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Home Blog Mortgage Options for First-Time Buyers Across Texas

Mortgage Options for First-Time Buyers Across Texas

Alex Moore
6 min read
08/25/2025
mortgage

Possible Rate Cut

LBC Capital helps first-time homebuyers across Texas navigate the mortgage process with confidence. With our expert guidance, flexible financing, and access to local and statewide assistance programs, we make it easier to secure a home with lower upfront costs. Whether you’re in Austin, Houston, or a rural area, LBC Capital offers a wide range of mortgage solutions tailored to your financial goals and location.

Statewide Mortgage and Down Payment Assistance Programs

Home Sweet Texas Home Loan Program

LBC Capital provides access to the Home Sweet Texas Home Loan Program, which offers 30-year fixed-rate mortgages with up to 5% down payment assistance. This assistance is available either as a grant or a 0% interest, forgivable second lien. Forgiveness typically applies after three years if you don’t sell or refinance the home. This program is available to first-time buyers and repeat buyers who meet income and credit score requirements.

Homes for Texas Heroes Program

Designed for professionals in public service, including teachers, police officers, firefighters, EMS personnel, and veterans, this program offers the same benefits as the Home Sweet Texas loan. LBC Capital helps eligible buyers secure up to 5% in down payment or closing cost assistance, with flexible options for grant or forgivable loans.

My First Texas Home

LBC Capital supports first-time buyers and veterans through the My First Texas Home program. It offers a low-interest 30-year fixed-rate mortgage along with up to 5% in assistance for down payments and closing costs. Assistance is typically offered as a no-interest, second lien loan that may be forgiven under certain conditions.

My Choice Texas Home

This program is ideal for repeat buyers or those whose income exceeds the limits of other programs. LBC Capital helps eligible applicants access up to 5% assistance in the form of a repayable or forgivable second lien. This flexible program has no first-time buyer requirement and is useful for higher-income borrowers.

Mortgage Credit Certificate (MCC) for Tax Savings

LBC Capital helps buyers apply for the Mortgage Credit Certificate (MCC) program, which can reduce your federal tax bill. MCC allows you to claim a tax credit worth up to 20% of the mortgage interest paid annually. This direct tax credit can save thousands over the life of your loan and can increase your qualifying income when applying for a mortgage.

National Loan Programs for Texas Buyers

Conventional Loans

LBC Capital offers conventional loans, including the Conventional 97 program, which allows you to purchase a home with just 3% down. These loans typically require a credit score of 620 or higher. If you can afford a 20% down payment, you can avoid paying for private mortgage insurance (PMI), reducing your monthly payment.

FHA Loans

Federal Housing Administration (FHA) loans are ideal for buyers with lower credit scores or limited savings. LBC Capital helps buyers access FHA loans with as little as 3.5% down and credit scores as low as 580. FHA loans include mortgage insurance premiums, which increase the overall loan cost, but they offer broad eligibility and flexible underwriting.

VA Loans

For veterans, active-duty service members, and eligible surviving spouses, LBC Capital offers VA loans with no down payment and no private mortgage insurance. These loans come with competitive interest rates and more lenient credit requirements. VA loans also limit the fees that can be charged to the borrower, making them an affordable option for those who qualify.

USDA Loans

LBC Capital helps qualified buyers in rural areas apply for USDA loans, which offer 100% financing with no down payment required. These loans are backed by the U.S. Department of Agriculture and are available in designated rural and suburban areas across Texas. USDA loans also allow closing costs to be rolled into the loan, further reducing upfront expenses.

Local Assistance Programs in Major Texas Cities

Austin

LBC Capital helps buyers in Austin access up to $40,000 in down payment and closing cost assistance through city-run programs. The assistance is provided as a forgivable loan, with forgiveness terms based on the total amount borrowed. Buyers must meet income and purchase price limits and complete a homebuyer education course.

Houston

In Houston, LBC Capital guides buyers through programs like NeighborhoodLIFT, which provides up to $15,000 in assistance. Income limits and homebuyer education are required. The funds are structured as forgivable loans, typically forgiven over five years of continued homeownership.

Corpus Christi

Buyers in Corpus Christi may qualify for up to $25,000 in down payment assistance and $10,000 in closing cost support. LBC Capital ensures buyers meet the program’s eligibility rules and complete necessary paperwork to receive zero-interest, forgivable loan funds.

Dallas, Arlington, Denton, and More

LBC Capital works with local governments throughout Texas, including cities like Dallas, Arlington, Denton, Beaumont, and Bryan. These programs offer between $10,000 and $50,000 in assistance, depending on your location and household income. Terms often include residency requirements and homebuyer education.

Creative Strategies to Lower Upfront Costs

LBC Capital also helps buyers combine assistance programs with smart financial strategies. For example, pairing a 3.5% FHA loan with a forgivable state second lien can significantly reduce the cash needed at closing. Some buyers in Texas use rental income from roommates or “house hacking” to offset their mortgage, building equity while keeping monthly costs manageable.

One buyer in Forney, Texas, purchased a home with an FHA loan and used extra bedrooms as rental income, allowing them to save for future property investments. LBC Capital helps buyers explore these types of opportunities while ensuring loan compliance and financial sustainability.

Why Choose LBC Capital

LBC Capital offers more than just access to loan programs. We provide personalized guidance, help simplify documentation, and ensure buyers understand their full range of options. Our team helps first-time buyers combine national and local programs for maximum financial benefit. We take the guesswork out of the mortgage process, offering transparent service and expert advice every step of the way.

First-time homebuyers across Texas have access to powerful financial tools, but taking advantage of them requires the right partner. LBC Capital brings the knowledge, experience, and commitment to help you succeed. Whether you need down payment assistance, a low-interest loan, or tax-saving strategies, LBC Capital ensures your homebuying journey is affordable and straightforward.

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