First-Time Buyer: Dallas Nurse Uses My First Texas Home for $0 Down

Deal Summary

Detail	Value
Borrower	28-year-old registered nurse, first-time home buyer
Property	3BR/2BA single-family home in Garland, TX
Purchase Price	$295,000
DPA Program	My First Texas Home (TDHCA)
DPA Amount	$14,750 (5% of loan amount, forgivable second lien)
Loan Type	FHA 30-year fixed
Credit Score	660
Household Income	$72,000
Down Payment Out of Pocket	$0

The Challenge: Savings for Closing Costs but Not a Full Down Payment

When our client first reached out to the Cook Brothers Mortgage Team at Cornerstone First Mortgage, she had a clear goal: stop renting and start building equity in a home of her own. She had been working as a registered nurse at a hospital in the Dallas metro area for four years, earning a steady income and building a modest savings account.

The problem was that her savings, while respectable, were not enough to cover a traditional down payment. On a $295,000 home, a conventional loan would have required roughly $8,850 to $14,750 depending on the program, and an FHA loan still required $10,325 at the 3.5% minimum. She had about $6,000 set aside, enough for closing costs and moving expenses, but nowhere near enough for the down payment itself.

She assumed she would need to save for at least another year or two. That is when a colleague at the hospital mentioned that she had purchased her own home using a Texas down payment assistance program. Our client called us the next day to find out if she qualified.

Finding the Right Program: Why My First Texas Home Was the Perfect Fit

After reviewing her financial profile, we identified the My First Texas Home program as the best option for several reasons.

First, she was a first-time buyer who had never owned a home. This made her eligible for TDHCA's flagship program, which is specifically designed for buyers in her situation.

Second, her household income of $72,000 fell well within the income limits for Dallas County. Many buyers are surprised to learn that the income ceilings for Texas DPA programs are higher than they expect. In her case, she qualified comfortably.

Third, her credit score of 660 met the minimum 620 threshold required for an FHA loan paired with My First Texas Home DPA. While her score was not perfect, it was more than sufficient for the program. We did not need to spend time on credit repair or waiting for her score to improve.

Finally, the forgivable second lien structure was ideal for her situation. She planned to live in the home for at least five years, which meant the DPA would be fully forgiven well before she would consider selling. She would never have to pay back a single dollar of the $14,750.

How the My First Texas Home Program Works

For buyers unfamiliar with TDHCA's My First Texas Home program, here is a quick overview of how it works in practice.

The program pairs a competitive 30-year fixed-rate first mortgage with up to 5% of the loan amount in down payment assistance. This DPA is delivered as a second lien on the property, meaning it is recorded against the home at closing just like the primary mortgage.

The critical difference is that this second lien carries a 0% interest rate and requires no monthly payments. After three years of continuous occupancy in the home, the entire second lien is forgiven. The borrower does not repay anything. If the borrower sells or refinances before the three-year mark, the outstanding balance of the second lien becomes due at that time.

For our client, the math looked like this:

• Purchase price: $295,000
• FHA loan amount (96.5%): $284,675
• DPA at 5%: $14,234
• FHA down payment (3.5%): $10,325
• DPA remaining after down payment: $3,909
• Remaining DPA applied to closing costs: $3,909

The DPA covered her entire down payment and nearly $4,000 of her closing costs. Combined with her $6,000 in personal savings, she had more than enough to cover the remaining closing costs, earnest money, and her home inspection fee. Her out-of-pocket cost for the down payment was exactly zero.

The Closing Day Experience

The entire process from pre-qualification to closing took 38 days. Our team handled the TDHCA reservation early in the process to lock in her DPA funds, and we coordinated the FHA underwriting and DPA compliance documentation in parallel to keep the timeline tight.

On closing day, she signed her documents, picked up her keys, and drove straight to her new home in Garland. The three-bedroom, two-bathroom house was everything she had been looking for: a quiet neighborhood, a reasonable commute to her hospital, and enough space to set up a home office for the online coursework she was completing toward her nurse practitioner certification.

She later told us that she had almost given up on buying a home that year. She had assumed that without a large down payment in the bank, homeownership was still years away. The My First Texas Home program changed that timeline entirely.

How the Forgivable Second Lien Works After Closing

One of the most common questions we hear from buyers considering this program is what happens after closing. The answer is straightforward.

The second lien sits on the property title alongside the primary FHA mortgage. There are no monthly payments on the second lien, and there is no interest accruing. For all practical purposes, the borrower does not interact with the second lien at all during the forgiveness period.

After three years of living in the home as a primary residence, the second lien is forgiven. TDHCA releases the lien from the property title, and the borrower's only remaining obligation is the primary FHA mortgage.

The only scenarios that would require repayment before the three-year mark are selling the home, refinancing the primary mortgage, or converting the property to a rental or investment property. For buyers who plan to stay in their home for at least three years, the forgiveness feature makes this program one of the most generous DPA options in the country.

Our client had no plans to move anytime soon. Three years from closing, the $14,234 second lien will be forgiven in full, and she will own her home with only her FHA mortgage remaining.

Key Takeaways for First-Time Buyers

If you are in a similar situation — earning a solid income but struggling to save enough for a down payment — here are the most important lessons from this case study.

You do not need a perfect credit score. A 660 credit score was sufficient for this buyer to qualify for an FHA loan with My First Texas Home DPA. If your score is at least 620, you likely have options. If it is below 620, a few months of targeted credit improvement could get you there.

Your income may qualify even if you think it will not. With a $72,000 household income, our client qualified easily. Income limits for Texas DPA programs are based on area median income and vary by county and household size. Many households earning well into six figures still qualify.

The down payment does not have to come from your savings. That is the entire point of DPA. The $14,750 our client received covered her full down payment and a significant portion of her closing costs. Her personal savings covered the rest.

Working with an experienced DPA lender matters. Not every lender participates in TDHCA programs, and not every participating lender processes DPA loans regularly. At Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855), DPA loans are a core part of our business. We know how to navigate the reservation process, coordinate the compliance requirements, and keep your closing on schedule.

You could be in your own home sooner than you think. Our client went from her first phone call to picking up her keys in under six weeks. If you are renting and wondering whether homeownership is within reach, the answer may surprise you.

Check Your Eligibility

Ready to find out if you qualify for the My First Texas Home program or another Texas down payment assistance program? Check your eligibility today using our free online quiz. It takes just a few minutes and gives you a clear picture of your options.

You can also reach out directly. Call Tanner Cook at 480-420-4918 or Zac Cook at 480-406-2016 to speak with a DPA specialist who can walk you through the programs and answer any questions you have.

Tanner Cook is a licensed mortgage loan originator (NMLS #2090424). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.