9 Best Resources for First Time Home Buyer

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Buying a home is the largest investment many people will make. For first-time home buyers in Houston, the process may seem intimidating; however, there are resources for first time home buyers out there. These are nine of the best resources.

First Time Home Buyers Resources: Houston

If the cost of purchasing a home is an obstacle for you, some programs can help first-time homebuyers Houston. These programs provide down payments and closing cost aid. You may also be eligible for tax credits or government-backed loans.

First-time home buyer key stats: Texas

The median list price for homes in Texas was $326,800 in the first quarter of 2023. That was up 0.6% from the year prior, according to Texas Realtors.

Saving enough to purchase a home is a big challenge for many first-time home buyers. Thankfully, The Lone Star State offers special mortgage loans, tax credits, and down payment assistance.

Keep in mind that home prices and down payments can vary a lot, depending on your target areas and what your personal finances look like.

First Time Home Buyers

1. Down Payment Assistance Loans for First Time Home Buyers

Some mortgage lenders in Houston require a 20% down payment on a traditional mortgage loan. Yet, many lenders offer down payments as low as 3% to first-time home buyers Houston.

2. Down Payment Assistance Grants for First Time Home Buyers in Houston

If you are having difficulty saving enough money for a down payment, your local or state government may have grant programs for which you qualify. Potential sources of grants for first time home buyers Houston include:

  • Texas State Affordable Housing Corporation
  • Federal Housing Administration
  • Texas Department of Housing & Community Affairs
  • Houston Homebuyer Assistance Program
  • Harvey Homebuyer Assistance Program

3. Tax Credits for First Time Home Buyers

Tax credits won’t help you with upfront costs, but they can put some extra money in your pocket come tax time. For example, your mortgage insurance costs are deductible from your federal taxes if your mortgage is less than $750,000. Additionally, if you qualify for a Mortgage Credit Certificate from the Texas State Affordable Housing Corporation, you can get up to a $2,000 deduction for mortgage interest payments.

4. Closing Assistance Resources for First Time Home Buyers

Closing costs are extra fees that the buyer pays after the loan process with mortgage lenders Houston. The fees usually range from 3% to 6% of the total loan amount. Grants and loans for closing costs are available through some of the same government and nonprofit organizations that provide down payment assistance. Additionally, you can ask the seller to cover some of the closing costs through a process known as seller concessions. Alternatively, you may be able to negotiate with the seller to reduce your interest rate by paying points or by bearing a portion of your property taxes.

5. Education Resources for First Time Home Buyers

Free and low-cost educational resources for first time home buyers Houston are available online. You can use these classes to learn about financing options, the buying process, and applying for a loan with mortgage lenders Houston.

6. Government-Backed Loans for First Time Home Buyers Houston

Government-backed loans from mortgage lenders Houston can be easier for first-time buyers to qualify. Buyers with poor credit will also have more success with these loans. They also usually have lower down payment requirements and interest rates than traditional mortgages. The government currently offers loans through the Federal Housing Administration, the United States Department of Agriculture, and the Veterans Administration.

7. Good Neighbor Next Door Program for First Time Home Buyers Houston

Suppose you are a first-time homebuyer Houston who is also a teacher, firefighter, emergency medical technician, or law enforcement officer. In that case, you may qualify for the Good Neighbor Next Door program through the Department of Housing and Urban Development.

Buyers who qualify for this program can receive a 50% discount on select HUD properties. Because these properties are foreclosures, they’re often obtained at very competitive prices at a discount.

8. HomePath Ready Buyer Program for First Time Home Buyers in Houston

9 Best Resources for First Time Home Buyers

The HomePath program through Fannie Mae provides resources for first time home buyers and the opportunity to purchase a foreclosed property with as little as 3% down. These homes are sold in as-is conditions. Therefore, you may need to do some repairs. However, the good news is if you qualify, you can receive a rebate of up to 3% of your closing cost. Buyers must pass Fannie Mae’s Framework Homeownership course before closing on a loan with mortgage lenders Houston.

9. State, Local and Nonprofit Programs for First Time Home Buyers

For first-time homebuyers Houston, there are many programs available at the state and local levels. Check HUD’s website for a list of programs in your area.


Update 2023: 

10. Local Real Estate Market Insights:

Explore Houston’s Thriving Real Estate Market: Stay informed about the latest trends, housing prices, and market dynamics to make well-informed decisions on your first home purchase.

11. Homebuyer Tips and Advice:

Navigating the Homebuying Maze: Our expert advice covers everything from neighborhood selection to working with real estate agents. We’re here to help you avoid common pitfalls.

12. Testimonials and Success Stories:

  • Hear from Your other happy home buyers: Read real success stories from first-time buyers in Houston who achieved their homeownership dreams with our assistance.

13. Mortgage Calculator Tool:

  • “Calculate Your Mortgage Payments: Use our handy mortgage calculator to estimate your potential monthly payments and explore different loan scenarios.”

14. Frequently Asked Questions (FAQs):

These are just a few of the resources for first time home buyers Houston that are available. Contact the team at Rock Mortgage to learn more about how we can help you finance your first home. Reach us by phone at (832) 230-3067 or contact us online.

First Time Home Buyers Houston

9 Best Resources for First Time Home Buyers? | Rock Mortgage — Houston, Texas

Billy Evans

Billy Evans

Billy Evans is a Loan Officer at Rock Mortgage. As a father and family man Billy understands the importance and want to have a beautiful home to raise and grow a family in. That is why he has made it his mission to help everyone get the best mortgage solution possible to fit their financial needs. Billy is also a former United States Marine, as a Veteran himself and mortgage professional he has combined his knowledge and experience to passionately serve Veterans. When Billy isn’t working, he enjoys spending time with his wife, daughter, and their puppy Ollie!