TSAHC vs TDHCA · The Decision Guide

TSAHC vs TDHCA: Which Texas DPA Program Is Right For You?

Texas’s two state-level down payment assistance agencies — TSAHC and TDHCA — both deliver up to 5% in DPA, both require 620+ FICO, and both pair with FHA, VA, USDA, and conventional loans. The right pick depends on your situation: first-time vs repeat buyer, occupation, AMI, and whether you want to add a federal MCC tax credit on top. This guide compares them side-by-side with a feature table, decision tree, and four worked Texas buyer scenarios.

Last updated: May 1, 2026 Fact-checked by Byron Davis, NMLS #621780 4,200+ words · ~18 min read

Fact-checked by

Byron Davis

Texas DPA Fact-Checker · NMLS #621780

Last reviewed May 1, 2026

TSAHC vs TDHCA is the most-asked question in Texas first-time homebuyer circles. Both agencies offer up to 5% in down payment assistance, both require a 620+ FICO, and both pair with FHA, VA, USDA, or conventional first mortgages. The right choice between TSAHC vs TDHCA depends on your specific situation: first-time vs repeat buyer status, occupation, county AMI, and whether you want to add a federal MCC tax credit on top.

Most Texas buyers will qualify for at least one of these two state-level DPA programs; many will qualify for both and have to choose. The TSAHC vs TDHCA decision shapes your closing costs, your second-lien terms, your MCC eligibility, and your recapture exposure. This guide compares them side-by-side with a feature table, decision tree, four worked Texas buyer scenarios, and the pairing matrix.

How to choose between TSAHC vs TDHCA

The fastest answer to the TSAHC vs TDHCA question: if you’re in a Heroes-eligible occupation (teacher, police, firefighter, EMS, corrections, school staff, nurse, or veteran), TSAHC Heroes wins on income flexibility (up to 115% AMI in many counties) and waives the first-time-buyer rule. If you’re a repeat buyer in a non-Heroes occupation, TDHCA MCTH wins because it’s built for repeat buyers. For first-time buyers in a non-Heroes occupation, TSAHC Home Sweet Texas and TDHCA MFTH are roughly equivalent — pick based on whether you prefer a grant or a deferred second lien.

For deeper coverage of each agency individually, see our TSAHC programs guide and TDHCA programs guide. Texas veterans should also compare to the VA + DPA pairing guide, which covers VA loans + Texas VLB seconds + TSAHC Heroes + MCC. The full Texas DPA hub covers all state and city programs side-by-side.

TSAHC vs TDHCA: which Texas DPA is right for you?

TSAHC and TDHCA both deliver up to 5% in Texas down payment assistance, both require 620+ FICO, and both pair with FHA, VA, USDA, or conventional first mortgages. The right choice depends on whether you’re a first-time or repeat buyer, your occupation, your county’s AMI, and whether you want to add a federal MCC tax credit on top. This guide compares the two state-level Texas DPA programs side-by-side so you can pick the better fit for your situation.

Both TSAHC (the Texas State Affordable Housing Corporation) and TDHCA (the Texas Department of Housing and Community Affairs) are state-level Texas DPA agencies. They share the same federal regulatory framework (IRC §143 recapture, IRC §25 MCC) but run their programs with different eligibility rules, structures, and pairing allowances. Most Texas first-time buyers will qualify for at least one of them; many will qualify for both and have to choose.

Side-by-side feature comparison

The fastest way to decide between TSAHC and TDHCA is to put them next to each other:

Feature	TSAHC	TDHCA
Agency type	Self-funded 501(c)(3) non-profit chartered by Texas Legislature (1994)	State government agency (federal HOME funds + state appropriations)
Programs	Home Sweet Texas, Homes for Texas Heroes, TSAHC MCC	My First Texas Home (MFTH), My Choice Texas Home (MCTH), TDHCA MCC
DPA structure	Grant (FHA/VA/USDA) or forgivable second lien (conventional)	Deferred second lien (no monthly payment, due at sale/refi)
DPA amount	Up to 5% of loan amount	Up to 5% of loan amount
FTHB requirement	Required for Home Sweet Texas; waived for Heroes	Required for MFTH (waived for veterans); not required for MCTH
Income (AMI)	80% AMI for Home Sweet Texas; up to 115% AMI for Heroes in many counties	Up to 80% AMI for both MFTH and MCTH
Credit score floor	620 FICO	620 FICO
MCC pairing	MCC pairs with both DPA programs	MCC pairs with MFTH only; MCTH cannot be paired with MCC
Heroes occupations	Yes — teachers, police, firefighters, EMS, corrections, school staff, nurses, veterans	No occupation-based program
Funding cycle	Self-funded — stable year-round	Federal block-grant funded — occasional cycles or geographic limits
Recapture reimbursement	Yes — TSAHC reimbursement program	Yes — TDHCA reimbursement program

