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Get Matched Free →Homebuyer Programs in Tyler, TX (2026)
Tyler is the largest city in East Texas and the county seat of Smith County, known for its rose-growing industry, healthcare sector, and affordable cost of living. The median home price in Tyler is approximately $255,000, making it one of the more accessible housing markets in Texas. The City of Tyler First Time Homebuyer Program offers up to $7,500 in deferred loan assistance for existing homes and up to $14,999 for newly constructed homes, funded through HUD grants. Buyers can also tap into state-level programs like My First Texas Home and the Home Sweet Texas Home Loan Program, which each provide up to 5% of the loan amount in down payment assistance. By combining the city program with a state program, Tyler homebuyers could potentially stack over $20,000 in total assistance toward their purchase.
Top Homebuyer Programs in Tyler
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Tyler First Time Homebuyer Program | Deferred Loan | Up to $7,500 for existing homes; up to $14,999 for newly constructed homes | Yes | 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 → |
| Habitat for Humanity of Smith County Homeownership Program | Zero-Interest Loan | Affordable home sold at no profit with a zero-interest mortgage | Yes | 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:
- Deferred Loan
- Amount:
- Up to $7,500 for existing homes; up to $14,999 for newly constructed homes
- First-time only:
- Yes
- 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 home sold at no profit with a zero-interest mortgage
- First-time only:
- Yes
- 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. You must not have owned a home in the past three years and your household income must fall within HUD low-to-moderate income limits for the Tyler area. The home must be a single-family dwelling within the Tyler city limits.
- Step 2:
Get pre-qualified for a mortgage. Contact a lender to get pre-qualified for a mortgage loan. If you plan to use a state program like My First Texas Home or the Home Sweet Texas Program, work with a TDHCA or TSAHC participating lender.
- Step 3:
Contact the City of Tyler Neighborhood Services Department. After your lender pre-qualifies you, call the Homebuyers Specialist at (903) 531-1303 to schedule an appointment and begin the application process for the city's First Time Homebuyer Program.
- Step 4:
Complete homebuyer education. Texas state programs require completion of a HUD-approved homebuyer education course. Contact TDHCA at (800) 792-1119 for free online course options.
- Step 5:
Find a home within program guidelines. The home must be a single-family dwelling within the City of Tyler limits and must pass a City inspection to meet federal and local property standards, including lead-based paint compliance.
- Step 6:
Submit your application and close. Work with the City of Tyler and your lender to finalize your assistance package. The city's deferred loan has no monthly payments and is forgiven after 5 years of owner-occupancy.