Your first home in DFW is closer than you think.
Programs exist right now that can cover your down payment, slash your closing costs, and put thousands back in your pocket every year in tax credits. Most first time buyers never find out they qualify, because nobody told them.
Available to you right now
Up to $17,500
Down payment + closing cost assistance on a $350K loan
$2,000/yr
Federal tax credit via Mortgage Credit Certificate (MCC)
3.5% down
Minimum down payment , not 20%. You've been misled.
620 Credit
Minimum credit score for most DPA programs in Texas
The 2026 DFW market — why right now favors you
2.5%
Median price down year-over-year — less to finance
30k+
Active DFW listings — most choices since 2019
94.6%
Sale-to-list ratio — buyers are negotiating off asking price
71 Days
Average days on market — no more panic buying
You probably qualify —
even if you think you don't
Most people disqualify themselves before they ever ask. Here's what actually counts as a first-time home buyer under Texas law and most assistance programs.
The legal definition
Under TDHCA and most Texas assistance programs, a first-time home buyer is anyone who has not owned a primary residence in the past three years. That's a wider net than most people realize — and it likely includes you.
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Owned a home years ago If it's been more than 3 years since you owned, you qualify as a first-time buyer again.
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Divorced and not on the title If your spouse owned the home and you were not on the mortgage or title, you qualify.
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Never owned before You qualify under every first-time buyer program available in Texas.
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Veteran — any ownership history Veterans are exempt from the 3-year requirement under most Texas programs.
What about age?
The average first-time buyer age has shifted by nearly a full decade. Buying in your mid-30s to early 40s is now the norm, not the exception.
If you feel like you're "behind," you're not — the market and the timeline changed, not you. The real question is whether the numbers work.
Check my eligibility →5 beliefs keeping buyers
on the sideline
Most first-time buyers disqualify themselves based on things that simply aren't true. These are the five beliefs causing the most damage in DFW and Collin County right now.
2026 Wells Fargo / Ipsos study
"70% of first-time buyers believe they understand the process — yet 75% couldn't correctly answer even half of 12 basic questions."
Only 1 of 2,000+ respondents answered all 12 correctly. Confidence isn't the same as knowledge.
Still not sure if you qualify? A free 20-minute call with PJ will tell you exactly which programs apply — no generic answers, no obligation.
See what I qualify for →The legitimate obstacles — and how to address them
Some challenges are real and shouldn't be minimized. These are the ones worth knowing about before you start — because knowing them is how you plan around them.
Down payment savings takes time
It now takes most buyers 7 years to save for a down payment given rent costs, student debt, and rising prices. This is systemic — not a personal failure. Programs exist to bridge this gap, but only if you know about them.
Solution: DPA programs →The affordability gap is real
The income required to comfortably afford a median-priced DFW home exceeds what most first-time buyers currently earn. Identifying the right price point in the right city — and every available program — matters more than it ever has.
Solution: Realistic budgeting →Hidden costs most buyers miss
Texas has no state income tax — but property taxes run 1.8–2.5%+ annually. In Collin County new construction, property tax + HOA + MUD fees can add $800–$1,100/month on top of your mortgage. Most buyers find this out after closing. That's too late.
Solution: Full cost modeling →Emotional decisions cost money
First-time buyers often fall in love with a home and overextend their budget. A good agent doesn't just find you the home — they protect you from overpaying for it. The payment that feels fine on closing day needs to feel fine five years later too.
Solution: Objective guidance →Which loan is right for your situation
There is no single "best" loan — there's the best loan for your credit score, your income, your service history, and your target city. Here's how the four main options compare for first-time buyers in DFW and Collin County.
FHA Loan
Federal Housing Administration
The most popular loan for first-time buyers in DFW. Lower credit score and down payment requirements make it accessible to a wide range of buyers. In 2024, 82% of all FHA purchase loans went to first-time buyers nationwide.
Mortgage insurance required for the life of the loan (1.75% upfront + 0.55–1.05% annually). Pairs well with TDHCA and TSAHC down payment assistance programs.
Conventional Loan
HomeReady / Home Possible
Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow 3% down for buyers at or below 80% of the area median income. PMI applies below 20% equity — but unlike FHA, it cancels automatically once you reach 20% equity.
Can combine with TSAHC grants. Also available through the My Choice Texas Home program (Fannie Mae HFA Preferred). Good option if you're close to 20% down.
VA Loan
Department of Veterans Affairs
The strongest loan available to those who qualify. Zero down payment, no monthly mortgage insurance, and competitive below-market rates. If you've served, this is the first option to explore — not the last.
Combine with Texas Homes for Heroes for additional down payment assistance and a below-market rate. A qualifying veteran can close with near-zero cash out of pocket.
