There are several programs in Texas that can make owning a home more affordable. These programs are targeted to several types of buyers: Heroes (Teachers and those employed in Law Enforcement), first-time home buyers, and low-income home buyers. The information below should give you a good idea of what is available, but you should speak with a lender for the latest information.

Heroes

The Homes for Texas Heroes and Home Sweet Texas Home Loan Programs are available for teachers, fire fighters, police and correctional officers, and moderate-income homebuyers. These loans and down payment assistance (DPA) programs are available through a network of lenders around the state. The Texas State Affordable Housing Corporation (or TSAHC commonly pronounced “tee-shack”) provides these DPA programs that provide grant money and ongoing tax credits.

  • Income Qualification:
    • Single/Married: Income under $75,400
    • Family: Income under $86,700
  • Home Price Limit: $299,250 (Higher in targeted areas)
  • Down Payment Assistance:
    • 3% to 5% of the loan value
    • Comes in the form of a Grant (doesn’t have to be repaid)
    • Can also be used to re-finance
  • Mortgage Credit Certificates:
    • Only available to first-time homebuyers
    • Provides a Federal tax credit for 40% of the annual interest paid
    • Typically amounts to $140-$160 per monthly paycheck
  • Interest Rates:
    • Latest rates can be found at TSAHC website
    • Rates are higher for more DPA – typically an additional 1% rate for 3% DPA grant and 1.5% for a 5% DPA grant
  • Loan Types:
    • Conventional
    • FHA
    • VA
    • USDA

First-Time Homebuyers

The Texas Department of Housing & Community Affairs (or TDHCA) provides DPA programs that provide loan money and ongoing tax credits. First-time homebuyers are those who are buying their first home, or who have not owned a home as a primary residence within the past three years.

  • Income Qualification:
    • Around $75,400 depending on the County
  • Home Price Limit: $299,000
  • Down Payment Assistance:
    • Up to 5% of the loan value
    • Comes in the form of a 0% interest loan
    • Must be repaid upon sale of the home, refinance, or loan payoff
  • Mortgage Credit Certificates:
    • Provides a Federal tax credit for 40% of the annual interest paid
    • Typically amounts to $140-$160 per monthly paycheck
  • Interest Rates:
    • Latest rates can be found at TDHCA website
    • Rates are higher for more DPA – typically an additional 1% rate for 3% DPA grant and 1.5% for a 5% DPA grant
  • Loan Types:
    • Conventional
    • FHA
    • VA
    • USDA