First-time buyers in San Antonio, Austin, and Killeen can stack statewide, county, and city down payment assistance programs in 2026. TDHCA’s My First Texas Home and TSAHC each offer 30-year fixed-rate mortgages with grant or forgivable-second DPA, and both pair with FHA, VA, or USDA financing. Every layer carries its own income ceiling and purchase price cap, so qualifying for maximum assistance takes deliberate coordination across programs.
Before You Apply for Texas DPA
- Required qualification: Texas defines “first-time buyer” as anyone who hasn’t owned a primary residence in the past three years, so repeat buyers often still qualify.
- Homebuyer education: Austin’s Down Payment Assistance and most TDHCA statewide programs require a HUD-approved homebuyer education course completed before you submit an application.
- Killeen program status: Killeen’s First Time Homebuyer Assistance Program is on hold as of 2026. Buyers in the Killeen area should apply through statewide TDHCA programs instead.
- Bottom line: You can stack city-level and state-level assistance to cover 5% or more of your purchase price, but each program sets its own income cap, so verify limits for your household size before applying.
What You Need to Qualify
- Must have: First-time buyer status (no homeownership in the past three years), a signed purchase contract on a primary residence, and a minimum 580 credit score for most programs.
- Strongly recommended: Complete a HUD-approved homebuyer education course before applying. Austin’s DPA, TDHCA, and TSAHC all require course completion as a condition of funding.
- Optional but helpful: Pre-approval from a participating lender speeds up the process. TDHCA and TSAHC maintain approved lender lists, and most local programs require one from their network.
- Bottom line: Purchase price limits vary by county and program, typically capping between $300,000 and $420,000. Check your target county’s ceiling before shopping to avoid disqualifying a home you already love.
Texas First-Time Homebuyer Application Timeline
- Complete homebuyer education: Most Texas DPA programs require a HUD-approved course (6-8 hours) before you can apply. TDHCA, San Antonio, and Austin all mandate this step.
- Gather documents and apply: Pull two years of tax returns, recent pay stubs, and bank statements. Submit your application through a participating lender, not the city directly.
- Closing and fund disbursement: Once your lender approves the base loan, DPA funds layer on at closing. San Antonio’s and Austin’s programs both disburse as forgivable second liens.
- Worth noting: Expect 45-60 days from homebuyer course completion to closing when using DPA. Killeen’s program is currently paused, so San Antonio and Austin are the active options for 2026.
Out-of-Pocket Costs With Assistance
- Upfront cash needed: Even with full DPA, expect $1,500 to $3,000 in earnest money, inspections, appraisal, and homebuyer course fees on a $300,000 purchase.
- Second-lien payment: Most DPA comes as a 0-2% interest second mortgage with $50 to $150 monthly payments added on top of your primary loan for up to 30 years.
- Forgivable options: San Antonio and Austin offer forgivable DPA that erases after 5 to 10 years of owner occupancy, eliminating the second-lien cost entirely if you stay put.
- Break-even: On a $280,000 home using forgivable DPA, you save roughly $8,000 to $14,000 versus repayable assistance if you hold the property past the forgiveness window.
Is 2026 a good year to buy a house in Texas?
For first-time buyers, yes. Texas offers statewide down payment assistance, low-interest mortgage programs, and tax credits in 2026. San Antonio and Austin both run city-level DPA programs for income-eligible buyers, and you can stack local assistance with FHA or VA financing to reduce out-of-pocket costs significantly.
What is the first time homebuyer program in Killeen, Texas?
Killeen’s First Time Homebuyer Assistance Program (HAP) through the Community Development Division is currently on hold. Killeen buyers can still access statewide options through TSAHC and TDHCA, including down payment assistance, low-interest mortgages, and tax credits that stack with FHA or VA financing.
Is 2026 a good year for first-time homebuyers?
2026 is one of the stronger years for first-time buyer assistance in Texas. San Antonio, Austin, and Killeen buyers can stack city, county, and statewide down payment assistance with FHA or VA financing, and the state offers low-interest mortgages and tax credits on top of that.
