The short answer: If you're buying your first Houston home in 2026, start with these questions. Are you an eligible veteran or service member? If so, the VA home loan may let you buy with no down payment for qualifying borrowers. Do you need help with down payment or closing costs? Look at the Texas State Affordable Housing Corporation (TSAHC) programs, Homes for Texas Heroes (which includes veterans and active military) and Home Sweet Texas, which offer down payment assistance of up to 5% of the loan amount. Then compare those options with conventional and FHA financing through a participating lender.
Here's how each option works, in plain English.
1. The VA Home Loan (Eligible Veterans and Service Members)
The VA loan is a benefit you earned, and for many eligible first time buyers it's the strongest option available.
Key features (per VA.gov):
- No down payment for qualifying borrowers with sufficient entitlement, when the price is supported by the appraisal.
- No monthly PMI.
- No VA set minimum credit score. Lenders set their own requirements.
- Primary residence required. You typically need to occupy the home within 60 days of closing.
- 1 to 4 units allowed if you live in one unit, so your first home could be a duplex, triplex, or fourplex.
- A one time VA funding fee applies to most borrowers. For a first use purchase with less than 5% down, it's 2.15% (VA.gov chart effective April 7, 2023). It can be financed into the loan, and some veterans, such as those receiving VA disability compensation, are exempt. Confirm your status with VA and your lender.
- A Certificate of Eligibility (COE) is required. Get it online at VA.gov, through your lender (Web LGY), or by mail with VA Form 26-1880.
Even with no down payment, you'll still need funds for items like earnest money, the option fee, inspections, and any closing costs that aren't covered. VA limits seller concessions to 4% of reasonable value, and closing cost credits are treated separately, so ask your lender how to structure them.
For a deeper walkthrough, read our Houston VA Home Loan Buyer's Guide (2026).
2. TSAHC: Homes for Texas Heroes and Home Sweet Texas
The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit created by the Texas Legislature to help Texans buy homes. Its programs are available statewide, including in Houston, through a network of participating lenders.
Important: TSAHC is separate from the VA loan benefit. TSAHC programs are run by TSAHC and delivered through participating lenders. VA does not run them. Ask a participating lender whether and how TSAHC assistance can be paired with the loan type you're using.
Homes for Texas Heroes
Designed for Texans who serve their communities. According to TSAHC, eligible professions include veterans and active duty military (with specific service requirements), teachers and other educators, police officers, firefighters, EMS personnel, corrections officers, and county jailers.
Home Sweet Texas
For low to moderate income home buyers who aren't in a Heroes profession. It offers the same types of assistance.
What the Assistance Looks Like
According to TSAHC, eligible buyers can receive down payment assistance of up to 5% of the loan amount to help with the down payment and closing costs, offered as either:
- A grant that does not have to be repaid, or
- A deferred forgivable second lien loan that is forgiven after three years if you don't sell or refinance the home (or stop living in it as your primary residence) during that period.
TSAHC's current guidelines also describe other details, such as which loan types each assistance option is available with, multiple assistance levels, and minimum credit score requirements. Those details change, so confirm current terms with TSAHC and a participating lender.
Mortgage Credit Certificates (MCCs)
TSAHC also offers Mortgage Credit Certificates (MCCs), a federal tax credit program tied to the mortgage interest you pay. MCCs come with income and sales price limits, and whether you qualify depends on your situation. How much an MCC is worth to you is a tax question. Talk to a qualified tax professional, as we can't make tax promises.
"First Time Buyer" Doesn't Always Mean First Time
TSAHC says veterans don't have to be first time home buyers for its veteran down payment assistance. But first time buyer rules, veteran exceptions, and income limits vary by program type (Bond vs. Non Bond DPA, and MCC). We won't guess at the limits here. Instead:
- Take the eligibility quiz at tsahc.org.
- Talk to a TSAHC participating lender about your income, household size, and target price.
3. Conventional and FHA Loans
Not every first time buyer is VA eligible, and VA isn't always the best fit for every veteran's situation. Two other common paths:
- Conventional loans, offered by many lenders with low down payment options for qualified buyers. Private mortgage insurance usually applies with less than 20% down.
- FHA loans, insured by the Federal Housing Administration, often used by buyers who want flexible credit guidelines. FHA loans carry mortgage insurance premiums.
Requirements, rates, and mortgage insurance costs vary by lender and change often. Get a Loan Estimate from at least two lenders and compare the full cost, not just the rate.
4. Local City and County Programs
The City of Houston and Harris County have offered their own homebuyer assistance programs, and nearby cities and counties sometimes do too. Funding, eligibility, and availability change, so check current program status directly with the city or county before you plan around one. A good lender or agent can also tell you which local programs are currently active.
Which Program Fits You? A Quick Decision Path
| If you are... | Start with... |
|---|---|
| An eligible veteran or service member | VA loan (get your COE), then ask about TSAHC Homes for Texas Heroes |
| A teacher, first responder, or corrections officer | TSAHC Homes for Texas Heroes |
| A low to moderate income buyer | TSAHC Home Sweet Texas, plus local programs |
| Anyone else | Conventional vs. FHA comparison with two or more lenders |
Your First Time Buyer Checklist
- Check your credit and pay down high interest debt where you can.
- Pull your COE if you're a veteran or service member.
- Take the TSAHC eligibility quiz and talk with a participating lender.
- Get pre approved and know your full monthly payment (including taxes, insurance, HOA, and any MUD taxes).
- Pick target neighborhoods based on commute, schools, and flood history.
- Hire a buyer's agent who knows these programs and how to write offers that work with them.
Veterans: Think Beyond the First Home
Because VA loans allow 1 to 4 units, some Houston veterans buy a duplex or fourplex as their first home and live in one unit. Rent from the other units is gross rent. After vacancy, maintenance, insurance, taxes, and reserves, net cash flow may be higher or lower, so never assume rent equals profit. If that path interests you, our free field manual "The Next Mission" walks through it step by step.
About the Author
Broaderick "Charlie" Brown Jr. is a Texas real estate agent and the founder of Luxuriant Realty Group, brokered by eXp Realty, LLC (TREC License #685207). He helps Houston veterans and families buy with a plan, with special focus on veterans using VA loans to buy owner occupied duplexes, triplexes, and fourplexes. Charlie leads Boots to Buildings, a free community for veterans building generational wealth through real estate, and wrote "The Next Mission," a VA multifamily field manual for service members and veterans.
馃摓 (409) 419 4886 路 鉁夛笍 b@luxuriantrealtygrouptx.com 路 馃寪 luxuriantrealtygrouptx.com
Your Next Step: DM VETERAN
Not sure which program fits you? DM the word VETERAN to Luxuriant Realty Group on Instagram or Facebook. We'll set up a straight talk strategy conversation and connect you with experienced lenders. Veterans also get our free Boots to Buildings field manual, "The Next Mission."
Educational content only. This is not financial, legal, tax, or lending advice, and no loan approval, rent, cash flow, or return is promised. Luxuriant Realty Group is brokered by eXp Realty, LLC. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, TSAHC, or any government agency. Loan eligibility, terms, fees, and program availability are set by lenders and program rules and can change; confirm current figures with your lender, TSAHC, or VA.gov. Equal Housing Opportunity.