Closing Cost Assistance for First-Time Buyers in Texas, PA, NJ, Ohio, and Florida

First-time buyers routinely focus entirely on the down payment and get blindsided by closing costs when the Closing Disclosure arrives. The better approach is to research closing cost assistance at the same time as down payment programs — in many states, the same application covers both, and the income and purchase price limits are more generous than buyers expect.

Here is a practical guide to the real programs available in five major states.

What "First-Time Home Buyer" Means for Program Eligibility

For most state and federal assistance programs, "first-time home buyer" does not mean you have never owned a home in your life. The standard definition, used by HUD and most state housing finance agencies, is that you have not owned a principal residence in the past three years.

This matters because buyers who owned a home, sold it, and are now renting are often eligible for first-time buyer programs if three years have passed since the sale.

Additional eligibility factors typically include:

• Income limits (based on area median income, or AMI, by household size)
• Purchase price limits (varies by county)
• Occupancy requirement (the home must be your primary residence)
• Creditworthiness (minimum credit scores vary, often 620 to 640)
• Completion of an approved homebuyer education course (often required)

Programs vary significantly between states and even between counties within a state. The figures below represent active programs as of early 2026 — check each agency's website for current terms since funding can be depleted mid-year.

Texas: Closing Cost Assistance

Texas has one of the more accessible state-level programs through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA).

TSAHC Homes for Texas Heroes and Home Sweet Texas:

• Down payment and closing cost assistance of 3% to 5% of the loan amount
• Assistance comes as a grant (no repayment required) or as a 0% deferred forgivable second lien
• Available to first-time buyers and non-first-time buyers in certain professional categories (teachers, firefighters, police, veterans, nurses)
• Income limits apply, scaled to area median income by county
• Works with 30-year fixed-rate FHA, VA, USDA, and conventional loans

Houston-specific programs: The City of Houston's Housing and Community Development Department runs the Harvey Homebuyer Assistance Program and other local initiatives that can layer on top of TSAHC assistance. Harris County also has its own program through the Community Services Department.

First Time Home Buyer programs in Houston TX: If you are buying in the Houston metro, start with TSAHC for statewide eligibility, then check City of Houston and Harris County programs separately — you may be able to stack them depending on income and property location.

My First Texas Home (TDHCA):

• 30-year fixed-rate mortgage at below-market rates
• Down payment and closing cost assistance up to 5% of the loan amount
• Assistance is a second lien at 0% interest, forgiven after three years
• Income and purchase price limits apply

Pennsylvania: Closing Cost Assistance

Pennsylvania's state housing finance agency is the Pennsylvania Housing Finance Agency (PHFA).

PHFA Keystone Home Loan Program:

• Provides below-market fixed-rate first mortgages
• Can be paired with the PHFA Advantage Assistance program, which offers $6,000 in down payment and closing cost assistance as a 10-year forgiven loan (forgiven at $600 per year)

PHFA Keystone Government Loan (K-Gov):

• Designed for FHA, VA, and USDA loans
• Paired with PHFA Advantage for the same $6,000 assistance

PHFA HOMEstead Downpayment and Closing Cost Assistance:

• Provides up to $10,000 in down payment and closing cost assistance
• Interest-free second mortgage with no monthly payment, forgiven after five years
• Income and purchase price limits are higher than many programs — qualifying for a $300,000 home is possible in many Pennsylvania counties

Philadelphia-specific: The Philadelphia Division of Housing and Community Development runs the Basic Systems Repair Program and the Philly First Home program, which has offered $10,000 grants to first-time buyers in targeted neighborhoods. Check current status as funding availability changes.

Pennsylvania closing cost assistance note: PHFA programs work with approved lenders, not directly with buyers. You apply through a participating lender who originates the first mortgage and packages the assistance. Ask any lender you are considering whether they are a PHFA-approved lender.

New Jersey: First-Time Buyer Programs

New Jersey's costs are among the highest in the country — transfer taxes, attorney fees, and a mansion tax on million-dollar properties. State programs are available through the New Jersey Housing and Mortgage Finance Agency (NJHMFA).

