TSAHC Programs in Texas. Up to 5% Toward Your Down Payment.
The Texas State Affordable Housing Corporation offers two of the best down payment assistance programs in the country. Whether you are a teacher, veteran, first responder, or simply a Texas buyer who qualifies, TSAHC has money to help you buy a home.
The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization created by the Texas Legislature to help make homeownership more accessible for Texans. TSAHC administers two primary home buyer programs that provide 30-year fixed-rate mortgages paired with down payment assistance available statewide through a network of participating lenders. Kris Syevens at Aravian Financial is a TSAHC-participating lender, meaning all assistance is processed through one application and one closing.
TSAHC offers four levels of down payment assistance: 2%, 3%, 4%, or 5% of the first mortgage loan amount. You choose the level that covers your needs. The assistance is structured as either an outright grant (never repaid) when paired with government-backed loans, or a deferred forgivable second lien at 0% interest with no monthly payments that is forgiven in full on the third anniversary of your closing date. First-time buyers can also layer a Mortgage Credit Certificate (MCC) on top for an annual federal tax credit for the life of the loan.
Who Qualifies?
Homes for Texas Heroes: teachers, fire fighters, EMS, police, correctional officers, veterans, nurses
Home Sweet Texas: any Texas buyer meeting income and credit requirements
Credit score of 620 or higher
Meet income limits for your county and household size (approximately $108,540 for 1-2 person in most TX counties)
MCC tax credit can be layered on top for additional savings
Things to Consider
Interest rate on first mortgage slightly above market (the spread funds the DPA)
Income limits apply by county and household size
Forgivable loan must be repaid if you sell or refinance within 3 years
Homebuyer education course required before closing
Purchase price limits apply in some scenarios
Bond-based DPA has lower income limits and first-time buyer requirement
Frequently Asked Questions
TSAHC is the Texas State Affordable Housing Corporation, a nonprofit created by the Texas Legislature. It offers two programs: Homes for Texas Heroes (for specific professions) and Home Sweet Texas (for all eligible buyers). Both provide a 30-year fixed-rate mortgage paired with 2-5% down payment assistance as either a grant or a forgivable second lien. Kris processes everything through one application and one closing.
TSAHC offers 2%, 3%, 4%, or 5% of the first mortgage loan amount in assistance. You choose the level. On a $300,000 loan that is $6,000 to $15,000. The assistance can cover down payment, closing costs, prepaid items, and other loan-related expenses.
Homes for Texas Heroes is available to: teachers (pre-K through 12th grade), school counselors and librarians, fire fighters and EMS personnel, police officers, sheriff deputies, and correctional officers, veterans and active military, and licensed nurses and nursing faculty. These professions receive slightly enhanced income limits compared to the Home Sweet Texas program.
The grant option: as long as your first mortgage is not paid off in the first six months, the grant never needs to be repaid. The forgivable second lien: forgiven in full on the third anniversary of your closing date. However, it must be repaid in full if you sell, refinance, or transfer the home within the 3-year period.
An MCC is a federal tax credit for first-time home buyers equal to a percentage of the mortgage interest you pay each year. TSAHC offers an MCC credit rate of 20%. On a $300,000 loan at 6.5%, that is approximately $3,900 per year in federal tax credits, for the life of the loan. First-time buyers can stack an MCC on top of TSAHC DPA for maximum savings.
TSAHC income limits vary by county and household size and are updated periodically. For 2026, most Texas counties use approximately $108,540 for 1-2 person households and $126,630 for households of 3 or more. Higher-cost counties and Heroes program participants may have higher limits. Kris can confirm the exact limit for your county before you apply.
