My Choice Texas Home — 2026 Repeat Buyer DPA Guide

If you owned a home before and assumed you were out of luck on Texas down payment assistance, you may be wrong. My Choice Texas Home is the down payment assistance program from the Texas Department of Housing and Community Affairs (TDHCA) built specifically for buyers who don’t fit the first-time-homebuyer mold. It may put up to 5% of your total loan amount toward your down payment and closing costs, it carries the highest income limits of any Texas state DPA program, there’s no purchase price cap, it works with conventional financing on top of FHA/VA/USDA, and it’s generally not subject to the federal recapture tax. The one thing it gives up: no Mortgage Credit Certificate.

Up to 5% Down payment & closing-cost help (of loan amount) TDHCA

No First-time-buyer requirement TDHCA

None Purchase price limit TDHCA

Up to ~$227,460 Income limit, Austin area (non-targeted, over-80% AMFI) TDHCA

Most Texas DPA programs require first-time-buyer status or impose a purchase price cap that quietly rules out buyers in higher-priced markets. My Choice Texas Home drops both of those constraints. It’s built specifically for repeat buyers, move-up buyers, and Texas families whose income runs above the My First Texas Home limits — and it accepts conventional financing, which the first-time program doesn’t.

This guide walks through who qualifies (the answer: pretty much any Texas buyer who meets the income limit), the two assistance structures, what the income limits look like by area and loan type, how it pairs with FHA/VA/USDA/conventional, why there’s no MCC, and why it’s generally not subject to recapture. Every load-bearing figure links to the primary source — the TDHCA Limits PDF and the My Choice Texas Home Program Matrix.

What Is My Choice Texas Home?

My Choice Texas Home is one of two homebuyer assistance programs run by TDHCA under The Texas Homebuyer Program. Its companion, My First Texas Home, is built for first-time buyers and pairs with the Mortgage Credit Certificate. My Choice Texas Home is the wide-open one: no first-time requirement, the highest income limits of any Texas state DPA program, no purchase price cap, and conventional financing on top of government loans.

The program pairs an affordable 30-year fixed-rate first mortgage with a 0% interest deferred second lien worth up to 5% of your loan amount. That assistance may go toward your down payment and closing costs, and on most files it carries no monthly payment. One thing worth knowing up front: not every lender is approved to offer My Choice Texas Home. Working with a participating lender in our Texas partner network is how you make sure the door is actually open to you.

Three Myths That Keep Repeat Texas Buyers from Applying

Myth 1: “DPA is only for first-time buyers.” The reality: TDHCA built My Choice Texas Home specifically for buyers who don’t meet the first-time rule. The My Choice Texas Home Program Matrix states it plainly: no first-time-homebuyer requirement. Repeat buyers, current homeowners selling and rebuying, divorcees buying again, and Texas families upsizing all qualify.

Myth 2: “I make too much for any DPA program.” The reality: My Choice Texas Home carries the highest income limits of any Texas state DPA program. In the Austin–Round Rock area, the over-80%-AMFI limit may reach approximately $227,460 across all loan types. Dallas reaches approximately $192,950 (Conv) and $199,410 (FHA/VA/USDA). Houston reaches approximately $173,400 (Conv) and $171,870 (FHA/VA/USDA). A dual-income household earning $150K+ combined typically fits comfortably in most major metros.

Myth 3: “DPA programs cap the price of the home I can buy.” The reality: My Choice Texas Home has NO purchase price limit. Other Texas DPA programs cap the price — Dallas/Austin/Houston-area homes can blow past those ceilings — but My Choice doesn’t. Your only real constraints are your income against the area limit and the loan limits for your chosen loan type. For higher-priced Texas markets, that’s a meaningful advantage.

Repeat AND First-Time Buyers May Qualify

The most important word in this program’s name is the one that’s easy to skim past: choice. Unlike My First Texas Home, this program does NOT require first-time-buyer status. You may have owned a home before, you may own one right now, and you may still qualify.

