2026 First-Time Homebuyer Programs in Central Texas: San Antonio, Austin & Killeen

In 2026, first-time buyers in San Antonio, Austin, and Killeen can stack city, county, and statewide down payment assistance with FHA, VA, and conventional loans to reduce upfront cash and long-term costs.

San Antonio: HIP 80 and HIP 120

San Antonio’s Homeownership Incentive Programs provide 0% interest second liens for down payment and closing costs, tied to Area Median Income (AMI) limits.

• HIP 80 offers $1,000–$30,000 at 0% interest for buyers at or below 80% AMI with full forgiveness over 5–10 years.
• HIP 120 provides $1,000–$15,000 at 0% interest for households between 81% and 120% AMI inside San Antonio city limits.
• Both programs require a first mortgage (FHA, VA, or conventional), HUD-approved education, and homes within city boundaries.

Austin: City DPA and Hill Country Home

Austin buyers can pair a city-backed down payment loan with a Travis County program that adds a forgivable second mortgage on top.

• The City of Austin Down Payment Assistance Program offers up to $40,000 as a 0% deferred, forgivable second lien for eligible buyers.
• Travis County’s Hill Country Home program provides 4%–6% assistance as a 0% interest, 10-year forgivable second mortgage.
• Both require income limits, education, and using approved lenders, but can be layered with FHA, VA, or conventional first mortgages.

Killeen: When Local Help Is Paused

Killeen’s city-level first-time buyer program is on hold, so many buyers lean on statewide assistance that still applies in 2026.

• With Killeen’s HAP paused, buyers typically rely on TSAHC and TDHCA programs that work anywhere in Texas, including Bell County.
• These statewide options often mirror local programs by combining 30-year fixed mortgages with 3%–5% down payment assistance.
• Income limits, purchase price caps, and minimum credit scores still apply even when no city-sponsored grant is available.

TSAHC, TDHCA, and MCCs

Statewide programs from TSAHC and TDHCA add grants, forgivable second liens, and tax credits that reduce lifetime borrowing costs.

• TSAHC’s Homes for Texas Heroes and Home Sweet Texas offer up to 5% assistance as a grant or forgivable second lien.
• TDHCA’s My First Texas Home and My Choice Texas Home pair 30-year fixed loans with up to 5% down payment help.
• TSAHC’s Mortgage Credit Certificate program can return 15%–20% of annual mortgage interest as a federal tax credit.

Key Takeaways

• San Antonio’s HIP 80 and HIP 120 deliver 0% second liens up to $30,000, forgivable over time for income-qualified first-time buyers.
• Austin layers a city DPA loan up to $40,000 with Travis County’s Hill Country Home program offering 4%–6% forgivable assistance.
• Killeen’s local program is paused, so most buyers rely on statewide help from TSAHC and TDHCA paired with FHA, VA, or conventional loans.
• TSAHC programs offer 3%–5% down payment assistance as grants or forgivable second liens plus optional Mortgage Credit Certificates.
• TDHCA’s My First Texas Home and My Choice Texas Home combine fixed-rate mortgages with up to 5% assistance for eligible buyers.
• Most programs require income limits, homebuyer education, approved lenders, and owner-occupancy, so planning early in 2026 is critical.

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How 2026 First-Time Buyer Programs Work in Central Texas

Most 2026 down payment assistance options in Texas follow the same basic pattern: you pair a standard 30-year mortgage with a 0% interest second lien or grant that covers part of your down payment and closing costs. Statewide programs from the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA) sit on top of that framework, while cities like San Antonio and Austin add extra local dollars for buyers inside their boundaries.

• Layered structure: Expect a first mortgage plus a smaller 0% interest second lien or grant used toward down payment, closing costs, or sometimes prepaid escrows.
• Forgivable timelines: Many assistance loans forgive over five to ten years of occupancy, effectively turning into grants if you stay in the home.
• Income and price caps: Programs usually cap household income relative to Area Median Income and set maximum purchase prices by county.
• Education and counseling: HUD-approved homebuyer education is almost always mandatory before closing, especially for city and county programs.
• Approved lenders only: TSAHC, TDHCA, and most municipal programs require you to use specific participating lenders trained on program rules.

