TSAHC Homes for Texas Heroes: DPA for Austin Teachers and Nurses
The median Austin-area home sold for $452,250 according to the Team Price Real Estate report published July 3, 2026. For the teachers, nurses, police officers, and firefighters who keep this city running, the biggest obstacle to buying near that price is the cash needed up front. A 3.5 percent down payment on a $350,000 home is $12,250 before a single closing cost gets paid, and saving that on a public-service salary in Austin takes years. The Texas State Affordable Housing Corporation (TSAHC) built the Homes for Texas Heroes program for exactly this situation, and it can put up to 5 percent of your loan amount toward your down payment and closing costs.
If you work in a qualifying profession, this program can move your purchase timeline up by years. Here is how it works, who qualifies, and what the numbers look like for a real Austin scenario.
Key points:
- Homes for Texas Heroes provides down payment assistance (DPA) of up to 5 percent of your loan amount.
- Eligible professions include public school teachers, teacher aides, librarians, counselors, and school nurses, plus police officers, firefighters, EMS personnel, county jailers, corrections officers, and veterans.
- The assistance comes as either a grant with no repayment, or a second lien that is forgiven after 3 years.
- You need a credit score of at least 620, and your income must fall under your county’s limit.
- You do not have to be a first-time buyer.
- The DPA pairs with a 30-year fixed mortgage, including FHA and conventional loans.
What is the Homes for Texas Heroes program?
Homes for Texas Heroes is a statewide down payment assistance program run by the Texas State Affordable Housing Corporation, a nonprofit created by the Texas Legislature. It gives qualifying public-service professionals up to 5 percent of their mortgage loan amount to cover the down payment and closing costs on a home purchase, paired with a 30-year fixed-rate first mortgage. You make no monthly payments on the assistance. It arrives at closing and reduces the cash you need to bring.
TSAHC is a legitimate state-chartered nonprofit, and the program has operated for years. Participating lenders across Texas originate the first mortgage, and TSAHC provides the assistance funds. Mortgage Austin works with buyers on exactly this kind of pairing: a conventional or FHA (Federal Housing Administration) first mortgage with TSAHC assistance layered on top.
Who qualifies for Homes for Texas Heroes in Austin?
You qualify by profession, income, and credit. The professions covered are full-time public school teachers, teacher aides, school librarians, school counselors, and school nurses, plus police officers, firefighters, EMS personnel, county jailers, corrections officers, and veterans. You also need a credit score of at least 620 and income under your county’s program limit, which TSAHC sets and updates. The home must be your primary residence in Texas.
A few details worth knowing:
- School employees must work for a public school district. The teacher categories are tied to full-time positions in Texas public schools.
- Income limits are county-specific. Travis, Williamson, and Hays counties each have their own caps, and they are higher than many buyers assume. TSAHC’s online eligibility quiz gives you an answer in a few minutes; do not rule yourself out before checking.
- Purchase price limits also apply by county. A large share of the Austin-area inventory below the median price fits under them.
- Repeat buyers are welcome. Unlike some programs, Homes for Texas Heroes does not require first-time buyer status.
A worked example: an Austin ISD teacher buying at $350,000
Consider a composite scenario. A fourth-grade teacher in Austin ISD earns $62,000 and has a 690 credit score, $9,000 in savings, and a lease ending in the fall. She finds a $350,000 house in Pflugerville, well under the $452,250 area median from the July 2026 Team Price report. Without assistance, an FHA purchase needs $12,250 down (3.5 percent) plus roughly $8,000 to $10,000 in closing costs. Her $9,000 does not come close, so on her own she would wait another two or three years.
With Homes for Texas Heroes, the picture changes. Her FHA base loan amount is $337,750. Five percent assistance on that loan is about $16,887. That covers the entire $12,250 down payment and leaves roughly $4,600 toward closing costs. Combined with a seller credit negotiated in a market where more than half of Austin listings have taken price cuts, her $9,000 in savings stays mostly intact as an emergency fund after closing.
Two caveats keep this honest. First, program mortgage rates are set by TSAHC and its lender network, and they typically run somewhat above the market average you see quoted in surveys like the Freddie Mac PMMS. The assistance is the tradeoff. Second, assistance percentages come in tiers, and a bigger assistance percentage generally means a higher note rate on the first mortgage. Whether 5 percent assistance at a higher rate beats 3 percent assistance at a lower rate depends on how long you plan to stay and how thin your savings are. That math is worth running both ways before you commit, and it connects directly to how much house you can afford in Austin in the first place.
Grant or forgivable second lien: which should you pick?
