Most down payment help for Valley buyers comes from two state agencies, TSAHC and TDHCA, through participating lenders. A few cities add their own programs when they have federal HOME or CDBG funds, and those open and close during the year. This guide lists both, with the status each office's own page showed when it was last checked, and the HUD-approved counseling agencies that teach the homebuyer classes these programs require.
Which program fits
| If you | Ask about |
|---|---|
| Have not owned a home in the last 3 years | TDHCA My First Texas Home and its mortgage credit certificate; TSAHC Home Sweet Texas; Brownsville's HBA program inside Brownsville city limits |
| Have owned a home before | TSAHC Home Sweet Texas or Homes for Texas Heroes; TDHCA My Choice Texas Home |
| Work full time as a public K-12 teacher or school staff member TSAHC lists, peace officer, firefighter, EMS, county jailer, corrections officer, public security officer, or nursing or allied health faculty | TSAHC Homes for Texas Heroes |
| Are a veteran or service member | VA home loans; TDHCA's veteran exception to the first-time rule; TSAHC Homes for Texas Heroes; Texas Veterans Land Board loans |
| Are buying in a qualified targeted census tract | TDHCA My First Texas Home, with the first-time rule waived and higher limits |
| Are buying a rural address | USDA home loans; check the address on the USDA eligibility map |
| Are buying inside Brownsville or Harlingen city limits | The city program as well as a state program; ask both offices whether they can be combined |
Statewide programs
TSAHC: Home Sweet Texas and Homes for Texas Heroes
The Texas State Affordable Housing Corporation pairs a fixed-rate first mortgage with help of up to 5% of the loan amount for down payment and closing costs. You choose a grant that does not have to be repaid, or a second loan that is forgiven after a set period if you do not sell, refinance or move out; TSAHC also offers a loan without assistance (No DPA). Home Sweet Texas is for low- and moderate-income buyers; Homes for Texas Heroes is for the professions and veterans TSAHC lists. Both are open to first-time and repeat buyers, require a homebuyer education course and a home you will live in, and set minimum credit scores of 620 for government loans and 640 for conventional loans. TSAHC says the funding source for most of its assistance options is unlimited (TSAHC, July 10, 2026). Apply through a TSAHC participating lender.
TDHCA: My First Texas Home and My Choice Texas Home
The Texas Department of Housing and Community Affairs offers help of 2% to 5% of the loan amount, as funding permits, as a second loan that comes due when you sell, refinance or pay off the first mortgage, or a second loan that can be forgiven after a set period. My First Texas Home is for first-time buyers (no primary residence owned and occupied in 3 years, including a non-purchasing spouse), with the rule waived for qualified veterans and for homes in targeted census tracts; it uses FHA, VA or USDA loans and requires a minimum middle credit score of 620 (TDHCA program matrix, Aug 17, 2026). My Choice Texas Home has no first-time rule and adds conventional loans (My Choice matrix). TDHCA allows no cash back to the buyer beyond reimbursement of items paid outside closing; any excess can go to principal reduction. Apply through a TDHCA participating lender; TDHCA's homebuyer line is 1-800-792-1119.
Mortgage credit certificates
A mortgage credit certificate (MCC) is a federal tax credit equal to 15% of the mortgage interest you pay each year. TSAHC offers its MCC only with its down payment assistance or No DPA loans; TDHCA offers its MCC with its loans or on its own. The first-time rule is waived for qualified veterans and targeted areas, and you must apply before closing. A federal recapture tax can apply only if you sell within nine years, your income has risen significantly and you sell at a gain (TDHCA recapture explainer). Ask a tax professional what it would mean for your return.
VA, USDA and the Veterans Land Board
VA loans allow no down payment with full entitlement, subject to lender approval. USDA guaranteed loans allow no down payment on eligible rural properties for households within USDA's income limits, subject to lender approval. Texas veterans can also get VA, FHA or conventional financing through the Veterans Land Board's home loan program and a VLB participating lender. See VA home loans in Texas, VA loans for Reserve and Guard members and Texas Veterans Land Board loans.
Grants, second loans and tax credits, in plain words
- Grant: money toward your down payment or closing costs that does not have to be repaid.
- Deferred second loan: a second lien you repay when you sell, refinance or pay off the first mortgage.
- Forgivable second loan: a second lien that is forgiven after a set period if you keep the home and follow the program's rules.
- Mortgage credit certificate: a yearly federal tax credit tied to the mortgage interest you pay, not cash at closing.
2026 income limits in the four counties
| Program and limit | All four counties |
|---|---|
| TSAHC Home Sweet Texas, household income | $152,250 |
| TSAHC Homes for Texas Heroes, household income | $172,550 |
| TDHCA My First Texas Home and MCC, income, 1 or 2 people | $101,500 |
| Same, 3 or more people | $116,725 |
| Same, home in a targeted tract, 1 or 2 people | $121,800 |
| Same, home in a targeted tract, 3 or more people | $142,100 |
| My First Texas Home purchase price, 1 unit | $566,354 |
| My Choice Texas Home income, FHA, VA or USDA loan | $172,550 |
Every Texas county's figures are in the 2026 TSAHC and TDHCA income limits table.