San Antonio 2026: HIP 80 and HIP 120

San Antonio remains one of the most aggressive Texas markets for first-time buyer assistance. The Homeownership Incentive Program (HIP) offers two tracks: HIP 80 for households at or below 80% of Area Median Income and HIP 120 for those between 81% and 120%. Both programs provide 0% interest, no-payment second loans for down payment and closing costs on homes inside city limits, with forgiveness schedules tied to how long you occupy the home.

• HIP 80 basics: Lends roughly $1,000–$30,000 as a 0% second lien to buyers at or below 80% of Area Median Income, forgiving completely over five to ten years.
• HIP 120 details: Provides about $1,000–$15,000 at 0% interest for households between 81% and 120% of Area Median Income, with partial forgiveness over a longer timeline.
• Eligibility limits: Households must meet income caps, be first-time buyers under federal definitions, and purchase within San Antonio’s taxing jurisdiction to qualify for HIP funds.
• Loan compatibility: HIP pairs with FHA, VA, or conventional first mortgages but excludes owner financing and properties outside city boundaries, so listing location matters.
• Education requirement: Buyers complete a HUD-approved homebuyer course before funds are released, which helps them understand budgeting, maintenance, and closing disclosures.

Austin 2026: City DPA and Travis County Hill Country Home

Austin’s 2026 first-time buyer landscape leans heavily on a city-operated Down Payment Assistance Program plus Travis County’s Hill Country Home DPA. The City of Austin program offers up to $40,000 as a 0% interest, deferred, forgivable second lien for eligible buyers purchasing within city limits, covering both down payment and closing costs. Travis County’s Hill Country Home program then adds 4%–6% of the loan amount as a 0% interest second mortgage forgivable over ten years.

• City of Austin DPA: Offers a 0% interest, deferred second lien that can reach about $40,000 and helps with both down payment and closing expenses.
• Hill Country Home DPA: Provides 4%–6% of the initial loan amount as a 0% interest, ten-year forgivable second mortgage for qualifying buyers in Travis County.
• Occupancy rules: Both programs require you to live in the home as your primary residence and may recapture funds if you sell or move early.
• Income and price caps: Income limits hinge on Area Median Income, while Austin sets maximum eligible purchase prices that adjust periodically based on market conditions.
• Lender coordination: Only participating lenders can lock program-compliant rates and reserve funds, so you must choose your loan officer carefully before making offers.

Killeen 2026: Statewide Options While Local Programs Pause

The City of Killeen’s own First Time Homebuyer Assistance Program is currently on hold, leaving buyers without a city-sponsored grant or second lien. Instead, most first-time buyers in Killeen lean on statewide programs that apply anywhere in Texas, including Bell County. TDHCA’s homebuyer programs and TSAHC’s DPA options still deliver around 3%–5% assistance layered onto FHA, VA, or conventional loans when you meet income, credit, and education standards.

• No active city HAP: Killeen’s local first-time buyer program has been paused, so new applicants cannot receive city-funded down payment assistance until it reopens.
• TDHCA coverage: My First Texas Home and My Choice Texas Home still operate in Killeen through approved lenders, providing fixed-rate loans and down payment help.
• TSAHC reach: Homes for Texas Heroes and Home Sweet Texas also apply in Bell County, offering grants or forgivable seconds for eligible buyers.
• Military-heavy market: Many Killeen households are tied to Fort Cavazos, meaning VA eligibility often overlaps with statewide DPA to cut upfront cash needs.

Comparing Local 2026 Programs Side by Side

Seeing the main local programs next to each other makes it easier to decide whether city and county incentives justify focusing your search in San Antonio or Austin instead of using statewide options alone. The table below summarizes typical assistance structures for first-time buyers heading into the 2026 purchase season. Always verify current caps and underwriting details before relying on any single figure in your budget.

