Texas Down Payment Assistance in 2026: TDHCA, TSAHC, and What Actually Qualifies You
Last reviewed: September 2026
Texas homebuyers don't necessarily need a 20% down payment. Depending on your income, credit profile, county, loan type, occupation, military status and prior homeownership, down payment assistance may reduce the amount of cash you need to purchase a home.
Texas is a little different from some states because there isn't just one major statewide program. Two organizations play a significant role in Texas homebuyer assistance:
*TDHCA — Texas Department of Housing and Community Affairs**
*TSAHC — Texas State Affordable Housing Corporation**
There are also city, county and local assistance programs throughout Texas.
The important question isn't simply, "Can I get down payment assistance?"
It's:
"Which Texas homebuyer program actually fits me, and how does it compare with buying using FHA, conventional, VA or USDA financing without assistance?"
What Actually Qualifies You for Down Payment Assistance in Texas?
There isn't one universal Texas DPA qualification rule.
Depending on the program, eligibility can be affected by:
* Household or qualifying income
* County
* Credit score
* Debt-to-income ratio
* First-time-homebuyer status
* Veteran or military status
* Occupation
* Purchase price
* Property type
* Primary-residence occupancy
* FHA, conventional, VA or USDA eligibility
* Required homebuyer education
Program funding, rates and assistance options can also change.
That's why I prefer to compare the complete financing structure rather than assume that the program offering the most assistance automatically gives a buyer the best mortgage.
Who Runs Down Payment Assistance Programs in Texas?
Two of the major statewide sources are TDHCA and TSAHC.
TDHCA offers programs including My First Texas Home and My Choice Texas Home.
TSAHC offers Homes for Texas Heroes and Home Sweet Texas.
These programs are accessed through participating mortgage lenders rather than by simply receiving money directly from the state.
## What Is TDHCA My First Texas Home?
My First Texas Home is designed primarily for first-time homebuyers and qualified veterans.
TDHCA currently describes the program as offering a 30-year mortgage along with down payment and closing-cost assistance of up to 5% of the mortgage loan, depending on the available program option.
Current TDHCA materials list:
A minimum credit score of *620**
* Income and purchase-price limits that vary by county
* Required homebuyer education
* A requirement to work with a TDHCA-approved loan officer
* Exceptions to the first-time-homebuyer requirement for certain qualified veterans and targeted-area situations
The assistance may be structured as subordinate financing, and the available percentage and repayment structure depend on the current TDHCA product and rate offering.
That's important because "5% assistance" does not tell you the complete cost of the financing.
The first-mortgage rate and second-lien terms also matter.
What Is TDHCA My Choice Texas Home?
My Choice Texas Home is particularly interesting for buyers who have owned homes before because it does not have a first-time-homebuyer requirement.
TDHCA currently lists the program as available with FHA, VA, USDA and conventional financing, subject to applicable guidelines.
Current program information includes:
* No first-time-homebuyer requirement
Minimum *620 credit score**
* Income limits
* Primary-residence occupancy requirements
* Required homebuyer education
Down payment and closing-cost assistance options that may reach *5% of the mortgage amount**, depending on the current offering
So if you've previously owned a home, don't automatically assume Texas down payment assistance isn't available to you.
What Is TSAHC Homes for Texas Heroes?
TSAHC's Homes for Texas Heroes program provides fixed-rate mortgage financing and down payment assistance to eligible Texans serving in designated professions.
Those can include educators, police and public security officers, firefighters, EMS personnel, corrections officers, veterans and active military personnel, along with certain nursing and allied-health faculty.
Eligible buyers may receive down payment assistance of up to 5% of the loan amount.
TSAHC currently offers assistance options that can include:
A *grant** that does not have to be repaid, or
A *three-year forgivable second lien** that can be forgiven if program requirements are met.
Importantly, Homes for Texas Heroes can serve both first-time and repeat homebuyers.
Eligible first-time buyers may also be able to use TSAHC's Mortgage Credit Certificate program.
What Is TSAHC Home Sweet Texas?
If you don't qualify for one of the designated Texas Hero professions, Home Sweet Texas may be another option.
