What down payment assistance can a first-time buyer get in Killeen or Bell County?
Most first-time buyers in Killeen, Harker Heights, Copperas Cove, Belton, and Temple look at two statewide programs: TDHCA’s My First Texas Home and TSAHC’s Homes for Texas Heroes. Both offer up to 5% of the loan amount toward down payment and closing costs, require a 620 minimum credit score and a homebuyer education course, and have income limits set by county. The City of Killeen’s own homebuyer assistance program is on hold, so the state programs are the main option right now.
By Stephen Harris, Good Life Team | November 5, 2026
Free money for a down payment sounds too good to be true. In Texas, it mostly is true. It just comes with rules that matter a lot if you’re on a two- or three-year tour at Fort Hood.
This question shows up on r/FirstTimeHomeBuyer and r/Killeen every week, and it’s one of the first things we walk through with buyers in the $200,000 to $300,000 range. Here’s what’s available, who qualifies, and where the fine print bites.
The two state programs Killeen buyers actually use
TDHCA: My First Texas Home and My Choice Texas Home
The Texas Department of Housing and Community Affairs runs the Texas Homebuyer Program. According to TDHCA’s program page:
- My First Texas Home is for first-time buyers and qualified veterans. Up to 5% for down payment and closing costs, with a 30-year fixed-rate loan.
- My Choice Texas Home is open to repeat buyers too, with higher income limits.
- Both require a 620 minimum credit score, a TDHCA-approved loan officer, and a homebuyer education course.
- Income and purchase price limits are set by county, so Bell and Coryell County numbers can differ.
TSAHC: Homes for Texas Heroes
The Texas State Affordable Housing Corporation runs Homes for Texas Heroes. This one matters around Fort Hood because veterans and qualifying active-duty service members are on the eligible list, along with teachers, firefighters, EMS, peace officers, and corrections officers.
- Up to 5% of the loan amount, as a grant or as a second lien that is forgiven after three years.
- 620 minimum credit score on government loans, 640 on conventional.
- You don’t always have to be a first-time buyer.
- Active-duty eligibility requires being stationed at a Texas base with Texas as your home of record, per TSAHC. Your DD214 or discharge papers prove veteran service.
If you don’t fit a “hero” category, TSAHC’s Home Sweet Texas program is the income-based version.
What about the City of Killeen?
Killeen’s Homebuyer Assistance Program is on hold until further notice, according to the city’s Community Development page. The city cited rising costs and HUD’s maximum purchase price. If a website or video still promises Killeen city grant money, check the city page before you count on it.
What 5% looks like on a Killeen starter home
Killeen homes that closed from October 7 to 30 had a median price of $234,000, based on our CTX MLS numbers. Here’s the math on that price with an FHA loan, the loan type these programs are most often paired with:
| Item | Amount |
|---|---|
| Purchase price (Killeen median, Oct 2026) | $234,000 |
| FHA minimum down payment (3.5%) | $8,190 |
| Base loan amount | $225,810 |
| Assistance cap (up to 5% of the loan) | about $11,290 |
At the full cap, the assistance covers the down payment with a few thousand left toward closing costs. For a first-time buyer with $3,000 saved, that’s the difference between buying this year and renting another year.
If you’re using a VA loan, the picture changes. VA already allows zero down, and about two-thirds of Killeen closings in October were VA. For VA buyers, the bigger lever is usually seller-paid closing costs. We break that down in asking for seller concessions near Fort Hood.
The fine print we walk every buyer through
Assistance is a tool. Whether it’s the right tool depends on four things.
- The three-year clock. TSAHC’s forgivable second lien is forgiven after three years, as long as you don’t sell, refinance, or move out first. A soldier on a two-year tour who PCSes and sells could owe it back. Ask whether your option is a grant, a forgivable lien, or a deferred lien that is repaid when you sell.
- The rate. Assistance loans can carry a different rate than a standard loan. Ask your lender to quote the program rate next to a standard rate so you see the monthly cost of the help.