Program	Where it applies	Max assistance (typical)	Form of help	Key requirements
HIP 80 (San Antonio)	San Antonio city limits	$1,000–$30,000	0% interest, forgivable second lien	≤80% AMI, first-time buyer, HUD education, FHA/VA/conventional loan
HIP 120 (San Antonio)	San Antonio city limits	$1,000–$15,000	0% interest second lien, partially forgivable	81%–120% AMI, first-time buyer, approved first mortgage, city residency
City of Austin DPA	Within Austin city limits	Up to $40,000	0% interest, deferred forgivable second lien	Income limits, price cap, education course, primary residence
Hill Country Home DPA	Travis County	4%–6% of loan amount	0% interest, ten-year forgivable second mortgage	Credit score minimum, DTI cap, approved lender, county location
Killeen city HAP	Killeen	Program paused	Not currently available	Buyers rely on statewide TSAHC and TDHCA programs instead

TSAHC: Homes for Texas Heroes and Home Sweet Texas

TSAHC is often the most flexible statewide option because it serves both first-time and repeat buyers in many cases, with no requirement to be a city resident. Homes for Texas Heroes targets specific occupations such as teachers, first responders, correctional officers, and Veterans, while Home Sweet Texas serves low-to-moderate income buyers more broadly. Both can provide roughly 3%–5% of the loan amount as a grant or deferred, forgivable second lien attached to a 30-year fixed mortgage.

• Eligibility focus: Homes for Texas Heroes is limited to certain professions, while Home Sweet Texas is tied primarily to income and county-based limits.
• DPA structure: Borrowers can choose DPA as a true grant in some cases or as a deferred, forgivable second lien repaid only if they sell or refinance early.
• Loan types: TSAHC programs typically work with FHA, VA, USDA, and conventional loans, giving buyers flexibility to match credit strength and down payment goals.
• Statewide reach: Both programs can be used in San Antonio, Austin, Killeen, and surrounding suburbs as long as properties stay under program purchase price caps.
• MCC pairing: Eligible buyers can add a Mortgage Credit Certificate to TSAHC loans, turning part of their mortgage interest into an annual federal tax credit.

TDHCA: My First Texas Home and My Choice Texas Home

TDHCA’s Texas Homebuyer Program offers two key options: My First Texas Home, focused on first-time buyers and certain Veterans, and My Choice Texas Home, which serves repeat buyers as well. Both offer 30-year fixed-rate mortgages with up to 5% assistance that can be applied to down payment and closing costs. These programs run through approved lenders statewide and layer on top of typical FHA, VA, and conventional underwriting.

• My First Texas Home: Designed for first-time buyers and some Veterans, with 30-year fixed loans and up to about 5% assistance as a grant or second lien.
• My Choice Texas Home: Serves repeat buyers and Veterans with similar fixed-rate mortgages and up to 5% for down payment and closing expenses.
• Education requirement: TDHCA requires completion of an approved homebuyer education course, often available online, before you can close on a program-backed loan.
• Income and price caps: Maximum incomes and purchase prices vary by county and household size, so Austin, San Antonio, and Killeen buyers see different thresholds.
• Lender network: Only TDHCA-approved lenders can offer these products, which is why choosing the right loan officer matters as much as picking the property.

Statewide Program Comparison Table

Most buyers will compare TSAHC and TDHCA options side by side, especially when local city funds are limited or competitive. While both provide down payment help and fixed-rate mortgages, the target occupations, first-time requirements, and assistance forms differ. Use the table below as a quick reference, then confirm current 2026 details with your lender and the program websites before locking a rate or signing a contract.