USDA Loan
U.S. Dept. of Agriculture
Zero down payment for buyers in eligible suburban and rural areas. Some outer Collin County locations — including parts of Celina, Anna, and Van Alstyne — may qualify. The property address determines eligibility, not the buyer's location.
Use the USDA Rural Development eligibility tool to check a specific address. Not all suburban Collin County areas qualify — inner Frisco, Plano, and Allen are generally ineligible.
Not sure which loan fits your situation? The right choice depends on your credit score, income, service history, and the city you're buying in. A 20-minute conversation covers all of it — at no cost.
Find my best loan option →Programs that reduce what you need at closing
Texas has several state and local programs specifically designed to reduce upfront costs for first-time buyers. These are the primary ones available to buyers in DFW and Collin County in 2026 — and most buyers never find out they qualify.
My First Texas Home
Texas's largest first-time buyer program, run by TDHCA. Combines a 30-year fixed-rate mortgage with up to 5% down payment and closing cost assistance as a deferred, forgivable second lien. Stay in the home and keep the loan — you never pay the assistance back.
FHA, VA, and USDA only. Requires TDHCA-approved lender and HUD-approved homebuyer education course. Funds are first-come, first-served — apply early in the year for best availability.
TSAHC — Home Sweet Texas
A nonprofit grant — not a loan. The Texas State Affordable Housing Corporation provides up to 5% of the loan amount as a true grant with no repayment, no recapture period, and no first-time buyer requirement. One of the cleanest programs available.
Income and purchase price limits vary by county. TSAHC offers an eligibility quiz at tsahc.org. No recapture clause — the grant is yours outright.
Mortgage Credit Certificate (MCC)
A federal tax credit — not a deduction. Every year, you receive 15% of your annual mortgage interest back as a direct credit against your federal income taxes. Stack with My First Texas Home for maximum benefit. Over 10 years, the value compounds significantly.
Unused credits carry forward up to 3 years. Must be obtained at closing — cannot be applied retroactively. Combine with My First Texas Home for the highest total benefit.
Homes for Texas Heroes
Low-interest mortgages and 3–5% down payment assistance for teachers, police officers, firefighters, EMS personnel, corrections officers, and veterans. If you work in public service, this program was built for you.
Administered by TSAHC. Can combine with VA loan for near-zero cash to close for eligible veterans. Teachers and first responders: this is your first call.
Collin County HOME Funds
Federal HOME Investment Partnership funds administered locally, covering Plano, Frisco, McKinney, Allen, and surrounding Collin County cities. Provides down payment and closing cost assistance to income-qualifying buyers. First-come, first-served — contact early in the year.
Availability varies by funding cycle. City of McKinney Housing & Neighborhood Services also offers local workshops and referrals. Verify current availability before applying.
My Choice Texas Home
Same structure as My First Texas Home — 30-year fixed mortgage plus up to 5% DPA — but open to repeat buyers too and allows conventional loans (Fannie Mae HFA Preferred). If you've owned before but it's been less than 3 years, this is your path.
Higher income limits for FHA, VA, and USDA loans than the My First Texas Home program. Good option for buyers who narrowly miss the first-time buyer window.
The stacking advantage
How programs combine — and why most buyers never know
Example 1 — TDHCA + MCC
Requires TDHCA-approved lender. Funds first-come, first-served.
Example 2 — TSAHC Grant + FHA
No recapture. Grant is yours outright at closing.
Example 3 — VA + Texas Heroes
For qualifying veterans, teachers, fire, police, EMS.
Most buyers working with a separate agent and lender never see these combinations — because nobody in-house has reason to find them. As both a licensed REALTOR® and mortgage broker, PJ identifies and executes the right stack on every transaction.
See what I qualify for →The full cost picture — no surprises after closing
The mortgage payment is one line. Most first-time buyers in Collin County discover the other lines for the first time after they close. That's too late. Here's every cost you need to budget for — before you fall in love with a home.
- Cost item Typical range Notes
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Down payment DPA can cover One-time at closing3–10%
of purchase price FHA minimum is 3.5%. Texas DPA programs can cover this entirely for qualifying buyers. -
Closing costs DPA can cover One-time at closing2–5%
of loan amount Can be covered by DPA programs or seller concessions. In today's DFW market, sellers are negotiating on this. -
Home inspection One-time, paid upfront$400–$600 Non-negotiable. Never skip this. Additional specialist inspections (foundation, roof, HVAC) add cost but protect you.
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Appraisal One-time, paid upfront$500–$750 Required by lender before loan approval. Typically paid before closing.
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Homebuyer education course One-time, online$75–$125 Required for most Texas DPA programs. HUD-approved, approximately 8 hours. Complete this early — DPA can't be issued without it.
