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Get Matched Free →Homebuyer Programs in Killeen, TX (2026)
Killeen is a city of over 164,000 residents in Bell County, Texas, located adjacent to Fort Cavazos (formerly Fort Hood) and home to one of the largest military populations in the country. With a median home price around $230,000, Killeen offers some of the most affordable housing in central Texas. The City of Killeen Homebuyer Assistance Program previously offered up to $7,500 in down payment assistance but is currently on hold due to rising costs and HUD program constraints. However, buyers still have strong options through state programs: the My First Texas Home program and the SETH 5 Star Texas Advantage Program each offer up to 5% of the loan amount, and the Homes for Texas Heroes Program provides up to 5% specifically for veterans, teachers, first responders, and corrections officers. Fort Hood Area Habitat for Humanity also builds affordable homes with zero-interest mortgages for qualifying families in Bell County. By combining state programs, eligible Killeen buyers could access over $15,000 in total assistance.
Top Homebuyer Programs in Killeen
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Killeen Homebuyer Assistance Program | Grant | Up to $7,500 | Yes | View → |
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| Fort Hood Area Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home purchase with zero-interest mortgage sold at no profit | No | View → |
| Home Sweet Texas Home Loan Program | Grant | Up to 5% of the total loan amount | No | View → |
| Homes for Texas Heroes Program | Grant | Up to 5% of the loan amount (between 3% and 5%) | No | View → |
| My First Texas Home | Forgivable Loan | Up to 5% of the first lien mortgage amount | Yes | View → |
| SETH 5 Star Texas Advantage Program | Forgivable Loan | Up to 5% of the loan amount | No | View → |
- Type:
- Grant
- Amount:
- Up to $7,500
- First-time only:
- Yes
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage sold at no profit
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the total loan amount
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the loan amount (between 3% and 5%)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the first lien mortgage amount
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the loan amount
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. Most state programs require income at or below 115% of Area Median Income, with higher limits in targeted areas. The Homes for Texas Heroes Program has its own income thresholds for veterans, teachers, first responders, and corrections officers. You'll need a minimum credit score of 620 for most TSAHC and TDHCA programs.
- Step 2:
Complete homebuyer education. TSAHC and TDHCA programs require completion of an approved homebuyer education course before closing. Search for HUD-approved counseling agencies in the Killeen area by calling 800-569-4287 or visiting HUD's housing counseling search tool.
- Step 3:
Get pre-approved through a participating lender. State programs like My First Texas Home and Homes for Texas Heroes require a TSAHC-approved or TDHCA-approved lender. Ask specifically about DPA grant options vs. forgivable second lien loans.
- Step 4:
If you are a veteran, active-duty military, teacher, first responder, or corrections officer, ask your lender about the Homes for Texas Heroes Program specifically, as it offers up to 5% DPA plus a free Mortgage Credit Certificate tax credit worth up to $2,000 per year.
- Step 5:
Find a home within program purchase price limits. TSAHC and TDHCA set acquisition cost limits by county that are updated annually. Your lender can confirm the current limit for Bell County.
- Step 6:
Submit your application and complete closing. Your lender handles the state DPA application as part of the mortgage process. Also check whether the City of Killeen HAP has reopened by calling (254) 501-7845, as that could add up to $7,500 more.