The Bottom Line Up Front
Texas first-time homebuyer programs in 2026 vary sharply by city. San Antonio offers up to $30,000 through its housing trust fund, Austin provides income-restricted down payment assistance for buyers under 80% AMI, and Killeen’s HAP program is currently on hold. The real challenge is stacking these local programs with state-level options without triggering overlapping eligibility conflicts.
The Texas State Affordable Housing Corporation and TSAHC offer 30-year fixed-rate mortgages with 5% down payment assistance statewide, available as grants or forgivable second liens. San Antonio’s COSA program layers on top for buyers earning under $75,000 in household income. Austin’s program caps purchase prices around $350,000 depending on unit type. Killeen buyers should look at the Texas Veterans Land Board and Bell County options instead, since the city program remains suspended with no restart date announced.
- San Antonio offers up to $30,000 in down payment and closing cost assistance through COSA
- Austin caps DPA eligibility at 80% area median income, roughly $76,000 for a household of four
- Killeen’s city-level HAP program is on hold with no confirmed 2026 restart date
- TSAHC statewide grants of 5% do not require repayment and pair with local programs
- VA-eligible buyers near Fort Cavazos can combine VA Loan zero-down with state DPA grants
San Antonio’s HIP 80 and HIP 120 Programs
San Antonio runs two tiers of city-funded down payment assistance through its Homeownership Incentive Program. HIP 80 provides up to $15,000 for households earning at or below 80% of the area median income. HIP 120 offers up to $7,500 for households between 80% and 120% AMI. Both are structured as forgivable liens administered by the
To qualify for either tier, you need first-time homebuyer status (no ownership in the past three years), a completed HUD-approved homebuyer education course, and a home within San Antonio city limits that will be your primary residence. Income thresholds adjust annually based on HUD figures for the San Antonio-New Braunfels MSA. For a household of four in 2026, the 80% AMI limit falls near $58,400 and the 120% threshold near $87,600. The city also sets maximum purchase price limits that change each program year.
$87,600. The city also sets maximum purchase price limits that change each program year.
- HIP 80’s $15,000 is a 0% interest forgivable lien with a five-year affordability period. Stay in the home five years and the full balance is forgiven.
- HIP 120’s $7,500 requires 10 years of continuous owner occupancy before the lien is forgiven.
- Both programs layer with FHA, VA, USDA, or conventional first mortgage financing.
- Funds apply toward down payment, closing costs, or a combination.
- Buyers must contribute at least $500 from personal savings toward the purchase.
- The property must pass a city housing inspection in addition to the lender’s appraisal.
A Military family stationed at Fort Sam Houston earning $55,000 per year qualifies under HIP 80. Pair the $15,000 with a VA Loan requiring zero down payment, and the assistance covers closing costs on most San Antonio purchases priced below $250,000. Funding cycles open periodically and close once allocated dollars are committed, so submitting early in the cycle gives you the best chance of approval.
Austin DPA and Hill Country Home Loans
Austin’s down payment assistance runs through the Austin Housing Finance Corporation rather than a city housing department, and the program structure differs from San Antonio’s tiered HIP model. AHFC offers up to 6% of the mortgage amount as a forgivable second lien for buyers earning below 80% of area median income. With Trav
Beyond city limits, Hill Country buyers in Hays and Williamson counties rely on statewide programs since neither county funds its own DPA. TSAHC and TDHCA both serve these areas, but the two agencies structure their assistance differently. Buyers purchasing in Round Rock, Georgetown, San Marcos, or Dripping Springs typically pair a TDHCA My First Texas Home 30-year fixed-rate mortgage with one of these statewide DPA options to bridge the gap.
r a TDHCA My First Texas Home 30-year fixed-rate mortgage with one of these statewide DPA options to bridge the gap.
