Buying a house is a huge financial decision. If you’ve never done it before, it’s easy to feel like you’re in over your head. Loan programs for first-time home buyers can make the process easier, especially if you’ve had credit issues or found it hard to save up a down payment.
Best Mortgage Lenders for First-Time Buyers in Texas
The Texas Department of Housing and Community Affairs, or TDCHA, offers first-time home buyer programs to assist qualified borrowers in the Lone Star State. Some national loan programs also have features that can benefit first-time home buyers. Browse the options below to find the right mortgage for your needs.
National first-time home buyer loan programs
No matter where you live, these loan programs have benefits that may help you buy your first home, like low down payment and credit score requirements.
TDHCA highlights and eligibility requirements
If you haven’t owned a home as your primary residence within the past three years, you’re considered a first-time home buyer by the TDHCA. This requirement is waived if you’re an honorably discharged veteran.
Highlights
- Down payment and closing cost assistance.
- Tax credit possible for annual interest paid on mortgage loan.
- Some programs can be combined for maximum benefit.
- Homes in “targeted areas” enjoy higher income and purchase price limits.
Eligibility
- Borrowers must have a minimum credit score of 620.
- Borrowers must meet income and loan requirements.
- Property must be located in Texas and not exceed purchase price limits.
- Property must be a single-family home or a single-unit condominium.
- Some manufactured housing allowed.
TDHCA first-time home buyer programs
My First Texas Home loan for first time home buyers who want down payment and closing cost assistance, as well as low interest rates.
My Choice Texas Home for repeat buyers who need assistance with down payment and closing costs.
Texas mortgage credit certificate for breaks on federal income taxes.
Ready to take the next step toward being a Texas homeowner? It’s time to dig into the specifics. For full details on any of the programs listed above, visit the Texas Department of Housing and Community Affairs website.
The TDHCA doesn’t approve applications or lend money; instead, it has a network of participating lenders that provide access to first-time home buyer programs. These lenders may have additional rules about income limits, credit scores and eligible properties. If you’re interested in these home buyer assistance programs, reach out directly to a lender for more information.
How do i choose a mortgage lender?
Once you have an idea of the type of mortgage you're looking for, finding the right lender may be easier than you think — especially when you compare at least three lenders and let them compete for your business. It's likely one lender's mortgage package will rise above the others’ — with a lower rate and lower fees.
Methodology
Nerd Wallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the Nerd Wallet Mortgages team.
What type of loan is best for a first-time home buyer?
The best mortgage for you as a first-time home buyer is the loan for which you're most qualified. And that depends on a number of factors, including your credit score. With a credit score of at least 580, you may find that a loan backed by the FHA is your best option. With a credit score around 620 or higher, a conventional loan might be a better option, and could require an even lower down payment of 3%.
What programs are available for first-time home buyers?
Many grants, special loans and down payment assistance programs are available to borrowers looking to buy their first home. These first-time home buyer programs are offered by agencies in the state where you live.
What is the easiest home loan for a first-time home buyer to get?
The loan program that's easiest to qualify for is an FHA-backed loan. That's because FHA loan requirements allow a lower credit score and less stringent debt-to-income guidelines than conventional loans. However, if you’re a first-time buyer with strong credit, conventional loans may allow even lower minimum down payments than an FHA loan.
What do I need to do to buy my first home?
- How to Buy Your First Home
- Determine If You Are Ready to Buy a Home.
- Start Shopping for a Loan.
- Find the Best Payment Options and Loan Types.
- Have a Down Payment Ready.
- Be Honest About What You Can Afford.
- Find a Good Real Estate Agent.
- Request a Home Inspection.
- Be Patient During Escrow.
How do I get a first time home buyer grant?
You can apply for the First Home Owner Grant (New Homes) scheme (FHOG) through your bank or financial institution when you arrange finance to buy your home. If you've already completed the purchase process or construction has commenced, you can send your application straight to us.
How do you buy a house with no money down?
There are currently two types of government-sponsored loans that allow you to buy a home without a down payment: USDA loans and VA loans. Each loan has a very specific set of criteria you need to meet in order to qualify for a zero-down mortgage.
What are the worst mortgage lenders?
Loan servicing, payments, escrow accounts (2,044)
According to the CFPB, these five institutions received 60% of all mortgage-related complaints:
- Bank of America.
- Wells Fargo.
- J.P. Morgan Chase.
- Citibank.
- Ocwen.
