TDHCA Rates & Programs 2026: Get Up to 5% Down Payment Assistance in Texas
TDHCA's My First Texas Home offers 30-year fixed rates from 6.25% plus up to 5% down payment assistance — potentially $15,000+ on a $300K home. Here's everything updated for June 2026: income limits by county, TDHCA vs TSAHC comparison, and how to qualify in under 5 minutes.
Check Your TDHCA Eligibility — Free
See if you qualify for up to 5% DPA + Texas MCC tax credit. Takes 2 minutes.
6.25%
TDHCA Rate (June 2026)
FHA 30-yr fixed
5%
Max DPA Amount
of loan amount
620
Min Credit Score
640+ preferred
$2,000/yr
MCC Tax Credit
federal credit
New to Texas DPA? A free DPA eligibility check takes 2 minutes — no credit pull — and shows every program you qualify for including TDHCA, TSAHC, and local city grants.
Check My DPA Options →TDHCA & TSAHC Programs 2026 Compared
| Program | Rate (est.) | DPA Available | Min Credit | First-Time Buyer? |
|---|---|---|---|---|
| 🏆 BEST FOR DPAMy First Texas Home | 6.25% | Up to 5% | 620 | Yes (or 3yr non-owner) |
| 🔓 NO FTB REQUIREDMy Choice Texas Home | 6.25% | Up to 5% | 620 | No |
| 💰 TAX CREDITTexas MCC Program | Market rate | Tax credit 20-40% | 620 | Yes |
| 🦸 TEACHERS/FIRST RESP.TSAHC Homes for TX Heroes | 6.20% | Up to 5% | 620 | No (heroes only) |
| 🏠 INCOME-BASEDTSAHC Home Sweet Texas | 6.20% | Up to 5% | 620 | Preferred |
Rates as of June 2026 — vary by lender. Contact a TDHCA-approved lender for your personalized quote.
All 5 programs above can be paired with a low-rate FHA mortgage — compare FHA rates from TDHCA-approved lenders to find your best combination.
On a $350K home, 5% DPA = $17,500 in free money
See which Texas DPA programs you qualify for in 2 minutes — no credit pull required.
My First Texas Home (MFTH) — Complete Guide
MFTH is TDHCA's flagship program. It combines a below-market 30-year fixed mortgage with a second lien equal to 2%, 3%, 4%, or 5% of the loan amount — forgiven after you keep the home as your primary residence. Eligible loan types: FHA, VA, USDA, and Conventional.
💡 Not a first-time buyer? My Choice Texas Home has no first-time buyer requirement — any Texas resident meeting income/purchase limits can use 5% DPA. Check your eligibility in 2 minutes.
MFTH Eligibility Requirements 2026
- ✓First-time buyer (no primary home ownership in last 3 years) — OR buying in a Target Area
- ✓Minimum 620 credit score (640+ strongly recommended)
- ✓Income at or below TDHCA county limits (see table below)
- ✓Purchase price at or below $766,550 (FHA conforming limit)
- ✓Complete a HUD-approved homebuyer education course (free online available)
- ✓Primary residence only — no investment properties
- ✓US citizen, permanent resident, or qualified non-citizen
Credit score below 640? Boost your score fast with Spike — many borrowers gain 20–40 points in 30 days, unlocking better TDHCA rate tiers and more lender options. Or explore FHA loans starting at 580 FICO as a parallel option.
TDHCA Income Limits 2026 by County
Income limits vary by county and household size. Below are approximate limits for major Texas metros. 1-2 person households use the lower limit; 3+ person households use the higher limit.
| County / Metro | 1-2 Person Income Limit | 3+ Person Income Limit | Max Purchase Price |
|---|---|---|---|
| Travis (Austin) | $113,000 | $130,000 | $766,550 |
| Harris (Houston) | $97,000 | $111,000 | $766,550 |
| Dallas / Collin | $101,000 | $116,000 | $766,550 |
| Tarrant (Fort Worth) | $97,000 | $111,000 | $766,550 |
| Bexar (San Antonio) | $89,000 | $102,000 | $766,550 |
| Nueces (Corpus Christi) | $83,000 | $95,000 | $766,550 |
| El Paso | $79,000 | $91,000 | $766,550 |
| Lubbock | $77,000 | $89,000 | $766,550 |
Source: TDHCA 2026 program guidelines. Verify current limits at tdhca.state.tx.us or with a TDHCA-approved lender.
Unsure if your income qualifies? A free TDHCA pre-qualification takes 3 minutes — a TDHCA-approved lender will verify your income against county limits at no cost and with no credit pull.
Texas Mortgage Credit Certificate (MCC) — Save Up to $2,000/Year
The Texas MCC lets you convert 20–40% of your annual mortgage interest into a federal tax credit — not just a deduction, but a direct reduction of your tax bill. On a $300K loan at 6.5%, that's roughly $19,500 in year-1 interest × 20% = $3,900 credit (capped at $2,000/year by IRS rules).
