El Paso First Time Homebuyer Program | Texas Housing 2025

El Paso First Time Homebuyer Program is administered by the local housing department to boost sustainable

homeownership and neighborhood revitalization throughout Texas. The program combines a 30‑year fixed‑rate

mortgage with up to $25,000 grant plus free HUD‑approved counseling. Participants may layer additional

benefits such as Mortgage Credit Certificates or USDA Rural Development guarantees to maximize affordability.

Funds are reserved via an online lender portal and disbursed on a first‑come, first‑served basis. Properties

must pass Texas Minimum Property Standards, and rehabilitation escrows are released in draws after third‑party

inspections. Borrowers who purchase ENERGY STAR‑certified homes qualify for a 0.125 percentage‑point rate

discount. First‑time buyers may waive the first‑time requirement when purchasing in targeted census tracts.

Forgivable second mortgages are forgiven at 20 percent per year (My Choice Texas Home, 5‑year term) while

deferred second liens carry 0 percent interest until payoff or refinance. Mobile homes on permanent

foundations and condominiums approved by FHA, VA, or Fannie Mae are eligible.

• U.S. citizen, lawful permanent resident, or qualifying non‑citizen.

• Household income ≤ county limits (e.g., $131,100 in Travis County, 2025 for a family of four).

• Purchase price ≤ $481,176 for existing homes or $600,000 for new construction in high‑cost counties.

• Minimum 620 FICO score (680 for conventional loans under Freddie Mac HFA Advantage).

• Combined debt‑to‑income ratio ≤ 50 % (45 % for FHA borrowers below 640 FICO).

• Completion of an approved online or in‑person homebuyer education course (TDHCA “Texas Homebuyer U” or equivalent).

• Owner‑occupancy within 60 days of closing; property cannot be used as a short‑term rental.

• Up to $25,000 grant applied toward down payment, closing costs, or principal curtailment.

• Competitive 30‑year fixed interest rate, often 0.25 % below market.

• Option to pair with a $2,000/year MCC for additional tax savings.

• Forgivable or deferred second mortgage structures reduce monthly burden.

• Access to foreclosure‑prevention hotline and disaster recovery grants.

1. Pre‑approval: Select a TDHCA/TSAHC‑participating lender; review credit and income documents.

2. Education: Complete the TDHCA "Texas Homebuyer U" 6‑hour course; upload certificate.

3. Reserve funds: Lender locks rate and requests down‑payment funds via the eHousingPlus portal.

4. Underwriting & appraisal: FHA/VA/USDA or conventional appraisal, compliance review, and title work.

5. Closing: Sign first‑mortgage note and subordinate‑lien documents; assistance wired to title company.

6. Post‑purchase: Occupy home; retain records for recapture tax exemptions; contact housing counselor if hardship arises.