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Down payment help in Texas
Down payment assistance, sometimes called DPA, can help with the cash you need to close on a home in Texas. Pick My Mortgage Rate can help Texas buyers with programs from the Texas State Affordable Housing Corporation (TSAHC), including Homes for Texas Heroes and Home Sweet Texas, and with a TSAHC Mortgage Credit Certificate when it is available and you qualify. We can also compare other lender down payment assistance, available in all of the states where we are licensed, side by side with a standard loan that has no assistance. This page explains how that help works, what TSAHC currently publishes, what to weigh, and how we compare your options, subject to approval and eligibility.
Illustrative only. TSAHC amounts and forms depend on current offerings. Other lender program amounts and terms are not listed here. All loans subject to approval.
Neither the Loan Originator nor Loan Factory, Inc. is a government agency or is affiliated with, endorsed by, or acting on behalf of the U.S. Government, the Department of Veterans Affairs (VA), the Federal Housing Administration (FHA), or the U.S. Department of Agriculture (USDA).
If you are looking for Texas down payment assistance, down payment assistance in Texas, or first-time home buyer assistance in Texas, the starting point is the same: understand the form of help, the rules, and the trade-offs, then compare it with a loan that has no assistance.
Down payment assistance can go toward your down payment, closing costs, or both, subject to the program's rules. TSAHC currently publishes assistance of up to 5% of the loan amount. The amount and form that are available depend on the loan type and on current offerings.
TSAHC assistance can be a grant, a second loan that is forgiven after three years, or, in some offerings, a repayable second loan. We will explain the form that applies to you, in plain language.
DPA is typically paired with a first mortgage. Depending on the program and your eligibility, that can be an FHA, VA, USDA, or conventional loan. See our loan programs page.
TSAHC down payment assistance is open to first-time and repeat buyers. A TSAHC Mortgage Credit Certificate has a first-time-buyer rule, with exceptions for qualified veterans and homes in targeted areas.
Assistance can reduce the cash you need at closing, but it can come with a higher rate or higher costs than a loan with no assistance. A second loan may be due if you sell or refinance. We will put those trade-offs next to a standard loan.
Jerry Kindig is a mortgage loan originator licensed in Texas (NMLS #2397823), working through Loan Factory (NMLS #320841). Texas is one of the states where we are licensed. See our Texas page and where we are licensed.
This is the down payment help we can actually compare for your file. It is available in every state where we are licensed.
Pick My Mortgage Rate, Jerry Kindig's team through Loan Factory, has access to other lender down payment assistance programs. Those programs may be a better fit for your situation, and they are available in all of the states where we are licensed, including Texas. See where we are licensed.
We do not list those lender programs by name on this page, and we do not publish amounts or terms for them, because the right option depends on your file and on current lender guidelines. When you talk with us, we will compare them side by side with a standard loan that has no assistance, subject to approval and eligibility.
This is the comparison we can run for your file, for TSAHC programs and for other lender assistance. We do not name those other lender programs, or their amounts or terms, on this page. The right option depends on your situation and on current guidelines. Subject to approval and eligibility.
| Assistance we can compare | A loan with no assistance | |
|---|---|---|
| What it is | TSAHC down payment assistance, a TSAHC Mortgage Credit Certificate when available, and other lender assistance we have access to. Other lender names, amounts, and terms are reviewed with you, not listed here. | You fund the down payment and closing costs from your own funds, a gift, or seller credits, as the loan type allows. |
| Where it is available | TSAHC programs are for Texas home purchases. Other lender assistance is available in all of the states where we are licensed, including Texas. | In the states where we are licensed, subject to eligibility. |
| How we help | We compare the options that may fit your file, in plain language, subject to approval. | We include this path in the same side-by-side comparison. |
| Best Price Guarantee | Does not apply to down payment assistance loans. | The guarantee is not featured on this page. See our Best Price Guarantee page for where it does and does not apply. |
The label is "assistance," but the legal form of that help can be a grant or a second loan. Knowing the difference is the useful part.
Down payment assistance is help with the money you need to buy a home. People searching for Texas down payment assistance, first-time home buyer assistance in Texas, or DPA loans in Texas are usually looking for the same thing: a way to close with less cash out of pocket, without guessing at the rules.
The help is typically paired with a first mortgage. The first mortgage can be an FHA, VA, USDA, or conventional loan, when the program allows that loan type and you qualify. Assistance is then applied at closing, often toward the down payment, closing costs, or both.
