House and keys representing down payment assistance

TSAHC Home Buyer Programs

Texas Down Payment Assistance, Explained

If coming up with cash upfront feels like the hardest part of buying a home, the Texas State Affordable Housing Corporation may have programs worth exploring.

Through Home Sweet Texas and Homes for Texas Heroes, eligible buyers can pair a fixed-rate mortgage with down payment assistance to help reduce the amount of money needed upfront.

TSAHC says eligible buyers may receive assistance equal to up to 5% of their mortgage loan amount to help with their down payment and/or closing costs. Many of TSAHC's DPA options are available to both first-time and repeat home buyers.

See What I Could Qualify For How the Program Works ↓

Up to 5% of the mortgage loan amount toward down payment and/or closing costs

620+ TSAHC's Path Finder currently references a 620+ FICO requirement

30-Year Fixed TSAHC home buyer programs use fixed-rate mortgage financing

First-Time or Repeat many TSAHC DPA options do not require you to be a first-time buyer

Two Main TSAHC Paths

Which Program Fits You?

TSAHC offers two primary home buyer programs. Both can pair mortgage financing with down payment assistance. The biggest difference is who each program is designed to serve.

Program One

Home Sweet Texas

Home Sweet Texas is for eligible Texas home buyers with low and moderate incomes.

It is not tied to a particular profession and can serve both first-time and repeat buyers who meet program requirements.

Program Two

Homes for Texas Heroes

Homes for Texas Heroes is designed for certain professions that serve Texas communities.

Professional educators
Police and public security officers
Firefighters and EMS personnel
Veterans and active military
Correction and juvenile correction officers
Nursing and allied health faculty

What the Help Can Look Like

More Than One Way to Reduce Upfront Costs

TSAHC offers different assistance structures, so the option that works best can depend on your loan and financial situation.

Option One

Grant Assistance

TSAHC offers assistance that can be provided as a grant.

TSAHC states that its grant option does not have to be repaid.

Option Two

Forgivable Second Lien

TSAHC also offers a forgivable second lien option.

TSAHC states this assistance can be forgiven after three years as long as you do not sell, refinance, or move out of the home during that period.

Potential Tax Benefit

Mortgage Credit Certificate

Some qualifying buyers may also be eligible for a Mortgage Credit Certificate.

TSAHC states that its MCC provides a federal income tax credit equal to 15% of the mortgage interest paid annually.

Buyer reviewing finances before purchasing a home

It May Be More Accessible Than You Think

Don't Rule Yourself Out Too Quickly

TSAHC's programs are not limited to one kind of home buyer. A few of the eligibility details surprise people when they first learn about them.

You may not need to be a first-time buyer: TSAHC says the majority of its down payment assistance programs do not have a first-time home buyer requirement.

Credit doesn't have to be perfect: TSAHC's Path Finder currently references a 620+ FICO score requirement for its home buyer programs.

Income limits depend on location: TSAHC's income limits vary by county, so eligibility is not based on one statewide income number.

Some areas have expanded limits: A targeted area may allow higher income and purchase-price limits and can affect certain program requirements.

Check My County Limits

How to Get Started

A Pretty Simple Next-Step Plan

You do not apply directly to TSAHC. Their process starts with checking your potential program fit and then working with an approved lender.

01

Take the Path Finder Quiz

TSAHC's three-step quiz asks about your home buyer status, the Texas county where you plan to buy, and your job category.

02

Connect With an Approved Lender

A TSAHC-approved lender confirms your eligibility, reviews the financing, and helps determine which assistance option fits.

03

Complete Home Buyer Education

TSAHC requires at least one borrower to complete home buyer education before closing.

04

Shop for the Right Home

Your lender and REALTOR® can then help you work through the home, location, financing, and assistance details together.

Connect With a TSAHC Lender

Common Questions

What Buyers Usually Ask

A few of the things that tend to come up first when buyers learn that down payment assistance may be an option.

Do I have to be a first-time home buyer?

Not necessarily. TSAHC states that the majority of its down payment assistance programs do not have a first-time home buyer requirement.

The MCC has separate first-time buyer rules, with exceptions TSAHC identifies for qualified veterans and certain targeted-area purchases.

How much assistance could I receive?

TSAHC states that eligible buyers can receive down payment assistance of up to 5% of their mortgage loan amount to help with down payment and/or closing costs.

Do I apply directly through TSAHC?

No. TSAHC does not take the buyer's mortgage application directly.

Buyers work with a TSAHC-approved participating lender who confirms program eligibility, completes the loan application process, and helps determine the appropriate assistance option.

What is a targeted area?

TSAHC describes targeted areas as qualifying census tracts where certain program rules can be more flexible.

Buyers purchasing in qualifying targeted areas may have access to higher income and purchase-price limits, along with certain first-time buyer requirement exceptions.

Is the assistance really free?

It depends on the assistance option.

TSAHC offers grant assistance that does not have to be repaid.

TSAHC also offers forgivable second-lien assistance that can be forgiven after the required period when the program conditions are met.

What if I'm a Texas Hero?

If your profession falls within TSAHC's Homes for Texas Heroes categories, you may qualify through that program.

TSAHC states that eligible Texas Heroes who combine its DPA and MCC programs can receive the MCC without the normal program fee.

Do I have to use a certain lender?

Yes. TSAHC states that buyers using its assistance programs must work with an approved participating mortgage lender.

TSAHC provides its own lender search so buyers can connect with loan officers familiar with the programs.

Do I have to take a class?

TSAHC requires at least one borrower using its home buyer programs to complete an approved home buyer education course before closing.

TSAHC provides approved education options, including online options.

TSAHC program availability, assistance structures, income limits, interest rates, and eligibility requirements can change and may vary by program, property, and borrower. A TSAHC-approved participating lender confirms program eligibility and mortgage qualification for your specific situation.

Curious If This Could Work for You?

It Takes Three Questions to Start Finding Out.

TSAHC's Path Finder asks about your home buyer status, the Texas county where you're planning to buy, and your job category. From there, it can point you toward programs and resources that may fit.

Start My 3-Step Quiz

Already past that step? Find a TSAHC-approved lender.