You do not need 20 percent down to buy a home in Texas. That is the short answer, and it surprises a lot of first time buyers in Sugar Land, Katy, Missouri City, Richmond, and Fulshear. What you do need is enough cash for a down payment, closing costs, and the costs of moving in. In Texas, a state program called TDHCA My First Texas Home can cover 2 to 5 percent of the loan amount for down payment and closing costs, for buyers who qualify through a participating lender.
Read that carefully. The program can help, but it is not free money, and it is not for everyone.
Please note: the TDHCA details in this post come from lender reported summaries. They were not verified on a TDHCA official page. Confirm every detail with a TDHCA approved participating lender before you rely on it.
How much cash do I need to buy a home in Houston?
There is no single number. A buyer putting 3 percent down on a $325,000 home, the Houston median single family price in September 2026, would need $9,750 for the down payment alone, plus closing costs. A buyer putting 20 percent down would need $65,000.
Closing costs in Texas often include lender fees, title and escrow fees, prepaid taxes and insurance, and the Texas option fee, often $100 to $500 for 7 to 10 days in Houston, according to local agent reporting. Your lender can give you a loan estimate that shows your cash to close.
What is TDHCA My First Texas Home?
TDHCA is the Texas Department of Housing and Community Affairs. Its My First Texas Home program, according to lender reported summaries, pairs a 30 year fixed FHA, VA, or USDA loan with 2 to 5 percent of the loan amount for down payment and closing costs. That help comes as a 0 percent interest second lien with no monthly payment.
There are two versions, according to the same summaries: a 30 year deferred second lien, repayable when you sell, refinance, or pay off the loan, and a 3 year forgivable second lien, forgiven after 36 months if you are current and still living in the home.
My Choice Texas Home, a related TDHCA program, offers the same 2 to 5 percent, according to lender reported summaries, with no first time buyer test, and it adds conventional loans through Fannie Mae HFA Preferred and Freddie Mac HFA Advantage. The minimum middle credit score is 620, according to lender reported summaries. A first time buyer means no ownership or occupancy of a primary residence in the past 3 years, waived for veterans and for homes in targeted census tracts. Homebuyer education is required. Income and purchase price limits apply by county. You apply only through a TDHCA approved participating lender, not directly to TDHCA.
Do not quote a specific income or purchase price limit from a blog. The research for this post could not verify a clean TDHCA county table for Fort Bend and Harris Counties. Ask a participating lender for the current limits for your county.
Is there a rate trade off with down payment help?
Yes. On lender reported rate sheets from October 19, 2026, My First Texas Home with 5 percent assistance was 7.250 percent, compared with 6.750 percent with no assistance, about $107 a month on a $325,000 FHA purchase, according to a third party calculation. Treat that as lender reported, not as a quote for your loan.
Ask your lender to show you both versions side by side. If you plan to move or refinance in a few years, the higher rate may cost more than the help saves. If you plan to stay long term, the help may be the difference between buying now and waiting another year to save.
Frequently Asked Questions
Do I need 20 percent down to buy a home in Texas?
No. Many buyers in Texas buy with 3 percent down, or with down payment help. A 20 percent down payment avoids private mortgage insurance, but it is not a requirement to buy.
What credit score do I need for TDHCA down payment help?
According to lender reported summaries, the minimum middle credit score is 620. Your lender will check your credit and tell you whether you qualify.
Is TDHCA down payment help a grant I never repay?
Not always. According to lender reported summaries, the help is a second lien. One version is deferred for 30 years and repayable when you sell, refinance, or pay off the loan. The other is forgivable after 36 months if you stay current and owner occupy the home.
Educational information only. This post is not legal, tax, lending, or insurance advice. Down payment program rules, rates, income limits, and purchase price limits change frequently. Verify current program details with a TDHCA approved participating lender and a tax professional before you decide.
About the author: Justin Duffield is a Realtor with J. David Properties, Keller Williams Realty Southwest, in Sugar Land, Texas. He has more than 21 years in real estate, has helped more than 400 families buy and sell, and is a Top 10% producing agent in Fort Bend and Harris Counties for more than 11 consecutive years.
Talk with Justin: Justin Duffield, J. David Properties, (832) 771-8700, justin@jdavidproperties.com, jdavidproperties.com. Let your needs be our priority.
Sources: TDHCA My First Texas Home guides, as reported by lenders; TDHCA program summaries via participating lender reporting. TDHCA details were not verified on a TDHCA official page in the research for this post.