First-Time Homebuyer Programs in Texas: 5 Questions to Ask Before You Apply in 2026

First-time homebuyer reviewing Texas homebuying options with a local real estate professional

The moment a buyer hears “up to 5% down payment assistance,” it is easy to assume the money works the same way for every home, household, and loan. It does not.

First-time homebuyer programs in Texas are built around specific income limits, property rules, approved lenders, education requirements, and repayment terms. In Brenham and Washington County, the property itself can add another layer because buyers may be comparing in-town homes, homes with acreage, wells, septic systems, and rural properties.

Before you apply in 2026, I recommend asking your lender and real estate team these five questions. The answers can help you choose a program with confidence instead of discovering a limitation after you are already under contract.

1. What income limit applies to my household and program?

Your applicable income limit depends on the program, county, household size, loan type, and how the program calculates qualifying income. A lender should review your complete household and financial picture before telling you that you qualify.

For example, the Texas Department of Housing and Community Affairs (TDHCA) publishes separate limits for programs such as:

  • My First Texas Home, which is designed for first-time homebuyers and qualified veterans, with certain exceptions.
  • My Choice Texas Home, which does not require you to be a first-time buyer.
  • Conventional, FHA, VA, and USDA-related options with different income-calculation rules.

The TDHCA limits table effective July 13, 2026, lists Washington County separately. The table includes a Washington County income figure of $101,600 in the My First Texas Home and Texas Mortgage Credit Certificate section, while the My Choice Texas Home table lists Washington County limits that vary by loan type and income category. Your lender should identify the exact row that applies to your household rather than relying on a general online estimate.

Ask your lender:

  • Is the limit based on my income alone or total household income?
  • Does a non-purchasing spouse count?
  • How are bonuses, overtime, commissions, self-employment income, or side-business income calculated?
  • Does the program use gross household income or qualifying income from the loan application?
  • Does household size change my maximum income?
  • Does the limit change if I buy in Washington County instead of another Texas county?

This question matters because a buyer can be under one income limit for a TDHCA program and a different limit for a conventional assistance option. Do not compare assistance amounts until you know which income calculation applies.

You can review the current TDHCA Combined Income and Purchase Price Limits Table, but I still recommend having an approved lender interpret it for your specific application.

2. Does the property location and type qualify?

The property must satisfy the program’s location, occupancy, purchase price, and property-type requirements. In most cases, the home must be located in Texas and used as your primary residence, not as an investment property, vacation home, or second home.

Brenham and Washington County homebuyer considering a property with land and local infrastructure

This question is especially important in the Brenham and Washington County market, where a buyer may find:

  • A traditional home inside Brenham
  • A home on several acres outside city limits
  • A property with a private well or septic system
  • A home with an agricultural exemption
  • A property near a county line
  • A home with deed restrictions or unusual access arrangements

The assistance program may allow a property type that still requires additional lender, appraisal, insurance, or inspection review. For example, a rural home may qualify in principle, but the lender may need documentation regarding the well, septic system, road access, flood exposure, survey, or habitability.

Ask your lender and real estate team:

  • Is this exact address eligible?
  • Does the property price fall below the applicable purchase price limit?
  • Is the home inside a qualifying county or census tract?
  • Does the program allow acreage or rural residential property?
  • Are manufactured homes, condos, townhomes, or new construction eligible?
  • Will a private well, septic system, outbuilding, or agricultural exemption affect underwriting?
  • Does the property have to be located in a targeted area to qualify for a higher limit or special exception?

A property’s address matters more than its marketing description. A listing may say “Brenham area,” but the actual county, census tract, utilities, and property classification determine whether the home fits the program.

I recommend confirming eligibility before spending money on an appraisal, inspection, or option-period services. My team can help buyers evaluate local property details through our buyer services and market knowledge across Brenham, Chappell Hill, and Washington County.

3. Can I stack this assistance with another source of funds?

You may be able to combine down payment assistance with certain approved funds, but you should not assume that two state programs can simply be layered together. “Stacking” generally means combining permitted assistance, gift funds, seller contributions, or loan benefits without violating the rules of the primary program.

Texas first-time homebuyer reviewing down payment assistance and financing options

Potential sources may include:

  • A TDHCA or TSAHC assistance product
  • Eligible gift funds from a family member
  • Seller-paid closing costs, when permitted by the loan type and contract
  • An employer or local housing benefit
  • A USDA, FHA, VA, or conventional first mortgage
  • Personal savings or other verified assets

However, TDHCA and TSAHC are separate program administrators with separate rules, approved lenders, and documentation requirements. A lender must confirm whether the assistance can be combined with your chosen first mortgage and whether the sources can be used for down payment, closing costs, prepaid items, or reserves.

Ask before applying:

  • Can this assistance be combined with FHA, VA, USDA, or conventional financing?
  • Can I use gift funds at the same time?
  • Can seller concessions be used with this program?
  • Can assistance cover closing costs as well as the down payment?
  • Are there limits on how much of my own money I must contribute?
  • Would using one assistance option make me ineligible for another?
  • Does the program require a specific lender or loan product?

A strong lender should provide a side-by-side comparison of your total cash to close, monthly payment, interest rate, and future repayment obligation. The program offering the largest upfront assistance is not automatically the most affordable option over time.

