TSAHC Interest Rates

If you are rate-shopping and you have heard about Texas down payment assistance, you have probably run into the same worry a lot of buyers do: does taking help mean accepting a worse interest rate? It is a fair question, and the honest answer is that it depends entirely on which option you pick. The Texas State Affordable Housing Corporation publishes a small set of rates, and once you can read them, the trade-off is clear and in your control.

This page shows TSAHC’s current published rates for the Home Sweet Texas and Homes for Texas Heroes programs, with a short guide to what each row means. The tables below update on their own as TSAHC changes its rates, so the numbers you see are the current ones rather than a snapshot from weeks ago.

What buyers get wrong about TSAHC rates

A few assumptions keep people from looking closely at these programs. They are worth clearing up before you read the tables:

• “Assistance always means a higher rate.” Only if you take assistance. TSAHC’s no-DPA option gives you its lowest rate, and you can still add a Mortgage Credit Certificate on top. The higher rates apply only to the grant and forgivable-lien options, which hand you cash for your down payment in exchange.
• “The rate I see online is the rate I will get.” Not necessarily. Your rate depends on the structure you choose, your loan type, your credit, and your income tier. The published rate is the starting point, not a quote.
• “These rates are way above market.” They track the broader mortgage market closely and move with it. The point of the program is the down payment help and the tax credit, not a teaser rate.

The way to settle it for your own situation is to compare the no-DPA rate plus your own savings against an assistance rate that covers most of your cash to close. A participating lender can run both side by side.

Current TSAHC interest rates

Here are TSAHC’s published rates for the Home Sweet Texas and Homes for Texas Heroes programs. Unless noted, the same rates apply to both programs. The figures come straight from TSAHC’s Today’s Interest Rates page and refresh automatically.

The asterisks on TSAHC’s own table refer to fee and eligibility footnotes: lenders may charge a 1% origination fee plus customary fees, government loans for lower credit scores can carry a small added origination fee, and the lowest conventional tier is limited to buyers at or below 80% of the area median family income. A participating lender walks you through which row applies to you.

The three rate structures, explained

TSAHC publishes its rates in three groups because there are three ways to use the program. They share the same underlying 30-year fixed mortgage; what changes is whether you take down payment assistance and how it is delivered.

• No DPA. You take the first mortgage with no down payment assistance, at TSAHC’s lowest published rate. This fits buyers who have their down payment saved and want the cheapest long-term rate. You can still pair it with a Mortgage Credit Certificate for a yearly federal tax credit.
• Grant. TSAHC provides a grant toward your down payment and closing costs that you never repay, in exchange for a somewhat higher rate. The grant is available on FHA, VA, and USDA loans.
• 3-year deferred forgivable second lien. The assistance comes as a second lien at 0% interest with no monthly payment, forgiven after you live in the home for three years. The first-mortgage rate is a little higher than the no-DPA option, and this structure is available across FHA, VA, USDA, and conventional loans.

Our guides to Home Sweet Texas and the Homes for Texas Heroes program explain who qualifies for each, and our Texas down payment assistance hub compares the programs side by side.

The rate-versus-assistance trade-off

The choice between a lower rate and more assistance comes down to two numbers: how much cash you have for closing, and how long you expect to keep the loan. Taking assistance raises your rate slightly, which costs a bit more in interest over time, but it can save you thousands at the closing table right now. For a buyer who is short on cash or plans to refinance or move within a few years, the assistance often wins. For a buyer with a full down payment who plans to stay put for a long time, the no-DPA rate may come out ahead.

There is no universal answer, which is exactly why TSAHC publishes all three. A participating lender can show you the monthly payment and the cash-to-close for each option on your real numbers, so the trade-off stops being abstract.

What determines the rate you actually get

The published rate is the starting point. A few factors decide which row applies and what you ultimately lock:

• Program structure — no DPA, grant, or forgivable second lien, as shown above.
• Loan type — FHA, VA, USDA, or conventional. TSAHC lists conventional rates separately and splits them by income tier.
• Credit score — most options start at a 620 score; conventional tiers generally look for 640. A stronger score can affect pricing and which options are open to you. If you are below 620, a HUD-approved housing counselor can help you map a short path to get there.
• Income tier — TSAHC’s lowest conventional rate is reserved for buyers at or below 80% of the area median family income. Above that, a different conventional rate applies.
• When you lock — rates move with the market, so the figure changes between the day you start and the day your lender locks your loan.

Because these rates come only through TSAHC-approved lenders, working with a participating lender in our network matters; not every lender is set up to offer the programs.

Pairing an MCC with your TSAHC rate

A Mortgage Credit Certificate does not change your interest rate, but it changes what the loan effectively costs you. An MCC is a federal tax credit under IRS Form 8396 that returns a percentage of the mortgage interest you pay each year, taken straight off your federal tax bill. TSAHC issues the MCC in combination with its down payment assistance for qualifying first-time buyers, which means you can pair the help, the rate, and the tax credit in one package. Our Texas MCC guide shows how the credit math works.

How often TSAHC rates change, and where they come from

TSAHC updates its published rates frequently, often more than once a week, because they move with the mortgage-backed-securities market that funds the loans. There is no fixed schedule, which is why a rate you saw last month is not a reliable guide today. The figures on this page are pulled directly from TSAHC’s own rate table and refresh automatically, so they stay current without anyone editing them by hand. For the official source at any moment, you can always check TSAHC’s Today’s Interest Rates directly.

How to lock a TSAHC rate

1. Check where you stand. Spend a couple of minutes on the eligibility step so we understand your income, location, credit, and goals.
2. Connect with a participating lender. We introduce you to a licensed mortgage professional in our network who is approved to offer TSAHC programs.
3. Compare your options. Your lender shows you the no-DPA, grant, and forgivable-lien options side by side on your real numbers, including rate, monthly payment, and cash to close.
4. Lock and move forward. Once you pick the structure that fits, your lender locks the rate and you proceed toward closing with your assistance lined up.

TSAHC interest rates: frequently asked questions

TSAHC interest rates: frequently asked questions

† ShopDPA is The Texas Down Payment Assistance Marketplace, a home loan and down payment assistance referral service. We are not a mortgage lender, mortgage broker, or loan officer, and we do not originate, fund, or service loans. We connect Texas homebuyers with licensed mortgage professionals and with down payment assistance programs. We are not affiliated with TSAHC, TDHCA, HUD, the IRS, the VA, or any government agency. Interest rates, program terms, and eligibility are set by TSAHC and its approved lenders and change frequently; the rate tables shown here are pulled automatically from TSAHC’s published figures and may lag the official source by a few hours. Confirm your exact rate with a participating licensed lender. Equal Housing Opportunity.