MCC Math Example (Year 1)
$300,000
Loan Amount
6.50%
Interest Rate
~$19,400
Year-1 Interest
$2,000/yr
MCC Tax Credit (20%)
Over a 30-year loan, the MCC can be worth $40,000–$60,000 in total tax savings. You can combine it with MFTH DPA.
The MCC is stackable with the MFTH down payment assistance — meaning you can get 5% DPA towards your down payment AND the annual $2,000 federal tax credit simultaneously. Very few first-time buyer programs offer this combination.
See If I Qualify for Texas MCC →How to Apply for TDHCA — Step by Step
- 1
Take the free homebuyer education course
eHome America or Framework online course ($75–$99, 6-8 hours). Required for MFTH and MCC.
- 2
Find a TDHCA-approved lender
Not all lenders offer TDHCA programs. Use the TDHCA lender locator or compare approved lenders via our partner network — rates and fees vary significantly between lenders.
- 3
Get pre-approved
Submit your income documents, credit check, and TDHCA program enrollment form to your chosen lender. Pre-approval takes 1–3 business days.
- 4
Find a home within program limits
Purchase price must be at or below TDHCA's limit for your county. New construction is eligible. The home must be your primary residence.
- 5
Close with DPA applied
At closing, the DPA second lien funds alongside your first mortgage. Zero interest, no monthly payment on the second lien.
Or use our free lender matching tool to be connected with 3 TDHCA-approved lenders in your county who will compete for your business.
TDHCA vs TSAHC: Which Texas Program is Better in 2026?
Both agencies offer DPA in Texas, but they target different buyers. TSAHC's Homes for Texas Heroes is exclusively for teachers, firefighters, police, nurses, and veterans. TSAHC's Home Sweet Texas is income-based but available to any Texan. Here's a quick comparison:
| Feature | TDHCA (My First Texas Home) | TSAHC (Home Sweet Texas) |
|---|---|---|
| DPA Amount | Up to 5% | Up to 5% |
| First-time buyer req. | Yes (or Target Area) | No |
| MCC Compatible | Yes | Yes |
| Loan types | FHA, VA, USDA, Conv. | FHA, VA, USDA, Conv. |
| Forgiveness period | 3 years (second lien) | Immediate (grant option) |
| Homebuyer education | Required | Required |
| Best for | First-time buyers | Non-first-time / heroes |
Pro tip: If you're a teacher, firefighter, nurse, police officer, or veteran, always check TSAHC first — their Heroes program sometimes offers slightly better DPA rates. Everyone else should compare both TDHCA and TSAHC with an approved lender.
TDHCA FAQ 2026
What is TDHCA?
TDHCA stands for Texas Department of Housing and Community Affairs. It is the state agency that administers housing programs including My First Texas Home, My Choice Texas Home, and the Texas Mortgage Credit Certificate (MCC). TDHCA works through a network of approved lenders statewide.
What are current TDHCA rates in 2026?
As of June 2026, TDHCA My First Texas Home rates start at approximately 6.25% for a 30-year fixed FHA loan. Conventional TDHCA rates start around 6.50%. Rates change daily and depend on your credit score, loan type, and the participating lender you use.
How does TDHCA down payment assistance work?
TDHCA provides a second lien equal to up to 5% of the loan amount at 0% interest. If you stay in the home for 3 years (MFTH) or just meet the program requirements (My Choice Texas Home), the second lien is forgiven. It covers down payment and/or closing costs.
What is the difference between TDHCA and TSAHC?
Both are Texas state housing agencies. TDHCA (Texas Dept. of Housing) administers My First Texas Home and My Choice Texas Home through a lender network. TSAHC (Texas State Affordable Housing Corporation) runs Homes for Texas Heroes and Home Sweet Texas programs, often with slightly different income limits and lender networks.
Can I combine TDHCA DPA with a Texas MCC?
Yes! You can combine the My First Texas Home down payment assistance with a Texas Mortgage Credit Certificate (MCC). The MCC gives you a federal tax credit of 20–40% of your annual mortgage interest, worth up to $2,000/year, on top of your standard mortgage interest deduction.
Do I need to be a first-time homebuyer for TDHCA?
My First Texas Home requires you to have not owned a primary home in the past 3 years (or be buying in a federally designated Target Area). My Choice Texas Home has no first-time buyer requirement, making it available to anyone who meets the income and purchase price limits.
What credit score do I need for TDHCA?
Minimum 620 credit score for all TDHCA programs. However, a 640+ score is strongly preferred as it opens up more participating lenders and better rate tiers. Borrowers below 640 should consider working on their credit before applying.
Related Texas & State Housing Guides
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