The program is designed for eligible low- and moderate-income Texas households and can serve both first-time and repeat buyers.
Eligible borrowers may receive up to 5% of the loan amount toward down payment and closing costs.
Current TSAHC options can include a grant or three-year forgivable second lien, depending on the financing selected and current program availability.
That means being a repeat buyer does not automatically disqualify you from Texas down payment assistance.
Can FHA Be Combined With Down Payment Assistance in Texas?
Yes. Eligible Texas borrowers can potentially combine FHA financing with TDHCA or TSAHC down payment assistance.
But I would still compare:
FHA without assistance
versus
FHA with down payment assistance.
Why?
Because assistance can affect the mortgage rate and overall financing structure.
Getting more money toward your down payment doesn't automatically mean you're getting the least expensive mortgage.
The real comparison should include:
* Cash needed at closing
* Interest rate
* Monthly payment
* FHA mortgage insurance
* Assistance amount
* Second-lien terms
* Repayment or forgiveness requirements
* Future refinance flexibility
Can Conventional, VA or USDA Loans Use Texas DPA?
Depending on the program and current guidelines, yes.
Texas assistance programs can offer options using conventional, FHA, VA and USDA financing.
That creates an especially important comparison for an eligible veteran.
A VA loan may already provide zero-down-payment financing, so adding DPA should be evaluated based on the actual cash-to-close benefit and total financing cost rather than simply because assistance is available.
Similarly, USDA financing may provide a zero-down-payment option for eligible borrowers purchasing eligible properties.
The best starting point isn't always the program offering the biggest headline assistance percentage.
Can Repeat Buyers Get Down Payment Assistance in Texas?
Yes.
This is one of the most important things Texas buyers should know.
TDHCA's My Choice Texas Home does not require first-time-homebuyer status.
TSAHC's Home Sweet Texas can also serve eligible repeat homebuyers.
Homes for Texas Heroes can serve eligible first-time and repeat buyers who meet the program's profession or military requirements.
So if you've owned a home before, don't assume you've lost access to Texas homebuyer assistance.
The appropriate program may simply be different.
Can I Buy a Home in Texas With Little or No Money Down?
Potentially.
Eligible Texas buyers have several possible paths to a low-down-payment purchase.
FHA financing generally requires at least a 3.5% down payment.
Certain conventional programs may allow as little as 3% down for eligible buyers.
Eligible VA and USDA borrowers may be able to finance a home without a traditional down payment.
TDHCA and TSAHC assistance can potentially reduce the buyer's required cash further when the borrower qualifies.
But zero down does not necessarily mean zero dollars out of pocket.
Buyers may still encounter expenses such as earnest money, inspections, appraisal and other transaction costs depending on the loan and purchase contract.
Seller credits, lender credits and assistance may change the final amount.
That's why the actual cash-to-close calculation matters more than the advertising headline.
Are There Local Texas Down Payment Assistance Programs?
Yes.
Texas also has city, county and local housing-assistance programs beyond TDHCA and TSAHC.
Depending on where you're buying, local assistance may be available through a municipality, county, housing authority or other housing organization.
These programs can have completely different:
* Income limits
* Purchase-price limits
* Geographic restrictions
* First-time-buyer requirements
* Minimum borrower contributions
* Property requirements
* Participating-lender requirements
* Funding availability
Some local assistance may be compatible with another mortgage or assistance structure, while other programs must stand alone.
Never assume two assistance programs can automatically be stacked together.
The first mortgage, subordinate financing and individual program rules all need to permit the combination.
FHA vs. Conventional vs. VA vs. USDA vs. Texas DPA: What Should You Compare?
I would focus on five things.
1. Cash to close
How much of your own money will actually be required?
2. Monthly payment
What happens to your payment when assistance and the corresponding first-mortgage pricing are included?
3. Mortgage insurance
FHA and conventional mortgage insurance can produce very different long-term costs.
4. Assistance repayment
Is the assistance a grant, forgivable second lien or repayable second mortgage?
