How San Antonio First-Time Buyers Are Buying Homes in 2026 With Far Less Than 20% Down
For San Antonio and across Texas, 2026 is shaping up to be a more realistic—but still opportunity-filled—year for first-time homebuyers. While home prices remain elevated compared to pre-pandemic levels, the biggest shift is not pricing alone. It’s a mindset change: buyers are moving away from the belief that they must save 20% down and toward learning how to combine 3–5% down loans with state and local assistance programs to dramatically reduce cash needed at closing.
Why 2026 Can Work for First-Time Texans
Texas enters 2026 with multiple funded, active first-time buyer programs at both the state and city level. These programs are designed to help income-qualified buyers cover down payment and closing costs—often the biggest barrier to homeownership.
Many of these programs pair a standard 30-year fixed mortgage—including FHA, VA, USDA, or conventional loans—with 3–5% in assistance, delivered as a grant or a forgivable second lien. This structure allows buyers to move from renting to owning far sooner than saving alone would allow.
Key Texas Programs First-Time Buyers Should Know
The Texas State Affordable Housing Corporation (TSAHC) offers two major statewide options—Homes for Texas Heroes and Home Sweet Texas. These programs provide 30-year fixed-rate loans combined with approximately 3–5% down-payment assistance, available as either a grant or a 0% interest forgivable second lien, and can be used with FHA, VA, USDA, or conventional financing.
TSAHC also offers a Mortgage Credit Certificate (MCC) for qualifying first-time buyers. An MCC provides a federal tax credit worth roughly 15–20% of annual mortgage interest, improving long-term affordability year after year.
Another statewide option is TDHCA’s My First Texas Home (for first-time buyers and some Veterans) and My Choice Texas Home (which can also serve repeat buyers). These programs can provide up to 5% assistance layered onto a fixed-rate loan.
San Antonio’s Advantage: HIP 80 and HIP 120
San Antonio adds another layer of opportunity through the city’s Homeownership Incentive Program (HIP), which can often be combined with TSAHC or TDHCA assistance.
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HIP 80 is designed for lower-income buyers and can provide roughly $1,000 to $30,000 as a 0% interest second loan for down payment and closing costs. There are no monthly payments, and the loan is forgiven over 5–10 years if the buyer remains in the home.
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HIP 120 targets moderate-income buyers and typically offers up to about $15,000, also as a 0% interest, no-payment second loan, forgiven over time while the home remains a primary residence.
When layered correctly, these programs can reduce a buyer’s required cash-to-close by tens of thousands of dollars.
Loan Options That Make Stacking Possible
First-time buyers in San Antonio often combine these programs with:
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FHA loans (as little as 3–3.5% down)
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Conventional loans with 3% down
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VA loans (0% down for eligible Veterans)
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USDA loans (0% down in qualifying rural-adjacent areas)
Strategy Matters More Than the Rate
Most programs include income limits, purchase-price caps, homebuyer education, and approved lenders, making early pre-qualification essential. In many cases, a slightly higher interest rate paired with 5% assistance and an MCC tax credit can outperform a lower rate with no help once cash-to-close and after-tax costs are considered.
Work With Experts Who Know How to Stack the Programs
Successfully buying a first home in 2026 isn’t about finding a single program—it’s about stacking the right combination for your income, location, and loan type.
Caroline Decherd and Susanne Marco of Park Properties Group specialize in helping San Antonio buyers navigate these Texas-specific resources with clarity and confidence. If you’re curious whether homeownership in 2026 is possible with far less than 20% down, their local expertise can help turn questions into keys in hand.
