See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 7, 2026
Homebuyer Programs in Kyle, TX (2026)
Kyle is one of the fastest-growing cities in Texas, located in Hays County between Austin and San Marcos along I-35, with a median home price around $310,000. While Kyle does not currently offer a city-funded homebuyer assistance program, buyers here benefit from strong state and regional options. The BCL of Texas NeighborhoodLIFT program provides up to $7,500 in forgivable down payment assistance for Hays County residents. Austin Habitat for Humanity also serves Hays County with full homeownership programs. Combined with TSAHC grants of up to 5% of the loan amount and TDHCA below-market mortgages, Kyle buyers can stack meaningful assistance.
State Programs in Texas
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Home Sweet Texas Home Loan Program | Grant | 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien | 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:
- 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien
- 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
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 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 → |
| 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 → |
- 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:
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Austin Habitat for Humanity Hays County Homeownership Program | Zero-Interest Loan | Affordable home purchase with 30-year mortgage | Yes | View → |
| BCL of Texas NeighborhoodLIFT Program (Austin) | Forgivable Loan | Up to $7,500 | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with 30-year mortgage
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $7,500
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most programs require a credit score of at least 620 and income limits that vary by program. The NeighborhoodLIFT program requires income at or below 80% of the Median Family Income and first-time homebuyer status.
Step 2: Complete homebuyer education. BCL of Texas offers HUD-approved homebuyer education through the NeighborWorks Realizing the American Dream program. Contact them at (512) 912-9884. Frameworks CDC at (512) 385-1500 also serves the greater Central Texas area.
Step 3: Contact BCL of Texas at (512) 912-9884 to apply for the NeighborhoodLIFT program offering up to $7,500 in forgivable down payment assistance for Hays County residents.
Step 4: Get pre-approved for a mortgage through a TSAHC or TDHCA participating lender to access state-level down payment grants of up to 5% of the loan amount.
Step 5: Find a home in Kyle that meets program requirements.
Step 6: Submit your application and work with your lender and housing counselor to close on your new home.
Frequently Asked Questions
How much down payment assistance can I get in Kyle?+−
Do I have to be a first-time homebuyer to qualify?+−
Does Kyle have a city-funded homebuyer program?+−
What homebuyer education is available?+−
Is Austin Habitat for Humanity available in Kyle?+−
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