Texas State Affordable Housing Corporation (TSAHC) and down payment assistance

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization that helps Texans with low-to-moderate incomes own their own homes. TSAHC ensures that more homes are built, that more Texans can afford to buy homes, and that more people can sustain homeownership and stay in their homes.

On this page, we’ll focus on the TSAHC programs that specifically help more people in Texas afford to buy their own homes.

In its effort to help more Texans buy homes, TSAHC offers two different down payment assistance programs, both in the form of fully forgivable loans.

The first program, Homes for Texas Heroes HFA Loan, is aimed at Texas residents who work in specific helping professions. The second program, Home Sweet Texas HFA Loan, is available to anyone who meets the income limits and lives in Texas.

TSAHC Homes for Texas Heroes HFA loan

The Homes for Texas Heroes HFA Loan is a forgivable down payment assistance loan program available to Texas residents working in certain professions. It can be fully forgiven, meaning you don’t have to pay any of the money back as long as you make your monthly mortgage payments on time and live in the home for a period of three years. The loan can be combined with the Mortgage Credit Certificate (MCC) tax credit.

Find out if you may qualify.

Which professions qualify for assistance?

To qualify, you need to work in one of these professions:

• Full-time Texas classroom teacher, teacher’s aide, school librarian, school nurse, school counselor, or allied health or nursing faculty member.
• Full-time paid firefighter, peace officer, corrections officer, juvenile corrections officer, county jailer, EMS personnel, or public security officer.
• Veteran

How much assistance can you get?

TSAHC’s Homes for Texas Heroes Loan provides down payment assistance equal to 5% of the home’s total purchase price.

Does assistance have to be paid back?

No, you do not need to pay back the 5% down payment assistance as long as you don’t move or sell your home in the first three years. You also must consistently make your mortgage payments on time during this period. If these criteria are met, the loan is fully forgiven and you don’t have to pay any of the money back.

What is the purchase price limit?

There is no maximum purchase price for this TSAHC program. In theory, the program can be used to purchase a home of any value, as long as you meet the program’s criteria.

How much do you need to contribute?

You don’t need to put any of your own money toward a down payment in order to access TSAHC’s Homes for Texas Heroes. The program has no minimum buyer contribution.

How much do you need to earn?

Your income will need to be below a certain limit. This limit is between $71,280 and $97,840. The exact threshold depends on the area in which you buy a house.

Note that TSAHC regularly reviews its income limits. While these figures were accurate at publication, they will change over time. Use our free down payment assistance finder to see if you might qualify.

What credit score do you need?

To qualify for TSAHC’s Homes for Texas Heroes program, you need to have a credit (FICO) score of 620 or higher.

How do you apply?

The only way to apply for TSAHC Homes for Texas Heroes is through a qualified, participating lender. You can’t apply yourself through TSAHC. To find a lender that can help you apply for this loan, use our free down payment assistance finder.

TSAHC Home Sweet Texas HFA Loan

The Home Sweet Texas HFA Loan is a down payment assistance loan available everywhere in Texas that can be fully forgiven if you don’t sell or refinance for a period of three years after purchase.

Like Homes for Texas Heroes, this program can also be combined with the Texas Mortgage Credit Certificate (MCC) tax credit.

Find out if you may qualify.

How much assistance can you get?

The Home Sweet Texas HFA loan is down payment assistance for up to 5% of the home’s purchase price.

Does the assistance have to be paid back?

The down payment assistance available through this TSAHC program is forgivable and you don’t need to pay it back. The only catch is that you can’t move or sell your home in the first three years. You also must make all of your monthly mortgage payments on time during this three-year period in order to qualify for full forgiveness.

What is the purchase price limit?

There is no purchase price limit for the TSAHC Home Sweet Texas HFA Loan. This TSAHC program can be used to purchase a home of any price.

How much do you need to contribute?

You don’t need to make a contribution when you use the TSAHC Home Sweet Texas FHA Loan. As long as you meet the other qualification criteria, you do not need to use any of your own savings.

What credit score do you need?

To qualify for this TSAHC program, your Credit (FICO) score needs to be 620 or higher.

How much do you need to earn?

Your income needs to be below the program’s predetermined limit, which is somewhere between $71,280 and $97,840 depending on the location of the home you want to buy.

Note that TSAHC regularly reviews its income limits. While these figures were accurate at publication, they will change over time. Use our free down payment assistance finder to check if you may qualify.

Choosing between Home for Texas Heroes and Home Sweet Texas

The TSAHC program you choose will come down to your profession. Both programs are very similar and offer 5% down payment assistance as a fully forgivable loan.

Other than profession, the main difference between the two is that the income limits are higher for the Homes for Texas Heroes loan than they are for the Home Sweet Texas loan. This means that if you work in one of the helping professions listed in the criteria section above, you have a greater chance of qualifying for the Homes for Texas Heroes program.

How to apply for down payment assistance through TSAHC

To qualify for down payment assistance through TSAHC, you must apply through a lender that is approved to make TSAHC applications. To find a lender and see if you might qualify for a TSAHC program, use our free down payment assistance finder.