See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026
Homebuyer Programs in Laredo, TX (2026)
Laredo is a vibrant border city in South Texas along the Rio Grande, serving as one of the busiest inland ports in the United States with a population of over 264,000. The median home price sits around $234,000, making homeownership accessible compared to many Texas metros. The City of Laredo First-Time Homebuyers Program offers up to $30,000 in forgivable down payment assistance through a zero-interest loan for income-eligible buyers. Buyers can also tap into statewide programs like My First Texas Home and Home Sweet Texas for additional down payment and closing cost help. By combining the city's $30,000 forgivable loan with state-level assistance, Laredo homebuyers can significantly reduce their out-of-pocket costs.
City Programs in Laredo
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Laredo First-Time Homebuyers Program | Forgivable Loan | Up to $30,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $30,000
- First-time only:
- Yes
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 |
|---|---|---|---|---|
| Habitat for Humanity of Laredo Homeownership Program | Zero-Interest Loan | Affordable no-profit mortgage financing | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable no-profit mortgage financing
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. The City of Laredo First-Time Homebuyers Program requires household income at or below 80% of the area median family income, and you must not have owned a home in the past three years. You must also be a Laredo resident for at least six months with a two-year employment history.
Step 2: Complete homebuyer education. NeighborWorks Laredo, the only HUD-approved housing counseling agency in Webb County, offers an eight-hour homebuyer education course. Contact them to register for the next available session.
Step 3: Get pre-approved for a mortgage. Work with a lender participating in the Texas State Affordable Housing Corporation (TSAHC) or Texas Department of Housing and Community Affairs (TDHCA) programs to maximize your assistance options.
Step 4: Apply for down payment assistance. Apply for the City of Laredo program through your first mortgage lender. Contact the Community Development Department at (956) 795-2675 for guidance.
Step 5: Find a home within Laredo city limits. The city program requires the home to be within Laredo city limits and used as your principal residence.
Step 6: Complete the purchase. Your lender will coordinate the city's forgivable loan alongside your first mortgage. The $30,000 loan carries 0% interest and is forgiven after 10 consecutive years of owner-occupancy.
Frequently Asked Questions
How much down payment assistance can I get in Laredo?+−
Do I have to be a first-time homebuyer to get assistance in Laredo?+−
What are the income limits for Laredo homebuyer programs?+−
What homebuyer education is required in Laredo?+−
Does Habitat for Humanity build homes in Laredo?+−
Free eligibility check
Buying a home in Laredo? 13 programs could help.
How soon are you looking to buy?