TDHCA My Choice Texas Home Down Payment Assistance

The Texas Department of Housing and Community Affairs (TDHCA) runs the TDHCA My Choice Texas Home program. This program helps low-to-moderate income buyers all over Texas purchase a home through down payment assistance (DPA).
Unlike many DPA programs, My Choice Texas Home does not have a first-time homebuyer requirement. Funding comes in the form of a down payment assistance lien, and it can be combined with the Texas Mortgage Credit Certificate (MCC).

Eligibility requirements

To qualify for TDHCA My Choice Texas Home, you must meet the following eligibility requirements:

1. The property you purchase must be in the state of Texas.
2. You’ll need a credit (FICO) score of 620 or higher.
3. Your total household income must be below program thresholds, which currently fall between $56,000 and $149,875 depending on the type of loan and the location of your purchase. 
4. Your total debts after closing must be 55% or less of your monthly income.

*For all DPA programs, income and purchase price limits are regularly reviewed and updated. These amounts were correct at publication but may change with time.

Type of assistance

There are two types of assistance provided by this program: 

Three-year forgivable lien: This assistance doesn’t need to be paid back. It is fully forgiven after three years  if you make your mortgage payments on time and live in the house without renting, selling, or refinancing during that time. 

30-year deferred lien: This assistance does have to be paid back, but it accrues zero interest and you don’t have to repay any of the money until the end of your initial 30-year mortgage. 

Amount of down payment assistance

The TDHCA My Choice Texas Home program gives you up to 5% of your home’s purchase price in down payment assistance. This is especially helpful because with a 5% down payment you can usually qualify for a lower interest rate. 

Minimum borrower contribution

There is no minimum borrower contribution for this program, which makes it a great down payment assistance option for those with little or no savings for purchasing a home.

Purchase price limits

This program has no purchase price limits, which technically means you could purchase a house that costs as much as you want. However, the income limits for the program will cap how much you can spend on a home, because you still have to qualify for a mortgage loan.

Income limits

The income limit for this program varies depending on the type of loan you receive and the county in which you purchase. These limits currently fall between $56,000 and $149,875. 

Program income limits are frequently reviewed and revised. To find out if you qualify for this program based on your income, use our free down payment assistance finder.

How to qualify for TDHCA My Choice Texas Home Down Payment Assistance 

To be eligible for this down payment assistance program, you must meet the eligibility requirements detailed in this article. Our free down payment assistance finder can help you verify your eligibility.

How to apply for TDHCA My Choice Texas Home Down Payment Assistance 

To get down payment support from TDHCA My Choice Texas Home, you must apply through a lender who is approved to work with the program. Use our free down payment assistance finder to locate an approved lender who can help you apply.