Texas Down Payment Assistance

Texas Down Payment Assistance Income Limits Went Up in 2026

TSAHC raised its income limits to 150% of area median for Home Sweet Texas and 170% for Homes for Texas Heroes, and TDHCA rolled out new limits July 13, 2026. See the old and new figures.

Tyler Allen Reviewed by

Byron Davis, NMLS #621780 1,145 words · ~6 min read

125% → 150%TSAHC Home Sweet Texas income limit, as a share of area median

125% → 170%TSAHC Homes for Texas Heroes income limit, as a share of area median

+$35,025Increase in the Home Sweet Texas limit in Dallas County

July 13, 2026Effective date of TDHCA’s new income and purchase price limits

If a lender told you last year that you earned too much for Texas down payment assistance, that answer may have expired. Both of Texas’s state housing agencies changed their income limits this summer. One of them changed them a lot. The Texas State Affordable Housing Corporation (TSAHC) raised the percentage of area median income it allows for the first time since 2021, and the Texas Department of Housing and Community Affairs (TDHCA) rolled out new limits based on HUD’s latest figures. Here’s what changed, what it means in dollars, and who is likely to benefit.

Don’t Rely on Last Year’s Answer

A few assumptions are now out of date:

“I was over the limit, so I still am.” A Dallas County couple earning $165,000 was over TSAHC’s old $146,625 limit. Under the new $181,650 limit, they’re below it.
“Teachers and first responders get the same limit as everyone else.” Not anymore. TSAHC’s Homes for Texas Heroes now has its own, higher limit of 170% of area median.
“The limits went up the same everywhere.” They didn’t. TSAHC’s increase was large across the state, while TDHCA’s was modest, and a couple of TDHCA areas actually went down.

If you checked before summer 2026, it’s worth running the numbers again.

How TSAHC’s Income Limits Changed

TSAHC had set its down payment assistance limits at 125% of area median family income in 2021, according to TSAHC’s 2021 announcement. On July 10, 2026, TSAHC announced that Home Sweet Texas now allows 150% of area median and Homes for Texas Heroes allows 170%. TSAHC pointed to high interest rates and home prices, and said the affordability squeeze is hardest on Texas public servants.

TSAHC income limits, before and after the 2026 change (non-targeted, any household size)

County	Previous limit (125% AMFI)	Home Sweet Texas now (150%)	Homes for Texas Heroes now (170%)
Travis (Austin area)	$167,250	$201,600	$228,480
Dallas, Collin, Denton	$146,625	$181,650	$205,870
Tarrant (Fort Worth area)	$133,375	$165,450	$187,510
Bexar (San Antonio area)	$130,833	$157,358	$178,339
Harris (Houston area)	$126,375	$156,000	$176,800
El Paso, Hidalgo, and other lower-limit counties	$123,500	$152,250	$172,550

Source: current limits from TSAHC’s county income limits tool; previous limits from TSAHC’s prior published table at 125% of AMFI.

Two things drove the jump. The percentage went up, and HUD’s new area median incomes were also higher in most places. Together, they lifted the Home Sweet Texas limit by roughly $26,000 to $35,000 in the major metros. For county-by-county figures and the lower limits that apply with an MCC or bond-funded assistance, see our TSAHC income limits guide.

How TDHCA’s Income Limits Changed

TDHCA’s new limits took effect July 13, 2026, according to TDHCA’s income and purchase price limits table. TDHCA kept the same percentages of area median, so the changes reflect HUD’s updated median incomes. Most areas rose a little:

TDHCA income limits, previous vs. 2026 (non-targeted)

Area	My First Texas Home, 1-2 people (previous → now)	My Choice Texas Home, FHA/VA/USDA (previous → now)
Austin area	$133,800 → $134,400	$227,460 → $228,480
Dallas area	$117,300 → $121,100	$199,410 → $205,870
Fort Worth area	$106,700 → $110,300	$181,390 → $187,510
San Antonio area	$104,227 → $104,725	$177,186 → $178,033
Houston area	$101,100 → $104,000	$171,870 → $176,800
Kendall County	$143,900 → $139,700	$244,630 → $237,490
Balance of state	$98,800 → $101,500	$167,960 → $172,550

Source: current limits from TDHCA’s limits table, effective July 13, 2026; previous limits from TDHCA’s prior published table.

