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

Homebuyer Programs in Midland, TX (2026)

Population: 147,000 | Median home price: $285,000 | Est. closing costs: $5,500 - $8,500

Skyline of Midland, TX

Midland is a fast-growing city in the heart of the Permian Basin in West Texas, with a population of approximately 147,000 and a thriving economy driven by the oil and gas industry. With a median home price around $285,000, Midland is one of the more expensive markets in non-metro Texas. The City of Midland Homebuyer Assistance Program (HAP) offers first-time buyers up to $15,000 as a zero-interest deferred loan that is fully forgiven after 10 years of owner-occupancy. Midland Habitat for Humanity builds affordable homes with zero-interest mortgages for families earning between 30% and 60% of area median income. The Midland Community Development Corporation (MCDC), a HUD-approved counseling agency, provides free homebuyer education and connects buyers to available resources. State programs like My First Texas Home and Home Sweet Texas add up to 5% of the loan amount in additional down payment assistance. By combining the city program with state and federal options, Midland homebuyers can access meaningful financial help toward their purchase.

City Programs in Midland

City of Midland Homebuyer Assistance Program (HAP)
Type:
Forgivable Loan
Amount:
Up to $15,000
First-time only:
Yes

State Programs in Texas

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

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

Midland Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home with zero-interest mortgage
First-time only:
No
Permian Basin Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest, 30-year mortgage
First-time only:
No

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How to Apply

Step 1: Check your eligibility. The City of Midland HAP requires household income at or below HUD income guidelines and first-time buyer status (no home ownership in the last three years). You must be a U.S. citizen and Midland resident for at least 30 days.

Step 2: Complete homebuyer education. Contact the Midland Community Development Corporation (MCDC), a HUD-approved counseling agency, for required homeownership training and credit counseling. Visit midlandcdc.org or call their office to schedule an appointment.

Step 3: Contact the City of Midland Community Development Office at 432-685-7472 to learn about current HAP funding availability and get a list of approved lenders. The minimum buyer investment is $1,000.

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 Midland city limits. The home can be pre-owned or newly constructed and must meet program requirements for a decent, safe, and sanitary dwelling.

Step 6: Submit your application through your approved lender. The HAP assistance is provided as a zero-interest deferred loan with a second-position lien, forgiven after 10 years of continuous owner-occupancy.

Frequently Asked Questions

How much down payment assistance can I get in Midland?+
The City of Midland Homebuyer Assistance Program (HAP) provides up to $15,000 as a zero-interest deferred loan, forgiven after 10 years. State programs like My First Texas Home and Home Sweet Texas add up to 5% of the loan amount. Federal programs like FHA loans require as little as 3.5% down. By combining the city HAP with state programs, buyers can significantly reduce their out-of-pocket costs.
Do I have to be a first-time homebuyer to qualify?+
For the City of Midland HAP, yes. You must not have owned a home in the last three years per HUD's definition. However, some state programs like the TSAHC Home Sweet Texas program are available to repeat buyers, and Midland Habitat for Humanity does not strictly require first-time buyer status.
What is the maximum home price I can pay in Midland?+
The City of Midland HAP does not list a specific purchase price limit, but the home must be located within Midland city limits and meet safety standards. TDHCA and TSAHC programs set their own purchase price limits for Midland County, which are updated periodically. The median home price in Midland is approximately $285,000.
What homebuyer education is required?+
The City of Midland HAP requires completion of homeownership training. The Midland Community Development Corporation (MCDC) is a HUD-approved counseling agency that provides required homebuyer education, credit counseling, and connects buyers to available resources. Visit midlandcdc.org or call their office to enroll.
How does the City of Midland loan forgiveness work?+
The HAP provides up to $15,000 as a zero-interest deferred loan. A lien is filed as a second-position lien behind your primary mortgage. If you live in the home continuously as your primary residence for 10 years, the full loan amount is forgiven. If you sell, refinance, or move before 10 years, the loan must be repaid.

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