The form of the help matters as much as the amount. TSAHC currently publishes these structures. Other lender programs we compare may use similar forms.
TSAHC currently offers a grant with government loans (FHA, VA, or USDA), not with conventional loans. TSAHC's official home-buyer FAQ says that as long as the first mortgage is not refinanced or otherwise paid off in the first six months, you never have to repay any portion of the grant. TSAHC calls it a gift. Consumer program pages describe the grant as assistance that never has to be repaid; the FAQ is the more precise statement, and we follow it here.
TSAHC also offers a three-year deferred forgivable second loan, available with government and conventional loans. There are no monthly payments on that second loan. TSAHC says it is forgiven in full on the third anniversary of closing. If you sell, refinance, transfer the home, pay off the first mortgage, or stop occupying it as your principal residence during those three years, the second loan is typically due in full.
TSAHC also has a Bond down payment assistance option, structured as a deferred repayable second loan, with different eligibility. That option is typically limited to borrowers at or below 80% of area median family income, and to first-time buyers, unless you are a qualified veteran or buying in a targeted area. Confirm current availability and terms.
TSAHC currently publishes assistance of up to 5% of the loan amount, toward the down payment and closing costs. The amount and form that are available depend on the loan type and on current offerings. This page does not treat every percentage as always available. We will confirm current terms with your file. We do not treat any one structure as better in the abstract. The right option depends on how long you expect to stay, whether you may refinance, and what you qualify for.
Jerry Kindig's team can help you with TSAHC home-buyer programs, subject to eligibility and current rules.
The Texas State Affordable Housing Corporation, or TSAHC, is a nonprofit created to help make homeownership more affordable for Texans. It offers fixed-rate first mortgages paired with down payment assistance, and, when available, a Mortgage Credit Certificate.
Pick My Mortgage Rate can help Texas buyers with TSAHC programs, subject to eligibility, underwriting, current TSAHC rules, and available funds. You apply through a participating lender, not directly with TSAHC. We will review whether a TSAHC option, other lender assistance, or a standard loan with no assistance is the better fit for your file.
Home buyers using TSAHC programs must complete an approved home buyer education course. The home must be your primary residence. TSAHC income limits and, for some options, purchase-price limits apply, and they vary by county. We will look at the current figures for the county where you are buying. Confirm current terms, because offerings and limits change.
A TSAHC program for eligible Texas educators, first responders, corrections professionals, and veterans, including first-time and repeat buyers.
Homes for Texas Heroes is TSAHC's program for Texans who serve their communities. TSAHC currently lists eligible professions as educators, police officers, firefighters, EMS personnel, county jailers, correctional officers, and military veterans. TSAHC defines each of those professions in detail, including full-time and licensing rules, and includes related roles such as nursing and allied-health faculty, juvenile corrections officers, public security officers, and, in some cases, an unmarried surviving spouse of a veteran. We will review that definition with your file. The program is open to first-time and repeat buyers.
If you qualify, TSAHC pairs a fixed-rate first mortgage with down payment assistance of up to 5% of the loan amount, as TSAHC currently publishes, toward the down payment and closing costs. The assistance may be a grant or a three-year deferred forgivable second loan, as described above. The amount and form that are available depend on the loan type and on current offerings.
Income limits for Homes for Texas Heroes are generally set at 170% of area median family income and vary by county. TSAHC raised those limits in July 2026. Credit-score minimums currently published by TSAHC are 620 on government loans (FHA, VA, or USDA) and 640 on conventional loans. Some loan and property types may have a higher minimum. Meeting a minimum is not an approval. Examples and current figures are in the eligibility section below.
If you are a first-time buyer, or you qualify for an exception, you may also be able to add a TSAHC Mortgage Credit Certificate. TSAHC currently publishes the MCC as free for home buyers who qualify for Homes for Texas Heroes, when the MCC is available.
A TSAHC program that is not profession-specific, for Texas households that meet the income and other program rules.
Home Sweet Texas is TSAHC's program for low- and moderate-income Texas households. It is not limited to a profession. It is open to first-time and repeat buyers who meet the income and other program rules.
The down payment assistance structure is the same as Homes for Texas Heroes: a fixed-rate first mortgage, with assistance of up to 5% of the loan amount, as TSAHC currently publishes, as a grant or a three-year deferred forgivable second loan, depending on the loan type and on current offerings. The assistance can go toward the down payment and closing costs.