TSAHC offers the assistance in two forms, and the right choice depends on how long you expect to keep the home and the loan.
| Feature | Grant | Deferred forgivable second lien |
|---|---|---|
| Repayment | Never repaid | Forgiven after 3 years; repaid only if you sell or refinance within 3 years |
| Typical rate tradeoff | Higher first-mortgage rate | Usually a lower first-mortgage rate than the grant option |
| Best fit | Buyers who may move or refinance early | Buyers confident they will stay at least 3 years |
| Monthly payment on the assistance | None | None |
Most buyers who plan to stay put lean toward the forgivable second lien, since it usually pairs with a lower rate on the first mortgage and the lien simply goes away after three years. Buyers with a real chance of relocating inside three years often take the grant so nothing has to be repaid. A lender who works with TSAHC regularly can price both versions for you on the same day so you can compare actual numbers instead of guessing.
How does the assistance stack with an FHA or conventional loan?
The Homes for Texas Heroes assistance attaches to a 30-year fixed first mortgage, and that first mortgage is a normal FHA or conventional loan with the usual rules. FHA asks for 3.5 percent down and carries a mortgage insurance premium (MIP). A conventional loan can go as low as 3 percent down for qualifying buyers, with private mortgage insurance (PMI) that can be removed later as equity builds. The assistance simply supplies the cash those programs require up front.
Which first mortgage wins depends on your credit score and the insurance math. Buyers with scores in the high 600s and up often price out better on conventional, while FHA tends to treat mid-600s credit more gently. We covered who FHA loans actually help in Austin in a recent post, and the same logic applies with assistance layered on. Standard qualification still applies either way: income documentation, debt-to-income (DTI) review, and an appraisal, all subject to credit, income, and property qualification.
What should Austin buyers watch before applying?
Start with TSAHC’s eligibility quiz, then get a full pre-approval through a participating lender before you shop. The program’s income and purchase price limits change periodically, and assistance tiers and pricing move too, so figures you read anywhere (including here) need to be confirmed against current program terms the week you apply. Keep an eye on the broader market as well; conditions like inventory and days on market shape how much seller help you can negotiate on top of the assistance, and our Austin housing market page tracks those numbers as they update.
One more planning note: the assistance covers up-front cash, and it does not change the monthly payment math. Lenders still want to see that the payment fits your income, and having a small cushion left after closing makes the first year of ownership far less stressful.
Frequently Asked Questions
Do teachers really get down payment help in Texas?
Yes. Full-time public school teachers, teacher aides, school librarians, school counselors, and school nurses qualify for the TSAHC Homes for Texas Heroes program. It provides up to 5 percent of the mortgage loan amount for down payment and closing costs, subject to income limits, purchase price limits, and a 620 minimum credit score.
How much down payment assistance does Homes for Texas Heroes give?
Assistance is offered in tiers up to 5 percent of your loan amount. On a $337,750 loan, the 5 percent tier is about $16,887. Higher assistance tiers generally come with a higher rate on the first mortgage, so it pays to compare tiers side by side.
Does the assistance have to be paid back?
The grant version is never repaid. The deferred forgivable second lien version is forgiven after 3 years and has no monthly payment; you repay it only if you sell or refinance within those first 3 years. Neither version adds to your monthly bill.
Do I have to be a first-time buyer to use Homes for Texas Heroes?
No. Repeat buyers can use the program as long as they meet the profession, income, credit, and purchase price requirements and will live in the home as their primary residence.
What credit score do I need for TSAHC assistance?
The minimum credit score is 620. Your score also affects the pricing of the first mortgage, so buyers above roughly 680 often see better combined terms, subject to full credit and income qualification.
Can I combine Homes for Texas Heroes with an FHA loan?
Yes. The assistance pairs with a 30-year fixed FHA or conventional first mortgage through participating lenders. Your lender can price both loan types with the assistance attached so you can compare total costs.
Are police officers and firefighters eligible too?
Yes. Police officers, firefighters, EMS personnel, county jailers, corrections officers, and veterans are all covered professions, alongside the public school categories. Each applicant still needs to meet the credit, income, and purchase price requirements for their county.
If you teach, patrol, respond, or served, and buying in Austin has felt out of reach because of the up-front cash, this program deserves a real look. Schedule a discovery call and we’ll walk through your eligibility, price both assistance options side by side, and map out a timeline that fits your savings. No pressure, no commitment, just clarity.
Ferrando Financial LLC | NMLS# 2403080 | Licensed in Texas. This content is for educational purposes only and does not constitute a commitment to lend. Loan approval is subject to credit, income, and property qualification. TSAHC program terms, assistance tiers, income limits, and purchase price limits are set by TSAHC and change periodically; confirm current eligibility and program pricing with TSAHC and a participating lender before making decisions. Rate references are illustrative, not a quote or offer of credit. Sources: Team Price Real Estate Austin market report (July 3, 2026), Texas State Affordable Housing Corporation program materials.