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Homeowners insurance Annual, escrowed monthly$1,800–$3,600/yr Required by lender. In Texas, rates vary by location and coverage. Typically escrowed into your monthly payment.
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Property taxes ⚠ Most underestimated Annual, escrowed monthly1.8–2.5%+
of assessed value/yr On a $400K home: $7,200–$10,000/year ($600–$833/month). Texas has no state income tax but some of the highest property taxes in the country. -
HOA + MUD district fees ⚠ New construction Monthly, ongoing$100–$500+/mo In Collin County new construction communities, HOA + MUD taxes combined can run $200–$400+/month on top of property taxes.
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Home warranty Annual, optional$500–$700/yr Optional but worth considering on resale homes. Covers major systems and appliances. Sometimes negotiated into the contract.
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Moving costs One-time$1,000–$5,000 Varies significantly by distance, volume, and whether you hire movers or DIY. Don't budget zero for this.
From zero to keys — what the process actually looks like
Most buyers don't know what order things happen in, or how long each step takes. Here's the realistic timeline for a first-time buyer in DFW in 2026 — no fluff, no surprises.
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Day 1 — before anything else
Financial review
Credit check, income documentation, debt-to-income calculation. Identify which loan programs and DPA you qualify for. This step alone determines everything that follows — and it's where PJ's mortgage license adds immediate value.
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Day 1–5
Pre-approval
Full mortgage pre-approval with a verified program stack. In today's DFW market, sellers take pre-approved buyers seriously. A pre-approval confirmed with DPA funding puts you in a stronger negotiating position than a simple pre-qualification letter.
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Before you search
Homebuyer education course
Required for TDHCA and most Texas DPA programs. HUD-approved, online, approximately 8 hours. Complete this before you start searching — you cannot access the DPA at closing without the certificate.
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2–8 weeks
Home search
With 30,000+ active DFW listings and homes sitting 71 days on average, you have choices and time to make them. No panic. No bidding wars at every price point. The $300K–$400K band — the most active in the metro — has real inventory right now.
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1–3 days
Offer and negotiation
Sellers are currently accepting 94.6 cents on the dollar across DFW. There's real room to negotiate — on price, on seller concessions for closing costs, and on repair credits. Know your leverage and use it. PJ structures offers that protect you, not just win fast.
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7–10 days
Option period + inspection
Texas's option period is your window to inspect the property and decide to proceed, renegotiate based on findings, or walk away and get your earnest money back. Never skip the inspection — it is the only time you see the home with professional eyes before you own it.
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2–3 weeks
Appraisal and underwriting
The lender orders the appraisal and processes the full loan file. Having your agent and lender under one roof eliminates the back-and-forth delays that cost buyers deals. DPA paperwork runs in parallel — no last-minute surprises at the closing table.
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Closing day
Keys
Sign the paperwork, receive your keys. Total timeline from pre-approval to close: typically 45–60 days. With everything handled under one roof, that timeline holds.
Buying in a specific city? Start here.
Programs, price ranges, property taxes, school districts, and new construction availability vary meaningfully by city. Select your target city for a localized guide built specifically for first-time buyers in that market.
One person. Two licenses. No handoffs.
Most first-time buyers work with a real estate agent who refers them to a separate lender. Those two professionals rarely coordinate on program eligibility, rarely communicate in real time about what the other is doing, and rarely catch the DPA combinations that could save buyers the most money.
PJ holds both a Texas REALTOR® license and a mortgage broker license — and uses both on every transaction. The result is one conversation, one timeline, and a financing structure built specifically around the home you're buying.
"The product is your best outcome — not the fastest close, not the highest commission. That means the right loan, the right program combination, and the right home at the right price."
- Texas REALTOR® License #631862
- NEXA Mortgage — NMLS #2280005
- CLHM — Certified Luxury Home Marketing Specialist
- Founder, Expand Realty Group
- Serving DFW and Collin County — Frisco · Allen · McKinney · Prosper · Celina · Plano
What this means for you
Every program identified upfront
Because the person structuring your loan is also writing your offer, nothing falls through the cracks at the financing stage. No missed DPA. No last-minute surprises at the closing table.
Faster closings
No back-and-forth between an agent and a separate lender. Underwriting communication, appraisal coordination, and DPA paperwork all happen in-house — typically 45–60 days from pre-approval to keys.
Full monthly cost modeled before you offer
Mortgage, property tax, HOA, MUD, insurance — every number before you fall in love with a home. Especially critical in Collin County, where those additional costs regularly add $800–$1,100/month beyond the mortgage.
Offer strategy informed by financing
The structure of your offer — earnest money, option fee, seller concessions, closing date — is directly tied to your loan type and DPA program. When agent and lender are the same person, the offer is built around your financing, not around it.