City and county programs
Local programs depend on federal HOME and CDBG funds. The status below is what each office's own page showed on the date given. Anything not marked active or taking applications was not listed when checked, so confirm with the office before you plan around it.
City of Brownsville: Homebuyer Assistance (HBA) Program
Listed on the city site, checked Oct 16, 2026. The page does not say whether applications are open; help depends on available HOME funds.
What it offers: A deferred loan of up to $25,000 toward down payment, closing costs and eligible prepaid expenses, based on need and available federal HOME funds.
Who qualifies: Household income at or below 80% of Brownsville's area median family income; no home owned in the last 3 years; a single-family home inside Brownsville city limits; mortgage approval from a participating lender, within the city's debt-ratio limits and with a credit score of at least 600; an application processing expense the city lists on its page. Other restrictions apply.
How to apply: A trained loan officer on the city's HBA participating lender list submits the application. City office: 956-548-6167. City page
City of Harlingen: homebuyer assistance
Taking applications. The city page said it was “currently accepting applications,” checked Oct 16, 2026.
What it offers: Down payment assistance, closing cost assistance and gap financing for buying or building a home inside Harlingen city limits. The city says help may be structured as deferred loans. The page does not state an amount; ask the office.
Who qualifies: Set by the city's affordable housing guidelines. Start with its online eligibility screening form.
How to apply: Community Development Department, 502 E. Tyler, Harlingen; (956) 216-5180; housingharlingen@harlingentx.gov. City page Screening form
Cameron County Housing Finance Corporation, with TDHCA
Listed by TDHCA on its partnerships page, checked Oct 16, 2026.
What it offers: TDHCA says the corporation partners with its Homebuyer Program to bring mortgage financing and down payment assistance to eligible buyers, using additional bond funds alongside TDHCA's programs.
Who qualifies: Homes in Cameron County outside the cities of Harlingen and San Benito, under TDHCA's program rules.
How to apply: Through a TDHCA participating lender; TDHCA lists lenders active in the service area. TDHCA page
City of McAllen
No homebuyer program page found on the city site, checked Oct 16, 2026.
What it offers: The Grant Administration Office manages the city's federal CDBG and HOME programs, which can fund housing through partner organizations.
Who qualifies: Ask the office whether any homebuyer help is open and who runs it.
How to apply: Grant Administration Office. Confirm with the office.
City of Edinburg
No homebuyer program page found, checked Oct 16, 2026.
What it offers: The city's Grants Administration handles its community development funds.
Who qualifies: Ask the office.
How to apply: Grants Administration. Confirm with the office.
City of Mission
No homebuyer program listed, checked Oct 16, 2026.
What it offers: Its Housing Assistance Program serves current homeowners inside city limits with reconstruction, rehabilitation and mobile home repair.
Who qualifies: Owners who have lived in the home at least five years, with clear title, current taxes and federal income limits.
How to apply: Housing Assistance Program. Confirm with the office.
City of Pharr
No homebuyer program listed, checked Oct 16, 2026.
What it offers: The city's housing services page lists an owner-occupied rehabilitation and reconstruction program that Affordable Homes of South Texas runs with city CDBG funds.
Who qualifies: Income-eligible owner-occupants.
How to apply: Grants Management and Community Development. Confirm with the office.
City of Weslaco
No homebuyer program found on the city site, checked Oct 16, 2026.
What it offers: None listed.
Who qualifies: Ask the city.
How to apply: City of Weslaco. Confirm with the office.
Hidalgo County Urban County Program
No homebuyer program listed on the county page, checked Oct 16, 2026 (the page describes its 2023 program year).
What it offers: Federal CDBG, ESG and HOME funds; the page describes HOME for housing rehabilitation and reconstruction.
Who qualifies: Residents of the county's 18 participating cities and unincorporated areas; McAllen, Mission, Edinburg and Pharr receive their own federal funds.
How to apply: 1916 Tesoro St., Pharr; (956) 787-8127. County page. Confirm with the office.
Starr and Willacy counties
No county homebuyer program found, checked Oct 16, 2026.
What it offers: Statewide TSAHC and TDHCA programs cover every address in both counties.
Who qualifies: See the statewide programs above.
How to apply: Through a participating lender.
Nonprofit builders: AHSTI and CDCB
Listed on their own sites, checked Oct 16, 2026.
What it offers: Affordable Homes of South Texas (AHSTI) advertises homebuyer assistance for eligible households in several of its subdivisions. CDCB (Come Dream. Come Build.) says “grants available for those who qualify.”
Who qualifies: Set by each organization.