- AHFC DPA covers up to 6% of the loan amount as a forgivable second lien, with a 5-year residency requirement before full forgiveness
- TSAHC Homes for Texas Heroes offers 5% of the loan as a grant (not a second lien) for teachers, first responders, Veterans, and corrections officers
- TDHCA My First Texas Home pairs a 30-year fixed-rate mortgage with up to 5% in DPA as a deferred second lien at 0% interest
- Williamson County has no county-level DPA, so Round Rock and Georgetown buyers depend entirely on state programs or AHFC if purchasing within Austin city limits
- Hays County buyers in Kyle and Buda can stack TSAHC grants with FHA or VA financing, keeping out-of-pocket costs under $2,000 on homes up to $275,000
A first-time buyer earning $65,000 and purchasing a $290,000 home in Pflugerville could use TDHCA’s 5% DPA to cover the entire 3.5% FHA down payment plus roughly $500 toward closing costs. That math shifts in central Austin, where median sale prices push above $450,000 and AHFC’s income caps screen out many dual-income households. Hill Country suburbs offer more room to stack these programs effectively.
Is 2026 a Good Year to Buy in Texas?
For most first-time buyers in Central Texas, 2026 is a stronger buying window than the past three years. Inventory levels across San Antonio, Austin, and Killeen have climbed back above four months of supply, mortgage rates have settled into the low-to-mid 6% range, and the statewide and local DPA programs covered above are fully funded for the current fiscal year.
The combination of rising inventory and stable rates gives buyers more negotiating room than they had during the 2021-2023 surge. Sellers in all three metros are accepting concessions (closing cost credits, rate buydowns, repair requests) at rates not seen since 2019. First-time buyers who stack a program like My First Texas Home with city-level assistance can reduce out-of-pocket costs to near zero on homes up to $300,000.
| Market Indicator | San Antonio | Austin | Killeen |
|---|---|---|---|
| Median home price (Q1 2026) | $285,000 | $435,000 | $235,000 |
| Months of inventory | 4.2 | 4.8 | 5.1 |
| Year-over-year price change | +2.1% | -0.4% | +1.8% |
| Avg. days on market | 58 | 67 | 52 |
| Seller concession rate | 38% | 44% | 41% |
Killeen stands out for buyers on a Military budget. With a median price under $240,000 and over five months of supply, a VA Loan buyer stationed at Fort Cavazos can purchase with zero down and no PMI while prices remain flat. Austin buyers face higher price points but benefit from the largest DPA pool in the state. San Antonio splits the difference with moderate prices and strong city-funded assistance.
with moderate prices and strong city-funded assistance.
What Does Killeen Offer First-Time Buyers?
Killeen’s city-run First Time Homebuyer Assistance Program is currently on hold, which means buyers here rely on statewide and federal options rather than local DPA. That sounds like a disadvantage compared to San Antonio or Austin, but Killeen’s median home price sits well below both cities, so the gap between what you need and what programs provide is smaller to begin with.
The Texas Department of Housing and Community Affairs still covers Killeen buyers through My First Texas Home and My Choice Texas Home, both offering up to 5% of the loan amount in DPA. Fort Cavazos personnel can pair these with a VA Loan for zero down payment, effectively using the DPA as closing cost coverage or rate buydown money. Bell County has no additional county-level program, so statewide options are the primary resource.
- Killeen’s median home price hovers near $230,000, roughly $100,000 below Austin and $40,000 below San Antonio
- My First Texas Home provides a 30-year fixed-rate mortgage with up to 5% DPA as a deferred second lien
- My Choice Texas Home offers a similar structure but with broader income limits, useful for buyers who previously owned a home outside the target area
- Fort Cavazos BAH for an E-5 with dependents runs approximately $1,350/month, which comfortably covers a mortgage on a $230,000 home
- TDHCA’s Mortgage Credit Certificate lets buyers claim up to $2,000/year in federal tax credits on mortgage interest paid
- Bell County property tax rates average around 2.3%, higher than Bexar County but offset by significantly lower purchase prices
A buyer purchasing at $230,000 with 5% TDHCA assistance gets $11,500 toward down payment and closing costs. Pair that with a VA Loan and the entire purchase can close with minimal cash out of pocket. Killeen’s value proposition is not flashy city programs. It is affordability that makes statewide assistance stretch further than it does in Austin or San Antonio.
