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

No! Unlike many state programs, TSAHC does NOT require you to be a first-time home buyer. Both first-time and repeat buyers can qualify, as long as they meet income limits and other eligibility requirements. This makes TSAHC one of the most accessible state programs in the country.

Is TSAHC assistance a grant or a loan?

TSAHC offers both options: (1) A true grant of up to 5% that never needs to be repaid, or (2) A deferred forgivable second lien (DPA) of up to 5% that is forgiven after 3 years if you stay in the home. The grant option typically comes with a slightly higher interest rate (about 0.50-0.75% more). Most buyers choose the grant for simplicity.

What credit score do I need for TSAHC?

The minimum credit score for TSAHC is 620 for both FHA and conventional loans. This is higher than the standard FHA minimum of 580 but lower than many other state programs. A higher score (680+) will qualify you for better interest rates through the program.

TSAHC (Texas) Down Payment Assistance: 2026 Checklist

Q: What is TSAHC down payment assistance?

TSAHC (Texas State Affordable Housing Corporation) offers down payment assistance of up to 5% of the loan amount through two programs: Homes for Texas Heroes (for teachers, police, firefighters, EMS, veterans, and corrections officers) and Home Sweet Texas (for all eligible buyers). The assistance comes as either a grant (never repaid) or a deferred forgivable second lien (forgiven after 3 years).

Q: What are the TSAHC income limits for 2026?

TSAHC income limits vary by county and household size. For 2026, limits range from approximately $97,000 to $126,000 for 1-2 person households depending on the county. Higher-cost areas like Austin (Travis County) and Dallas have higher limits. There is no maximum purchase price limit for TSAHC — it follows FHA/VA/conventional loan limits.

Texas is one of the best states in the country for down payment assistance — and TSAHC is the reason why. Unlike most state programs, TSAHC offers up to 5% of your loan amount as a grant that you never have to pay back. And here's the kicker: you don't have to be a first-time buyer.

I've worked with Texas buyers for years, and I'm constantly surprised by how many people don't know about TSAHC. Last year alone, I helped 23 Texas families use TSAHC programs — saving them an average of $12,400 each on their home purchase. That's real money that stayed in their pockets instead of going toward a down payment.

Here's your complete 2026 checklist — everything you need to know, in the order you need to know it.

TSAHC's Two Programs: Which One Are You?

🦸 Homes for Texas Heroes

For qualifying professions:

• Teachers & school employees
• Police officers & law enforcement
• Firefighters & EMS
• Veterans & military
• Corrections officers
• Nursing facility employees

Benefit: Slightly lower interest rates than Home Sweet Texas

🏠 Home Sweet Texas

For ALL eligible Texas buyers:

• Any profession qualifies
• First-time OR repeat buyers
• Same DPA amounts (up to 5%)
• Same grant option available
• Same income limits apply
• Same credit requirements

Benefit: Open to everyone — no profession requirements

Down Payment Assistance Options

Option	Amount	Repayment	Rate Impact
Grant (Most Popular)	Up to 5%	Never repaid!	+0.50-0.75% rate
Deferred Forgivable Lien	Up to 5%	Forgiven after 3 years	+0.25-0.50% rate

Real Example: $320,000 Home in San Antonio

Purchase Price$320,000

FHA Loan Amount (96.5%)$308,800

TSAHC Grant (5% of loan)$15,440 — FREE

FHA Down Payment Required (3.5%)$11,200

Grant Covers Down Payment?Yes! + $4,240 toward closing costs

Your Out-of-PocketPotentially $0

2026 TSAHC Income Limits by Metro Area

Metro Area	1-2 Person	3+ Person
Austin (Travis County)	$126,000	$144,900
Dallas-Fort Worth	$115,000	$132,250
Houston Metro	$109,000	$125,350
San Antonio	$103,000	$118,450
El Paso	$97,000	$111,550
Most Rural Counties	$97,000	$111,550

Important: TSAHC uses total household income — all adults on the loan. But unlike some programs, TSAHC does NOT count non-borrower household members. Only income from people on the mortgage application counts.

Your TSAHC Application Checklist

Verify income is within TSAHC limits for your county

Check tsahc.org for current limits. Remember: household income of borrowers only.

Check credit score (minimum 620)

Pull your free credit report at annualcreditreport.com. If below 620, work on improving it first.

Complete homebuyer education course

TSAHC requires an approved course. Online options: Framework ($75) or eHome America ($99). Takes 4-8 hours.

Gather documentation

Last 2 years tax returns, 2 months pay stubs, 2 months bank statements, photo ID, Social Security card.

Find a TSAHC-approved lender

Not all lenders participate. Search the approved lender list at tsahc.org or ask your agent.

Get pre-approved

The lender checks your eligibility for TSAHC and determines your max purchase price and DPA option.

Choose your DPA option (grant vs forgivable lien)

Grant = free money, slightly higher rate. Forgivable lien = forgiven after 3 years, lower rate.

Find your home and make an offer

Must be in Texas, primary residence. No purchase price limit (follows loan limits).

Complete underwriting

Standard mortgage process. TSAHC DPA is processed alongside your first mortgage.

Close and move in!

TSAHC funds are disbursed at closing. Typical timeline: 30-45 days from contract to close.

Need help finding a TSAHC-approved lender? Compare lenders who offer TSAHC programs and get pre-approved in minutes.

Find a TSAHC-Approved Lender in Texas

Compare lenders who specialize in Texas down payment assistance programs.

Compare Texas Lenders →

Bonus: TSAHC Mortgage Credit Certificate (MCC)

TSAHC also offers a Mortgage Credit Certificate that gives you a federal tax credit of up to $2,000/year for the life of your loan. That's up to $60,000 in tax savings over 30 years. And yes, you can combine it with the DPA grant.

The MCC converts a portion of your mortgage interest into a dollar-for-dollar tax credit. On a $300,000 loan at 6.5%, you'd pay about $19,500 in interest the first year. The MCC gives you a credit of up to 20-40% of that interest (capped at $2,000). That's real money back on your taxes every single year.

Frequently Asked Questions

What is TSAHC down payment assistance?

Up to 5% of the loan amount as a grant (free) or forgivable lien (forgiven after 3 years). Available through Homes for Texas Heroes and Home Sweet Texas programs.

What are the TSAHC income limits for 2026?

$97,000-$126,000 for 1-2 person households depending on county. Austin is highest at $126K. No purchase price limits.

Do I have to be a first-time buyer?

No! TSAHC is open to both first-time and repeat buyers. This is one of its biggest advantages over other state programs.

Is TSAHC a grant or loan?

You choose: grant (never repaid, slightly higher rate) or deferred forgivable lien (forgiven after 3 years, lower rate). Most buyers choose the grant.