Texas Down Payment Assistance in 2026: TDHCA, TSAHC, and What Actually Qualifies You
Last reviewed: September 2026
Texas doesn't run down payment assistance through one agency — it runs it through two, plus a long list of city and county programs layered on top. That's the part most guides skip, and it's exactly why "just use FHA" isn't always the full answer for a Texas buyer.
Buying a home in Texas doesn't require 20% down for most buyers. Depending on your income, county, loan type, and whether you're a first-time buyer, down payment assistance may cover some or all of what you'd otherwise need in cash. The important part is figuring out which program — or combination of programs — actually fits your situation.
Who Runs Down Payment Assistance in Texas?
Two separate state entities administer the major Texas DPA programs, and they're not interchangeable:
• TDHCA (Texas Department of Housing and Community Affairs) — runs My First Texas Home and My Choice Texas Home
• TSAHC (Texas State Affordable Housing Corporation) — runs Homes for
Texas Heroes and Home Sweet Texas
Both work exclusively through approved participating lenders — you don't apply to the state directly.
TDHCA: My First Texas Home vs. My Choice Texas Home
My First Texas Home pairs a 30-year fixed mortgage with up to 5% of the loan amount in down payment and closing cost assistance, structured as a 0%-interest second lien. You choose between a 3-year forgivable version or a 30-year deferred version. This program is for first-time buyers and qualifying veterans (veterans are exempt from the first-time requirement).
My Choice Texas Home uses the same 5% structure but drops the first-time-buyer requirement entirely — it's TDHCA's option for repeat buyers.
Both require a minimum 620 credit score and come with income and purchase-price limits that vary by county.
TSAHC: Homes for Texas Heroes and Home Sweet Texas
Homes for Texas Heroes is built for teachers, firefighters, EMS personnel, police officers, correctional officers, and veterans — and you don't need to be a first-time buyer to qualify. Assistance comes as either a grant (never repaid) or a 0%-interest forgivable second lien, up to 5% of the loan amount.
Home Sweet Texas is TSAHC's option for buyers who don't fall into one of the Homes for Texas Heroes professions. It offers the same up-to-5% structure and, importantly, is also open to repeat buyers — first-time status only affects eligibility for the add-on Mortgage Credit Certificate, not the core assistance.
Can FHA Be Combined With Texas DPA?
Yes. FHA financing pairs with either TDHCA or TSAHC assistance. The DPA doesn't automatically make the deal cheaper overall, though — a second lien changes your total cost picture depending on whether it's a grant, forgivable, or deferred structure, so it's worth comparing FHA alone against FHA-plus-assistance before assuming assistance is the better path.
Local Texas Programs Worth Knowing About
Beyond the two statewide agencies, several Texas cities and counties run their own separate assistance:
• City of Houston Homebuyer Assistance Program (HAP) — funds usable 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 specifically for Hurricane Harvey-affected buyers, conventional or FHA, $350 minimum borrower contribution
Whether a local program stacks on top of TDHCA or TSAHC assistance, or has to stand alone, depends on that program's specific rules — worth confirming before writing an offer around it.
Can Repeat Buyers Get Down Payment Assistance in Texas?
Yes — and this is where Texas is more flexible than a lot of states. My Choice Texas Home (TDHCA) and Home Sweet Texas (TSAHC) were both built specifically without a first-time-buyer requirement. If you've owned before, you're not automatically excluded from Texas DPA the way you would be in some other states — you just land in a different program than a first-time buyer would.
What Cash Might You Still Need at Closing?
Down payment assistance can significantly reduce what you bring to the table, but it doesn't always cover everything. Buyers should still plan for items like earnest money, inspection, appraisal, and any costs the specific program doesn't reach. The exact number depends on the program, the first mortgage, seller concessions, and the property itself.
How I Help Texas Buyers Compare Their Options
I review a buyer's income, credit profile, occupancy plans, purchase area, and available funds, then compare FHA, conventional, VA, and USDA financing against TDHCA and TSAHC assistance — and any local city or county program that may apply. The goal isn't finding the largest assistance number; it's understanding the full picture: cash to close, monthly payment, mortgage insurance, second-lien repayment terms, and what happens if you sell or refinance down the road.
Ready to See What You Qualify For?
Program availability, income limits, and funding change regularly. Reach out and I'll run your specific numbers against what's actually available in your county — not just the headline state programs.
Mike Belfor, Branch Manager and Mortgage Loan Originator with American Pacific Mortgage, NMLS #264700, is licensed in Texas and helps buyers compare FHA, conventional, VA, USDA, and Texas down payment assistance options including TDHCA and TSAHC programs.
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