No upselling
The right loan for your situation may be the simplest and cheapest option available. That recommendation comes easier when the person making it isn't being paid more to sell you something else.
REALTOR® + Mortgage Broker — under one roof
Most buyers don't realize this combination is rare. A dual-licensed agent and broker can identify every program you qualify for, structure the combination with the highest total benefit, and execute both the home search and the financing without a single handoff. That's the difference between knowing a program exists and actually using it at closing.
First-time buyers PJ has worked with
Real outcomes from real buyers across Collin County and DFW. Replace these placeholders with your actual client reviews.
Frequently asked questions
The questions PJ hears most often from first-time buyers across DFW and Collin County — answered directly.
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Under TDHCA and most Texas assistance programs, a first-time home buyer is anyone who has not owned a primary residence in the past three years. This is wider than most people realize.
It includes people who owned years ago and sold, divorced individuals who were not on the previous title, and buyers who have never owned before. Veterans are exempt from the three-year requirement under most Texas programs.
3-year lookback rule -
Most Texas DPA programs — including TDHCA and TSAHC — require a minimum 620 credit score. FHA loans allow scores as low as 580 for 3.5% down financing, or 500–579 with 10% down. Conventional programs typically require 620+.
You do not need perfect credit. A score in the 600s qualifies you for multiple programs. If your score is below 620, a short period of targeted credit improvement can often get you there — PJ can walk you through what to prioritize.
620 minimum for most DPA
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My First Texas Home is run by the Texas Department of Housing and Community Affairs (TDHCA). It provides a 30-year fixed-rate mortgage plus up to 5% of the loan amount in down payment and closing cost assistance — structured as a deferred, forgivable second lien. Stay in the home and keep the loan, and you never pay the assistance back.
Income limits in DFW are approximately $97,000–$120,000 depending on household size. The purchase price limit is up to $472,030 in most DFW counties for 2026. Requires a 620 credit score, a TDHCA-approved lender, and a completed HUD homebuyer education course. Funds are first-come, first-served.
Up to 5% DPA · Forgivable · FHA/VA/USDA -
Yes, in certain combinations. The Mortgage Credit Certificate (MCC) can be stacked with My First Texas Home to provide upfront DPA and an ongoing annual federal tax credit worth up to $2,000/year. TSAHC grants can be paired with FHA and VA loans. Collin County HOME funds can sometimes layer with state programs.
The specific combinations that work depend on your loan type, income, and program availability in a given funding cycle. This is exactly where having a dual-licensed agent and broker matters — identifying and executing the right stack requires knowing both sides simultaneously.
TDHCA + MCC · TSAHC + FHA · VA + Heroes
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No. FHA loans require as little as 3.5% down with a 580+ credit score. Conventional HomeReady and Home Possible programs start at 3% down. VA and USDA loans require 0% down for eligible buyers.
Texas DPA programs can cover the down payment entirely for qualifying buyers — the TSAHC grant provides up to 5% of the loan amount with no repayment. The median down payment for first-time buyers nationally in 2025 was 9%, not 20%. Waiting to save 20% while paying rent often costs more than buying now with 3.5% down.
3.5% FHA min · DPA can cover entirely -
Property tax rates in Collin County typically run 1.8–2.5%+ of assessed value annually. On a $400,000 home, that's $7,200–$10,000 per year — roughly $600–$833 per month added to your payment.
In new construction communities across Frisco, Prosper, Celina, and McKinney, HOA fees and MUD (Municipal Utility District) taxes add further. The combined monthly add-on beyond the mortgage payment can reach $800–$1,100+. Texas has no state income tax, but property taxes are among the highest in the country. Budget for the full payment before you fall in love with a home.
1.8–2.5%+ annually · HOA + MUD on top
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By most objective measures, yes. The DFW market in 2026 is the most buyer-friendly it has been since before the pandemic. Prices are down slightly from peak, active listings have grown to 30,000+, and the sale-to-list ratio of 94.6% confirms buyers are successfully negotiating off asking price. Average days on market is 71 — no panic buying required.
Mortgage rates at ~6.5% are off the 7%+ highs of 2023–2024. The combination of more inventory, motivated sellers, and available DPA programs makes 2026 a reasonable window for qualified first-time buyers. The buyers who benefit most are those who prepare now — not those who wait for the "perfect" rate.
Buyer's market · 30K+ listings · DPA available
Get Started
Find out exactly what you qualify for , at no cost.
A 20-minute conversation will tell you which programs apply to your situation, what your real monthly payment looks like on homes in your range, and what it would actually take to close. No pressure, no obligation.
Your information is never sold or shared with third parties. PJ will contact you within one business day.