TSAHC Homes for Texas Heroes: Who Qualifies for Down Payment Help
I work with Texas public servants every year who are buying their first homes, and one of the most consistent gaps I see is that teachers, police officers, nurses, and firefighters often don’t know about a state-funded program built specifically for them. The Texas State Affordable Housing Corporation (TSAHC) runs a down payment assistance program called Homes for Texas Heroes, and it’s one of the few fully funded, statewide programs available to eligible Texas borrowers right now. I’m Anthony Ferrando, a mortgage loan originator licensed across Texas (NMLS# 1919613), and this post covers exactly how the program works and who can use it.
What Is TSAHC’s Homes for Texas Heroes Program?
Homes for Texas Heroes is a down payment assistance (DPA) program administered by TSAHC, a state housing organization created by the Texas Legislature in 1994. The program provides eligible borrowers with a grant or deferred forgivable loan equal to 3% to 5% of the first mortgage loan amount, applicable to the down payment, closing costs, or both.
The assistance pairs with a 30-year first mortgage: either FHA or conventional, originated through a TSAHC-approved lender. The first mortgage rate under TSAHC’s program will typically run slightly above the open-market rate, because that margin funds the assistance. The tradeoff between a market rate without DPA and a slightly higher rate with DPA is part of the financial analysis worth running for your specific situation.
Who Qualifies for Homes for Texas Heroes?
TSAHC defines “Texas Heroes” across these professions:
- Teachers and school employees: Pre-K through 12th grade teachers, teacher aides, school librarians, school counselors, and school nurses at accredited Texas schools
- Law enforcement: Full-time police officers, constables, and sheriffs employed by Texas law enforcement agencies
- Firefighters: Full-time firefighters employed by Texas fire departments
- EMS personnel: Full-time emergency medical service personnel
- Corrections officers: Officers employed by the Texas Department of Criminal Justice
- Veterans: U.S. military veterans (active duty not required)
- Nursing faculty and allied health faculty: Full-time instructors at accredited Texas colleges or universities
If your profession falls outside this list, TSAHC also runs a companion program called Home Sweet Texas Home Loan, which uses the same DPA structure and is available to any qualifying Texas buyer regardless of profession. Income and purchase price limits differ slightly between the two programs.
Income Limits and Purchase Price Caps
To qualify, your household income must fall within TSAHC’s published income limits, which vary by county and family size. For 2026, the income limit for most Texas metros lands between $100,000 and $130,000 for a two-person household. Travis County, Collin County, and Fort Bend County have higher limits than rural counties based on area median income differences.
Purchase price limits also apply. For 2026, the cap is generally around $450,000-$525,000 depending on county and whether the property sits in a TSAHC-designated targeted area. Targeted areas have higher limits and more favorable terms for both first-time and repeat buyers. Both limits update annually, so confirm current figures with a TSAHC-approved lender rather than relying on older published amounts.
How the DPA Combines with Your First Mortgage
Here is how the mechanics work in a real scenario.
A Dallas ISD teacher earns $72,000 per year ($6,000 per month gross) and wants to purchase a $280,000 home. She’s a first-time buyer with a 640 credit score and $5,000 saved.
Using Homes for Texas Heroes with a 3% DPA grant on an FHA first mortgage:
- FHA first mortgage: $280,000 x 96.5% = $270,200 (FHA requires minimum 3.5% down)
- TSAHC DPA grant: 3% x $270,200 = $8,106
- Required FHA down payment: $9,800
- Buyer’s remaining out-of-pocket down payment: approximately $1,694
- Remaining savings available for closing costs and reserves
The practical effect: a buyer with limited savings meets the FHA down payment requirement almost entirely through the DPA grant, keeping cash available for closing costs and the reserves lenders want to see post-closing.
On a conventional first mortgage, TSAHC pairs the DPA with a 3% or 5% down conventional loan. A 5% DPA on a 5%-down conventional eliminates the out-of-pocket down payment entirely, though closing costs remain. For context on how conventional down payment options compare, that guide breaks down the 3%, 5%, 10%, and 20% paths.
Real Examples Across Texas Metros
The program is statewide, which is what makes it worth knowing wherever you’re buying in Texas.
Austin RN: An Austin nurse at a major hospital earns $87,000 per year. She’s looking at a $370,000 townhome in North Austin. With a 5% DPA on a 5%-down conventional first mortgage, the TSAHC grant covers approximately $17,500 of the $18,500 required down payment. She keeps her savings intact for closing costs and moving expenses.
