Buying your first home in El Paso is more achievable than many renters realize. The city, state, and federal government all offer programs specifically designed to reduce the upfront cost of homeownership — covering down payments, closing costs, and sometimes even offering below-market interest rates. ProGen Real Estate helps first-time buyers navigate these programs every day. Call Josue R. Jimenez at (915) 691-1082 to talk through your options before you start shopping.
Texas State Affordable Housing Corporation (TSAHC)
TSAHC is one of the most widely used first-time buyer programs in Texas. It offers down payment assistance in the form of either a grant (which never has to be repaid) or a deferred forgivable loan. The assistance amount is typically 3 to 5 percent of your loan amount, which on a $250,000 home translates to $7,500 to $12,500 toward your down payment or closing costs.
TSAHC operates two programs: the Homes for Texas Heroes program, which is designed for teachers, firefighters, law enforcement officers, veterans, and healthcare workers; and the Home Sweet Texas program, which is available to any first-time buyer regardless of profession. Both programs work with FHA, VA, USDA, and conventional loan types.
TSAHC Income and Purchase Price Limits for El Paso
El Paso County income limits for TSAHC programs in 2026 are approximately $97,000 for households of one to two people and $113,000 for households of three or more. The purchase price limit for existing homes is around $404,000. These limits are updated periodically, so confirm current figures at tsahc.org or through a TSAHC-approved lender.
My First Texas Home Program
Administered by the Texas Department of Housing and Community Affairs (TDHCA), My First Texas Home combines a 30-year fixed-rate mortgage at a below-market interest rate with up to 5 percent in down payment and closing cost assistance. The assistance is structured as a second lien with no monthly payments and is forgiven after you stay in the home for the required period (typically three years).
Income limits for My First Texas Home in El Paso are similar to TSAHC — roughly $74,000 to $92,000 depending on household size and the specific loan type. Credit score minimums are generally 620 for government-backed loans and 640 for conventional. You must complete an approved homebuyer education course to qualify.
City of El Paso Down Payment Assistance Program
The City of El Paso's Community and Human Development Department administers its own DPA program for residents purchasing within city limits. Assistance amounts vary by year and available funding but have historically ranged from $5,000 to $15,000 in the form of a deferred forgivable loan. The loan is forgiven over five years as long as the home remains your primary residence.
To qualify for the City of El Paso DPA, buyers must meet HUD income limits (currently 80 percent of Area Median Income or below), complete an 8-hour homebuyer education course from a HUD-approved agency, and purchase a home within city limits. The property must be inspected and meet habitability standards.
Texas Veterans Land Board (VLB) Programs
Texas veterans have access to a unique benefit through the Texas Veterans Land Board: the VLB Veterans Housing Assistance Program, which offers a below-market interest rate on home loans of up to $726,200. The rate discount is typically 0.5 to 1.0 percent below conventional market rates, which on a 30-year loan can save tens of thousands of dollars over the life of the mortgage.
VLB loans can be combined with VA loans for eligible veterans, stacking the interest rate benefit on top of the VA's no-down-payment benefit. Texas veterans who served at least 90 days of active duty and received an honorable discharge are eligible. El Paso's large military community, anchored by Fort Bliss, makes this program particularly relevant here.
Federal Housing Administration (FHA) Loans
While not a grant program, FHA loans remain the most accessible mortgage option for first-time buyers who don't have military service or don't meet income-limit programs. FHA loans allow down payments as low as 3.5 percent with a credit score of 580 or higher, and 10 percent down with scores between 500 and 579. FHA loans are assumable, which has become a meaningful benefit in a higher-rate environment — a buyer who assumes a seller's 3 percent FHA loan inherits that rate.
USDA Rural Development Loans
Parts of the El Paso metro area — particularly communities east of the city limits and in the Lower Valley — may qualify for USDA Rural Development loans, which offer 100 percent financing (no down payment required) to income-qualified buyers. The USDA eligibility map is updated periodically. If you're looking at homes in Anthony, Canutillo, Clint, or other communities outside city limits, it's worth checking whether the address qualifies.
How to Stack Programs
Savvy buyers can sometimes stack multiple programs. For example, a veteran teacher could combine a VLB rate reduction with a TSAHC Heroes grant, receiving both a below-market interest rate and a grant toward closing costs. The key is working with a lender who is approved for all programs you want to use simultaneously. Not every lender participates in every program.
Homebuyer Education Requirements
Most assistance programs require completion of a HUD-approved homebuyer education course. These courses are available online through providers like eHome America and Framework, typically cost $75 to $125, and take 6 to 8 hours to complete. You'll receive a certificate upon completion that you'll submit to your lender. Taking this course is time well spent — it covers budgeting, mortgage basics, the buying process, and homeownership responsibilities.
Steps to Get Started
- Check your credit score — pull a free report at annualcreditreport.com and review for errors before applying for any program
- Calculate your income — gather two years of tax returns and recent pay stubs to verify you meet income limits for the programs you're targeting
- Contact a participating lender — not every lender offers TSAHC, TDHCA, or VLB loans; get referrals to lenders approved for these programs
- Complete homebuyer education — take the required course early so it's done before you need the certificate
- Get pre-approved — a pre-approval letter tells sellers and agents you're a serious buyer and confirms which programs you qualify for
- Work with a licensed broker — a TREC-licensed broker like ProGen Real Estate can coordinate the transaction so all assistance is properly applied at closing
First-time buyer programs in El Paso can make the difference between staying a renter and owning your first home. ProGen Real Estate — TREC #619091, Broker Josue R. Jimenez — works with buyers at every price point and income level. Call (915) 691-1082 to start your homebuying journey today.