NJHMFA First-Time Homebuyer Mortgage Program:

• Below-market 30-year fixed-rate mortgage
• Down Payment Assistance of up to $10,000 as a forgivable second mortgage (forgiven after five years of owner-occupancy)
• Covers both down payment and closing costs
• Income limits apply by county — in some high-cost counties (Bergen, Morris, Monmouth), limits can exceed $130,000 for a household of four
• Purchase price limits also apply by county

NJHMFA Police and Firemen's Retirement System Mortgage Program:

• For active members of PFRS
• Below-market rate loans with no income or purchase price limits

Suffolk County, New York note: Buyers searching for "Suffolk County first-time home buyer grants" are likely looking at Long Island, which is just across the water from New Jersey. Suffolk County has the HELP program (Home Equity and Land Purchase) administered through the Suffolk County Department of Economic Development and Planning. Income limits are keyed to Long Island AMI, and assistance amounts have varied from $8,000 to $15,000 in recent years. Check the current program status directly with the county.

Ohio: Down Payment and Closing Cost Assistance

Ohio's programs are administered through the Ohio Housing Finance Agency (OHFA).

Your Choice! Down Payment Assistance:

• 2.5% or 5% of the home's purchase price as assistance toward down payment and closing costs
• The 2.5% option comes with a lower interest rate premium
• Available as a forgiven grant or a deferred loan
• Works with FHA, USDA, VA, and conventional loans
• Income limits based on household size and county

Ohio Heroes program:

• Additional benefits for teachers, medical workers, first responders, and veterans
• Slightly better rates or larger assistance amounts

First Time Home Buyer Down Payment Assistance Ohio — income limits: In most Ohio counties, household income limits for OHFA programs are between $85,000 and $115,000 depending on household size. Columbus, Cleveland, and Cincinnati metro areas have higher limits than rural counties.

Local programs: Many Ohio cities and counties run their own programs. Columbus provides down payment assistance through the City of Columbus Department of Development. Cuyahoga County (Cleveland area) has the County Land Bank and other assistance programs. Check your city and county resources in addition to OHFA.

Florida: Closing Cost and Down Payment Programs

Florida's state housing program is run by Florida Housing Finance Corporation, commonly called Florida Housing.

Florida Housing First Time Homebuyer Loan Program:

• 30-year fixed-rate mortgages at below-market rates
• Combined with down payment and closing cost assistance programs

Florida Assist Second Mortgage Program:

• 0% non-amortizing second mortgage up to $10,000
• Not forgiven — must be repaid when you sell, refinance, or pay off the first mortgage
• Used for down payment and closing costs

Florida HLP Second Mortgage:

• 3% interest second mortgage up to $10,000
• Repayable monthly over 15 years

Salute Our Soldiers Military Loan Program:

• For active duty military, veterans, and surviving spouses
• Down payment and closing cost assistance up to $10,000

Florida Housing first-time homebuyer income limits: Income limits for Florida Housing programs are county-specific and based on AMI. In Palm Beach and Miami-Dade counties, limits are higher than in rural counties.

What is the first-time homebuyer tax credit in Florida (or federally)? There is no current federal first-time homebuyer tax credit. A $15,000 First-Time Homebuyer Act was proposed in recent congressional sessions but has not been enacted as of early 2026. When you see references to a "first-time homebuyer credit," verify whether it is a current program or a reference to the expired 2008-2010 federal credit, which has not been reinstated.

How to Layer Multiple Programs

In most states, you can layer a state housing agency program with a city or county program — as long as the combined assistance does not create a conflict with your first mortgage lender's guidelines. Always disclose all assistance sources to your lender upfront. Hiding a second lien from your lender is mortgage fraud; layering assistance transparently is legitimate and encouraged.

The sequence for applying:

1. Get pre-approved with a lender who participates in state programs
2. Check your state HFA's website for eligibility (income, purchase price, credit score, homebuyer education requirements)
3. Check your county and city housing department for local programs
4. Have your lender confirm how the assistance layers with your first mortgage type and down payment

The Costs These Programs Do Not Cover

Assistance programs cover down payment and closing costs, but they do not eliminate the need to understand your full financial picture. Prepaid expenses — homeowner's insurance, prepaid interest, property tax reserves — are sometimes not covered by assistance programs and can add $3,000 to $6,000 to your cash-to-close amount.

Before assuming a program will cover everything, get a full Loan Estimate from your lender and map each line item against what the assistance program will and will not cover.

The Closing Cost Guide provides a complete line-item breakdown so you can see exactly where assistance funds will go and where you will still need cash out of pocket. Going into the program application knowing your full cost picture makes the process faster and avoids last-minute surprises.