Program	Who it serves	Assistance type	Typical DPA range	First-time buyer requirement
TSAHC Homes for Texas Heroes	Teachers, first responders, correctional officers, EMS, Veterans	Grant or deferred, forgivable second lien	About 3%–5% of loan amount	Often not strictly first-time; check current rules
TSAHC Home Sweet Texas	Low-to-moderate income buyers statewide	Grant or deferred, forgivable second lien	About 3%–5% of loan amount	First-time not always required; subject to income limits
TDHCA My First Texas Home	First-time buyers and some Veterans	30-year fixed loan plus DPA	Up to 5% of first-lien amount	Yes, except for qualifying Veterans
TDHCA My Choice Texas Home	Repeat buyers and Veterans	30-year fixed loan plus DPA	Up to 5% of first-lien amount	No, can be a repeat buyer program
TSAHC Mortgage Credit Certificate	First-time buyers using TSAHC-approved loans	Federal tax credit on interest	Typically 15%–20% of annual mortgage interest	Yes, with certain exceptions and county limits

How Mortgage Credit Certificates Fit into a 2026 Strategy

Mortgage Credit Certificates do not replace down payment assistance; they complement it by returning a percentage of your annual mortgage interest as a federal tax credit each year. TSAHC’s MCC program typically offers a credit of around 15%–20% of interest paid, subject to IRS limits and county caps. You claim the credit on IRS Form 8396 and may need to reduce your mortgage interest deduction by the credit amount when itemizing.

• Ongoing savings: MCCs create annual tax credits for as long as you live in the home and keep the qualifying mortgage in place without refinancing away the certificate.
• Credit versus deduction: A tax credit directly reduces your tax bill, while a deduction only lowers taxable income, making MCCs especially powerful for some buyers.
• Program pairing: TSAHC typically ties MCCs to its own DPA or fixed-rate loan products, coordinated through approved lenders that understand the tax rules.
• IRS oversight: Form 8396 instructions and IRS homeowner publications explain how to calculate, claim, and track MCC benefits properly each tax year.

How to Choose the Right 2026 Program Mix

With so many moving parts—rates, grants, second liens, MCCs, and different city rules—the only way to make a rational decision is to run multiple side-by-side scenarios. Start by clarifying whether you care more about the lowest monthly payment, the least cash at closing, or long-term tax savings. Then have at least one lender who understands TSAHC and TDHCA model your options in San Antonio, Austin, and Killeen using 2026 loan limits and realistic price points.

• Clarify your priorities: Decide if reducing upfront cash, minimizing monthly payment, or maximizing tax benefits matters most for your household’s 2026 purchase plan.
• Compare cities and programs: Model the same purchase price in each city using HIP, Austin DPA, Hill Country Home, TSAHC, and TDHCA options.
• Check fine print: Confirm income limits, price caps, recapture risk, and occupancy periods before relying on any projected savings in your long-term plan.
• Coordinate professionals: Work with lenders and agents who regularly close 2026 DPA deals; mistakes on paperwork can delay or kill assistance at closing.

The Bottom Line

In 2026, first-time buyers in San Antonio, Austin, and Killeen do not just have to “save more” to compete; they need to plug into the assistance that already exists. San Antonio’s HIP 80 and HIP 120, Austin’s DPA and Hill Country Home, and statewide programs from TSAHC and TDHCA can collectively cover a meaningful share of your down payment, closing costs, and even future tax bills. Run the numbers city by city, understand the strings attached, and structure your purchase so today’s help still makes sense several years into homeownership. This is not tax or lending advice—always confirm details with a qualified lender, housing counselor, or tax professional before you commit.

References Used

• San Antonio HIP 80 / HIP 120: City program pages and procedural guides describing 0% second liens, forgiveness schedules, and AMI-based income limits. City of San Antonio HIP overview
• HIP 80 guidelines: Detailed PDF outlining HIP 80 eligibility, income caps at 80% AMI, first-time status, and education requirements. HIP 80 guidelines
• Austin DPA program: Official homebuyer page summarizing up to $40,000 in 0% deferred, forgivable down payment assistance within Austin city limits. City of Austin Homebuyer Resources
• Hill Country Home DPA: Travis County and partner documents describing 4%–6% 0% interest, ten-year forgivable second mortgages for buyers in the county. Travis County Homebuyers
• TSAHC DPA programs: Statewide overviews of Homes for Texas Heroes and Home Sweet Texas, including DPA as grants or forgivable second liens. TSAHC Home Sweet Texas
• TDHCA homebuyer programs: Texas Homebuyer Program hub linking to My First Texas Home and My Choice Texas Home with 30-year fixed loans and DPA. TDHCA Homebuyer Program
• MCC details: TSAHC resources explaining Mortgage Credit Certificates and how they integrate with DPA. TSAHC MCC overview
• IRS homeowner tax guidance: Publications and forms describing mortgage interest credits and homeowner deductions that interact with MCCs. IRS Form 8396 info

Frequently Asked Questions

What are the income limits for San Antonio’s HIP 80 program?

