TSAHC is the Texas State Affordable Housing Corporation, a self-supporting nonprofit created by the Texas Legislature. Its Home Sweet Texas and Homes for Texas Heroes programs pair a 30-year fixed mortgage with down payment help as a grant or a deferred second lien forgiven after three years.

TSAHC is often worth it when cash to close is the main obstacle, because it can cover part of the down payment and closing costs. The trade-off is usually a higher interest rate, so buyers who already have a down payment should compare the long-term cost.

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TSAHC vs TDHCA: Texas Down Payment Assistance Programs Explained

Q: What are TDHCA targeted areas?

Targeted areas are census tracts designated by the state to encourage homeownership. In these areas the TDHCA first-time homebuyer requirement generally does not apply, and income and purchase price limits are usually higher.

Many Texas homebuyers come across two commonly discussed sources of down payment assistance: TSAHC and TDHCA. This guide explains what each one offers, how their programs are structured, and how they compare — so you can have a more informed conversation about your options.

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Quick answer: what is TSAHC?

TSAHC is the Texas State Affordable Housing Corporation, a self-supporting nonprofit created by the Texas Legislature. It runs two statewide homebuyer programs, Home Sweet Texas and Homes for Texas Heroes, that pair a 30-year fixed mortgage with down payment help as either a grant or a deferred second lien that's forgiven after three years.

TDHCA is the Texas Department of Housing and Community Affairs, a state agency. Its My First Texas Home and My Choice Texas Home programs offer up to 5% of the loan as a 0% deferred second loan that you repay when you sell or refinance.

TSAHC Programs TDHCA Programs Side-by-Side Comparison How to Choose

What Are TSAHC and TDHCA?

TSAHC (Texas State Affordable Housing Corporation) and TDHCA (Texas Department of Housing and Community Affairs) are two statewide organizations associated with homebuyer assistance in Texas. Both are involved in programs designed to help eligible buyers reduce the upfront cash needed to purchase a home, often through grants or second-lien assistance, and both work through networks of participating lenders. The sections below break down each one, followed by a direct comparison.

Texas State Affordable Housing Corporation

TSAHC Programs: Home Sweet Texas & Homes for Texas Heroes

TSAHC provides access to 30-year fixed-rate mortgage loans that include down payment assistance (DPA) attached to the loan. The assistance is delivered through two main program tracks, and qualifying buyers are required to use the DPA that comes with the program — the first mortgage is not offered on its own.

Home Sweet Texas

Geared toward Texas buyers with low and moderate incomes. The borrower does not have to be a first-time homebuyer when the DPA is used without a Mortgage Credit Certificate (MCC).

Homes for Texas Heroes

Designed for Texans in specific professions — including teachers, teacher aides, school librarians, school nurses and counselors, certain nursing/allied-health professors, police officers, firefighters and EMS personnel, corrections officers, county jailers, veterans, and security officers.

Two Assistance Structures

DPA Grant (never repaid)

On government loans, TSAHC can provide down payment and closing-cost help as a grant that is never repaid. Buyers may choose an assistance level of 2%, 3%, 4%, or 5% of the first mortgage amount. (Buyers may be asked to repay the grant only if they refinance or dispose of the first lien within six months of closing.)

3-Year Forgivable Second Lien

The forgivable DPA is a second lien with no monthly payments and 0% interest, forgiven in full on the third anniversary of the note. It becomes repayable if the home is sold, transferred, or refinanced — or the borrower stops occupying it — within the 3-year term.

Key TSAHC Details

Loan types: FHA, VA, and conventional (Fannie Mae HFA Preferred / Freddie Mac HFA Advantage) 30-year fixed first mortgages.
Credit score: Minimum 620 for FHA and VA; minimum 640 for HFA conventional loans.
Occupancy: Owner-occupied; the home being purchased must become the borrower's principal residence.
Property location: The home must be located in Texas.
First-time buyer rule: Not required with the DPA when no MCC is used. If an MCC is added, first-time buyer rules apply (no ownership interest in a principal residence in the prior 3 years), with exceptions for targeted areas and qualified veterans.
Uses: Assistance may go toward the down payment, closing costs, prepaid items, and other related costs. Incidental cash back to the borrower at closing is not allowed.
MCC & recapture: When an MCC is used, federal recapture tax can apply only if the home is sold within 9 years, at a net profit, and household income rises significantly above the county limit. DPA without an MCC has no recapture tax.

Program terms, assistance levels, income and purchase-price limits, and availability are set by the agency and can change based on market conditions. Specific figures should always be confirmed against current TSAHC guidelines for your county and loan type.

Texas Department of Housing & Community Affairs

TDHCA Programs: My First Texas Home & My Choice Texas Home

TDHCA runs the statewide Texas Homebuyer Program, pairing a 30-year fixed-rate first mortgage with down payment assistance. The assistance is generally provided as up to 5% of the first mortgage amount and can be applied toward the down payment and eligible closing costs. A required, approved homebuyer education course is a hallmark of the TDHCA programs.

My First Texas Home

Built primarily for first-time homebuyers (generally, no homeownership in the past three years), with exceptions for qualified veterans and buyers in targeted areas. Pairs a low, fixed-rate mortgage with down payment and closing-cost assistance.

My Choice Texas Home

Open to both first-time and repeat buyers — you do not have to be a first-time homebuyer to qualify. This is often why buyers who have owned before are surprised to learn they may still be eligible for assistance.

