First-Time Homebuyer Programs Denton TX 2026: TSAHC, TDHCA, FHA, and Conventional

I'm Bond Peter Njoku (NMLS #2670329) and I help first-time buyers close on homes in Denton every month. Denton is a college town anchored by University of North Texas and Texas Woman's University, with median home prices running $290,000–$380,000 — more affordable than most of Denton County's other cities while still qualifying for the county's generous $119,700 down payment assistance income limit. Here's what first-time buyers in Denton need to know for 2026.

What first-time homebuyer programs are available in Denton TX in 2026?

Denton buyers have four main paths, and I check every client against all of them:

TSAHC Home Sweet Texas — a grant of 3–5% of the loan amount, never repaid. Available at Denton County's $119,700 income limit for a 1–4 person household. Requires 620 FICO minimum. No first-time buyer requirement.

TDHCA My First Texas Home — up to 5% deferred, forgiven at year 3. Same $119,700 Denton County income cap. Requires first-time buyer status or veteran re-entry.

FHA loans — 3.5% down at 580 FICO, or 10% down at scores as low as 500. Stacks with either DPA program above.

Conventional loans — as little as 3% down for qualified first-time buyers with 620+ FICO, with PMI that drops off at 80% loan-to-value rather than running for the life of the loan like FHA's insurance.

How do loan programs compare for Denton first-time buyers?

Denton's median prices sit meaningfully below Flower Mound, Lewisville, and most other Denton County cities, which means the same $119,700 income limit and 3–5% grant stretches further as a percentage of the purchase price here than almost anywhere else in the county.

What will my mortgage payment be on a Denton TX home?

At Denton's median of roughly $335,000, here's a 3.5% down FHA purchase at 7.0% on a 30-year fixed:

• Purchase price: $335,000
• Down payment (3.5%): $11,725
• Loan amount: $323,275
• Principal & interest: approximately $2,151/month
• FHA annual MIP (0.55%): approximately $148/month
• Denton County property taxes (~1.8%): approximately $503/month
• Homeowners insurance: approximately $140/month
• Total PITI: approximately $2,942/month

With a TSAHC 5% grant ($16,750), the down payment is fully covered with money remaining toward closing costs. Closing costs on a $335,000 Denton purchase typically run $5,800–$8,000, and FHA allows sellers to contribute up to 6% ($20,100) toward those costs.

What loan makes sense if I'm buying near UNT or TWU as a young professional?

Many of my Denton clients are recent graduates or young professionals who stayed in the area after school, often with limited savings but stable early-career income. FHA's 3.5% down payment and 580 FICO minimum tend to be the most accessible starting point, and I regularly pair it with TSAHC's grant to bring the actual cash-to-close down to just closing costs. If your credit is above 620 and you have a bit more saved, conventional with 3% down can save you money long-term since PMI eventually drops off.

Last year I helped a young couple in Denton — both recent UNT graduates with a combined income of $79,000 and a 640 FICO — purchase a $305,000 starter home near the square. Their income qualified for both TSAHC and TDHCA, and we used TSAHC's 5% grant ($15,250) to cover their down payment on an FHA loan. They closed with $2,100 out of pocket after negotiating a seller credit toward closing costs.

How do I get started with a mortgage in Denton?

1. Pre-approval call (15 minutes): I review your income against the $119,700 Denton County DPA limit and tell you which programs you qualify for, same day.
2. Pre-approval letter (1–2 days): Denton listing agents expect a letter before scheduling showings, especially on starter homes near the square or the universities.
3. Home search (2–5 weeks): Denton's below-county-average pricing means competitive offers — I coordinate with your agent so financing never slows things down.
4. Under contract to close (30–45 days): FHA with DPA typically runs 35–45 days; conventional closes in 30–40 days.