TSAHC Home Sweet Texas HFA Loan

The Home Sweet Texas HFA loan is administered by the Texas State Affordable Housing Corporation (TSAHC). The program aims to help Texans with low or moderate incomes buy their first home. This Texas down payment assistance program is available to homebuyers anywhere in the state.

The TSAHC Home Sweet Texas HFA loan can also be combined with the Texas Mortgage Credit Certificate (MCC) tax. The Texas MCC further increases your purchasing power by giving you an annual tax credit equal to 20% of what you paid in mortgage interest during the previous tax year. In effect, this reduces your mortgage interest rate because a portion of your interest is refunded.

Eligibility requirements

To be eligible for the TSAHC Home Sweet Texas HFA loan, you need to meet the following three criteria.

1. The property must be in Texas
2. You’ll need a credit (FICO) score of 620 or higher
3. Your income must be below a certain threshold, which ranges between $71,280 and $97,840*, depending on the location of the home you’re purchasing.

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

Type of loan

The TSAHC Home Sweet Texas HFA loan is a fully forgivable loan. This means you don’t have to pay the money back as long as you consistently make your monthly mortgage payments on time and live in the home as your primary residence for the first three years. After this forgiveness period, if you’ve met all the criteria, your TSAHC loan is fully forgiven.

Amount of down payment assistance

With the TSAHC Home Sweet Texas HFA loan, you could qualify for down payment assistance equal to 5% of your home’s total purchase price. There is no official limit to the amount of assistance you can receive through this program. However, in practice, the program’s income limits are likely to define the upper limit of your loan, and in turn, the amount of down payment assistance you can receive.

Minimum borrower contribution

There is no minimum borrower contribution for the TSAHC Home Sweet Texas HFA loan. The program allows you to access down payment assistance without contributing any of your own money. This makes the program attractive for those with little to no savings.

Purchase price limits

This program has no purchase price limit. However, as mentioned above, your income will determine how much you can borrow and, in turn, the value of the home you can purchase.

Income limits

To qualify for the TSAHC Home Sweet Texas HFA loan, your income must be below the program’s threshold. This threshold currently falls between $71,280 and $97,840. The exact income limit depends on the area in which the home is located.

It’s also worth noting that the income limits on this program change regularly. Use our free down payment assistance finder to check if you qualify.

How to qualify for the TSAHC Home Sweet Texas HFA loan

To qualify for down payment assistance through this program, you’ll need to meet the eligibility requirements listed above. To check if you might qualify, use our free down payment assistance finder.

How to apply for TSAHC Home Sweet Texas HFA loan

The only way to apply for the TSAHC Home Sweet Texas HFA loan is through a qualified, participating mortgage lender. You are unable to apply on your own, directly through TSAHC. To find a participating lender who can help you apply, use our free down payment assistance finder.