First-Time Homebuyer? Here's How to Get Into a New Home in Texas

If you're renting an apartment right now and assuming homeownership is out of reach, I want to challenge that. In 2024, first-time buyers made up 32% of all home purchases nationwide — people who went from thinking they couldn't afford it to actually owning a home. I work with first-time buyers every week who felt the exact same way before we sat down and looked at the numbers. More often than not, they qualify for more than they expected.

Texas has some of the strongest homebuyer assistance programs in the country, and when you combine those with builder incentives on new construction, the path to owning a home becomes a lot more realistic than most people think.

Start With the Right Loan

The first step is understanding which loan program fits your situation. For most first-time buyers, there are three main options worth exploring:

FHA Loans require just 3.5% down with a minimum credit score of 580. According to HUD, 8 out of every 10 FHA borrowers are first-time buyers — it's by far the most popular path into homeownership. The qualification requirements are reasonable, and the down payment is manageable. DR Horton is currently offering a 3.99% rate buydown through DHI Mortgage, which makes FHA even more attractive right now.

USDA Loans offer 0% down payment for homes in qualifying rural areas. Here's what a lot of people don't realize: many Central Texas communities qualify. If you're open to living outside the city core, this is one of the best loan products available. Income limits apply, but they're more generous than you might think. A lender can check your specific area in minutes.

VA Loans are available to veterans and active-duty military with 0% down and no PMI. If you've served, this is hands-down the best loan program out there.

Down Payment Assistance Programs

This is where things get really interesting. Texas offers several down payment assistance (DPA) programs that can cover up to 5% of the loan amount. Some of these are forgivable grants, meaning you never pay them back.

The major programs include TSAHC's My First Texas Home and My Choice Texas Home programs, TDHCA assistance, and Seth programs. Each has slightly different qualifications, but they all work with new construction homes. A good lender who specializes in these programs can help you figure out which one fits best.

When you stack DPA on top of an FHA loan with a builder rate buydown, you can get into a brand new home with very little out of pocket. I've seen buyers close on homes with less than $1,000 in cash needed at closing.

The Steps to Get There

Here's what the process actually looks like:

Step 1: Get pre-approved. This takes about 30 minutes with a lender and gives you a clear picture of what you can afford. I recommend DHI Mortgage — they have several loan officers who specialize in DPA programs and the new construction process.

Step 2: Tour communities and choose your home. I'll walk you through available inventory, help you understand the differences between floor plans and communities, and answer every question along the way.

Step 3: Write the contract. Once you find the right home, we lock in the price. No bidding wars, no surprises.

Step 4: Close and move in. On a spec home, you can close in as little as 3 weeks from contract. You'll do a walkthrough with a third-party inspector, then a final walkthrough right before closing, and you're in.

What I Help With

My job is to make this process as straightforward as possible. Whether you're a first-time buyer, upgrading, downsizing, or relocating, I help people tour communities, understand what's included, and get from pre-approval to keys in hand without the stress. I'm not here to pressure anyone. I'm here to give you real information so you can make the best decision for your family.

If you're currently renting and curious about what you might qualify for, reach out. The conversation costs nothing, and you might be surprised at what's possible.

Affordable Communities Perfect for First-Time Buyers

These Central Texas communities have homes ideal for first-time buyers, many starting under $300K:

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