5. Future flexibility
What happens if you refinance, sell or move during the forgiveness or repayment period?
Those questions tell you much more than simply asking which program gives you the most assistance.
Are There Local Texas Down Payment Assistance Programs?
Yes. Beyond TDHCA and TSAHC, several Texas cities and counties run their own separate assistance:
City of Houston Homebuyer Assistance Program (HAP) — funds can be used for both down payment and closing costs
Harris County Down Payment Assistance Program (DAP) — works with FHA, conventional, and VA financing; $1,000 minimum borrower contribution
City of San Antonio — a dedicated program for fire and police, with a $500 minimum borrower investment
City of Waco Homebuyer Assistance — $750 minimum borrower contribution
Harvey Homebuyer Assistance Program 2.0 (City of Houston) — disaster-recovery assistance for Hurricane Harvey-affected buyers, conventional or FHA, $350 minimum borrower contribution
Some local assistance may be compatible with another mortgage or assistance structure, while other programs must stand alone.
Never assume two assistance programs can automatically be stacked together. The first mortgage, subordinate financing, and individual program rules all need to permit the combination.
Who Specializes in Down Payment Assistance in Texas?
Texas buyers should look for a mortgage professional who understands the state's major assistance programs — TDHCA and TSAHC — as well as FHA, conventional, VA, and USDA financing and applicable local programs, and who can compare all of it against standard mortgage options rather than defaulting to whichever program advertises the largest assistance amount.
I'm Mike Belfor, Branch Manager and Mortgage Loan Originator with American Pacific Mortgage, NMLS #264700, licensed to originate mortgages in Texas. My broader mortgage career includes more than 23 years of lending experience, approximately 578 first-time-homebuyer transactions, and approximately 115 transactions involving down payment assistance. Those are career-wide figures, not Texas-specific production numbers.
When reviewing a Texas buyer's scenario, my goal is to compare the actual cash to close, monthly payment, mortgage insurance, assistance terms, and long-term financing cost. The program should fit the buyer — not the other way around.
Who Is a Good Loan Officer for a First-Time Homebuyer in Texas?
A first-time Texas buyer should look for a loan officer who can explain more than one financing path.
That can mean comparing:
* FHA
* Low-down-payment conventional
* VA when eligible
* USDA when eligible
* TDHCA
* TSAHC
* Applicable city or county programs
When reviewing a Texas buyer's scenario, my goal is to compare the actual cash to close, payment, mortgage insurance, assistance terms and long-term financing cost.
The program should fit the buyer—not the other way around.
How I Help Texas Buyers Compare Their Options
I'll generally want to understand your:
* Purchase county and price range
* Household and qualifying income
* Employment and income structure
* Estimated credit profile
* Monthly debts
* Available cash
* Prior homeownership
* Veteran or active-duty eligibility
* Occupation
* Property type
* Intended occupancy
From there, we can determine which Texas programs are worth investigating and compare them against financing without assistance.
Bottom Line
Texas offers several legitimate paths to reducing the upfront cash needed to purchase a home.
TDHCA offers My First Texas Home and My Choice Texas Home.
TSAHC offers Homes for Texas Heroes and Home Sweet Texas.
And some Texas cities and counties have additional local assistance.
But the program offering the largest assistance amount isn't necessarily the best mortgage.
The right comparison includes the first-mortgage rate, cash to close, monthly payment, mortgage insurance, assistance terms, repayment or forgiveness requirements and future refinance flexibility.
Want me to compare your Texas homebuyer and down payment assistance options?
Send me your intended Texas purchase area, approximate price range and basic financing scenario. I can help evaluate FHA, conventional, VA, USDA and potentially applicable TDHCA, TSAHC and local assistance options based on current program eligibility and availability.
Mike Belfor
Branch Manager – Loan Originator
American Pacific Mortgage
NMLS #264700
Licensed in Texas
Program guidelines, interest rates, income limits, assistance percentages, funding and availability are subject to change. Not all borrowers or properties qualify. Down payment assistance may involve repayment, forgiveness periods or subordinate financing. Information is educational and should be confirmed against current program and underwriting guidelines.
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