See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026
Homebuyer Programs in San Marcos, TX (2026)
San Marcos is a fast-growing Central Texas city in Hays County with a median home price around $328,000. The City of San Marcos offers a First-Time Homebuyers Assistance Program providing up to $12,000 as a zero-interest forgivable loan that is forgiven at 20% per year over five years. City employees can access the Employee Homebuyer Incentive Program (HOPE) for at least $5,000, and uniformed police and fire employees qualify for the First Responders Homebuyer Assistance Program starting at $7,500. Austin Habitat for Humanity also serves Hays County with full homeownership programs. Combined with TSAHC and TDHCA state programs offering down payment grants up to 5% of the loan amount, San Marcos buyers can stack multiple sources of assistance to significantly reduce their costs.
City Programs in San Marcos
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of San Marcos Employee Homebuyer Incentive Program (HOPE) | Forgivable Loan | Minimum $5,000 | Yes | View → |
| City of San Marcos First Responders Homebuyer Assistance Program | Forgivable Loan | Minimum $7,500 | Yes | View → |
| City of San Marcos First-Time Homebuyers Assistance Program | Forgivable Loan | Up to $12,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Minimum $5,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Minimum $7,500
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $12,000
- First-time only:
- Yes
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 → |
- 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
- 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
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 → |
- 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:
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Austin Habitat for Humanity Hays County Homeownership Program | Zero-Interest Loan | Affordable home purchase with 30-year mortgage | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with 30-year mortgage
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. The City of San Marcos First-Time Homebuyers Assistance Program requires household income at or below 80% of the Area Median Income and first-time homebuyer status (no homeownership in the past three years).
Step 2: Complete homebuyer education. BCL of Texas at 302 W Hopkins St Suite 2, San Marcos offers HUD-approved homebuyer education through the NeighborWorks Realizing the American Dream program. Contact them at (512) 383-0027.
Step 3: Contact the City of San Marcos Community Development Division at (512) 393-8147 or jhendrix@sanmarcostx.gov to apply for the First-Time Homebuyers Assistance Program.
Step 4: Get pre-approved for a mortgage through a TSAHC or TDHCA participating lender to access state-level down payment assistance.
Step 5: Find a home within San Marcos city limits that passes a Housing Quality Standards inspection. Single-family homes, townhouses, and condominiums are eligible.
Step 6: Submit your application with all required documentation and work with your lender and the city to close on your new home.
Frequently Asked Questions
How much down payment assistance can I get in San Marcos?+−
Do I have to be a first-time homebuyer to qualify?+−
How does the forgivable loan work?+−
What homebuyer education is required?+−
Are there special programs for city employees or first responders?+−
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