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Homebuyer Programs in Texas City, TX (2026)

Last updated April 7, 2026 | Population: 55,364 | Median home price: $287,000 | Est. closing costs: $5,500 - $8,500

Skyline of Texas City, TX

Texas City is a mainland community in Galveston County along Galveston Bay with a median home price around $287,000. The City of Texas City First-Time Homebuyers Program offers up to $7,500 in down payment and closing cost assistance for properties in designated target areas. Bay Area Habitat for Humanity has built over 170 homes in the region since 1991 and serves Galveston County. Combined with TSAHC and TDHCA state programs offering up to 5% of the loan amount as down payment grants, Texas City buyers can access meaningful assistance toward homeownership.

Top Homebuyer Programs in Texas City

City of Texas City First-Time Homebuyers Program
Type:
Grant
Amount:
Up to $7,500
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
Bay Area Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest 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 Texas City First-Time Homebuyers Program requires first-time homebuyer status and purchase of a home in one of three designated target areas

  2. Step 2:

    Complete homebuyer education. A homebuyer education course is required for all borrowers in the city program. Contact the City of Texas City at (409) 643-5730 for approved course options.

  3. Step 3:

    Contact Patricia Mata, Program Coordinator at (409) 643-5730, to apply for the First-Time Homebuyers Program offering up to $7,500 in assistance.

  4. Step 4:

    Get pre-approved for a mortgage through a TSAHC or TDHCA participating lender to layer state-level down payment grants on top of the city program.

  5. Step 5:

    Find a home within one of the designated target areas in Texas City that passes the required environmental assessment and inspection.

  6. Step 6:

    Submit your application and work with your lender to close on your new home.

Frequently Asked Questions

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