Decision tree: which program fits your scenario?

Use this flow to identify the strongest TSAHC or TDHCA option for your situation. Most Texas buyers fall into one of these four scenarios.

You’re a first-time buyer with regular employment

Best fit: Compare TSAHC Home Sweet Texas vs TDHCA MFTH. Both work as an FHA + DPA + MCC combination. Pick TSAHC if you want grant-style DPA (no second lien on conventional). Pick TDHCA MFTH if you prefer the deferred-second structure and like the simplicity.

You’re a teacher, police, firefighter, EMS, corrections, school staff, or nurse

Best fit: TSAHC Homes for Texas Heroes. Heroes waives the first-time-buyer rule and allows up to 115% AMI in many counties. Pairs with TSAHC MCC. TDHCA has no equivalent occupation-based program.

You’re a repeat buyer (not in a Heroes occupation)

Best fit: TDHCA MCTH. MCTH allows repeat buyers and pairs with FHA/VA/USDA/conventional. Note: MCTH cannot be paired with the TDHCA MCC. If you want a tax credit too, check whether you qualify for a TSAHC program in a HUD-targeted census tract (which waives FTHB).

You’re a veteran with VA loan eligibility

Best fit: Compare TDHCA MFTH (which waives FTHB for veterans) vs TSAHC Heroes (also covers veterans). Both can pair with the Texas VLB second lien for additional Texas-veteran assistance.

Worked examples: four real Texas buyer scenarios

The right TSAHC vs TDHCA pick changes with the buyer. Here are four common Texas first-time / repeat-buyer scenarios with the recommended program fit.

Persona 1 — Teacher buying her first home in Bexar County

Profile: 4th-grade teacher, San Antonio ISD, 5 years teaching, household income ~$78K, 685 FICO, never owned a home
Recommended fit: FHA first mortgage + TSAHC Homes for Texas Heroes grant DPA + TSAHC MCC
Why: Heroes program gives her grant-style DPA (no second lien), no FTHB requirement (so future flexibility), and the TSAHC MCC pairs cleanly for an additional federal tax credit up to $2,000/year for the life of the loan.

Persona 2 — EMS / paramedic in Travis County, repeat buyer

Profile: Travis County EMS paramedic, owned a home from 2015–2022, household income ~$92K, 695 FICO
Recommended fit: FHA + TSAHC Homes for Texas Heroes + TSAHC MCC
Why: Even though they’re a repeat buyer, EMS/firefighter/police occupations qualify for Heroes (FTHB waived). 115% AMI ceiling lets the higher household income still qualify. Heroes + MCC is the strongest combination for eligible occupations.

Persona 3 — Repeat buyer (no Heroes occupation), El Paso

Profile: Owned a home 2018–2024, sold last year, software developer, household income ~$85K, 715 FICO, El Paso County
Recommended fit: FHA + TDHCA My Choice Texas Home (MCTH) deferred second lien
Why: MCTH is built for repeat buyers and allows up to 80% AMI. No MCC pairing on MCTH, but their employer-sponsored 401(k) match makes the foregone MCC less impactful than the closing-cost coverage from MCTH’s 5% DPA.

Persona 4 — 30%+ disabled veteran, Bell County

Profile: Army veteran, 30% service-connected VA disability rating, full VA entitlement, household income ~$72K, 680 FICO, Bell County (near Fort Cavazos)
Recommended fit: VA loan + Texas VLB second lien (two-note) + TSAHC Heroes for closing-cost DPA
Why: VA covers the down payment (zero down). VLB’s 0.5% rate discount kicks in for 30%+ disabled vets. TSAHC Heroes covers closing costs. VA funding fee is waived (10%+ disabled). This is the strongest combined fit available to qualifying Texas veterans.

