Texas2026 DPA Programs

TDHCA Texas Down Payment Assistance 2026: Complete Guide

Texas offers up to 5% of your loan amount in forgivable down payment assistance through TDHCA. On a $300,000 loan, that's $15,000 for your down payment — with 0% interest and no monthly payments. Here's every program, who qualifies, and how to apply.

Max DPA

$300K Loan

$15,000

Min Credit

620

MCC Tax Credit

$2,000/yr

Sarah Mitchell

Senior Mortgage Advisor & VA Loan Specialist

March 13, 202613 min readExpert

VA LoansFHA LoansFirst-Time Buyer Programs

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TDHCA Programs Compared

Feature	My First Texas Home	My Choice Texas Home	MCC Tax Credit
DPA Amount	Up to 5%	Up to 5%	$2,000/year tax credit
First-Time Buyer Required	Yes*	No — anyone qualifies	Yes (first-time)
DPA Type	0% deferred, forgivable	0% deferred, forgivable	Federal tax credit
Min Credit Score	620	620	620
Loan Types	FHA, VA, USDA, Conv	FHA, VA, USDA, Conv	Can combine with either
Purchase Price Limit	Varies by county	Varies by county	Same limits
Income Limits	Yes, by county	Yes, by county	Yes, by county
Homebuyer Education	Required	Required	Required

*First-time buyer = no homeownership in past 3 years. Veterans and buyers in targeted areas may be exempt.

Real Example: $320,000 Home in Texas with TDHCA

Upfront Costs

Home price: $320,000
FHA down payment (3.5%): $11,200
TDHCA DPA (5% of loan): -$15,400
Cash needed: $0 (DPA covers down + some closing costs!)

Combined with MCC Tax Credit

Annual mortgage interest: ~$19,500
MCC credit (40% of interest): $7,800
Capped at: $2,000/year
Extra $2,000/year = $167/month effective savings
Over 10 years: $20,000 in tax credits!

TDHCA Income Limits 2026 by Metro Area

Metro Area	1-2 Person	3+ Person	Max Purchase Price
Austin / Travis County	$115,200	$132,480	$472,030
Dallas-Fort Worth / Tarrant	$103,200	$118,680	$420,000
Houston / Harris County	$97,000	$111,550	$400,000
San Antonio / Bexar	$91,200	$104,880	$375,000
El Paso County	$82,800	$95,220	$325,000
Most Rural Texas Counties	$82,800	$95,220	$350,000

Income limits based on TDHCA 2026 guidelines. Find TDHCA-approved lenders for your exact county.

Find TDHCA-Approved Lenders in Texas

Not all lenders offer TDHCA programs. Compare approved lenders to maximize your DPA.

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How to Apply for TDHCA Programs

Complete Homebuyer Education

Take a TDHCA-approved homebuyer education course. Online options include eHome America and Framework (~$75, 6-8 hours). Certificate valid for 1 year.

Contact a TDHCA-Approved Lender

TDHCA maintains a list of approved lenders on their website. Many large banks and local credit unions participate. The lender will check your income, credit, and determine which program fits best.

Choose Your Program & Loan Type

My First Texas Home (first-time buyers) or My Choice (anyone). Pair with FHA (3.5% down), VA (0% down), USDA (0% down), or conventional (3-5% down). Add MCC for extra tax credits.

Find a Home Within Price Limits

Shop within your county's purchase price limit. Must be primary residence. Single-family, condo, or townhome. New construction qualifies too.

Close on Your Home

TDHCA loans take 45-60 days to close. The DPA is recorded as a second lien. No monthly payments on the DPA — it's forgiven after the required occupancy period.

Frequently Asked Questions

What is TDHCA and what programs do they offer?

TDHCA (Texas Department of Housing and Community Affairs) administers two major down payment assistance programs: My First Texas Home (for first-time buyers, up to 5% of loan amount as DPA) and My Choice Texas Home (for repeat buyers too, up to 5% DPA). Both programs offer 30-year fixed-rate first mortgages with DPA provided as a deferred, forgivable second lien. TDHCA also offers the Mortgage Credit Certificate (MCC) for up to $2,000/year in federal tax credits.

What are the TDHCA income limits for 2026?

TDHCA income limits for 2026 vary by county and household size. For most Texas counties, the limit is approximately $97,000 for 1-2 person households and $111,550 for 3+ person households. High-cost areas like Austin and Dallas may have higher limits. There are also purchase price limits that vary by county, generally ranging from $350,000 to $500,000.

How much down payment assistance does TDHCA provide?

TDHCA provides up to 5% of the total loan amount as down payment assistance. On a $300,000 loan, that is $15,000 in DPA. The assistance is structured as a 0% interest, deferred second lien that is forgiven after you live in the home for a set period (typically 3 years). If you sell or move before forgiveness, you repay the DPA.

What credit score do I need for TDHCA programs?

TDHCA requires a minimum 620 credit score for FHA loans and 620 for conventional loans. A score of 680+ will get you better first mortgage rates. The program also requires completing a homebuyer education course (available online for about $75) and the home must be your primary residence.

Can repeat buyers use TDHCA programs?

Yes — the My Choice Texas Home program is available to both first-time AND repeat buyers. It offers the same up to 5% DPA as My First Texas Home but without the first-time buyer requirement. My First Texas Home is restricted to first-time buyers (no homeownership in the past 3 years) or buyers purchasing in a targeted area.

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