HIP 80 targets households at or below 80% of Area Median Income based on family size and HUD income tables. The city publishes updated limits each year, and buyers must stay under those thresholds at application and approval. Check the latest HIP 80 guidelines or contact San Antonio’s Neighborhood and Housing Services Department for current numbers.

How much assistance can I get from HIP 80 and HIP 120?

HIP 80 typically provides roughly $1,000 to $30,000 as a 0% interest, forgivable second lien, while HIP 120 offers about $1,000 to $15,000 with partial forgiveness. Exact amounts depend on need, underwriting, and home price. Both programs forgive balances over five to ten years of occupancy, effectively turning the second lien into grant-style help when you stay long enough.

How does the City of Austin Down Payment Assistance Program work?

The City of Austin program offers up to $40,000 in 0% interest, deferred down payment assistance as a second lien for eligible buyers within city limits. Funds can cover down payment, closing costs, and prepaid items. The loan forgives after an occupancy period, typically five to ten years, if you meet program rules. Income limits, purchase price caps, and homebuyer education all apply.

What is the Hill Country Home Down Payment Assistance Program?

Travis County’s Hill Country Home program pairs a 30-year fixed-rate first mortgage with roughly 4%–6% of the loan amount in down payment and closing cost help. Assistance comes as a 0% interest, ten-year forgivable second mortgage. To qualify, buyers must meet income, credit, and debt-to-income guidelines and purchase in Travis County. This program can sometimes layer with other assistance.

How does TSAHC’s DPA as a grant differ from a forgivable loan?

With TSAHC, some borrowers can receive DPA as a true grant that never needs repayment. Others may use a deferred, forgivable second lien that only becomes due if they sell, refinance, or move out before a set period. In practice, long-term owners experience both forms as grant-like assistance, but forgivable second liens carry more conditions and recorded liens on title.

What are the basics of TDHCA’s My First Texas Home program?

My First Texas Home combines a 30-year fixed-rate mortgage with up to 5% of the first-lien amount in down payment and closing cost assistance. It primarily serves first-time buyers and certain Veterans who meet income, credit, and purchase price limits. Borrowers must complete TDHCA-approved education, apply through approved lenders, and occupy the home as their primary residence.

How does a Mortgage Credit Certificate help first-time buyers?

A Mortgage Credit Certificate converts a portion of your annual mortgage interest into a federal tax credit, commonly around 15% to 20%. This credit directly reduces your tax bill each year, on top of any remaining mortgage interest deduction. You claim it on IRS Form 8396 and should coordinate with your tax preparer to ensure you apply it correctly without double counting deductions.

Can I combine city, county, and statewide assistance in 2026?

In many cases, yes, but only within program rules. Some buyers combine a city DPA loan with a county second lien and TSAHC or TDHCA support, while others use just one or two layers. The stacking rules vary by program, so your lender must confirm which combinations are allowed in 2026 to avoid conflicts, over-subsidization, or last-minute denials.

What credit score do I need for these first-time buyer programs?

Minimum credit scores typically cluster around 620 for TSAHC and TDHCA programs, with some lenders imposing higher overlays. Local programs such as Hill Country Home and city DPA often follow similar or slightly stricter thresholds. Beyond minimum numbers, underwriters also evaluate payment history, debt-to-income ratios, and reserves before approving 2026 assistance.

How should I start if I want to use assistance in 2026?

Start by pulling your credit, gathering income documentation, and deciding whether you prefer San Antonio, Austin, or Killeen. Then speak with at least one lender experienced with TSAHC, TDHCA, and local city programs, and complete a HUD-approved homebuyer education course. From there, you can compare several program stacks side by side and choose the route that balances cash needs and long-term affordability.