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.
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.
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.
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).
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.
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.)
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.
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.
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.
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.
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.
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 |
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:
"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.
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.