First-Time Home Buyer Programs in Texas: A Denton County Guide (2026)

Most first-time buyers I talk to in the Lake Cities assume the down payment is the wall they can't get over. In a lot of cases, it isn't. Texas has statewide programs that help with the down payment and closing costs, and the federal loan programs let you put down far less than the 20% people still think they need.

Here's how I explain the options to buyers in Corinth, Lake Dallas, Hickory Creek, Shady Shores and the rest of Denton County. Program rules, income limits and rates change, so treat this as a map, then confirm the current details with a participating lender before you count on anything.

First, what counts as a "first-time buyer"?

For most assistance programs, you're a first-time buyer if you haven't owned your primary home in the last three years. So if you owned a house years ago and have been renting since, you may still qualify. Some programs also make exceptions for veterans, and some don't require first-time status at all. Ask the lender how each program defines it.

The two statewide programs to know

Texas has two state-backed housing agencies that run homebuyer programs. Both work through approved lenders, so you don't apply with the agency directly. You apply with a participating lender, and they layer the program onto your mortgage.

TDHCA: My First Texas Home

The Texas Department of Housing and Community Affairs (TDHCA) runs My First Texas Home for first-time buyers, and My Choice Texas Home for buyers who aren't first-timers. These programs pair a 30-year fixed mortgage with optional down payment and closing cost assistance, usually figured as a percentage of the loan and set up as a second lien. Income and purchase-price limits apply and vary by county. Details and the lender list are on the TDHCA Texas Homebuyer Program site.

TSAHC: Home Sweet Texas and Homes for Texas Heroes

The Texas State Affordable Housing Corporation (TSAHC) runs two programs:

• Homes for Texas Heroes for teachers, police, firefighters, EMS, corrections officers and veterans, among others

• Home Sweet Texas for buyers who don't fall into the Heroes categories

TSAHC says you'll need a credit score of 620 and must meet income requirements, and its assistance can come as a grant or a deferred, forgivable second lien. You'll also complete an approved homebuyer education course before closing. You can check eligibility and find lenders on TSAHC's down payment assistance page for Dallas-Fort Worth.

The Mortgage Credit Certificate (MCC)

Both agencies also offer a Mortgage Credit Certificate to qualifying first-time buyers. It's a federal tax credit on part of the mortgage interest you pay each year, so it can help for as long as you have the loan. Income and sales price limits apply, and there are rules about combining it with other assistance, so ask your lender how it fits with the rest of your plan.

The loan types underneath

Assistance programs sit on top of a regular mortgage. These are the most common for first-time buyers:

• FHA: as little as 3.5% down, with more flexible credit guidelines. FHA loans carry mortgage insurance.

• Conventional: some first-time buyer options allow as little as 3% down. Mortgage insurance applies under 20% down, and it can come off as you build equity.

• VA: for eligible veterans and service members, often with no down payment.

• USDA: zero-down loans for eligible rural areas and income levels. Parts of Denton County outside the cities may qualify, but most Lake Cities addresses don't, so check the specific address.

A good lender will run your numbers on more than one of these and show you the monthly payment side by side.

What you'll still need upfront

Even with assistance, it isn't zero dollars out of pocket. Plan for:

• Earnest money when your offer is accepted, held by the title company

• Option fee paid to the seller for the Texas option period

• Home inspection, usually a few hundred dollars

• Appraisal fee, often paid upfront to the lender

• Some reserves in savings after closing, which some loan programs require

The good news: earnest money goes toward your purchase at closing, and in this market, sellers are often willing to help with closing costs. I wrote about what's actually for sale under $400,000 in Corinth and Lake Dallas if you want to see what that budget looks like here.

A Lake Cities reality check

According to Redfin's zip code data for the three months ending in September 2026, the median sale price was about $355,000 in 75065 (Lake Dallas and Hickory Creek), about $402,000 in 76210 (Corinth) and about $406,000 in 76208 (the Shady Shores side of Denton). Homes were taking roughly 60 to 76 days to sell, longer than a year earlier.

What that means for a first-time buyer: you have more time to decide, and more room to ask for help with closing costs than buyers had a couple of years ago. Run your own numbers with my mortgage calculator, which pulls in the current average 30-year rate, then compare that payment with your rent.

My step-by-step for first-time buyers

• Talk to a lender who offers the state programs. Not every lender does. Ask directly: "Do you offer TDHCA and TSAHC programs, and the MCC?"

• Get pre-approved, not just pre-qualified. A pre-approval means the lender has checked your credit, income and assets. That's the letter sellers want to see.

• Take the homebuyer education course early. Many programs require it, and it's worth doing anyway.

• Pick your town and your must-haves. My Lake Cities guide compares Corinth, Lake Dallas, Hickory Creek and Shady Shores side by side.

• Tour with your own agent. In Texas, the listing agent works for the seller. I'll make sure the program's rules and timelines fit the contract, from the option period to closing.

• File your homestead exemption after you move in. It's free through the Denton Central Appraisal District, and it lowers your taxable value.

Want help putting a plan together?

I'll set you up with listing alerts straight from the North Texas MLS so you see new homes the day they hit the market. Get listing alerts, or grab my free 2026 Buyer's and Seller's Guides for the Texas-specific steps, from the option period to your homestead exemption.

Questions about a program or a specific neighborhood? Call or text me at 469-390-9050. I'm Kelly Mason, a REALTOR® with Post Oak Realty, and I've lived in the Lake Cities for more than 23 years.

Program details, income limits and rates change. Confirm current terms with TDHCA, TSAHC or a participating lender before you make decisions. This post is general information, not lending or tax advice.