TSAHC Down Payment Assistance in Texas: How Home Sweet Texas Home and Homes for Texas Heroes Work in 2026
Buying a home in Austin takes planning, and for many buyers the biggest hurdle is the down payment. Coming up with that cash, plus closing costs, is what stalls otherwise ready buyers. If that is where you feel stuck, a state program called TSAHC down payment assistance is worth understanding before you decide you have to wait another year.
TSAHC stands for the Texas State Affordable Housing Corporation, a self-supporting nonprofit created by the Texas Legislature. It runs two home buyer programs that pair a regular mortgage with money toward your down payment. This guide walks through how both programs work, who qualifies, and how the assistance fits a typical Austin purchase. As always, this is educational. Your own numbers depend on your credit, income, and the home you choose.
The two TSAHC programs at a glance
TSAHC offers down payment help through two programs. They share the same basic structure and differ mainly in who they serve.
- Home Sweet Texas Home Loan Program. Open to low and moderate income Texans across most professions. You do not have to be a first-time buyer to qualify.
- Homes for Texas Heroes Home Loan Program. Built for Texans in specific careers: teachers and school staff, police officers and corrections officers, firefighters and EMS personnel, nurses and allied health professionals, and veterans.
If your job fits the Heroes list, that is usually the program your loan officer will point you toward. If it does not, Home Sweet Texas Home covers the same ground for the general public.
How the down payment assistance actually works
With either program, the assistance is layered on top of a standard first mortgage, often an FHA or conventional loan. You apply through a participating lender, not through TSAHC directly. When you qualify, you choose how you want the assistance delivered:
- A grant. The money does not have to be repaid.
- A deferred forgivable second lien. This sits behind your first mortgage and carries no monthly payment. It only has to be repaid if you sell or refinance the home within three years. Stay past that window and it is forgiven.
The assistance is calculated as a percentage of your loan amount, and the exact amount depends on the program option and your income. Because those figures are updated periodically, confirm the current percentage and dollar amount with a participating lender before you build it into your budget.
Who qualifies
The core requirements are straightforward, though the details are worth checking against your situation:
- A credit score of at least 620. This is the published minimum. A higher score can still help the rate on your first mortgage.
- Income within the program limits. TSAHC sets income limits by county, so the ceiling in Travis, Williamson, or Hays County may differ from a rural county. Some targeted areas allow higher limits.
- The home is your primary residence. These programs are for owner occupants, not investors.
- A home buyer education course. A short approved course is typically required before closing, and it is useful for first-time buyers working through the process.
How it fits an Austin purchase
Austin area prices mean the down payment math matters. On a median-priced home, even a 3 percent down payment runs into five figures before closing costs. TSAHC assistance can cover a meaningful share of that, which is why some Austin buyers reach the closing table sooner than they expected.
A few practical notes for Central Texas buyers. The county income limits are the most common reason a buyer does or does not qualify, so that is the first thing to check. The assistance pairs with the first mortgage you are already comparing, so it helps to understand how FHA and conventional loans differ before you settle on a structure. And because the second lien forgiveness window is three years, the program tends to fit buyers who plan to stay in the home for a while rather than flip it quickly.
What to check before you count on it
Three things decide whether TSAHC works for you. First, your county income limit, since that is the hard gate. Second, your credit profile against the 620 floor and the first-mortgage pricing that comes with your score. Third, your timeline, because the three year forgiveness window rewards buyers who stay put. A participating lender can run all three against your real numbers in one sitting.
How to start
The first step is the same one that helps with any purchase: get a clear read on your numbers. A mortgage pre-approval tells you the price range you can work with, and a participating lender can confirm whether your county income limit and credit profile line up with TSAHC. From there you can compare the assistance against other paths and decide what actually serves your budget. If you are still mapping out affordability, our guide on how much house you can afford in Austin is a useful companion read.
Frequently asked questions
Do I have to be a first-time buyer to use TSAHC?
No. The Home Sweet Texas Home program is open to repeat buyers too, as long as you meet the income and credit requirements. First-time buyers may have a few extra options, but it is not a requirement.
Is the down payment assistance a loan I have to pay back?
It depends on the option you choose. The grant is never repaid. The deferred second lien is only repaid if you sell or refinance within three years, and it is forgiven after that.
What credit score do I need?
The published minimum is 620. Meeting the minimum makes you eligible, and a stronger score can improve the rate on your first mortgage.
Can I use TSAHC with an FHA or conventional loan?
Yes. The assistance is designed to layer on top of a standard first mortgage, which is usually FHA or conventional.
How do I apply?
You apply through a participating lender rather than through TSAHC directly. A lender confirms your eligibility, sets up the first mortgage, and adds the assistance.
If you want to know whether a TSAHC program fits your situation in Austin, schedule a discovery call and we will walk through your options together. 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. Down payment assistance amounts, income limits, and program terms are set by the Texas State Affordable Housing Corporation and are subject to change; confirm current figures with a participating lender. Sources: Texas State Affordable Housing Corporation (tsahc.org), Home Sweet Texas Home Loan Program and Homes for Texas Heroes Home Loan Program.
