Clear answers to the questions Texas homebuyers ask most when researching down payment assistance — including how TSAHC and TDHCA programs work, eligibility, credit scores, income limits, and how assistance is structured.
Down payment assistance (DPA) refers to programs that help eligible homebuyers cover some or all of the cash needed at closing, including the down payment and certain closing costs. Assistance may be structured as a grant that is not repaid, a forgivable second lien that is forgiven over time, or a deferred second lien repaid later upon sale, refinance, or payoff. It is commonly offered statewide through TSAHC and TDHCA, and through some city and county programs.
TSAHC (Texas State Affordable Housing Corporation) runs the Home Sweet Texas and Homes for Texas Heroes programs. TDHCA (Texas Department of Housing and Community Affairs) runs My First Texas Home and My Choice Texas Home. Both pair a 30-year fixed-rate first mortgage with down payment assistance through participating lenders, but they differ in program names, eligibility details, income limits, and lender networks. See the full TSAHC vs TDHCA comparison.
Not always. Some programs are limited to first-time buyers, generally meaning you have not owned a principal residence in the previous three years. Others, such as My Choice Texas Home and Home Sweet Texas, may allow repeat buyers. First-time buyer rules can also be waived in targeted areas and for qualified veterans. Adding a Mortgage Credit Certificate (MCC) may reintroduce first-time buyer requirements.
Amounts vary by program. TSAHC programs commonly let buyers choose 2%, 3%, 4%, or 5% of the first mortgage amount. TDHCA programs generally provide up to 5% of the loan amount. As an example, 5% on a $300,000 loan would be roughly $15,000. Exact amounts depend on the rate selected, loan type, and current program guidelines.
It depends on the structure. Some assistance is a grant that is never repaid. Some is a forgivable second lien — often forgiven after a set period such as three years — that becomes repayable if you sell, refinance, transfer, or stop occupying the home during the term. Some is a deferred lien repaid later. Always confirm how a specific program's assistance is structured before relying on it.
Minimums vary by program and loan type. TSAHC commonly requires a minimum 620 credit score for FHA and VA loans and 640 for HFA conventional loans. Most TDHCA programs ask for a minimum 620. Your lender will confirm the exact requirement for your loan.
Often yes. Many Texas assistance programs are designed to pair with FHA, VA, USDA, or conventional financing, though compatibility varies. TSAHC supports FHA, VA, and conventional HFA loans; TDHCA programs are commonly paired with FHA, VA, USDA, and conventional first mortgages.
Yes. Most programs have income limits that vary by county, household size, loan type, and program. These limits are often higher than buyers expect, and some programs such as My Choice Texas Home can have notably higher limits. Confirm the current limit for your county with a participating lender.
In many cases, yes. Depending on the program, assistance may be applied toward eligible closing costs and prepaid items in addition to the down payment. Incidental cash back to the borrower at closing is generally not allowed.
TSAHC's Homes for Texas Heroes program is aimed at specific professions, including teachers, teacher aides, school librarians, school nurses and counselors, certain nursing or allied-health professors, police officers, firefighters and EMS personnel, corrections officers, county jailers, veterans, and security officers.
A Mortgage Credit Certificate provides a dollar-for-dollar reduction on a portion of your federal income tax liability based on mortgage interest paid. In Texas, an MCC may be combined with certain assistance programs. Adding an MCC can change first-time-buyer requirements and may introduce recapture-tax rules in limited circumstances.
For TDHCA's Homebuyer Program, an approved homebuyer education course is required to qualify for assistance. Other programs may have their own education requirements. Courses are typically completed before closing through an approved provider.
Every buyer's situation is different. The best next step is to review your goals, financing path, and possible eligibility with a clear strategy.