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Get Matched Free →Homebuyer Programs in McAllen, TX (2026)
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.
Top Homebuyer 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 → |
| Hidalgo County HOME Homebuyer Assistance Program | Deferred Loan | Deferred loan assistance for down payment and closing costs | No | View → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| 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 → |
| Home Sweet Texas Home Loan Program | Grant | Up to 5% of the total loan amount | 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:
- Monthly voucher assistance toward mortgage and homeownership expenses
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Deferred loan assistance for down payment and closing costs
- First-time only:
- No
- 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage financing for qualifying families
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage sold at no profit
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the total loan amount
- 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
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.