28% of gross income. On a $60,000 salary, that's about $1,400/month including principal, interest, taxes, and insurance. In Texas, this could buy a $250,000-$300,000 home depending on your down payment and interest rate. Take our Affordability Quiz.
The Buying Process
What is the option period in Texas?
Texas has a unique "option period" - typically 7-10 days after contract execution where buyers can terminate for any reason. You pay a non-refundable option fee ($100-$500) to the seller. Use this time for inspections and due diligence. This is your key protection as a buyer.
What inspections should I get on a Texas home?
Essential inspections include: general home inspection ($350-$500), termite/pest inspection ($75-$150), and foundation inspection if needed ($300-$500). Optional but recommended: roof inspection, HVAC inspection, sewer scope, and radon testing. Never skip the general inspection.
What happens at closing in Texas?
At closing, you'll sign the mortgage documents, deed, and transfer paperwork at a title company. You'll wire your remaining down payment and closing costs. The title company records the deed with the county, and you receive your keys. Budget 1-2 hours for the appointment.
Do I need a real estate agent as a first-time buyer?
A buyer's agent is highly recommended for first-time buyers. They provide market expertise, handle negotiations, manage paperwork, and protect your interests throughout the transaction. In Texas, buyer agents work under a written buyer representation agreement. Connect with our team.
After Purchase
What should I do right after closing on my first home?
Immediately after closing: change the locks, file your Homestead Exemption with the county appraisal district, set up utilities, update your address, get homeowner's insurance active, and document the condition of everything. The Homestead Exemption deadline is April 30 of the following year.
How do I file for the Texas Homestead Exemption?
File with your county's appraisal district (not the tax office). You'll need your driver's license matching the property address and your closing documents. File online or by mail. This can save you $2,000-$5,000+ annually in property taxes. Read our Homestead Exemption Guide.
First-Time Buyer Resources
Information on this page is sourced from official Texas and federal agencies. Always verify current rates, requirements, and regulations with the appropriate authority.
- Texas State Affordable Housing Corporation (TSAHC) - Down payment assistance and homebuyer programs
- Texas Department of Housing and Community Affairs - State housing assistance programs
- Consumer Financial Protection Bureau - Mortgage education and buyer protection
- FHA Resource Center - FHA loan requirements and guidelines
- Texas REALTORS - Market data and buyer resources
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