San Antonio firefighter: Works for San Antonio Fire Department, earns $68,000 per year, and is a first-time buyer looking at a $255,000 home in the Stone Oak area. With a 3.5% FHA first mortgage and a 5% TSAHC DPA, out-of-pocket before closing costs is minimal. Bexar County targeted-area limits apply and allow a higher purchase price ceiling than non-targeted areas.
Houston police officer: An HPD officer earning $78,000 per year, looking at homes in Sugar Land and Katy. Uses a conventional first mortgage with 5% DPA from TSAHC. Also has VA eligibility, so I’d compare both options: VA loans carry no down payment requirement and no mortgage insurance, which in many cases produces a lower monthly payment than an FHA or conventional loan even with TSAHC DPA. See the FHA loans Texas guide for context on the mortgage insurance comparison across loan types.
How to Apply
TSAHC doesn’t originate loans directly. You work through a TSAHC-approved lender. Your loan officer submits the application through TSAHC’s system alongside your first mortgage file. The process looks like a standard mortgage application with an additional TSAHC eligibility layer.
Before applying, you’ll need to complete a homebuyer education course. TSAHC requires this for all DPA recipients. The course is typically online, takes 6-8 hours, and covers budgeting, the loan process, and homeownership responsibilities. It can be completed in a single day.
Get pre-approved with a TSAHC-approved lender before you start making offers. That pre-approval confirms your income is within program limits, your purchase price target is within the cap, and your credit profile meets the minimum requirements. The pre-approval vs. pre-qualification guide explains the difference and what documentation you’ll need to prepare.
Frequently Asked Questions
How much down payment help does Homes for Texas Heroes actually give you?
The program provides 3% to 5% of the first mortgage loan amount as a grant or deferred forgivable loan. On a $270,000 FHA first mortgage, 3% DPA equals $8,100 and 5% DPA equals $13,500. The exact percentage available depends on TSAHC’s current funding allocation and which lender you work with. This assistance can be applied to the down payment, closing costs, or both.
Do I have to pay back the Homes for Texas Heroes assistance?
In many cases, no. TSAHC’s grant option is a true grant requiring no repayment and carrying no second lien. TSAHC also offers a deferred forgivable second lien structure in some cases, which typically forgives after three years of remaining in the home. Confirm the specific structure with your lender before closing, as TSAHC’s current offerings change with funding allocations.
Can veterans use TSAHC Homes for Texas Heroes?
Yes. U.S. military veterans are explicitly included in the eligible hero categories. That said, veterans with VA loan eligibility should compare TSAHC’s program against a straight VA loan. VA loans require no down payment and no mortgage insurance, which in many cases produces a lower monthly payment than an FHA or conventional loan with TSAHC DPA. The right answer depends on your specific loan amount, credit profile, and remaining VA entitlement.
What credit score do I need for Homes for Texas Heroes?
When paired with an FHA first mortgage, the minimum credit score is typically 620. When paired with a conventional first mortgage, the minimum is typically 640-660 depending on the lender’s overlay requirements. A higher credit score generally gets you better pricing on the first mortgage rate, which can partially offset the slightly above-market rate that comes with a TSAHC-paired loan.
Is Homes for Texas Heroes only for first-time buyers?
No. TSAHC’s program is available to repeat buyers as well as first-time buyers, provided the home being purchased will be your primary residence. First-time buyers may access targeted-area benefits with higher income and purchase price limits, but repeat buyers are not excluded from the program. This is one of the underappreciated aspects of the TSAHC program relative to other assistance options.
Can I use Homes for Texas Heroes to buy in any Texas city?
The program is statewide and covers all Texas metros and counties. Income limits and purchase price caps vary by county, so a qualifying purchase price in Lubbock or Amarillo will differ from one in Austin or Dallas. TSAHC publishes updated limits on its website, and any TSAHC-approved lender can confirm the current limits for your specific county.
If you’re in one of these professions and thinking about buying a home in Texas this year, reach out directly and I’ll walk you through whether Homes for Texas Heroes makes sense for your situation. TSAHC funding is subject to availability, so confirming your eligibility before you start shopping is the smart first step.
Anthony Ferrando | Mortgage Loan Originator | NMLS# 1919613 | Ferrando Financial LLC NMLS# 2403080 | Licensed in Texas. This is not a commitment to lend. Loan approval is subject to credit, income, and property qualifications. TSAHC funding subject to availability; eligibility and DPA amount subject to TSAHC program guidelines; not all borrowers will qualify. Equal Housing Lender.
