See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026
Homebuyer Programs in Waco, TX (2026)
Waco is a growing Central Texas city and the seat of McLennan County, home to Baylor University and a population of approximately 144,000. With a median home price around $220,000, Waco offers strong affordability for homebuyers. The City of Waco Homebuyer Down Payment Assistance Program provides up to $25,000 in no-interest loan assistance for first-time buyers earning below 80% of area median income. NeighborWorks Waco offers up to $10,000 in down payment and closing cost assistance, plus the NeighborhoodLIFT Program provides $15,000 in grants ($17,500 for veterans, teachers, and first responders). Waco Habitat for Humanity builds homes with zero-interest 30-year mortgages for families earning between 30% and 60% AMI. State programs like My First Texas Home and Home Sweet Texas add up to 5% of the loan amount in additional assistance. By stacking local and state programs, Waco homebuyers can access substantial help toward their purchase.
City Programs in Waco
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Waco Homebuyer Down Payment Assistance Program | Zero-Interest Loan | Up to $25,000 | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Up to $25,000
- 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 |
|---|---|---|---|---|
| NeighborWorks Waco Down Payment and Closing Cost Assistance | Grant | Up to $10,000 | No | View → |
| NeighborWorks Waco NeighborhoodLIFT Program | Grant | $15,000 ($17,500 for veterans, teachers, law enforcement, firefighters, and EMTs) | No | View → |
| Waco Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home with zero-interest 30-year mortgage | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $10,000
- First-time only:
- No
- Type:
- Grant
- Amount:
- $15,000 ($17,500 for veterans, teachers, law enforcement, firefighters, and EMTs)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with zero-interest 30-year mortgage
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Most Waco programs require household income at or below 80% of area median income for McLennan County. The City of Waco program requires first-time buyer status.
Step 2: Complete homebuyer education. NeighborWorks Waco offers HUD-approved homebuyer education classes and one-on-one credit counseling at their office at 922 Franklin Avenue. Contact them at 254-752-1647 to enroll.
Step 3: Contact a local housing partner. For the City of Waco program (up to $25,000), you must apply through a city-approved lender. Call the Housing and Community Development Department at 254-750-5656 for a list of approved lenders. For NeighborWorks Waco programs (up to $10,000 DPA or $15,000 LIFT), contact them directly at 254-752-1647.
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 program limits. The City of Waco program requires purchasing within Waco city limits. Ensure the property meets any applicable purchase price restrictions for your chosen programs.
Step 6: Submit your application. Work with your approved lender and housing counselor to complete all required paperwork. The minimum borrower contribution for the City of Waco program is $750.
Frequently Asked Questions
How much down payment assistance can I get in Waco?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay in Waco?+−
What homebuyer education is required?+−
What is the NeighborhoodLIFT program?+−
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