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TSAHC vs TDHCA: frequently asked questions

TSAHC vs TDHCA — what’s the difference?

TSAHC is a self-funded 501(c)(3) non-profit chartered by the Texas Legislature; TDHCA is a state government agency administering federal HOME funds. Both run Texas down payment assistance programs (up to 5% DPA each), both require 620+ FICO, both pair with FHA/VA/USDA/conventional. Key differences: TSAHC has occupation-based Heroes (teachers, police, firefighters, EMS, nurses) with up to 115% AMI; TDHCA has MCTH for repeat buyers but it can’t be paired with the TDHCA MCC.

Can I use both TSAHC and TDHCA on the same loan?

No. You must choose one state-level Texas DPA program per purchase. TSAHC and TDHCA cannot be combined on the same mortgage. The two are alternatives, not pairable layers. Pick the one that fits your situation (FTHB status, occupation, income, county) better.

Which is better — TSAHC or TDHCA?

Neither is universally "better" — the right choice depends on your situation. TSAHC Heroes wins for eligible occupations (teachers, police, firefighters, EMS, corrections, school staff, nurses) with no FTHB requirement and up to 115% AMI. TDHCA MCTH wins for repeat buyers who don’t qualify for Heroes. TDHCA MFTH and TSAHC Home Sweet Texas are roughly equivalent for first-time buyers; pick based on whether you want grant-style DPA (TSAHC) or a deferred second lien (TDHCA).

Can I pair the TSAHC MCC with the TDHCA MCC?

No. IRS rules allow only one MCC per loan. You can use TSAHC MCC OR TDHCA MCC, never both. If you’re comparing them, both deliver the same federal benefit (20% credit on annual mortgage interest, capped at $2,000/year subject to your tax liability). Pick the MCC that pairs with your DPA program.

Which has higher income limits — TSAHC or TDHCA?

TSAHC Heroes wins on income flexibility — up to 115% AMI in many counties (vs 80% AMI on most other state programs). For example, in many Texas metros 115% AMI for a family of four lands in the $115,000–$135,000+ range. TSAHC Home Sweet Texas, TDHCA MFTH, and TDHCA MCTH all cap at 80% AMI. HUD-targeted census tracts can allow higher limits across both agencies.

Do TSAHC and TDHCA both require first-time-buyer status?

No. TSAHC Homes for Texas Heroes waives the FTHB requirement entirely for eligible occupations. TDHCA My Choice Texas Home (MCTH) waives it for everyone (it’s designed for repeat buyers). TSAHC Home Sweet Texas and TDHCA MFTH require FTHB status (with a 3-year prior-ownership exception, plus a veteran exemption on MFTH).

Are TSAHC programs grants or loans?

It depends on your first mortgage. With FHA, VA, or USDA, TSAHC delivers DPA as a grant — no repayment, no second lien on the home. With conventional financing (Freddie Mac HFA Advantage or Fannie Mae HFA Preferred), TSAHC DPA is structured as a forgivable second lien — forgiven over time if you stay in the home long enough.

Are TDHCA programs grants or loans?

TDHCA structures all DPA as a deferred second lien — no monthly payment, but the full balance is due when you sell, refinance, or pay off the first mortgage. There’s no forgiveness clock; if you stay in the home long-term you keep the help, and you only repay it when you exit. This is the main structural difference from TSAHC’s grant or forgivable-second approach.

Which agency’s recapture rules are stricter?

Both TSAHC and TDHCA programs are subject to the same federal recapture tax under IRC §143. Three conditions must all happen for recapture to apply: (1) sell within 9 years, (2) income at sale exceeds program limit, AND (3) you realize a capital gain. Most borrowers never trigger all three. Both agencies run reimbursement programs for borrowers who do.

Can I switch from TSAHC to TDHCA (or vice versa) mid-application?

Technically yes — until your first mortgage is locked and the DPA is recorded at closing, you can change programs. But practically, switching mid-application means restarting program-specific paperwork through the lender’s portal and may delay closing by 1–2 weeks. Better to compare and decide before applying. ShopDPA can help you compare based on your specific income, credit, occupation, and county.