First Time Homebuyer's Program
Are you ready to buy a home but don't have the money for the down payment and closing costs?
The First Time Homebuyer's Program, administered by the Neighborhood Services Department of the City of Tyler, may offer the help you need.
The First Time Homebuyer's Program (FTHB), funded by grants from the U.S. Department of Housing and Urban Development (HUD), helps low- to moderate-income families and individuals with funds needed at the time of closing.
Are You Eligible for the FTHB Program?
Applicants must be U.S. citizens or permanent legal residents.
If you have not owned a home within the past three years [see exception below] and your gross household income from all sources is equal to or less than the following amounts, you may qualify.
2025 HUD Income Limits
| Household Size |
80% AMI |
| 1 |
$52,100 |
| 2 |
$59,550 |
| 3 |
$67,000 |
| 4 |
$74,400 |
| 5 |
$80,400 |
| 6 |
$86,350 |
| 7 |
$92,300 |
| 8 |
$98,250 |
Exception: If you have owned a home within the past three years, you may still qualify if you are a single parent who has custody of, and is caring for, minor children, and who is legally separated from their spouse.
Down Payment Assistance
FTHB offers down payment assistance up to the following amounts:
| Type of House |
Assistance Amount |
Affordability Period |
| Existing Home |
Up to $14,999 |
5 years |
| New Construction |
Between $15,000 and $25,000 |
10 years |
| Target Area |
Between $40,000 and $50,000 |
15 years |
This assistance is considered a "deferred payment loan." No monthly loan repayments are made to the City.
The first-time homebuyer signs legal documents creating a second lien on the property for the funds that are provided at closing. However, if the first-time homebuyer sells, leases, or rents the property within the lien period following purchase, all or part of the loan must be repaid to the City. At the end of the lien period, the lien is released.
Program assistance is subject to available funding.
How do I apply for the First-Time Homebuyer's Assistance Program?
Download our FTHB Complete Packet and apply for a standard mortgage from a recognized mortgage lender who agrees to meet program requirements.
What's Next?
After your lender pre-qualifies you for a mortgage loan, contact the Homebuyers Specialist at (903) 531-1303 to schedule an appointment. You will need to bring a copy of your pre-approval letter from the lender and copies of recent earnings, income, and benefits statements for all household members.
Finding a Home
The home must be a single-family dwelling located within the city limits of Tyler. You can hire a real estate agent or look for houses on your own and find one that meets the needs of you and your household. The home must pass a City inspection to meet federal and local property standards and comply with lead-based paint standards. If the house needs additional repairs, the seller will be given time to complete them, and the house will then be reinspected.