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First-Time Homebuyers Programs: A Guide to Mortgages and More

November 4, 2021 | By Reef Merhi

Table Of Contents

Updated March 29, 2022.

Buying a home is often the single most significant investment that people make in their lifetime. However, it can be intimidating to jump into this process for the first time. Luckily, there are mortgage lenders with programs available to help you buy your first home! Texas United Mortgage group is a lender that can also help answer questions first-time homebuyers might have about their financing and buying options. This blog post will provide an overview of first-time buyer programs and how they work

Who is Considered a "First-Time" Homebuyer?

A first-time homebuyer is a person who has not owned a home in the last three years. However, many buyers who fit into this category aren't aware that several programs can help first-time homebuyers qualify for a loan.

In addition, any person living in the house as their primary residence and named on the Deed of Trust is considered an "owner." Therefore, both spouses have an ownership stake in the property if you are married, even if only one is identified on the Deed of Trust.

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What Programs Are Available in Texas for First-Time Homebuyers?

The best mortgage companies Texas offers can help you find the programs available to first-time homebuyers in Texas to make it more accessible to buy a house. The Texas United Mortgage group can help you work through these options! 

Texas State Affordable Housing Corporation

The Texas State Affordable Housing Corporation (TSAHC) program is a home purchase program that provides down payment and closing cost assistance. Assistance comes from a nonprofit organization established by the Texas Legislature to assist Texans in reaching their goal of homeownership. 

What are the benefits of TSAHC? New homeowners can:

  • Receive assistance with closing costs and the down payment.

  • Experience a possible tax credit on the mortgage interest.

  • Combine with other programs they might qualify for.

  • Search targeted areas that allow for higher income and purchase price limits for homes.

What are the eligibility requirements for TSAHC? Buyers must:

  • The home must be in Texas.

  • Have a minimum credit score of 620.

  • Meet income and loan requirements.

  • Must be a single-family home or single-unit condo with some allowance for manufactured housing.

  • The home must not surpass price limits.

Don't worry if any of these requirements don't fit your needs. Other programs may be a better fit for you. The right FHA lenders can help you buy your first home in Texas, no matter your situation.

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What Nationwide Programs Are Available for First-Time Homebuyers?

If you're a Texas resident and don't qualify for a Texas-specific loan assistance program, other options are available at the national level.

Conventional Home Mortgage

If the loan satisfies Fannie Mae and Freddie Mac standards, first-time buyers can obtain conventional loans with as little as a 3% down payment. However, buyers won't have to pay mortgage insurance premiums if they put at least 20% down. To qualify for conventional loans, you must have a credit score of at least 620. However, buyers can get better interest rates with a score of around 740 and a lower monthly mortgage payment.

FHA Loans

The FHA financing rules are less stringent regarding underwriting standards, especially regarding the down payment and credit score. A credit score of 500 is enough to qualify for an FHA loan, but you'll need a 10% down payment. However, your down payment may be as little as 3.5 percent if your credit score is 580 or higher. Mortgage insurance is required for all FHA loans and cannot be canceled.

Veterans Administration Loan

Veterans Administration (or VA loans) are guaranteed by the United States Department of Veterans Affairs, which means they are accessible to military personnel, veterans, and surviving spouses. Buyers can get $0 down and no mortgage insurance if they qualify, but they'll almost certainly have to pay a VA funding fee.


The USDA's low-interest mortgage program allows rural and suburban homebuyers with poor credit to obtain zero-down loans. Borrowers with nontraditional credit data, such as rent or utility payments, can still apply, although those with a score of 640 or higher will benefit from faster loan approval. Although these loans are available in various locations, you don't have to be a farmer or rancher to take advantage of them.

For more information on these and other programs or estimate monthly mortgage payments, work with one of the best mortgage companies Texas offers!

Texas United Mortgage Group Helps First-Time Home Buyers Do Their Research

First-time homebuyers have plenty of options for their first mortgage. If you're looking for your first home, be sure to spend some time doing research. Work with one of the best mortgage companies Texas offers and an FHA lender to better understand the home buying and financing process, find the best home buyer program for your needs, and learn how to qualify for lower interest rates!

Texas United Mortgage group is here to help. Reach out soon to learn more about the mortgage pre-approval process and the first-time homebuyers programs available to you!

To start your research, download a copy of our free resource, the "First Time Home Buyers Guide."


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