New Braunfels Buyer Education • Blog

First-Time Buyer Programs in New Braunfels

What's Real, What's Fine Print

TSAHC, TDHCA, FHA, VA and USDA in plain English, plus the stuff your lender won't bring up unless you ask.

Joe Hurd • 830.580.3667 • buyfromjoehurd.com

The headline is "up to 5% down payment help." The decision lives in the fine print.

Read this first. This is a starting point, not a loan approval or tax advice. Program rules and available funds change. Have a participating lender confirm the current terms before you write an offer.

Program	Who It's For	What You Get	The Catch
TSAHC Home Sweet Texas	Eligible buyers, not only first-timers	Assistance of 2% to 5% of the loan amount	Could be a grant or a second lien. Big difference.
TSAHC Homes for Texas Heroes	Educators, police, firefighters, EMS, corrections, veterans	Similar assistance options	The job title alone doesn't qualify you
TSAHC Mortgage Credit Certificate	Mostly first-time buyers (3-year rule)	Federal tax credit of 15% of yearly mortgage interest	Not cash at closing. Possible recapture if you sell within 9 years.
TDHCA Programs	First-time buyers and veterans, or repeat buyers	Loan and assistance options	Income and price limits by county and household
FHA	Anyone who qualifies	As little as 3.5% down	Mortgage insurance, and the house's condition matters
VA	Eligible veterans and service members	No down payment, no PMI	Funding fee unless you're exempt
USDA	Buyers in eligible rural areas	No down payment	Eligibility depends on the exact address and your income

Statewide • TSAHC

Home Sweet Texas

The Texas State Affordable Housing Corporation (TSAHC) runs Home Sweet Texas. Under the 2026 guidelines, assistance can be set at 2%, 3%, 4% or 5% of the loan amount, depending on the product and the loan.

That help comes in one of three forms: a grant, a deferred forgivable second lien, or a deferred repayable second lien. Those are three very different deals. A grant is free money. A second lien is a debt that can come due when you sell, refinance or pay off the first mortgage.

TSAHC lists a 620 minimum credit score for government loans and 640 for conventional. There are extra rules on top of that. For example, a government loan with a 620 to 639 score can carry an extra origination charge. That's why a lender has to price your actual file instead of handing you a generic flyer.

Not every Home Sweet Texas option requires you to be a first-time buyer. You do have to finish a homebuyer education course before closing.

Statewide • TSAHC

Homes for Texas Heroes

Teachers and other qualifying educators, police officers, firefighters, EMS, corrections officers and veterans may qualify for TSAHC's Heroes options, whether it's their first home or not, depending on the product.

Your job title gets you in the door. It doesn't finish the job. The lender still has to verify your occupation, loan type, income limits, the property, and how the assistance is structured.

Federal Tax Credit • TSAHC

Mortgage Credit Certificate (MCC)

The MCC is a federal tax credit equal to 15% of the mortgage interest you pay each year, limited by your federal tax bill, and any unused credit carries forward for three years. It's paired with an eligible TSAHC loan, and it has to be approved before you close.

It generally follows the three-year first-time buyer rule, with exceptions for targeted areas and qualified veterans. There's an issuance fee, which TSAHC waives for qualifying Heroes borrowers. Ask your lender for the current amount.

The big one: if you sell within nine years, you could owe some of that federal benefit back. There are exemptions and limits, so have your lender and tax pro walk you through it before you sign up. "Tax credit" doesn't mean "free money, no strings."

Statewide • TDHCA

My First Texas Home and My Choice Texas Home

The Texas Department of Housing and Community Affairs (TDHCA) offers My First Texas Home for eligible first-time buyers and qualified veterans, and My Choice Texas Home for eligible repeat buyers. Education is required.

TDHCA publishes income and purchase-price limits by program, county, household and property type. Comal County has its own row, but there isn't one cap that applies to everybody. Your lender has to match your household to the right row. That should be the first number they check, not the last one you find on Google.

Federal Loan Programs

FHA, VA and USDA

FHA is a federal loan program, not a New Braunfels grant. HUD says eligible borrowers can put as little as 3.5% down, and you don't have to be a first-time buyer. Mortgage insurance and the condition of the house still matter.

VA can mean no down payment for eligible borrowers, as long as the price doesn't exceed the appraised value. There's no PMI, but there may be a funding fee unless you're exempt. You need a Certificate of Eligibility and a lender who actually knows VA.

USDA can mean no down payment in eligible rural areas. Eligibility is tied to the exact address, and the USDA map isn't a loan approval. Income limits and underwriting still apply. Some addresses around New Braunfels qualify, and others that look just as rural don't.

• You may be stuck with their lender. Many down payment programs require an approved lender. You can't always take the assistance to whoever has the lowest rate online. Compare the whole loan estimate: rate, fees, mortgage insurance and the cost of the assistance.
• A higher rate can eat the benefit. Some programs pair the help with a higher rate or extra fees. Ask for two loan estimates side by side: one with the assistance and one without it.
• A second lien is still a lien. If your help is a forgivable or repayable second lien, ask exactly what triggers repayment. Selling, refinancing, paying off the first mortgage, or moving out early can all change what you owe.
• "Up to" is not a promise. "Up to 5%" is the maximum. It doesn't mean you'll get 5%, that the money's available today, or that it covers all your closing costs.
• Builder money has rules too. New construction in Mayfair, Veramendi and other New Braunfels communities often comes with closing cost help or a rate buydown. That doesn't automatically stack with a down payment program. Get the builder incentive in writing, then have your lender test the whole package.

• Picking a program by the advertised percentage instead of the total monthly payment.
• Waiting until your offer is accepted to ask about income or price limits.
• Assuming "first-time buyer" means you've never owned anything. Many programs use a three-year lookback, and some don't require first-time status at all.
• Treating a builder rate buydown and a down payment second lien like they're the same thing.
• Forgetting that taxes, insurance, HOA dues and district fees are tied to the address.
• Putting every dollar into the down payment and having nothing left for inspections, repairs or the move.

Is there a City of New Braunfels first-time buyer grant I can apply for today?

The city's 2026 community development plan lists first-time buyer assistance as an ongoing priority, but it doesn't publish a current application with an award amount, income limit, price limit, credit rule or repayment terms. Don't treat planning language as proof there's an open grant.

Do I have to be a first-time buyer to get down payment help?

Not always. Some TSAHC down payment options are open to repeat buyers. The MCC and certain bond programs generally use the three-year first-time buyer rule, with exceptions for veterans and targeted areas.

Can I use down payment assistance on a home in New Braunfels?

Possibly, if the program, lender, property type, price, income and address all line up. The home being in New Braunfels doesn't qualify it by itself.

What credit score do I need?

TSAHC lists 620 for government loans and 640 for conventional. Those are program minimums, not a universal rule, and your lender may have stricter requirements.

What should I ask a lender on the first call?

The program name, assistance type, interest rate, monthly payment, cash to close, what triggers repayment or forgiveness, income and price limits, required education, and whether it can stack with a builder incentive.

Want a Real Game Plan?

Book a 30-minute first-time buyer call. Bring your rough income, debts, savings, target payment and the neighborhoods you like. We'll figure out exactly what to ask your lender before you burn a weekend touring homes.

Book the 30-Minute Call

Joe Hurd • 830.580.3667

buyfromjoehurd.com • joehurdrealtor@gmail.com

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