- The limits. Income and purchase price caps are set by county. Get the current Bell or Coryell County numbers from the program or an approved lender before you shop.
- Primary residence only. These programs are for the home you live in. If your plan is to keep it as a rental after a PCS, talk through the occupancy rules up front.
There’s also the Mortgage Credit Certificate. TSAHC describes it as a federal tax credit equal to 15% of the mortgage interest you pay each year, available to first-time buyers. TDHCA offers one too, for first-time buyers and veterans. Ask a tax professional how it fits your return, including any recapture rules if you sell early.
Assistance also doesn’t replace negotiation. Killeen’s $250,000 to $300,000 band had about 4.4 months of supply at the end of October, and many listings have already cut price. Seller concessions, repair credits, and a fair price still matter as much as the program does. Our breakdown of buyer closing costs on a $250K home in Bell County shows where that money goes.
One more note: our team doesn’t make loans, and we aren’t paid by TDHCA, TSAHC, or any lender mentioned here. We help you compare the options and protect you on the contract side. If you’re still choosing a loan type, start with VA vs FHA for first-time buyers in Killeen and Copperas Cove.
Frequently Asked Questions
Can I use Texas down payment assistance with a VA loan?
Ask an approved lender which loan types each program pairs with right now. Since VA already allows zero down, most VA buyers near Fort Hood focus on seller concessions to cover closing costs. Assistance can still help some VA buyers with closing costs, depending on the program option.
Do I have to pay Texas down payment assistance back?
It depends on the option. TSAHC offers a grant that is never repaid or a second lien forgiven after three years if you don’t sell, refinance, or move out. Other options can be repaid when you sell or refinance, so get the structure in writing before you choose.
Do active-duty soldiers at Fort Hood qualify for Homes for Texas Heroes?
Per TSAHC, active-duty members stationed at a Texas base qualify when Texas is their home of record. Veterans with at least 90 days of active duty and no dishonorable discharge also qualify, along with Texas residency requirements. Confirm your status with a TSAHC-approved lender.
Is Killeen’s city homebuyer assistance program available?
Not right now. The City of Killeen placed its Homebuyer Assistance Program on hold until further notice. Buyers in Killeen are using the statewide TDHCA and TSAHC programs instead.
What credit score do I need for Texas first-time buyer assistance?
Both TDHCA programs list a 620 minimum. TSAHC lists 620 for government loans and 640 for conventional loans. Your lender may have its own higher minimum.
Texas assistance can cover a first-time buyer’s down payment in Killeen and Bell County. The value depends on your loan type, your timeline, and the strings attached. That’s exactly what we line up in the first Smart Buyer Plan call, before you fall for a house.
If you’re buying in the Fort Hood area, book a free Smart Buyer Plan call with our team. In 30 minutes we’ll walk through your budget, your timeline, and the areas that fit, and show you how we protect you from the first showing to the closing table. No pressure, no pitch. Book your call here, text or call 256-226-2757, or email stephen@mygoodlifeteam.com.
About Stephen Harris & The Good Life Team
Stephen Harris is a Texas Real Estate Broker (TX license 677386, All City Real Estate) and leads the Good Life Team, a Central Texas team that represents home buyers in Killeen, Harker Heights, Copperas Cove, Belton, Temple, Nolanville, Hutto, Pflugerville, and Round Rock. The team specializes in relocation buyers, Fort Hood PCS moves, VA loans, and new-construction representation, with roughly 500 closings and about $100M in volume. Their Smart Buyer Plan is built around one idea: who represents you matters, and our job is to protect you.
Program details are summarized from TDHCA, TSAHC, and City of Killeen websites as of November 2026 and can change. Confirm current terms, limits, and eligibility with an approved lender. Not affiliated with or endorsed by VA, DoD, TDHCA, or TSAHC. Texas law requires all license holders to provide the Information About Brokerage Services form and the TREC Consumer Protection Notice.