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Homebuyer Programs in Odessa, TX (2026)

Last updated April 6, 2026 | Population: 122,000 | Median home price: $215,000 | Est. closing costs: $4,500 - $6,500

Skyline of Odessa, TX

Odessa is a city in Ector County in the heart of the Permian Basin in West Texas, with a population of about 122,000 and a median home price around $215,000. Odessa stands out among Texas cities for having a robust city-funded homebuyer assistance program. The City of Odessa Homebuyer Assistance Program provides up to $13,500 for existing homes and up to $24,000 for new construction as a zero-interest forgivable loan. State programs add even more support, with My First Texas Home offering up to 5% of the loan amount as a forgivable loan and the Homes for Texas Heroes Program providing up to 5% as a grant for teachers, first responders, and veterans. Permian Basin Habitat for Humanity also builds affordable homes in Odessa with zero-interest, 30-year mortgages. By stacking the city program with state assistance, eligible buyers can cover a substantial portion of their home purchase costs.

Top Homebuyer Programs in Odessa

City of Odessa Homebuyer Assistance Program
Type:
Forgivable Loan
Amount:
Up to $13,500 for existing homes; up to $24,000 for new construction
First-time only:
Yes
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
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
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. The City of Odessa program requires household income at or below 80% of Area Median Income, ranging from $49,900 for one person to $82,800 for an eight-person household. You must be a first-time homebuyer or not have owned a home in the past three years.

  2. Step 2:

    Complete homebuyer education. Attend a homebuyer education course provided by Odessa Affordable Housing, Inc. at 432-362-2349, located at 3801 N. Dixie Blvd, Odessa, TX 79762. This is a HUD-approved counseling agency offering services in English and Spanish.

  3. Step 3:

    Contact an approved lender. The City of Odessa does not accept direct applications. You must work with a lender approved to participate in the city's program. The Community Development Department at 307 N. Lee Street can provide a list of approved lenders.

  4. Step 4:

    Prepare your finances. You must provide 1% of the purchase price toward the home and have at least two months of principal and interest payments saved in a bank account prior to closing.

  5. Step 5:

    Get pre-approved for a mortgage. In addition to the city program, ask your lender about state programs like My First Texas Home or Homes for Texas Heroes through TSAHC, which offer up to 5% of the loan amount toward your down payment.

  6. Step 6:

    Find a home within program limits. Existing homes must be priced at or below $270,632. New construction must not exceed 95% of the HUD maximum. The home must be within Odessa city limits.

  7. Step 7:

    Submit your application and close. Your approved lender will coordinate the city program paperwork alongside your mortgage. The city provides the assistance as a zero-interest deferred forgivable loan applied at closing.

Frequently Asked Questions

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