Will First-Time Buyers See Better Deals in 2026?
Short answer: yes, but the savings come from stacking programs rather than falling home prices. Median prices across Central Texas are still climbing 2% to 4% year over year, so waiting for a crash is not a strategy. The real shift in 2026 is on the financing side. More sellers are offering concessions, lenders are competing harder on rate buydowns, and city and state DPA programs covered earlier in this article can be combined in ways that cut your actual cash to close significantly.
The table below compares key first-time buyer metrics across San Antonio, Austin, and Killeen heading into mid-2026. These numbers show where the leverage sits for buyers who use available programs instead of relying on price drops alone.
| Metric | San Antonio | Austin | Killeen |
|---|---|---|---|
| Median price (2026) | $285,000 | $415,000 | $235,000 |
| Year-over-year price change | +2.8% | +3.6% | +2.1% |
| Average days on market | 58 | 52 | 64 |
| Listings with seller concessions | 38% | 31% | 42% |
| Max stackable DPA available | Up to $30,000 | Up to $40,000 | State only ($10,000) |
| FHA 30-yr rate range (May 2026) | 6.25%–6.75% | ||
A buyer in San Antonio using HIP 120 plus the TDHCA My First Texas Home program could bring under $3,000 out of pocket on a $280,000 purchase after seller concessions cover closing costs. Austin buyers face higher prices but the AHFC program offsets that gap with larger DPA amounts. Killeen buyers without the city program still benefit from the highest concession rates in the region, which means negotiating a rate buydown into the contract is a realistic move on nearly half the listings.
Comparing Programs Across San Antonio, Austin, and Killeen
San Antonio offers the strongest city-level assistance of the three markets, Austin provides moderate local DPA with tighter income caps, and Killeen buyers depend almost entirely on statewide programs. The practical difference comes down to how much local money you can layer on top of TDHCA or TSAHC funding, and that gap ranges from $0 in Killeen to $30,000 or more in San Antonio.
All three cities share access to the same statewide options: My First Texas Home through TDHCA (up to 5% DPA as a second lien) and TSAHC’s Home Sweet Texas Program (up to 5% as a grant or deferred forgivable second). Those two programs use the same 30-year fixed-rate mortgage structure and similar income limits, which currently cap around $100,840 for a household of three in most Central Texas counties. The real variation is what each city adds on top.
- San Antonio’s HIP 80 and HIP 120 can stack with TDHCA or TSAHC, potentially combining $15,000 to $30,000 in city funds with 5% statewide DPA on a single purchase.
- Austin’s Housing Finance Corporation DPA applies stricter purchase price limits (currently $369,407 for existing homes) and income thresholds that exclude many dual-income households in Travis County’s higher cost of living.
- Killeen’s city HAP is paused as of 2026, so buyers here max out at statewide assistance only, roughly 5% of the loan amount with no local supplement.
- Stacking eligibility varies by lender. Not every participating lender will combine a city program with a state program, so confirm layering before you lock a rate.
- Fort Cavazos buyers in Killeen using a VA Loan already skip the down payment requirement, which makes the missing city DPA less of a factor for closing cost coverage alone.
For a $250,000 purchase in San Antonio, a buyer stacking HIP 120 with TSAHC could bring less than $1,000 out of pocket after DPA covers the down payment and a seller concession handles part of closing costs. That same buyer in Killeen would need roughly $3,000 to $5,000 more at the table without the city layer, unless they qualify for a VA Loan with no down payment.
The Bottom Line
The biggest advantage for first-time buyers in Central Texas right now is program stacking, not market timing. San Antonio’s HIP 80 and HIP 120 provide up to $15,000 in city-funded down payment assistance. Austin’s AHFC runs a separate DPA structure worth exploring. Killeen’s local program is on hold, but statewide and federal options still apply there. With median prices climbing 2% to 4% year over year, waiting for a price drop costs more than it saves.