Income limits for Home Sweet Texas are generally set at 150% of area median family income and vary by county. Those limits were also raised in TSAHC's July 2026 update, and they are lower than the Homes for Texas Heroes limits. Credit-score minimums are the same: TSAHC currently publishes 620 on government loans and 640 on conventional loans. If you are a first-time buyer, or you qualify for an exception, you may also be able to add a TSAHC Mortgage Credit Certificate, as funds are available.
If you work in an eligible Heroes profession, Homes for Texas Heroes may give you a higher income limit and a free MCC when an MCC is available. We will look at both programs against your file.
An MCC can sit alongside TSAHC assistance for eligible first-time buyers, as funds are available. It is a tax credit, not cash at closing.
A TSAHC Mortgage Credit Certificate, or MCC, is a federal income tax credit, not a loan and not cash at closing. TSAHC currently publishes a credit equal to 15% of the mortgage interest you pay each year, for each year you occupy the home as your principal residence. The credit cannot exceed your federal income tax liability for the year. It is not the same as a deduction, and it is not a payment example. Tax results depend on your own tax situation; this is not tax advice.
TSAHC's stand-alone MCC program has been discontinued indefinitely. An MCC may still be obtained in combination with TSAHC down payment assistance, or with TSAHC's option that has no down payment assistance, as funds are available. You must apply for the MCC before you close. You cannot apply after closing. TSAHC's 2026 qualified MCC program has been implemented; availability is still "as funds are available."
For the MCC, TSAHC defines a first-time home buyer as someone who has not owned or had an ownership interest in a principal residence during the last three years. That requirement is waived if you are a qualified veteran or you are buying in a targeted area. TSAHC's 2026 program notice says you must intend to occupy the home as your principal residence within 60 days after the MCC is issued. If you sell within nine years, you may be subject to a federal recapture tax. Purchase-price limits also apply.
MCC income limits are set by federal rules and are lower than TSAHC's down payment assistance limits. TSAHC's 2026 program notice uses 100% of area median family income for households of two or fewer, and 115% for households of three or more, with higher limits in targeted areas. If you plan to combine an MCC with TSAHC down payment assistance, you must meet the lower MCC income limit, not only the DPA limit. TSAHC currently publishes the MCC as free for buyers who qualify for Homes for Texas Heroes, when the MCC is available.
Requirements vary by program and by county. The list below is a guide to what we will ask about, not a checklist that guarantees approval.
Every program writes its own rules. For TSAHC, these are the factors we will review with your file. None of them is a promise of approval. Confirm current figures, because limits change.
TSAHC currently publishes a minimum credit score of 620 on government loans (FHA, VA, or USDA) and 640 on conventional loans. Some loan and property types may have a higher minimum. Meeting a minimum does not mean you are approved. Your full file is underwritten, and the first mortgage has its own rules.
Home Sweet Texas income limits are generally 150% of area median family income. Homes for Texas Heroes limits are generally 170%. Limits vary by county. Bond DPA and MCC options use lower limits. Targeted areas can have higher limits. If you add an MCC, you must meet the lower MCC limit.
These examples are for TSAHC non-Bond down payment assistance, any household size, as shown on TSAHC's county income limits tool after the July 2026 update. Confirm current limits for your county. Austin (Travis): Home Sweet Texas $201,600; Heroes $228,480. Dallas: $181,650 and $205,870. Fort Worth (Tarrant): $165,450 and $187,510. Houston (Harris): $156,000 and $176,800. San Antonio (Bexar): $157,358.12 and $178,339.20. El Paso: $152,250 and $172,550.
Home buyers using TSAHC programs must complete an approved home buyer education course. A course certificate is not a loan approval and is not a reservation of funds.
The home must be your primary residence. Investment properties and vacation homes are outside these programs. The loan type, the purchase price, and the property type must fit the program. Purchase-price limits apply to some TSAHC options, including the MCC and Bond DPA.
TSAHC down payment assistance is open to first-time and repeat buyers. An MCC has a first-time rule, with exceptions for qualified veterans and targeted areas. Homes for Texas Heroes is limited to eligible professions, as TSAHC defines them. Bond DPA has its own first-time and income rules.
Help with cash to close is useful. It is worth knowing what you give up, or take on, in return.
