First-Time Homebuyer Programs to Know in 2026

By Secure Choice Lending · · 7 min read

From FHA loans with 3.5% down to Fannie Mae's HomeReady program allowing gift funds, there are more pathways to homeownership than ever. We round up the top assistance programs available to first-time buyers in California and Texas, including down payment grants and rate buydown options.

Breaking into homeownership in today's market can feel daunting — but there are more assistance programs available to first-time buyers than many people realize. From low down payment loan programs to state-level grants, this guide rounds up the top options available to buyers in California and Texas.

Federal Loan Programs

FHA Loans

Backed by the Federal Housing Administration, FHA loans require as little as 3.5% down with a credit score of 580+. The more flexible underwriting guidelines make them accessible to buyers with shorter credit histories or higher debt-to-income ratios.

VA Loans

For qualifying veterans, active-duty service members, and surviving spouses, VA loans offer 0% down payment, no private mortgage insurance (PMI), and competitive rates. This is widely considered the best mortgage benefit available to those who qualify.

Fannie Mae HomeReady & Freddie Mac Home Possible

Both programs allow 3% down payments, accept gift funds for the down payment, and offer reduced PMI rates for income-qualified buyers. They're ideal for buyers in moderate-income households.

State-Level Programs

CA Dream for All
Up to 20% shared equity
CalHFA MyHome
Down payment deferred loan
TX TSAHC Grant
Up to 5% down payment assist
TX TDHCA Program
Low-interest loans available

Program availability and funding can change quickly — especially for grant programs like CA Dream for All, which has had limited funding windows. Talk to a loan officer to check current availability.

Rate Buydown Strategies

Even with assistance programs, today's rates may feel high. One increasingly popular strategy is the seller-paid 2-1 buydown: the seller contributes funds to temporarily reduce your interest rate by 2% in year 1 and 1% in year 2 before settling at the note rate. This can ease the transition into homeownership while rates (potentially) decline.

  • A 2-1 buydown on a 6.50% rate gives you 4.50% in year 1 and 5.50% in year 2.
  • The monthly savings in year 1 on a $400,000 loan can exceed $500/month.
  • Sellers often prefer buydowns over price reductions because it costs them roughly the same.
  • Ask your Secure Choice Lending loan officer to model a buydown scenario for your purchase.

Explore Your Mortgage Options

Contact Secure Choice Lending to discuss current mortgage options and your home financing goals.