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Homebuyer Programs in Lufkin, TX (2026)

Last updated April 7, 2026 | Population: 34,251 | Median home price: $214,000 | Est. closing costs: $4,500 - $6,500

Skyline of Lufkin, TX

Lufkin is the county seat of Angelina County in East Texas, with a median home price around $214,000 making it one of the more affordable markets in the state. While Lufkin and Angelina County do not currently offer government-funded down payment assistance programs, buyers here benefit from strong state and nonprofit options. The TSAHC Home Sweet Texas Home Loan Program and Homes for Texas Heroes program each offer up to 5% of the mortgage amount in down payment and closing cost assistance, potentially over $10,000 on a median-priced Lufkin home. Habitat for Humanity of Angelina County provides affordable homeownership with no-interest mortgages, no down payment, and no closing costs for qualifying families. Many Lufkin properties also qualify for USDA Rural Development loans with zero down payment. By combining state DPA with these options, Lufkin buyers can significantly reduce their upfront costs.

Top Homebuyer Programs in Lufkin

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 of Angelina County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable no-interest mortgage with no down payment or closing costs
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. Texas state DPA programs generally require a minimum credit score of 620 and household income within program limits for Angelina County. Habitat for Humanity requires income between 50-80% of area median income.

  2. Step 2:

    Complete homebuyer education. A HUD-approved homebuyer education course is required for most assistance programs. Contact a HUD-approved counseling agency by calling 800-569-4287 to find a course near you or online.

  3. Step 3:

    Explore USDA eligibility. Much of the Lufkin area qualifies for USDA Rural Development loans, which require zero down payment. Check eligibility at the USDA eligibility map online.

  4. Step 4:

    Contact a TSAHC-approved lender. To access the Home Sweet Texas or Homes for Texas Heroes programs, you must work with a lender in the TSAHC network. They can walk you through income limits and assistance amounts for Angelina County.

  5. Step 5:

    Explore Habitat for Humanity. Contact Habitat for Humanity of Angelina County at 936-632-8445. They offer no-interest mortgages with no down payment or closing costs for qualifying families. Applicants must have lived in Angelina County for at least one year and demonstrate 24 months of stable income.

  6. Step 6:

    Get pre-approved and find a home. Your lender will coordinate DPA funds at closing. Typical timeline is 30-45 days from contract to close for conventional purchases.

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