Texas Mortgage Credit Certificate (MCC)

TDHCA also offers a Mortgage Credit Certificate, which can provide a dollar-for-dollar reduction on federal tax liability for eligible buyers. It is available to veterans and first-time homebuyers with a program first mortgage, and as a stand-alone option. An MCC can often be combined with My First Texas Home assistance.

Key TDHCA Details

Assistance amount: Up to 5% of the loan amount, applied toward down payment and/or eligible closing costs.
Structure: Provided as a deferred/forgivable second lien (or, depending on loan type and program option, a grant), at 0% interest with no monthly payment on the deferred-lien option.
Loan types: Commonly paired with FHA, VA, USDA, and conventional first mortgages through participating lenders.
Credit score: Most TDHCA programs ask for a minimum 620 credit score.
Education: An approved homebuyer education course is required to qualify for assistance through the TDHCA Homebuyer Program.
Income & price limits: Income and purchase-price limits vary by county, household size, loan type, and program — and are often higher than buyers expect. My Choice Texas Home limits in particular can be notably higher.
Funding: Lenders reserve funds for buyers; availability can be subject to funding cycles.

TDHCA program terms, assistance percentages, income/purchase-price limits, and availability are set by the agency and update over time. Confirm current figures for your county and loan type with a participating lender before house hunting.

TSAHC vs TDHCA: Side-by-Side Comparison

A high-level look at how the two program sources line up. Specific numbers can change, so treat this as an educational starting point rather than a guarantee of terms.

	TSAHC	TDHCA
Administering body	Texas State Affordable Housing Corporation	Texas Department of Housing and Community Affairs
Main programs	Home Sweet Texas; Homes for Texas Heroes	My First Texas Home; My Choice Texas Home
Assistance amount	2%, 3%, 4%, or 5% of the first mortgage amount	Up to 5% of the loan amount
Assistance structure	Grant (never repaid) on government loans, or a 3-year forgivable second lien	Deferred/forgivable second lien (or grant depending on option), 0% interest
First-time buyer required?	Not required with DPA (no MCC); required if an MCC is added	Required for My First Texas Home; not required for My Choice Texas Home
Typical credit minimum	620 (FHA/VA), 640 (HFA conventional)	620 for most programs
Loan types	FHA, VA, conventional (HFA Preferred / HFA Advantage)	FHA, VA, USDA, conventional
Special focus	"Hero" professions (teachers, first responders, veterans, and more)	Open statewide; repeat-buyer path via My Choice Texas Home
Homebuyer education	Program requirements apply; confirm per loan	Approved education course required for assistance
Tax credit (MCC)	Available; affects first-time-buyer and recapture rules	Texas MCC available, including a stand-alone option

How to Choose Between Them

The "better" option is not the same for every buyer. Both program sources can be valuable depending on how the assistance is structured and how it fits your situation. A few things tend to matter most:

How the assistance is structured — grant vs. forgivable vs. repayable, and what triggers repayment.
Your income and eligibility relative to current county and program limits.
Your profession — "hero" occupations may find Homes for Texas Heroes especially relevant.
Whether you've owned before — repeat buyers may lean toward My Choice Texas Home or Home Sweet Texas.
Your long-term plans — how long you expect to stay in the home affects forgivable-lien math.
The mortgage paired with the assistance — FHA, VA, USDA, or conventional, and which a given program supports.
Whether an MCC fits — a tax credit can add value but may change first-time-buyer and recapture rules.

Common Misconceptions

"One is always better than the other." The better fit depends on your situation; both can be valuable.

"All assistance is free money." Some assistance is a grant, but other options involve repayment conditions tied to the property or time in the home.

"I only have one option." Many buyers have multiple potential paths and benefit from comparing before deciding.

Is TSAHC worth it? Pros and cons

Pros

Grant option that never has to be repaid, or a second lien forgiven after three years.

Available statewide, and you don't have to be a first-time buyer.

Works with FHA, VA, USDA, and conventional loans through participating lenders.

Cons

The interest rate is usually higher than a standard loan without assistance, especially with the grant option.

Income limits apply, and there's a 620 minimum credit score.

Only participating lenders can offer it, and homebuyer education is required.

When it's worth it

When cash to close is what's stopping you. Covering 3–5% up front can let you buy now instead of saving for years.

When it may not be

When you already have the down payment. Over a long hold, the higher rate can cost more than the assistance saved. I run both scenarios so you can see the break-even.

What are TDHCA targeted areas?

Targeted areas are specific census tracts the state designates to encourage homeownership. When you buy in one, TDHCA's first-time homebuyer requirement generally doesn't apply, and income and purchase price limits are usually higher.

Before you rule yourself out because you've owned a home before or earn a bit too much, check whether the address is in a targeted area. Your lender can confirm it.

TSAHC and TDHCA questions

Is TSAHC legit?

Yes. TSAHC was created by the Texas Legislature and works through participating mortgage lenders across Texas.

Can I use TSAHC and TDHCA together?

Usually not. Each program comes with its own first mortgage, so you choose one. The right choice depends on your credit, income, and how long you plan to stay.

What credit score do I need for TSAHC?

TSAHC lists a 620 minimum credit score. Lenders may have their own overlays.

Do I have to be a first-time buyer for TSAHC?

No. Home Sweet Texas and Homes for Texas Heroes are open to repeat buyers who meet the income limits. TSAHC's Mortgage Credit Certificate is for first-time buyers.

Compare Your Options the Right Way

Choosing between different Texas assistance programs is not about picking a name — it's about choosing the structure and strategy that best fits your goals, income, and timeline.

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