See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026

Homebuyer Programs in McAllen, TX (2026)

Population: 149,000 | Median home price: $215,000 | Est. closing costs: $4,500 - $6,500

McAllen is a vibrant city in the Rio Grande Valley of South Texas, serving as the economic hub of Hidalgo County with a population of approximately 149,000. With a median home price around $215,000, McAllen offers relatively affordable homeownership opportunities compared to many Texas metros. Buyers here can access several assistance programs, including the Hidalgo County HOME Homebuyer Assistance Program which provides deferred loan assistance for down payment and closing costs, and Affordable Homes of South Texas (AHSTI) which offers affordable mortgage financing to families earning below 80% of area median income. Habitat for Humanity Rio Grande Valley also builds homes for qualifying low-income families with zero-interest mortgages. State programs like the TDHCA My First Texas Home and TSAHC Home Sweet Texas programs provide up to 5% of the loan amount in down payment assistance. By combining local, state, and federal programs, McAllen homebuyers can potentially stack significant assistance toward their purchase.

City Programs in McAllen

Program Name	Type	Amount	First-Time Only	Details
McAllen Housing Commission HCV Homeownership Program	Grant	Monthly voucher assistance toward mortgage and homeownership expenses	Yes	View →

McAllen Housing Commission HCV Homeownership Program

Type:: Grant
Amount:: Monthly voucher assistance toward mortgage and homeownership expenses
First-time only:: Yes

County Programs in Hidalgo County

Program Name	Type	Amount	First-Time Only	Details
Hidalgo County HOME Homebuyer Assistance Program	Deferred Loan	Deferred loan assistance for down payment and closing costs	No	View →

Hidalgo County HOME Homebuyer Assistance Program

Type:: Deferred Loan
Amount:: Deferred loan assistance for down payment and closing costs
First-time only:: No

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 →

Home Sweet Texas Home Loan Program

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

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

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 →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Affordable Homes of South Texas (AHSTI) Homeownership Program	Zero-Interest Loan	Affordable mortgage financing for qualifying families	No	View →
Habitat for Humanity Rio Grande Valley Homeownership Program	Zero-Interest Loan	Affordable home purchase with zero-interest mortgage sold at no profit	No	View →

Affordable Homes of South Texas (AHSTI) Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable mortgage financing for qualifying families
First-time only:: No

Habitat for Humanity Rio Grande Valley Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable home purchase with zero-interest mortgage sold at no profit
First-time only:: No

Free eligibility check

15 programs available in McAllen. See which ones you qualify for.

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Question 1 of 6

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How to Apply

Step 1: Check your eligibility. Most McAllen-area programs require household income at or below 80% of area median income. Review income limits for Hidalgo County through the TDHCA or TSAHC websites.

Step 2: Complete homebuyer education. Affordable Homes of South Texas (AHSTI) offers a HUD-approved 8-hour homebuyer education course at their McAllen office at 500 S. 15th St. Contact them at (956) 687-6263 to register.

Step 3: Contact a local housing partner. Reach out to AHSTI for affordable mortgage financing, or contact the Hidalgo County Urban County Program for HOME fund assistance. For Housing Choice Voucher holders, contact the McAllen Housing Commission at (956) 686-3951 about their HCV Homeownership Program.

Step 4: Get pre-approved for a mortgage. Work with a TSAHC or TDHCA approved lender to access state down payment assistance programs like My First Texas Home or Home Sweet Texas, which offer up to 5% of the loan amount.

Step 5: Find a home within program limits. Ensure the property meets any applicable purchase price restrictions and is located within the eligible geographic area for your chosen program.

Step 6: Submit your application. Work with your lender and housing counselor to complete all required paperwork. Processing times vary by program, so apply early in your homebuying process.

Frequently Asked Questions

How much down payment assistance can I get in McAllen?+

McAllen buyers can access multiple layers of assistance. State programs like My First Texas Home and Home Sweet Texas offer up to 5% of the loan amount. The Hidalgo County HOME Homebuyer Assistance Program provides deferred loan assistance for down payment and closing costs. AHSTI offers affordable mortgage financing for families below 80% AMI. Federal programs like FHA loans require as little as 3.5% down. By stacking state and local programs, buyers may significantly reduce their out-of-pocket costs.

Do I have to be a first-time homebuyer to qualify?+

Not for all programs. The Hidalgo County HOME program and AHSTI Homeownership Program do not strictly require first-time buyer status. The TSAHC Home Sweet Texas program is also available to repeat buyers. However, the McAllen Housing Commission HCV Homeownership Program does require first-time homeowner status, and some TDHCA programs have first-time buyer requirements unless purchasing in a targeted area.

What is the maximum home price I can pay in McAllen?+

Purchase price limits vary by program. TDHCA programs set limits based on county and household size, which are updated periodically. Check the current TDHCA and TSAHC income and purchase price limit documents for Hidalgo County. The median home price in McAllen is approximately $215,000, which generally falls within most program limits for the area.

What homebuyer education is required?+

Most programs require completion of a HUD-approved homebuyer education course. Affordable Homes of South Texas (AHSTI) offers a HUD-approved 8-hour course at their McAllen Homeownership Center at 500 S. 15th St. Contact them at (956) 687-6263 to enroll. TDHCA and TSAHC programs accept approved online homebuyer education courses as well.

Can Habitat for Humanity help me buy a home in McAllen?+

Yes. Habitat for Humanity Rio Grande Valley builds homes for qualifying low-income families in Hidalgo County and sells them at no profit with zero-interest mortgages. Applicants must demonstrate housing need, fall within income guidelines, and contribute sweat equity hours working on Habitat builds. Contact them at (956) 686-7455 for program details and application information.