Assistance can make a purchase possible sooner, by reducing the cash you have to bring to closing. It is still a trade. We will put those trade-offs next to a standard loan that has no assistance, so you can see them clearly.
The first mortgage that comes with assistance can have a higher interest rate, or higher costs, than a loan with no assistance. We do not list rates or payment examples on this page. The comparison for your file is the place to see the difference.
A TSAHC grant has the six-month first-mortgage condition described above. A three-year forgivable second loan is typically due in full if you sell, refinance, transfer, pay off the first mortgage, or move out during those three years. Bond DPA is a repayable second loan. An MCC may involve recapture tax if you sell within nine years.
Education, income limits, occupancy rules, and, for some options, purchase-price limits can add time and conditions. Offerings change, and some forms of assistance, including the TSAHC MCC, are available only as funds allow. We will not claim that help is always available, and we will confirm what we can offer at the time you talk with us.
The $2,000 Best Price Guarantee does not apply to down payment assistance loans.
For a broader look at how this kind of help compares with saving for a larger down payment, see Down Payment Assistance vs. Saving 20% and our national down payment assistance overview.
Here is the path we use. We will compare TSAHC programs, and other lender down payment assistance available in all of the states where we are licensed, with a standard loan that has no assistance.
Share the Texas county, the price range, your income and household size, your credit picture, and, for Homes for Texas Heroes, your profession. That gives us enough to start a comparison.
We will compare TSAHC programs that may fit your file, other lender assistance, and a standard loan that has no assistance. Other lender names, amounts, and terms are not listed on this page. Subject to approval and eligibility.
You will see the differences in plain language, including the form of the help and the trade-offs. You decide whether TSAHC assistance, other lender assistance, or a standard loan is the better fit, subject to approval.
If you move forward, we originate the option you chose, subject to underwriting, approval, eligibility, and, for TSAHC, current program rules and available funds. A TSAHC MCC, if you want one, must be applied for before closing. A prequalification letter is not a loan approval.
Illustrative path. Timelines and requirements vary. All loans subject to approval and eligibility.
Have these ready when you talk with us. A prequalification letter is not a loan approval.
The Texas county and a price range. Texas is one of the states where we are licensed. Other lender assistance can also be compared in every state where we are licensed.
Who will live in the home and sign the note, current income, and, if Homes for Texas Heroes may apply, your profession and how TSAHC defines it.
Whether you have owned a primary residence in the last three years, which matters for a TSAHC MCC and for some other options.
A sense of your credit score and whether FHA, VA, USDA, or conventional is in view. TSAHC currently publishes minimums of 620 on government loans and 640 on conventional loans.
Bring the questions that matter to your file. We will compare TSAHC programs, other lender assistance, and a standard loan, in plain language.
The $2,000 Best Price Guarantee does not apply to down payment assistance. Read the full terms.
Down payment assistance, often shortened to DPA, is help with the money you need to close on a home in Texas. That help can come as a grant, a forgivable second loan, or a repayable second loan, depending on the program. It can go toward your down payment, closing costs, or both, subject to the program's rules. Pick My Mortgage Rate can help Texas buyers with TSAHC programs, including Homes for Texas Heroes and Home Sweet Texas, and can also compare other lender down payment assistance, available in all of the states where we are licensed, side by side with a standard loan that has no assistance. Subject to approval and eligibility.
We can help Texas buyers with TSAHC's Homes for Texas Heroes and Home Sweet Texas home loan programs, and with a TSAHC Mortgage Credit Certificate when it is available and you qualify. You apply through a participating lender, not directly with TSAHC. Help is subject to eligibility, underwriting, current TSAHC rules, and available funds. We will also compare other lender assistance and a standard loan with no assistance.
Both programs pair a fixed-rate first mortgage with down payment assistance of up to 5% of the loan amount, as TSAHC currently publishes, toward the down payment and closing costs. The assistance may be a grant or a three-year deferred forgivable second loan. The amount and form that are available depend on the loan type and on current offerings. Homes for Texas Heroes is for eligible educators, first responders, corrections professionals, and veterans. Home Sweet Texas is for low- and moderate-income Texas households and is not profession-specific. Both are open to first-time and repeat buyers. Home buyers must complete an approved education course, and the home must be your primary residence.