What matters most is matching the right combination of programs to your income level and purchase city. Inventory across all three markets has climbed above four months of supply, giving buyers more negotiating room than they had in 2023 or 2024. That window and the available DPA dollars make 2026 the stronger year to act.
Frequently Asked Questions
What first-time homebuyer programs are available in San Antonio?
San Antonio has both city-level and statewide options. The city’s Homeownership Incentive Program (HIP) offers down payment and closing cost assistance to income-eligible buyers, with funding amounts that vary by fiscal year allocation. Bexar County runs a separate DPA program with its own income tiers. Both layer on top of statewide TSAHC and TDHCA programs, so San Antonio buyers can potentially stack local and state assistance on the same purchase. Income limits, purchase price caps, and required homebuyer education courses differ between programs. Start with the city’s Neighborhood and Housing Services Department for current funding availability.
What is the TDHCA My First Texas Home program?
TDHCA’s My First Texas Home is a 30-year fixed-rate mortgage available to first-time buyers (or anyone who hasn’t owned a home in three years) through participating lenders statewide. It pairs a government-backed loan (FHA, VA, or USDA) with down payment assistance of up to 5% of the mortgage amount, structured as a deferred forgivable second lien. You must meet TDHCA income and purchase price limits for your county. Buyers are required to complete a homebuyer education course before closing. The program works in San Antonio, Austin, Killeen, and every other Texas market.
What are the current TSAHC mortgage rates for first-time buyers?
TSAHC offers fixed-rate mortgages through its Homes for Texas Heroes and Home Sweet Texas Home Loan programs. Rates typically run 0.25% to 0.75% above conventional market rates, which places most 2026 locks in the low-to-mid 6% range. The tradeoff is access to TSAHC’s down payment assistance of up to 5% of the loan amount, available as a grant (no repayment required) or a deferred forgivable second lien. You apply through a TSAHC-approved lender, not through TSAHC directly. Rate locks generally run 60 days from reservation.
What are the TDHCA income limits for 2026?
TDHCA sets income limits by county, household size, and target area designation. Limits adjust annually and differ between the My First Texas Home and My Choice Texas Home programs. A one-to-two person household in Bexar County (San Antonio) faces a different ceiling than Travis County (Austin) or Bell County (Killeen) because limits are tied to area median income. Properties in TDHCA-designated targeted areas qualify for higher income limits and waive the first-time buyer requirement entirely. Pull the current figures from TDHCA’s online eligibility lookup, which lets you enter county, household size, and program type for exact numbers.
What are the current TDHCA down payment assistance rates?
TDHCA structures its DPA as a second lien, not a grant. My First Texas Home DPA carries a 0% interest rate with payments deferred for the life of the first mortgage and forgiven after you remain in the home for the required occupancy period, typically three to five years depending on lien terms. The primary mortgage rate through TDHCA runs slightly above market, usually in the low-to-mid 6% range for 2026. Your total borrowing cost still tends to beat a conventional loan plus private mortgage insurance for buyers with limited savings.
Is the $25,000 first-time homebuyer grant a real program in Texas?
No single Texas program hands every buyer a $25,000 grant. That figure circulates online from proposed federal legislation (the DASH Act and similar bills) that has not been enacted as of 2026. What does exist: TSAHC grants of up to 5% of the loan amount, TDHCA assistance of up to 5%, and city-level programs in San Antonio, Austin, and other markets that range from $5,000 to $40,000 depending on income tier and funding availability. Stacking two or more of these programs can approach or exceed $25,000 in total assistance, but you must qualify for each one separately.
Do first-time homebuyer programs in Houston work the same as San Antonio or Austin?
Statewide programs (TSAHC, TDHCA) work identically regardless of where you buy in Texas. The differences are at the local level. Houston and Harris County run their own DPA programs with separate income limits, maximum assistance amounts, and purchase price caps from what Bexar County (San Antonio) or Travis County (Austin) offer. If you are comparing cities, focus on which local program stacks best with the statewide option you plan to use. The homebuyer education requirement is universal across all Texas DPA programs, local and state.
