First-Time Homebuyer
Grants in San Antonio, TX

1. City of San Antonio Homeownership Incentive Program (HIP 120)

The City of San Antonio’s flagship buyer program provides up to $15,000 in 0% interest assistance toward down payment and closing costs. The loan is structured as a forgivable second lien — 75% is forgiven over 10 years of owner-occupancy. Buyers must be within city limits and complete a HUD-approved 8-hour homebuyer education course before closing.

City ProgramForgivable

• Must be a first-time buyer (no ownership in past 3 years)
• Household income at or below 120% AMI (e.g., ~$70,750 for family of 4)
• Property must be within San Antonio city limits and used as primary residence
• Minimum $500 earnest money deposit required
• Compatible with FHA, VA, and Conventional loans

2. My First Texas Home — TDHCA

Texas Department of Housing and Community Affairs (TDHCA) offers a 30-year fixed mortgage bundled with 5% down payment and closing cost assistance. The DPA comes as a deferred second lien at 0% interest — repayable only when you sell, refinance, or pay off the first mortgage. It’s one of the most widely used programs in Texas.

State Program0% Deferred

• Available statewide to first-time buyers and qualified veterans
• Income limits apply by county and family size
• 640 minimum credit score required
• Can be paired with Texas MCC for additional savings
• Works with FHA, VA, USDA, and Conventional loans

3. TSAHC Home Sweet Texas Home Loan

The Texas State Affordable Housing Corporation (TSAHC) provides up to 5% of the loan amount as either a true grant (no repayment ever) or a deferred second lien. The grant option is available to buyers meeting income limits, and unlike most DPA programs there are no first-time buyer requirements for most areas of Bexar County.

State ProgramTrue Grant Option

• Grant requires no repayment — not a loan
• Available through TSAHC-approved lenders
• 640 minimum credit score; 45% max DTI
• Stackable with Texas MCC tax credit
• No first-time buyer requirement in most Bexar County areas

4. TSAHC Homes for Texas Heroes

Built for the people who serve our communities, Homes for Texas Heroes provides the same 5% down payment assistance as Home Sweet Texas but adds a below-market mortgage interest rate — typically 0.25–0.5% lower. Eligible professions include teachers, firefighters, law enforcement, EMS, corrections officers, veterans, and nurses.

State ProgramRate Discount

• Teachers (K–12 and higher ed), firefighters, law enforcement officers
• EMS personnel, corrections officers, and licensed nurses
• Active military and veterans also qualify
• Same 5% DPA structure as Home Sweet Texas
• Contact a TSAHC-approved lender to confirm current rate

5. Texas Mortgage Credit Certificate (MCC)

The Texas MCC converts a portion of your annual mortgage interest into a dollar-for-dollar federal income tax credit — up to $2,000 every year you live in the home. This is a long-term benefit that compounds over time: a buyer in the home for 10 years could claim up to $20,000 in total tax credits. Must be requested through a TDHCA-approved lender at the time of your loan.

FederalAnnual Tax Credit

• Reduces your federal tax liability — not just a deduction
• Must be a first-time buyer (or buying in a targeted area)
• Can be combined with TSAHC or TDHCA DPA programs
• Credit rate is 20–40% of annual mortgage interest paid
• Request at closing through an MCC-approved lender

Do I have to be a first-time buyer to use San Antonio programs?

HIP 120 requires that you haven’t owned a home in the past 3 years. TSAHC’s Home Sweet Texas and Homes for Texas Heroes generally do not require first-time buyer status in most Bexar County locations, and the Texas MCC requires it only outside of targeted census tracts. Check with your lender to confirm based on the specific property address.

What income limits apply to HIP 120?

HIP 120 uses 120% of Area Median Income (AMI). For 2026 in San Antonio, that’s roughly $49,600 for a single person and $70,750 for a family of four. If your income is higher, you may still qualify for TSAHC or TDHCA programs, which use separate (and sometimes higher) income limits.

Can I stack multiple programs together?

Yes — many San Antonio buyers combine HIP 120 with a TSAHC grant and the Texas MCC. The key is working with a lender approved for all the programs you want to use, and allowing extra lead time for HIP 120 city approval. Your lender coordinates the layering at closing.

How long until HIP 120 is fully forgiven?

The program forgives 75% of the loan over 10 years of owner-occupancy. The remaining 25% stays as a lien until you sell, refinance, or move. If you sell before 10 years, you repay the pro-rated unforgiven portion from your sale proceeds.

What credit score do I need?

Most programs require a minimum 640 credit score. HIP 120 does not publish a hard minimum but requires qualifying for a first mortgage (FHA, VA, or Conventional), which typically means 580–640+. TSAHC and TDHCA programs both require 640.

1. Check your income eligibility — Compare your household income against 120% AMI (HIP 120) and TSAHC limits for Bexar County.
2. Complete a HUD-approved homebuyer course — Required for HIP 120 and most TDHCA programs; often available online for free.
3. Find a participating lender — Look for a lender approved by both TSAHC and the City of San Antonio to stack programs at closing.
4. Get pre-qualified — Your lender will confirm which programs you qualify for based on income, credit, and loan type.
5. Request the Texas MCC at application — The MCC must be applied for before closing; ask your lender upfront.
6. Close on your home — HIP 120 funds are wired at closing alongside your first mortgage; TSAHC assistance is also applied at that time.