Texas has two separate statewide down payment assistance systems, run by two different organizations, with similar names and different rules. Buyers routinely find one, assume it's the only option, and never learn the other existed. Here's the honest map of both — TDHCA, the state housing department, and TSAHC, a nonprofit created by the Texas Legislature — plus how to tell which one fits you.
The two systems at a glance
| TDHCA (The Texas Homebuyer Program) | TSAHC | |
|---|---|---|
| What it is | State housing department | Nonprofit created by the Texas Legislature |
| Programs | My First Texas Home; My Choice Texas Home | Homes for Texas Heroes; Home Sweet Texas |
| Assistance | Up to 5% of the loan amount | Grant or deferred forgivable second lien |
| Minimum credit score | 620 | 620 |
| Homebuyer education | Required | Required before closing |
| How you apply | Through a TDHCA Approved Loan Officer | Through a participating lender — not to TSAHC directly |
Both run on the same basic engine: a fixed-rate first mortgage from a participating lender, with assistance attached. Neither is a stand-alone check.
TDHCA: My First Texas Home vs. My Choice Texas Home
My First Texas Home is for first-time homebuyers and qualified veterans. It pairs a 30-year, low-interest first mortgage with up to 5% down payment and closing cost assistance. Requirements: a 620 minimum credit score, income and purchase price limits by county, work with a TDHCA Approved Loan Officer, and complete a homebuyer education course.
My Choice Texas Home removes the first-time-buyer wall. It's open to first-time buyers, repeat buyers, and veterans, offers the same up to 5% in down payment and closing cost assistance with competitive fixed-rate financing, and carries higher income limits than My First Texas Home — same 620 minimum credit score, same approved-loan-officer and education requirements.
That last line is the one worth rereading. Buyers who assume they earn too much for assistance are often looking at My First's limits when My Choice is the program that actually fits them.
TDHCA also partners with local housing finance corporations and municipalities that provide additional gift funds or local assistance on top, which can supplement the down payment or cover additional closing costs. Availability is county- and city-specific — worth asking your loan officer directly.
TSAHC: Homes for Texas Heroes and Home Sweet Texas
TSAHC splits its buyers by profession rather than by purchase history.
Homes for Texas Heroes serves these hero professions:
- Professional educators — full-time public school district teachers, teacher aides, school librarians, school counselors, and school nurses
- First responders — police officers, firefighters, and EMS personnel
- Public security officers
- Veterans or active military
- Correction officers and juvenile corrections officers
- Nursing faculty and allied health faculty
Home Sweet Texas is the program for buyers who don't qualify under one of those professions. Importantly, both programs offer the same down payment assistance options — the profession determines which door you walk through, not how much help is available.
The choice that makes TSAHC unusual
With either TSAHC program you choose how to receive the assistance:
- a grant, which does not have to be repaid, or
- a deferred forgivable second lien loan, which only has to be repaid if you sell or refinance within three years.
Three years is a short forgiveness window by industry standards. If you're confident you'll stay past it, the second-lien option is effectively forgiven money; if your timeline is genuinely uncertain, the grant removes that risk entirely.
To qualify for either, you need a 620 credit score, must meet income requirements, and must complete an approved homebuyer education course before closing. You apply through a participating lender — you won't submit anything directly to TSAHC. TSAHC also publishes an online eligibility quiz that routes you to the right program and a participating lender.
Don't skip the Mortgage Credit Certificate
If you're a first-time buyer, you may also qualify for a Mortgage Credit Certificate (MCC) — a mortgage interest tax credit — subject to income requirements and sales price restrictions. TDHCA and TSAHC both offer MCCs.
One genuinely underused detail: if you're a Texas Hero using an MCC and down payment assistance together, TSAHC provides the MCC free — an additional $500 in savings.
What 5% looks like in Texas numbers
Illustrations of the TDHCA formula, not quotes:
- San Antonio: on a $260,000 loan, 5% is up to $13,000.
- Houston or Dallas–Fort Worth: on a $320,000 loan, 5% is up to $16,000.
- Austin: on a $400,000 loan, 5% is up to $20,000.
Your figure depends on your final loan amount and the program terms in effect when you lock.
How to pick
Start with the disqualifiers, because they narrow things fast. If you're in a hero profession, check TSAHC first — the grant-versus-forgivable-lien choice and the free MCC are real advantages. If you're a repeat buyer, My Choice Texas Home is often the cleanest fit. If you're a first-time buyer with no hero profession, you're likely comparing My First Texas Home against Home Sweet Texas on income limits and pricing.
Because income and purchase price limits vary by county — and because TDHCA and TSAHC set them independently — the practical answer usually comes from running your actual numbers against both. A loan officer approved with both agencies can do that comparison in one conversation instead of three.
Sources
- The Texas Homebuyer Program (TDHCA) — My First Texas Home and My Choice Texas Home
- TDHCA Homebuyer Assistance Programs (program brochure: assistance amounts, credit score, education and approved-loan-officer requirements)
- TSAHC Down Payment Assistance (grant vs. deferred forgivable second lien, credit score, education)
- TSAHC Homes for Texas Heroes (eligible professions, MCC benefit); TSAHC Homeownership Hotline: 877-508-4611
Program terms are set by TDHCA and TSAHC and change without notice; details above are current as of August 2026. Income and purchase price limits apply and vary by county, household size, and program — confirm current limits with the agency or a participating lender. This is general information, not a loan offer, a commitment to lend, or financial advice. Talk to an Xpert loan officer approved with these programs to confirm current terms and your eligibility.