What Is TSAHC?

If you have been researching how to buy a home in Texas, you have almost certainly run into the letters TSAHC, usually attached to down payment help. It stands for the Texas State Affordable Housing Corporation, and the short version is this: it is a nonprofit that helps Texans cover the upfront cost of buying a home, through a small set of programs you access from a regular mortgage lender. This page explains what TSAHC is, what it offers, who qualifies, and whether it is worth using.

The reason TSAHC matters to most buyers is simple. The biggest obstacle to owning a home is rarely the monthly payment; it is the pile of cash you need up front for a down payment and closing costs. TSAHC’s programs are built to shrink that pile, and the income limits reach higher than most people assume, so it is worth understanding before you decide you do not qualify.

Is TSAHC legit, and would I even qualify?

Two doubts stop people from looking into TSAHC. Both are usually misplaced:

• “Is this a real, safe program?” Yes. TSAHC is a nonprofit chartered by the Texas Legislature in 1994, and its programs run through approved, licensed mortgage lenders. It is widely used across the state every month.
• “I make too much, or my credit is not good enough.” Often not true. TSAHC’s county income limits reach well into six figures in the major metros, and most programs start at a 620 credit score, not a perfect one. You also do not need to be a first-time buyer for the main programs.

The honest answer is that whether TSAHC fits you depends on your numbers, but far more Texas buyers qualify than realize it. The rest of this page walks through exactly how it works so you can tell.

What is TSAHC?

The Texas State Affordable Housing Corporation is a self-supporting nonprofit organization created by the Texas Legislature in 1994. Its mission is to help low-and-moderate-income Texans and underserved communities find safe, affordable housing. You can read the organization’s own overview on the TSAHC about page.

One point trips people up: TSAHC is not a bank or a mortgage lender. It does not take your application or fund your loan directly. Instead, it designs the assistance programs and works through a network of approved mortgage lenders who originate the loans. So when you “use TSAHC,” what actually happens is you work with a participating lender who offers a TSAHC program on top of a standard mortgage.

What TSAHC programs are available?

TSAHC runs three main programs for home buyers:

• Home Sweet Texas Home Loan Program is the general track, open to any Texas buyer whose income fits the county limit, regardless of profession.
• Homes for Texas Heroes offers the same assistance to people in specific professions: teachers, police officers, firefighters, EMS, corrections officers, nurses, and veterans.
• The Mortgage Credit Certificate (MCC) is a federal tax credit, not down payment help. It returns a share of your annual mortgage interest as a credit against your federal taxes, and TSAHC issues it for qualifying first-time buyers in combination with its assistance.

The down payment programs share the same income limits and credit requirements; the difference between Home Sweet Texas and Homes for Texas Heroes is who is eligible, not how much help you get.

What is TSAHC down payment assistance, and how does it work?

TSAHC’s down payment assistance may provide up to about 5% of your loan amount toward your down payment and closing costs. It attaches to a standard first mortgage, FHA, VA, USDA, or conventional, and comes in three structures so you can fit it to your situation:

• No DPA takes the first mortgage at TSAHC’s lowest rate with no assistance, for buyers who already have their down payment. You can still add an MCC.
• Grant gives you money toward your down payment that you never repay, in exchange for a slightly higher rate.
• Three-year forgivable second lien delivers the help as a 0% second lien with no monthly payment, forgiven after you live in the home for three years.

Our TSAHC interest rates guide shows the current rate for each structure, so you can see the trade-off between a lower rate and more cash help.

TSAHC requirements: who qualifies?

TSAHC’s loans are designed to be reachable. The core requirements for most buyers:

• Credit score: most options start at 620, with conventional tiers generally looking for 640.
• Income: your household income has to fall under your county’s limit. These run higher than people expect; see our TSAHC income limits guide for the figures by metro.
• First-time status: not required for Home Sweet Texas or Homes for Texas Heroes. It is required for the MCC, with exceptions for veterans and targeted areas.
• Homebuyer education: a short approved course is usually required before closing.
• Occupancy: the home must be your primary residence, and it must fall under the county purchase-price limit.

Because the program runs through approved lenders, a participating lender is the one who confirms whether you meet the requirements and which structure fits.

TSAHC vs TDHCA

TSAHC is one of two state agencies that help Texas home buyers. The other is TDHCA, the Texas Department of Housing and Community Affairs, which runs My First Texas Home and My Choice Texas Home. They overlap, so here is how they compare.

For most buyers the choice comes down to first-time status and where your income lands. Our Texas down payment assistance hub goes deeper on both agencies, and a participating lender can compare them on your real numbers.

Is TSAHC worth it?

For the right buyer, yes. If you are short on cash for a down payment, the assistance can turn a goal that felt years away into a purchase you can make this year, and the grant option is money you never repay. If you plan to stay in the home a while, pairing the help with an MCC adds a yearly tax credit on top.

It is not automatically the cheapest route for everyone. The assistance options carry a slightly higher interest rate than the no-DPA option, so a buyer who already has a full down payment and plans to keep the loan for decades might come out ahead taking the lowest rate without assistance. The honest answer depends on your cash, your credit, and your timeline, which is exactly what a participating lender can lay out side by side. For most buyers who are stretching to cover the upfront cost, TSAHC is worth a serious look.

How to apply for a TSAHC loan

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. Because TSAHC works through approved lenders, we introduce you to a licensed mortgage professional in our network who offers the programs.
3. Get pre-qualified and pick your program. Your lender checks your income against your county limit, reviews your credit, and helps you choose between Home Sweet Texas, Homes for Texas Heroes, and the assistance structure that fits.
4. Finish homebuyer education and close. Complete the short approved course, then shop, make an offer, and close with your assistance lined up.

What is TSAHC: frequently asked questions

What is TSAHC: 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, or any government agency. Program terms, income limits, interest rates, and tax-credit details are set by the applicable agency and its approved lenders and change periodically; confirm current details with a participating licensed lender. Equal Housing Opportunity.