Homebuyer education and HUD-approved counseling
TDHCA requires a HUD-certified homebuyer education course for every borrower on My First Texas Home and My Choice Texas Home (TDHCA program matrix, Aug 17, 2026). It recommends Finally Home! and also accepts certificates from other HUD-certified courses, including Freddie Mac CreditSmart and Fannie Mae HomeView (TDHCA). TSAHC requires at least one borrower to complete a homebuyer education course before closing (TSAHC Lender Guidelines 2.7).
HUD-approved housing counseling agencies in the Valley, from HUD's counselor data (Oct 16, 2026):
- Affordable Homes of South Texas, Inc. (AHSTI), McAllen. HUD lists 1420 Erie Ave.; AHSTI's site lists 500 S. 15th St. 956-687-6263. English and Spanish; pre-purchase counseling and homebuyer workshops among its services.
- CDCB (Come Dream. Come Build.), 901 E. Levee St., Brownsville. 956-541-4955. English and Spanish; face-to-face, phone and online counseling, including pre-purchase counseling and workshops.
Find others with HUD's housing counselor search.
Can you combine programs?
- TSAHC assistance and a TSAHC MCC: yes, if you meet both programs' rules. TSAHC waives its MCC fee for Texas Heroes who use both.
- TDHCA assistance and a TDHCA MCC: TDHCA offers them together as a combo. Its loan without assistance cannot be combined with an MCC.
- A state program and a city program: ask both offices. Each sets its own rules, and Brownsville accepts applications only from the loan officers on its list.
- VA or USDA loans with state help: TDHCA and TSAHC government-loan options include VA and USDA loans.
Questions to ask a participating lender
- Which of these programs do you offer, and with which loan types?
- Is the help a grant, a deferred second loan or a forgivable second loan, and when would it come due?
- How do the first-mortgage rate and APR compare with and without assistance? TDHCA's current rate notice prices its assisted options above its option without assistance, so compare Loan Estimates side by side.
- What program fees apply, and could a recapture tax apply if I sell early?
- How much time does program approval add before closing?
Where your real estate agent fits in
Amy is a real estate agent, not a lender, loan officer or housing counselor, and she does not take loan applications or set loan terms. She can help you find homes inside a program's price limit, check an address against TDHCA's targeted tract list with you, build your offer around the lender's and the program's timelines, and coordinate with the title company.
Down payment assistance questions
Is there down payment assistance in Hidalgo County?
Yes. Statewide TSAHC and TDHCA programs cover every Hidalgo County address, with 2026 income limits from $101,500 to $172,550 depending on the program and household size. Hidalgo County's Urban County Program and the cities of McAllen, Edinburg, Mission and Pharr did not list a homebuyer program on their sites when checked on Oct 16, 2026, so ask each office before you count on local help.
Does Brownsville have a first-time home buyer program?
Yes. The City of Brownsville's Homebuyer Assistance Program is for households at or below 80% of Brownsville's area median family income who have not owned a home in 3 years and are buying a single-family home inside city limits. It offers a deferred loan of up to $25,000 toward down payment, closing costs and eligible prepaid expenses, based on need and available funds. A loan officer on the city's participating lender list submits the application.
Does Harlingen offer down payment assistance?
Harlingen's Community Development Department said it was accepting applications for down payment assistance, closing cost assistance and gap financing for homes inside city limits when checked on Oct 16, 2026. Call (956) 216-5180 or complete the city's online eligibility screening form for amounts and guidelines.
Can I get down payment assistance with a VA loan?
Yes. TDHCA's My First Texas Home and My Choice Texas Home and TSAHC's programs work with government loans, including VA loans. With full VA entitlement there may be no down payment to cover, so the help often goes toward closing costs, and TDHCA allows no cash back at closing.
Do I have to repay down payment assistance?
It depends on the form. TSAHC offers a grant that does not have to be repaid or a second loan that is forgiven after a set period if you keep the home. TDHCA offers a second loan that comes due when you sell, refinance or pay off the first mortgage, or one that can be forgiven after a set period. City programs set their own terms.
Who teaches the homebuyer class in the Valley?
AHSTI in McAllen and CDCB in Brownsville are HUD-approved housing counseling agencies offering pre-purchase counseling in English and Spanish. TDHCA also accepts its Finally Home! online course and other HUD-certified courses such as Freddie Mac CreditSmart and Fannie Mae HomeView. TDHCA requires the course for every borrower; TSAHC requires it for at least one borrower.
Who wrote this
Amy Herrera is a REALTOR® and Texas real estate sales agent with RE/MAX Elite (TREC #808068) and a Captain, U.S. Army Reserve (veteran). She is not a lender, loan officer, tax adviser or housing counselor, and she does not take loan applications or VA claims. Program pages and city offices' own websites were checked on Oct 16, 2026. Book a call to plan a purchase around a program's timeline.
