The Texas State Affordable Housing Corporation (TSAHC) runs two of the best down payment assistance programs in the country. Whether you are a teacher, firefighter, veteran, nurse, or simply a first-time buyer in Texas, TSAHC may have money to help you buy a home.
These are not loans you pay back monthly. They are grants or forgivable loans that reduce your out-of-pocket costs significantly.
What is TSAHC?
TSAHC is a nonprofit organization dedicated to expanding homeownership for Texans. They administer down payment assistance programs that work alongside your first mortgage, whether FHA, VA, USDA, or conventional.
The organization offers two main programs: 1. Homes for Texas Heroes Program (for specific professions) 2. Home Sweet Texas Home Loan Program (for all eligible buyers)
Both programs provide grants or forgivable second loans to cover down payment and closing costs.
Homes for Texas Heroes Program
This program is designed specifically for Texans who serve their communities in essential roles.
Eligible professions: – Teachers and teacher aides (public school, pre-K through 12) – Police officers and peace officers – Firefighters (paid and volunteer) – EMS personnel – Corrections officers – County jailers – Veterans (any branch) – Nursing faculty
Program benefits: – Down payment assistance as a grant or forgivable second loan – Potentially reduced interest rates on your first mortgage – Works with FHA, VA, USDA, and conventional loans – Can be combined with other assistance programs
Assistance amounts: TSAHC assistance typically covers 3-5% of the loan amount. On a $300,000 purchase, that translates to $9,000-$15,000 in assistance.
Home Sweet Texas Home Loan Program
If you do not qualify for the Heroes program, Home Sweet Texas serves all eligible Texas buyers.
Who qualifies: – First-time homebuyers (have not owned in past 3 years), OR – Buyers purchasing in a targeted area, OR – Veterans (who may also qualify for the Heroes program)
Program benefits: – Down payment assistance as grant or forgivable loan – Competitive interest rates – Works with FHA, VA, USDA, and conventional loans – Available statewide
This program expands access beyond essential workers to include any Texan who meets income and credit requirements.
TSAHC Eligibility Requirements
Both programs share similar eligibility criteria:
Credit score: 620 minimum
Income limits: Vary by county and household size. TSAHC publishes updated limits on their website. Most Texas counties have limits between $70,000-$120,000 for households of 1-2 people.
Purchase price limits: Also vary by county. In most areas, limits accommodate homes priced up to $350,000-$500,000.
Homebuyer education: Required. HUD-approved courses available online and in-person.
Property requirements: – Primary residence only – Must occupy within 60 days – Single-family homes, condos, townhomes, and manufactured housing (with restrictions)
Debt-to-income ratios: Generally follow FHA, VA, or conventional guidelines depending on your loan type.
Grant vs. Forgivable Loan: Understanding the Options
TSAHC offers assistance in two forms:
Grant: – Does not need to be repaid – No second lien on your property – Immediate savings with no strings attached
Forgivable loan: – Structured as a second mortgage – Forgiven after you remain in the home for a specified period (typically 3 years) – If you sell or refinance before the forgiveness period, you repay a portion
The grant option is simpler. The forgivable loan may come with a slightly lower first mortgage rate, making it attractive for buyers who plan to stay long-term.
TSAHC + Loan Types: How They Work Together
TSAHC + FHA: – FHA requires 3.5% down – TSAHC can provide the full 3.5% – You buy with minimal cash out of pocket – FHA mortgage insurance applies
TSAHC + VA: – VA requires $0 down – TSAHC assistance goes toward closing costs – Reduce your total cash needed to near zero – No mortgage insurance
TSAHC + Conventional: – Conventional can require as little as 3% down – TSAHC can cover the 3% – PMI applies but cancels at 20% equity
TSAHC + USDA: – USDA requires $0 down for rural properties – TSAHC covers closing costs – Limited to rural designated areas
Real Texas Buyer Scenarios
Scenario 1: Dallas firefighter, first home – Purchase price: $325,000 – Program: Homes for Texas Heroes – Loan type: FHA – Down payment needed: $11,375 (3.5%) – TSAHC assistance: $11,375 grant – Cash from buyer: $0 for down payment (closing costs only) – Savings: $11,375 plus potential rate discount
Scenario 2: Austin teacher, $400,000 home – Program: Homes for Texas Heroes – Loan type: Conventional – Down payment needed: $12,000 (3%) – TSAHC assistance: $12,000 forgivable loan – Cash from buyer: Closing costs (~$8,000-$12,000) – If teacher stays 3 years: Loan forgiven entirely
Scenario 3: Houston first-time buyer (non-essential worker), $280,000 home – Program: Home Sweet Texas – Loan type: FHA – Down payment needed: $9,800 (3.5%) – TSAHC assistance: $9,800 grant – Cash from buyer: Closing costs only – Result: Homeownership with minimal savings required
Scenario 4: San Antonio veteran, $350,000 home – Eligible for: Both Heroes AND Home Sweet Texas (veterans qualify for both) – Loan type: VA – Down payment: $0 (VA) – TSAHC assistance: Applied to closing costs – VA funding fee: 2.15% ($7,525) if no disability – TSAHC covers: All or most closing costs – Cash from buyer: Potentially $0
How to Apply for TSAHC Programs
TSAHC assistance is provided through participating lenders. You cannot apply directly to TSAHC for a loan.
Steps: 1. Contact a TSAHC-approved lender (JVM Lending is approved) 2. Verify your eligibility (profession, income, credit) 3. Complete homebuyer education 4. Get pre-approved for your first mortgage 5. Find your home 6. Close with TSAHC assistance applied
JVM Lending handles the coordination between your first mortgage and TSAHC program, making the process seamless.
TSAHC vs. Other Down Payment Assistance
TSAHC vs. CalHFA Dream For All: – Dream For All: 20% assistance but shared appreciation – TSAHC: 3-5% assistance, no shared appreciation – TSAHC is simpler; Dream For All provides more but has long-term obligations
TSAHC vs. JVM’s 1% Down: – 1% Down: 2% grant from lender, max $350,000 loan – TSAHC: 3-5% grant, higher loan amounts possible – TSAHC provides more assistance but has geographic and profession requirements
TSAHC vs. Employer Assistance Programs: – Some employers offer down payment assistance – TSAHC can often be combined with employer programs – Check both options for maximum benefit
Why Texas Heroes Programs Exist
Texas struggles to recruit and retain essential workers, especially in high-cost metro areas. A Dallas teacher or Austin firefighter may earn a good salary but still face housing affordability challenges.
The Heroes program addresses this by giving these professionals a path to homeownership. When essential workers can afford to live in the communities they serve, everyone benefits.
Getting Started In Texas
- Determine your program: Heroes (essential worker) or Home Sweet Texas (everyone else)
- Check income limits: TSAHC website or contact JVM Lending
- Complete homebuyer education: Required before closing
- Get pre-approved: Through a TSAHC-approved lender like JVM
- Start house hunting: With confidence that assistance is available
TSAHC funds are available year-round, but specific grant allocations can run out. Working with an experienced lender ensures your application is processed efficiently.
Contact JVM Lending at (855) 855-4491 to explore your TSAHC options.
At JVM Lending, we help buyers, homeowners, and investors make confident decisions in the evolving housing market. Whether you are purchasing, refinancing, or planning ahead, our team is here to guide you every step of the way.