That makes My Choice Texas Home the natural fit for buyers who tend to count themselves out. Relocating within Texas? You may qualify. Upsizing for a growing family? You may qualify. Buying again after a stretch of renting? You may qualify. Sold a home in another state and starting fresh here? You may qualify. The program is built so prior homeownership doesn’t, on its own, close the door.

First-time buyers may use My Choice Texas Home too. If you’re a first-time buyer and you want the Mortgage Credit Certificate, My First Texas Home is usually the better TDHCA fit, since the MCC pairs only with My First. But if the MCC isn’t a factor, or if your income runs above the My First Texas Home limits, My Choice Texas Home may be the program that finally opens the door.

Your Two Options: 30-Year Deferred or 3-Year Forgivable

The assistance comes as a 0% interest second lien, and TDHCA gives you two ways to take it. The right one depends on how long you plan to stay.

The 30-year deferred repayable second lien carries 0% interest and no required monthly payment. You may make voluntary payments. The balance comes due in full only when you sell, refinance, transfer, or pay off the first lien — no prepayment penalty. Best fit: buyers planning to stay long-term who want to keep the cost of clearing the assistance as low as possible.

The 3-year deferred forgivable second lien also carries 0% interest and no monthly payment. It’s forgiven in full at the 36-month mark — as long as you stay current on your first mortgage and keep the home as your primary residence. May become repayable if you sell, refinance, or move out before the three-year mark. Best fit: buyers planning to put down roots, since pass three years and the help becomes yours.

Income Limits by Area and Loan Type (2026)

This is where My Choice Texas Home really shines. The income limits are the highest of any Texas state DPA program, they apply at any household size (no household-size brackets), and they’re tiered by loan type instead.

The figures below show approximately the maximum household income that may apply for the over-80%-AMFI tier (the standard tier most buyers use), from the TDHCA Combined Income & Purchase Price Limits PDF, with the MCTH income table effective February 12, 2026:

County / TDHCA area	MCTH Conv >80% AMFI	MCTH FHA/VA/USDA (170% AMFI)
Dallas HMFA (Collin, Dallas, Denton)	~$192,950	~$199,410
Fort Worth–Arlington (Tarrant)	~$192,950	~$181,390
Austin–Round Rock (Travis)	~$227,460	~$227,460
Houston (Harris)	~$173,400	~$171,870
San Antonio (Bexar)	~$167,110	~$177,186

Limits may run higher in HUD-targeted census tracts. Verify your area’s current figure in the TDHCA PDF before applying. Always pair a number with its loan type — the limit changes when you switch from conventional to FHA/VA/USDA.

No Purchase Price Limits

Another differentiator: My Choice Texas Home has NO purchase price limit. A lot of Texas DPA programs cap the price of the home you may buy, which rules out buyers in higher-priced markets right when they thought they were qualified. My Choice Texas Home doesn’t impose that cap. The price of the home you may purchase follows your loan type’s standard agency guidelines instead of a separate program ceiling.

That’s a real advantage in markets like Austin, Dallas, and the suburbs around Houston and San Antonio, where median prices have climbed and a fixed price cap can shut out otherwise-qualified buyers. Your only real constraints are your income against the area limit and your loan type’s conforming loan limits (FHFA) or FHA loan limits (HUD).

How It Pairs With Conventional, FHA, VA, and USDA Loans

My Choice Texas Home isn’t a mortgage on its own — it’s help that rides on top of a first mortgage. One of the program’s quiet advantages is that it accepts conventional financing alongside FHA, VA, and USDA. That conventional path isn’t available on My First Texas Home, which is government-loans-only.

With an FHA loan (3.5% minimum down per HUD Handbook 4000.1), 5% MCTH assistance may completely cover the down payment AND chip into closing costs.

With a VA loan (zero down for eligible veterans per VA.gov), the assistance goes toward closing costs and prepaids.

