The Federal Housing Administration (FHA) and the Veterans Administration (VA) offer breaks to low- to moderate-income families. Under the FHA 203B loan program, prospective homeowners can borrow about 97 percent of the purchase price of the home with minimal closing costs. Under a VA loan, qualified veterans can borrow up to 100 percent of the purchase price of the home. 

In Bexar County the limits have recently been reviewed and raised.  The maximum limit for an FHA loan is $172,632 for a single-family home, for a VA loan the maximum loan limit is $359,650, and for a Texas Vet loan the maximum amount is $240,000, subject to the eligibility of the veteran. These programs have no income limits, but they do have credit and minimum income requirements that may rule out some families of modest means.

Financial assistance

Lower-income families can turn to nonprofit organizations for loan assistance. In San Antonio, there are several agencies that offer down payment assistance either in the form of a grant or a loan, depending on the circumstances and income of the applicants.

Neighborhood Housing Services of San Antonio (NHS), for example, forms partnerships with local lenders to target underserved areas. NHS's lender partners provide first lien mortgage loans, usually up to 75 to 85 percent of the purchase price. NHS funds the remaining 15 to 25 percent in the form of a second lien mortgage loan. Since the sum of both loans can equal 100 percent or more of the sales price, a down payment is usually not required. Maximum income limits, certain credit requirements, a minimal cash investment and sufficient property valuation are factors NHS considers.

On the governmental side, the city of San Antonio helps put families in homes through its Neighborhood Action Department (NAD). Potential homebuyers attend two sessions for a total of eight hours of free training on the homebuying process. Staffers work to pre-qualify families who are not working with a lending institution and have never owned a home. Qualifying families may be eligible for down payment and closing costs assistance through NAD's Homeownership Incentive Program.

Bexar County also offers first-time homebuyers who meet their criteria with closing costs through its mortgage revenue bond program. Generally, families can receive 4 to 6 percent of their down payment and closing costs from the county depending on where they buy their home.