Texas is unusual in having two separate statewide agencies offering down payment assistance, and between them they offer every structure that exists — a true grant you never repay, a three-year forgivable second, and a thirty-year deferred repayable second.
That variety is genuinely valuable, and it is almost never explained properly. Choosing correctly here is worth thousands of dollars.
The two agencies
Texas buyers can go through either TSAHC (Texas State Affordable Housing Corporation) or TDHCA (the Texas Department of Housing and Community Affairs, branded as The Texas Homebuyer Program). They are separate organizations with separate products, and a lender may be approved with one, the other, or both.
Ask your lender which they offer. If they only work with one, that alone may determine your options.
TSAHC — the agency with a true grant
TSAHC runs two programs: Home Sweet Texas for general buyers and Homes for Texas Heroes for teachers, police, firefighters, EMS, corrections and juvenile corrections officers, public security officers, veterans and active military, and nursing and allied health faculty.
Both offer assistance of 2%, 3%, 4% or 5% of the loan amount — and TSAHC is rare in offering three distinct structures:
Option 1 — the grant
Never repaid under any circumstances. Available with government loans (FHA, VA, USDA). The tradeoff is a higher interest rate on your first mortgage, since the grant is priced into the loan.
Option 2 — three-year forgivable second
A 0% interest deferred second lien with no monthly payment, repayable only if you sell or refinance within three years. After three years it is forgiven entirely. This carries a lower first-mortgage rate than the grant option.
Option 3 — thirty-year deferred repayable second
Shown on TSAHC’s rate table for the 5% tier on certain loan types. Deferred with no monthly payment, but fully repayable. Confirm with your lender which loan types this applies to.
How to choose between the grant and the forgivable
This is the real decision. The grant is safer — nothing to repay, ever, regardless of what happens. The forgivable second gives you a lower rate for thirty years but exposes you to repayment if life changes in the first three years.
If you are confident you will stay past three years, the forgivable option usually wins on total cost because the rate savings compound. If there is any real chance of a job relocation or a move, take the grant.
TDHCA — My First Texas Home and My Choice Texas Home
My First Texas Home is for first-time buyers, with exceptions in targeted areas and for qualified veterans. My Choice Texas Home has no first-time requirement, allows higher incomes, and adds conventional financing.
Assistance runs 2% to 5% of the total mortgage loan amount, and you choose between two second liens, both at 0% interest:
- A 30-year deferred second — no monthly payment, repayable when you sell, refinance or pay off the first mortgage.
- A 3-year forgivable second — forgiven after 36 months in the home.
That choice is the whole story for TDHCA buyers, and third-party sites almost never explain it. One caveat on sourcing: the TDHCA program matrix carrying this structure is dated February 2025 while the limits table is current to July 2026, so confirm the two-option structure with TDHCA or your lender before relying on it.
TDHCA also lists a Gift Funds Program in eligible counties, though details are not published clearly — worth asking about.
Limits and requirements
TDHCA (effective July 13, 2026)
By area, AMFI tier and household size (one-to-two people versus three or more):
- Harris County: $104,000 / $119,600; price cap $566,354 non-targeted, $692,211 targeted.
- Travis County: $134,400 / $154,560; cap $598,019 / $730,912.
- Dallas County: $121,100 / $139,265; cap $589,596 / $720,617.
- Bexar County: $104,725 / $120,434; cap $583,580 / $713,265.
Minimum credit score 620 middle FICO. DTI per automated underwriting findings, capped at 45% on manual underwrites. Pre-purchase counseling with a certificate is required for each borrower.
TSAHC (income limits effective June 13, 2026)
TSAHC’s income limits are considerably more generous — Home Sweet Texas at 150% of area median income, and Homes for Texas Heroes at 170% AMI effective July 9, 2026 (up from 150%).
- Harris County: $156,000 / $176,800.
- Travis County: $201,600 / $228,480.
- Dallas County: $181,650 / $205,870.
- Bexar County: $157,358 / $178,339.
There is no purchase price limit on TSAHC DPA programs — price limits apply only to the Mortgage Credit Certificate. Minimum credit score 620, or 640 for HFA conventional. Approved homebuyer education is required before closing. Bond-funded options restrict to 80% AMFI or below.
Note the gap: TSAHC in Harris County allows $156,000 while TDHCA allows $104,000. If your income is between those figures, TSAHC may be your only path.
Practical guidance
Texas has no first-generation buyer program. What it does have is unusually good optionality, and one bonus worth claiming: first-time buyers combining TSAHC down payment assistance with a Mortgage Credit Certificate get the MCC free, a saving of roughly $500.
- Ask your lender which agencies they are approved with. That may narrow your choices immediately.
- Compare TSAHC and TDHCA income limits for your county — TSAHC’s are substantially higher and may be the only fit.
- If you qualify for Homes for Texas Heroes, start there; the 170% AMI limit is the most generous in the state.
- Decide honestly how long you will stay. Under three years, take the grant. Longer, the forgivable option with its lower rate usually costs less.
- Complete approved homebuyer education, required by both agencies, and ask about the free MCC if you are a first-time buyer using TSAHC.
Frequently asked questions
Does Texas offer a true down payment grant?
Yes. TSAHC offers a grant option that is never repaid under any circumstances, available with government loans (FHA, VA, USDA). The tradeoff is a higher interest rate on your first mortgage, since the grant is priced into the loan.
What is the difference between TSAHC and TDHCA?
They are two separate statewide agencies. TSAHC offers a true grant, a three-year forgivable second, and a repayable option, with income limits at 150–170% of area median and no purchase price cap on DPA. TDHCA offers a 30-year deferred or 3-year forgivable second, with lower income limits and county price caps.
Should I take the Texas grant or the forgivable second?
It depends on how long you will stay. The grant is never repaid but comes with a higher mortgage rate. The three-year forgivable second gives you a lower rate but must be repaid if you sell or refinance within 36 months. Staying past three years usually favors the forgivable option.
How much down payment assistance can I get in Texas?
Both agencies offer 2% to 5% of the loan amount. On a $300,000 loan that is $6,000 to $15,000, depending on the tier and structure you choose.
Is there a purchase price limit for Texas down payment assistance?
Not for TSAHC’s DPA programs — price limits apply only to its Mortgage Credit Certificate. TDHCA does apply county price caps, ranging from about $566,354 in Harris County to $598,019 in Travis County for non-targeted areas.
What credit score do I need in Texas?
620 middle FICO for both agencies, with TSAHC requiring 640 for its HFA conventional option. Lender overlays may push the practical minimum higher.