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Homebuyer Programs in Abilene, TX (2026)

Last updated April 6, 2026 | Population: 128,053 | Median home price: $245,000 | Est. closing costs: $5,000 - $7,500

Skyline of Abilene, TX

Abilene is a mid-sized city in West Central Texas and the seat of Taylor County, with a median home price around $245,000. The City of Abilene First Time Homebuyer Program offers up to $5,000 as a grant for down payment and closing costs to income-eligible buyers. Texas state programs including the TDHCA My First Texas Home Program and TSAHC Homes Sweet Texas Program provide additional down payment assistance of up to 5% of the loan amount as a grant or forgivable second lien. Habitat for Humanity Abilene also builds and sells homes at no profit with zero-interest mortgages for qualifying low-income families. By combining local and state programs, Abilene buyers can stack significant assistance to make homeownership more affordable.

Top Homebuyer Programs in Abilene

Abilene Housing Authority HCV Homeownership Program
Type:
Grant
Amount:
Monthly mortgage assistance through Housing Choice Voucher
First-time only:
Yes
City of Abilene First Time Homebuyer Program
Type:
Grant
Amount:
Up to $5,000
First-time only:
Yes
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Habitat for Humanity Abilene Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest mortgage
First-time only:
No
Home Sweet Texas Home Loan Program
Type:
Grant
Amount:
Up to 5% of the total loan amount
First-time only:
No
Homes for Texas Heroes Program
Type:
Grant
Amount:
Up to 5% of the loan amount (between 3% and 5%)
First-time only:
No
My First Texas Home
Type:
Forgivable Loan
Amount:
Up to 5% of the first lien mortgage amount
First-time only:
Yes
SETH 5 Star Texas Advantage Program
Type:
Forgivable Loan
Amount:
Up to 5% of the loan amount
First-time only:
No

How to Apply

  1. Step 1:

    Check your eligibility. The City of Abilene First Time Homebuyer Program requires income at or below 80% of the area median income, which ranges from $41,000 to $77,300 depending on household size. You must have lived in Abilene for at least 6 months or worked there for at least 2 years.

  2. Step 2:

    Complete homebuyer education. You must finish an online homebuyer training course and complete 10 hours of community service as part of the City of Abilene program requirements.

  3. Step 3:

    Contact an approved participating lender. The City of Abilene does not accept direct applications. Reach out to a participating lender who will submit your application on your behalf. For a list of approved lenders, call the Neighborhood Services Division at (325) 437-4576.

  4. Step 4:

    Explore state programs. Ask your lender about the TDHCA My First Texas Home Program and the TSAHC Homes Sweet Texas Program, which offer additional down payment assistance that can be stacked with the city program.

  5. Step 5:

    Get pre-approved for a mortgage. Work with your lender to determine your maximum purchase price and confirm which programs you qualify for.

  6. Step 6:

    Find a home within the city limits of Abilene. The City of Abilene program requires the home to be located within city limits.

  7. Step 7:

    Submit your full application and close on your home. Your lender will coordinate the grant funds, which are paid directly to the title agency on the day of closing.

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