Down payment help, earned.
The Texas State Affordable Housing Corporation program for eligible Houston buyers — down payment assistance, MCC tax credits, and how to qualify.
Plan
Lender + home search coordination
Up to 5%
Down payment + closing assistance
2
Programs: Heroes & Home Sweet Texas
Section 1
What TSAHC actually is
The Texas State Affordable Housing Corporation is a statewide non-profit created by the Texas Legislature in 1994 to support affordable homeownership and rental housing. TSAHC is not a lender — it doesn’t issue mortgages directly. It partners with approved lenders to provide down payment and closing cost assistance alongside a standard mortgage (FHA, VA, USDA, or conventional), so buyers who can afford a monthly payment but don’t have the cash for down payment can still close.
How the assistance arrives
Assistance may be a grant with repayment conditions or a deferred forgivable second lien. TSAHC says a grant must be repaid if the first mortgage is refinanced or otherwise paid off during the first six months. Its three-year forgivable second lien is forgiven on the third closing anniversary; selling, refinancing or transferring the home earlier requires full repayment. Have your lender explain the terms of your selected option in writing.
Section 2
The two main TSAHC programs
Both use the same lender network and the same workflow. Pick the path that fits your situation.
For Texans in qualifying roles
Homes for Texas Heroes
Professional educators, full-time firefighters and EMS, peace officers, corrections officers, county jailers, public security officers, juvenile corrections, veterans and active military, allied health faculty, nursing faculty.
The benefit: A fixed-rate mortgage with down payment and closing cost assistance of up to 5% of the loan amount, subject to the available option and borrower eligibility.
For everyone else within income limits
Home Sweet Texas
You don’t need to be in a “hero” profession. Repeat buyers may qualify for non-bond assistance; bond-funded options and MCCs can have first-time-buyer requirements and exceptions. Your lender checks the specific option.
The benefit: A fixed-rate mortgage with down payment and closing cost assistance of up to 5% of the loan amount, subject to the available option and borrower eligibility.
The qualifying profession, program option, county and loan type affect eligibility. Compare the actual terms your approved lender offers.
Section 3
How the assistance shows up at closing
Illustration only: a $325,000 purchase with a 3.5% down payment. These figures are assumptions, not a lender quote or a prediction of your cash to close.
Without TSAHC
Lender quote needed
Check you write at closing
A 3.5% down payment is $11,375. Add the lender’s actual closing costs and prepaids, then subtract applicable credits and deposits already paid. Earnest money is generally credited at closing; do not count it twice. Account separately for earlier inspection and option payments, including any option-fee credit provided by the contract.
With TSAHC Home Sweet Texas, 5%
Cash due varies
Check you write at closing
If the eligible assistance calculation uses a $313,625 loan amount, 5% equals $15,681.25. Your lender confirms the calculation basis, available option and final amount on the Closing Disclosure; this does not establish a grant offer or your cash due.
The trade-off
Compare an assistance loan with an otherwise comparable loan without assistance using written lender quotes. Review rate, APR, points, mortgage insurance, monthly payment, cash to close and repayment conditions. A smaller upfront cash requirement does not automatically mean a lower total cost.
Section 4
Who actually qualifies
Three categories of requirements. All three apply.
Requirement 1
Income limits
Income and purchase price limits depend on the county, selected TSAHC program and loan option, targeted-area status, and whether an MCC is included. Ask your approved lender to identify the current limit and applicable income calculation for your household in writing.
Requirement 2
Credit and DTI
Credit-score and debt-to-income requirements depend on the mortgage type, assistance option, underwriting method and lender. TSAHC’s published requirements differ across those combinations; an FHA minimum by itself does not establish TSAHC eligibility. Get the applicable requirements from your approved lender.
Requirement 3
Home + education
The home must meet property and primary-residence requirements. At least one borrower must complete a TSAHC-approved homebuyer education course. Confirm the accepted provider, cost, completion time and certificate deadline with your lender.
Section 5
What loan types pair with TSAHC
TSAHC works with all four major loan types. Each has its own fit.
Most common
FHA-paired
FHA financing may allow a 3.5% down payment for eligible borrowers. TSAHC and the lender have additional requirements, including credit and underwriting rules. Compare assistance, cash due and mortgage insurance in the written quote.
Conventional 97
Some eligible conventional loans allow 3% down. Ask the lender about TSAHC eligibility, mortgage insurance and the conditions for its cancellation; do not assume a particular holding period makes this option less expensive.
