TSAHC Home Sweet Texas: How the Statewide DPA Program Works
I am Anthony Ferrando, a mortgage loan originator licensed across Texas (NMLS# 1919613), and the question I hear most from moderate-income buyers is some version of “I can afford the payment, but the down payment keeps moving away from me.” For a lot of Texans the honest answer runs through the Texas State Affordable Housing Corporation (TSAHC) and its Home Sweet Texas Home Loan Program, which pairs a first mortgage with down payment assistance you do not have to save up yourself. It is a real program with real fine print, so this post walks through how it works statewide, what the assistance actually costs, and when a standalone loan beats it.
Key points:
- Home Sweet Texas is TSAHC’s down payment assistance (DPA) program for low-to-moderate income Texans; you do not need to be a first-time buyer.
- Assistance typically runs 2% to 5% of the loan amount, structured either as a grant or as a deferred, forgivable second lien, per TSAHC program guidelines.
- The DPA pairs with an FHA or Conventional first mortgage; the combined package usually carries a somewhat higher rate than a standalone loan.
- Income limits vary by county, so a Houston buyer and a Lubbock buyer face different caps for the same program.
- A minimum credit score around 620 applies, and an approved homebuyer education course is required for first-time buyers.
- On a $300,000 loan, 4% assistance is $12,000, which covers a 3.5% FHA down payment with room left toward closing costs.
What is the Home Sweet Texas Home Loan Program?
Home Sweet Texas is a statewide program from TSAHC, a nonprofit created by the Texas legislature, that provides down payment assistance attached to a fixed-rate first mortgage. Unlike TSAHC’s Homes for Texas Heroes program, which serves specific professions, Home Sweet Texas is open to any eligible Texan whose income falls under the county limit. There is no first-time buyer requirement, and the program operates in every Texas county.
The structure is simple to describe: you take a 30-year fixed FHA or Conventional first mortgage from a TSAHC-participating lender, and TSAHC provides assistance of roughly 2% to 5% of the loan amount to cover your down payment and, in many cases, part of your closing costs. The exact percentage options and terms are set by TSAHC’s current program guidelines, which change periodically, so treat every number here as a starting point to verify rather than a quote.
How much down payment help do you get, and what does it cost?
Assistance typically ranges from 2% to 5% of your loan amount, delivered either as an outright grant or as a deferred, forgivable second lien that goes away if you stay in the home for the required period, commonly three years. On a $300,000 loan, 4% assistance is $12,000. An FHA down payment at 3.5% of a $310,000 purchase is about $10,850, so the math can zero out the single biggest obstacle for a saver who is close but not there. The word to watch is “cost”: DPA-paired first mortgages are usually priced above standalone market rates.
That pricing difference is the honest tradeoff. Grant-style assistance never has to be repaid, but you pay for it through a higher rate for as long as you keep the loan. The forgivable-second structure often prices better, but it claws back a prorated amount if you sell or refinance early. Neither structure is a trick; both are documented plainly in your Loan Estimate, and both are worth it for some buyers and not for others.
| Feature | Grant structure | Deferred forgivable second lien |
|---|---|---|
| Repayment | Never repaid | Forgiven after the required residency period, commonly 3 years |
| If you sell or refi early | No clawback | Prorated repayment may be due |
| Typical rate impact | Higher first-mortgage rate | Often somewhat lower than the grant option |
| Best fit | Buyers who may move within a few years | Buyers confident they will stay put |
Who qualifies for Home Sweet Texas?
Eligibility rests on three pillars: income under your county’s limit, a credit score meeting the program minimum (around 620, with better pricing at higher scores), and a home purchase within TSAHC’s price limits for your county. Income limits are set county by county, so the cap for a buyer in Harris County differs from one in El Paso County or Travis County. First-time buyers also complete an approved homebuyer education course before closing, which is a few hours well spent regardless.
The county-level variation is why I never quote statewide limits from memory. A dual-income family that is over the cap in one metro can be comfortably under it after a job relocation to another. TSAHC publishes current limits on its website, and a participating lender can confirm your eligibility from your actual documents in a single conversation, subject to credit, income, and property qualifications.
When does skipping the DPA make more sense?
If you already have the down payment saved, a standalone Conventional loan at 3% to 5% down usually prices better than a DPA-paired loan, and the total cost over five years is often meaningfully lower. The DPA earns its keep when the down payment is the wall between you and owning, or when depleting your savings to closing would leave you with no reserves. Buyers sitting on adequate cash are usually better served comparing the Conventional down payment paths I covered in my Texas guide against an FHA loan directly.
Market context matters too. The median sale price in El Paso was about $254,000 over the three months ending May 2026, per Redfin, while the Austin-area median sold price sat near $473,745 for the week of June 17, 2026, per Team Price Real Estate. The same 4% assistance stretches much further in one market than the other, and county price limits follow a similar pattern. If you are weighing an FHA first mortgage for the pairing, my FHA buyer’s guide for Texas covers that side in detail, and you can check where pricing stands this week on my Texas mortgage rates page. At Mortgage Austin, the brokerage side of my practice, we price the DPA package against a standalone loan on the same day so a client sees both numbers before choosing.
Frequently Asked Questions
Do I have to be a first-time buyer for Home Sweet Texas?
No. Home Sweet Texas has no first-time buyer requirement, which surprises many applicants. Income limits, credit minimums, and county price limits still apply, and first-time buyers specifically must complete an approved homebuyer education course before closing.
How much down payment assistance does TSAHC give?
Typically 2% to 5% of your loan amount, at the option level you and your lender select. On a $300,000 loan that is $6,000 to $15,000, enough to cover a 3.5% FHA down payment in many Texas markets. Amounts and structures are subject to TSAHC’s current program guidelines.
Does TSAHC assistance have to be paid back?
It depends on the structure you choose. The grant version is never repaid. The deferred forgivable second lien version is forgiven if you keep the home for the required period, commonly three years, but selling or refinancing early can trigger a prorated repayment. Your Loan Estimate and closing documents state the terms plainly.
What credit score do I need for Home Sweet Texas?
The program minimum is around 620, and pricing improves at higher scores. A 660 or 700 score can change both your rate and your mortgage insurance costs on the Conventional pairing. If you are close to a threshold, a few months of targeted credit work before applying can pay for itself many times over.
Can I combine TSAHC DPA with a conventional loan instead of FHA?
Yes. Home Sweet Texas pairs with either an FHA or a Conventional first mortgage. The Conventional pairing can be attractive for stronger credit profiles because mortgage insurance is cancelable later, while FHA tends to fit lower scores. A participating lender can price both pairings the same day so you can compare directly.
Is a DPA loan more expensive than a regular mortgage?
Usually the rate on a DPA-paired first mortgage runs somewhat above a standalone market rate; that is how the assistance is funded. For buyers without down payment savings, the tradeoff is often worth it. For buyers who already have the cash, a standalone loan frequently wins. Compare both on the same day before deciding.
If you want to know whether Home Sweet Texas fits your county, your income, and your timeline, reach out and let’s talk through your options. We’ll look at the DPA package next to a standalone loan and let the numbers make the case either way.
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. Sources: TSAHC program guidelines (2026), Redfin El Paso market data (three months ending May 2026), Team Price Real Estate Austin market data (week of June 17, 2026). Equal Housing Lender.