It depends on the form. If it is a TSAHC grant, TSAHC's official FAQ says you do not have to repay it as long as the first mortgage is not refinanced or otherwise paid off in the first six months. If it is a three-year deferred forgivable second loan, TSAHC says it is forgiven in full on the third anniversary of closing, with no monthly payments on that second loan, but it is typically due in full if you sell, refinance, transfer the home, pay off the first mortgage, or stop occupying it as your principal residence during those three years. TSAHC Bond DPA is a repayable second loan. Always read the grant or second-loan documents before you close. We will walk through those documents with you.
A TSAHC MCC is a federal income tax credit equal to 15% of the mortgage interest you pay each year, as TSAHC currently publishes, for each year you occupy the home as your principal residence. It is not cash at closing, and it cannot exceed your federal income tax liability for the year. TSAHC's stand-alone MCC has been discontinued indefinitely. An MCC may still be obtained with TSAHC down payment assistance, as funds are available. You must apply before closing. It is generally for first-time buyers, with exceptions for qualified veterans and targeted areas. Income and purchase-price limits apply, and they are lower than most TSAHC down payment assistance limits. TSAHC currently publishes the MCC as free for Homes for Texas Heroes buyers when it is available. If you sell within nine years, you may be subject to recapture tax. This is not tax advice.
Not for TSAHC down payment assistance. Homes for Texas Heroes and Home Sweet Texas are open to first-time and repeat buyers. A TSAHC MCC does have a first-time rule: you generally must not have owned a principal residence in the last three years, unless you are a qualified veteran or buying in a targeted area. TSAHC Bond DPA is typically limited to first-time buyers, with the same kinds of exceptions. Other lender programs we compare may have their own first-time rules. We will review those rules for your file.
TSAHC income limits vary by county and by program. After a July 2026 update, Home Sweet Texas limits are generally 150% of area median family income, and Homes for Texas Heroes limits are generally 170%. MCC and Bond DPA limits are lower. TSAHC currently publishes a minimum credit score of 620 on government loans and 640 on conventional loans. Some loan and property types may have a higher minimum. Meeting a minimum or an income cap does not mean you are approved. Your full file is underwritten. Confirm current limits for your county. All loans are subject to approval and eligibility.
Yes, when the program allows that loan type and you qualify. TSAHC assistance is paired with a TSAHC first mortgage, which may be FHA, VA, USDA, or conventional. TSAHC currently offers the grant with government loans, not with conventional loans. Conventional loans currently use the three-year deferred forgivable second. See our FHA, VA, USDA, and loan programs pages for how those first mortgages work. The combination is reviewed on your file. Subject to eligibility.
In addition to TSAHC programs in Texas, we can compare other lender down payment assistance programs, available in all of the states where we are licensed, including Texas, side by side with a standard loan that has no assistance. We do not name those other lender programs, or their amounts or terms, on this page, because the right option depends on your file and on current lender guidelines. Subject to approval and eligibility.
Assistance can reduce the cash you need to close, but it can come with a higher interest rate or higher costs on the first mortgage than a loan with no assistance. We do not list rates or payment examples on this page. A second loan may have to be repaid if you sell or refinance before it is forgiven or paid down. TSAHC requires education and has income limits, and some options have purchase-price limits. Some forms of assistance, including the TSAHC MCC, are available only as funds allow. The $2,000 Best Price Guarantee does not apply to down payment assistance. This page does not include the guarantee ticket. You can read the full terms on our Best Price Guarantee page.
Written by Jerry L Kindig III, NMLS #2397823, a mortgage loan originator licensed in Texas. Loan Factory, NMLS #320841, licensed by the Texas Department of Savings and Mortgage Lending. Equal Housing Opportunity. Program rules, income limits, assistance amounts, and loan limits change. Confirm current terms with the Texas State Affordable Housing Corporation (TSAHC) and a licensed loan officer before you make a decision. All loans and assistance are subject to approval and eligibility. Nothing on this page is a promise of approval, a loan offer, or a commitment to lend.
Consumers wishing to file a complaint against a mortgage company or residential mortgage loan originator licensed in Texas, or to file a claim against a residential mortgage loan originator licensed in Texas should send a completed complaint form or claim application to the Department of Savings and Mortgage Lending (SML): 2601 N. Lamar Blvd, Suite 201, Austin, Texas 78705; Tel: 1-877-276-5550. Information and forms are available on SML's Website www.sml.texas.gov.
Tell us about the Texas county, your income, and your plans. We will compare TSAHC programs, other lender assistance, and a standard loan. A licensed loan officer will follow up. Prefer to talk now?