VA-paired
Eligible veterans and service members may qualify for VA financing without a down payment. Your lender confirms VA eligibility, any funding fee, and whether TSAHC assistance can be used with the selected loan.
USDA-paired
USDA financing can offer no down payment for eligible buyers and properties. Eligibility is address-specific and income-dependent; ask the lender to verify the property and compatibility with TSAHC.
Section 6 · Optional add-on
The Mortgage Credit Certificate (MCC)
An eligible buyer may combine an MCC with a qualifying TSAHC loan option. It provides a federal mortgage-interest tax credit. The benefit depends on the certificate, eligible interest and your tax situation; confirm current program availability before closing.
A tax credit and a deduction work differently. Ask your lender for the current MCC terms and itemized fees, then ask your tax adviser how much of the credit you could use. Do not assume it guarantees a refund or pays for itself. Selling within nine years may create recapture-tax considerations.
Section 7
How to actually apply
Six steps from “I think I qualify” to funded at closing.
Confirm fit
I can help you organize your goals and questions. Your TSAHC-approved lender verifies income, credit, property limits and eligibility for the particular loan and assistance option before you rely on it.
Choose your approved lender
TSAHC maintains a list of participating lenders. I work with several Houston-area lenders who handle TSAHC volume routinely. Use one of them — not a lender who’s never closed a TSAHC loan. The wrong lender can sink the timeline.
Get pre-approved on a TSAHC-paired mortgage
The lender handles pre-approval, program availability and the reservation or rate-lock process. Ask when a signed purchase contract is required, how long the reservation lasts and which deadlines apply to your loan.
Complete the TSAHC-approved homebuyer education course
Complete an accepted course and give your lender the certificate by its required deadline. Confirm the provider before enrolling.
Find the right home
We use your lender-confirmed budget and timeline to find suitable homes. Your lender must verify the applicable purchase price, mortgage and property limits for the selected TSAHC option.
Close
The assistance funds show up on your closing disclosure as a credit. You bring less cash. You walk out with keys.
Section 8
What changes when an agent has done TSAHC many times
Experience with TSAHC helps me coordinate the home search with your lender’s requirements. Four practical areas deserve attention:
Timeline
Your lender, title company and agent need to coordinate documents and deadlines. I help track the home-search and contract steps; underwriting and funding remain subject to lender and program approval.
Seller-side perception
I work with your lender to communicate the financing plan and relevant deadlines clearly in the offer. Seller acceptance and closing timing still depend on the transaction.
Funding cycles
Ask your lender which assistance options are currently available and how to handle reservation deadlines. Availability and terms can change; confirm them before relying on a particular option.
Stacked benefits
I help coordinate the home purchase with your lender’s assistance plan. If an MCC is available, your tax adviser evaluates the credit; homestead exemption eligibility and filing are separate post-closing matters.
Section 9 · FAQ
Questions buyers ask me about TSAHC
Do I have to be a first-time buyer to qualify?
Not always. Non-bond down payment assistance can be available to repeat buyers. MCCs and bond-funded assistance may require first-time-buyer status, with exceptions such as qualified veterans or targeted-area purchases. Confirm your selected option with the lender.
What if I’ve owned a home before but it’s been a few years?
For MCC purposes, first-time-buyer status generally means no ownership interest in a primary residence during the previous three years, with certain exceptions. Your lender checks the program definition and eligibility; a tax adviser evaluates the potential credit.
Is the grant really free money, or do I have to pay it back?
There are repayment conditions. TSAHC says the grant must be repaid if the first mortgage is refinanced or otherwise paid off in the first six months. Its three-year deferred forgivable second lien requires full repayment if you sell, refinance or transfer the home before the third closing anniversary. Read your selected option’s documents with your lender.
What if the program runs out of money?
Your approved lender checks current availability and the reservation rules for the selected option. Ask what must be in place before reservation, how long it lasts and what happens if an option becomes unavailable; do not assume funding is reserved before a purchase contract.
Can I use TSAHC on new construction?
Eligible new construction and resale homes may qualify when the buyer, property and loan meet the selected program’s requirements. Have the lender verify eligibility and coordinate the builder’s completion schedule and contract deadlines.
TSAHC · Buyer Consultation
Using TSAHC for your Houston home?
I help Houston buyers coordinate their home search with TSAHC-approved lenders — eligibility questions, timing, and how assistance appears at closing.
