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Homebuyer Programs in Kyle, TX (2026)

Last updated April 7, 2026 | Population: 56,823 | Median home price: $310,000 | Est. closing costs: $6,000 - $9,500

Skyline of Kyle, TX

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.

Top Homebuyer Programs in Kyle

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
Austin Habitat for Humanity Hays County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with 30-year mortgage
First-time only:
Yes
BCL of Texas NeighborhoodLIFT Program (Austin)
Type:
Forgivable Loan
Amount:
Up to $7,500
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. 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.

  2. 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.

  3. 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.

  4. 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.

  5. Step 5:

    Find a home in Kyle that meets program requirements.

  6. Step 6:

    Submit your application and work with your lender and housing counselor to close on your new home.

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