The My First Texas Home limits also apply to the Texas Mortgage Credit Certificate. For every TDHCA area, household-size tier, and the conventional limits for My Choice Texas Home, see our TDHCA income limits guide.

Purchase Price Limits Went Up Too

Purchase price limits apply to My First Texas Home, the MCC, and TSAHC’s bond-funded and MCC options. Most rose this year:

Purchase price limits, previous vs. 2026 (1-unit, non-targeted)

Area	Previous	2026
Austin area	$593,363	$598,019
Dallas and Fort Worth areas	$585,006	$589,596
San Antonio area	$579,037	$583,580
Houston area and balance of state	$544,232	$566,354

Source: TDHCA’s limits table and TSAHC’s county tool. Targeted areas have higher limits.

The Houston area and much of the state got the largest bump, about $22,000. TSAHC’s main Home Sweet Texas and Heroes options with non-bond assistance don’t carry a purchase price limit at all when you don’t add an MCC.

Who Is Most Likely to Benefit

Dual-income households in the big metros. Two solid salaries often landed just above TSAHC’s old limit. With a $35,025 increase in Dallas County and $29,625 in Harris County, many of those households are now under it.
Teachers, first responders, and veterans. Homes for Texas Heroes now has its own 170% limit, which is $205,870 in Dallas County and $228,480 in Travis County. Eligible professions are listed on TSAHC’s Heroes page.
Buyers in rural and lower-cost counties. The statewide TSAHC floor rose from $123,500 to $152,250, and no county is lower.
Buyers who were near a TDHCA limit. The TDHCA changes are smaller, but a few thousand dollars can matter if you were just over the line.

What to do: If you were turned down on income before July 2026, ask a participating lender to recheck you under the new limits. Bring your most recent pay stubs, since your lender calculates income from your current documentation.

What Didn’t Change

Higher income limits don’t change the other requirements. You still need to meet credit score minimums, which start at 620 for government loans at both agencies. You’ll also need a participating lender and, for many options, a homebuyer education course, and assistance is still subject to funding. Rates are separate from income limits, too; compare today’s TSAHC rates and TDHCA rates before you choose. Our guide to Texas program eligibility covers the full checklist, and our TSAHC vs. TDHCA comparison helps you decide which agency to start with.

Income limits get set once a year and are easy to forget about. But this year’s change was big enough that a lot of Texas buyers who were told “no” are now a likely “maybe.” You’ll still need to clear the other requirements, and a lender will have the final word on your qualifying income. If you’d like help, you can see what you may qualify for and get connected with a licensed mortgage professional in our Texas partner network.

2026 Texas Income Limit Increase: Frequently Asked Questions

2026 Texas income limit increase: frequently asked questions

Did Texas down payment assistance income limits go up in 2026?

Yes. TSAHC raised its Home Sweet Texas limit from 125% to 150% of area median family income and set Homes for Texas Heroes at 170%, announced July 10, 2026. TDHCA's new limits, based on HUD's updated median incomes, took effect July 13, 2026.

How much did the TSAHC income limit increase?

In most major metros, the Home Sweet Texas limit rose about $26,000 to $35,000. In Dallas County it went from $146,625 to $181,650, and in Harris County from $126,375 to $156,000.

Is the Homes for Texas Heroes income limit different now?

Yes. Heroes buyers used to share TSAHC's 125% limit. Now Homes for Texas Heroes has its own limit at 170% of area median, such as $205,870 in Dallas County and $228,480 in Travis County.

Did TDHCA raise its income limits?

Slightly, in most areas. TDHCA kept the same percentages, so its 2026 limits reflect HUD's new median incomes. The Dallas-area My First Texas Home limit for 1-2 people rose from $117,300 to $121,100. A few areas, such as Kendall County, went down.

I was over the limit last year. Should I check again?

Yes, especially for TSAHC, where most limits rose by 20% or more. A participating lender can recheck your qualifying income against the current limit for your county and program.

† 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. Income limits, purchase price limits, program terms, and eligibility are set by each agency and change periodically; figures on this page are based on TSAHC’s county income limits tool and TDHCA’s limits table effective July 13, 2026, and may lag the official sources. Assistance is subject to funding availability and lender approval. Confirm your eligibility with a participating licensed lender. Equal Housing Opportunity.