4. What is the timeline from application to closing?

The assistance program must be approved, documented, and coordinated with the first mortgage before closing. That process can add steps beyond a standard pre-approval, so your lender should build a realistic timeline around income verification, education, underwriting, appraisal, and program approval.

TDHCA states that completing an approved homebuyer education course is required for assistance through its Homebuyer Program. TSAHC also provides required education and informational materials for certain products, including its three-year deferred forgivable down payment assistance option.

First-time buyer preparing documents for a Texas mortgage application

Ask for a written timeline that includes:

  • Initial application and document collection
  • Homebuyer education completion
  • Pre-approval and program screening
  • Property search and offer preparation
  • Contract-to-close underwriting
  • Appraisal and title review
  • Assistance approval
  • Final approval and closing disclosure review
  • Closing and funding

This matters in Brenham and Washington County because the right home may involve additional due diligence. Acreage properties can require more time for surveys, septic inspections, well evaluations, flood-zone review, and title research.

I encourage buyers to complete the education requirement early, before making an offer whenever possible. Preparation gives you more flexibility when the right home becomes available.

5. Will the assistance be forgiven, deferred, or repaid?

Down payment assistance may be structured as a grant, a deferred second mortgage, or a forgivable second lien. Your lender must explain the repayment triggers in writing before you choose the program.

The most important terms to understand are:

Assistance structure What it may mean Question to ask
Grant Funds may not require repayment if all program conditions are met What conditions could make the grant repayable?
Deferred second lien No monthly payment may be required, but the balance may become due later Is repayment triggered by sale, refinance, payoff, or loss of occupancy?
Forgivable second lien The balance may be forgiven after a required period What happens if I sell or refinance before forgiveness?
Repayable second mortgage The assistance must be repaid according to the note terms Is there interest, a monthly payment, or a balloon balance?

TDHCA and TSAHC products can differ. Some assistance may be deferred, while other options may provide forgiveness after a defined occupancy period. TSAHC specifically publishes information about a three-year deferred forgivable DPA product, including required education.

Ask your lender:

  • Is the assistance fully forgiven or repayable?
  • Is there a second lien recorded against the property?
  • When does repayment become due?
  • What happens if I refinance?
  • What happens if I sell the home?
  • Must I repay the funds if I stop occupying the home?
  • Is there a required minimum occupancy period?
  • Does the balance accrue interest?
  • Will the lien affect a future home purchase?

Never rely on the phrase “down payment assistance” alone. Ask to review the second-mortgage note, deed of trust, grant agreement, or other closing documents that control the obligation.

A practical 2026 comparison for Washington County buyers

Question TDHCA My First Texas Home TDHCA My Choice Texas Home TSAHC options
First-time buyer requirement Generally yes, with exceptions for qualified veterans and certain targeted areas No Depends on the selected product
County-based limits Yes Yes, with program-specific calculations Yes, based on the program and household
Primary residence required Generally yes Generally yes Generally yes
Homebuyer education Required for TDHCA assistance Program requirements apply Product-specific education may apply
Assistance structure Confirm current lien or assistance terms with lender Confirm current assistance terms with lender May include grant or deferred/forgivable options
Best first question Do I meet the Washington County income and first-time rules? Which income calculation applies to my loan type? Which product has the best long-term repayment terms?

This table is a starting point, not a final eligibility determination. Program rules, rates, funding, and lender requirements can change during 2026.

Frequently Asked Questions

Q: What is the income limit for first-time homebuyer programs in Washington County, Texas?

A: The income limit depends on the program, household size, loan type, and income calculation method. The TDHCA 2026 limits table lists Washington County-specific figures, but your lender should confirm the exact limit that applies to your application.

Q: Do first-time homebuyer programs in Texas apply to homes with acreage?

A: Some programs may allow a primary residence with acreage, but the property must meet program, lender, appraisal, insurance, and title requirements. In Washington County, ask about well, septic, survey, access, flood-zone, and deed-restriction requirements before making an offer.

Q: Can I combine Texas down payment assistance with gift funds?

A: You may be able to combine assistance with eligible gift funds, but the lender must verify the source and confirm that the combination complies with the selected program and loan type. Ask whether seller contributions, gift funds, and assistance can all be used toward your cash-to-close requirement.

Q: Do I have to repay first-time homebuyer assistance in Texas?

A: Repayment depends on whether the assistance is a grant, deferred second mortgage, or forgivable lien. Ask whether repayment is triggered by selling, refinancing, paying off the first mortgage, or moving out of the home.

Q: How early should I apply for a Texas first-time homebuyer program?

A: Apply early enough to complete lender underwriting and any required homebuyer education before making an offer. In a rural market, allow additional time for property-specific due diligence involving wells, septic systems, surveys, access, and flood considerations.

Other Resources

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Final Thoughts

The smartest way to approach first-time homebuyer programs in Texas is to ask better questions before you apply. Confirm your Washington County income limit, property eligibility, permitted assistance sources, approval timeline, and repayment terms in writing.

I help buyers across Brenham, Chappell Hill, and surrounding communities connect the financing conversation to the realities of local property. When you are ready to compare your options, start a conversation with Texas Trio Team for trusted, local guidance and a clear next step.

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