With a USDA Rural Development loan (zero down in eligible areas per the USDA eligibility map), the assistance goes toward closing costs.

With a conventional loan, MCTH uses Fannie Mae’s HFA Preferred or Freddie Mac’s HFA Advantage products, both of which may include reduced mortgage insurance for eligible borrowers.

One state program at a time. ShopDPA does not market, package, or facilitate “DPA stacking.”

Why There Is No MCC With My Choice Texas Home

Here’s the one thing My Choice Texas Home gives up: the Mortgage Credit Certificate (MCC) is NOT available with this program. An MCC is a federal income tax credit that may return up to 15% of your annual mortgage interest as a dollar-for-dollar reduction in federal tax owed — a benefit that can keep paying you back year after year, claimed annually on IRS Form 8396. On the TDHCA side, that perk pairs only with My First Texas Home.

So if the MCC is important to you, that’s a strong reason to look at My First Texas Home instead. The tradeoff is real: My First Texas Home requires first-time-buyer status, has lower income limits, applies a purchase price cap, and is government-loans-only. My Choice Texas Home trades the MCC away in exchange for no first-time requirement, higher income limits, no price cap, and conventional financing. Which set of advantages wins comes down entirely to your situation.

Credit Requirements

TDHCA sets a minimum representative middle credit score of 620 for My Choice Texas Home, per the TDHCA Lender Guide. That floor applies across all the loan types the program accepts, though individual lenders may add their own overlays.

“Minimum credit score” is a floor, not a finish line. Hitting 620 makes you eligible to be considered; your full file still has to be approved. If your score is sitting just under the line, a licensed mortgage professional may be able to identify one or two specific moves that may lift you over it in 30-60 days.

Homebuyer Education and Occupancy

My Choice Texas Home requires all borrowers on the loan to complete a homebuyer education course before closing. TDHCA accepts approved in-person and online courses listed at TexasFinancialToolbox.com.

The home must be your primary residence, and most program structures expect you to move in within 60 days of closing. It can’t be used as an investment property or vacation home under the program. If your plans change after closing and the home stops being your primary residence, that may affect the forgivable second lien, so confirm the occupancy rules with your lender before you commit to a structure.

Recapture Tax — Why MCTH Is Generally Not Subject to It

Here’s a quietly valuable advantage: the federal §143 recapture tax attaches to certain mortgage-revenue-bond-funded programs and to Mortgage Credit Certificates. Because My Choice Texas Home is generally not structured as a bond-funded program in the way that triggers §143, it is generally not subject to the federal recapture tax, and TDHCA does not require you to provide tax returns to qualify for it. That may simplify both your application and the eventual sale of your home compared with My First Texas Home (which is bond-eligible and does require tax returns).

For context, the §143 recapture rule applies only when all three of these hit at sale: sell within 9 years + income exceeds the recapture-adjusted limit + realized gain above the threshold. If any one condition doesn’t hit, no recapture is owed. Because MCTH sits outside §143 entirely, this analysis doesn’t apply — but verify your specific situation with a tax professional before assuming.

My Choice vs My First Texas Home — and vs the TSAHC Programs

The simple version: My Choice Texas Home is TDHCA’s repeat-buyer option — no FTHB requirement, no price cap, highest income limits, all four loan types, no MCC, generally no recapture. My First Texas Home is the first-time-buyer option with FHA/VA/USDA-only loans, lower income limits, a purchase price cap, but with MCC eligibility and bond funding.

The other state agency, TSAHC, runs Home Sweet Texas (broad option for any occupation) and Homes for Texas Heroes (for teachers, first responders, veterans, with the $400 MCC fee waived). Our full guide to Texas down payment assistance lays them all out side by side.

Step-by-Step: How to Apply for My Choice Texas Home

Five steps from “wondering if you qualify” to “closing on your home”:

Step 1. Check the income limit for your area and loan type. What to do: find your area in the table above, then look at the column matching your loan type (Conv vs FHA/VA/USDA). If your area isn’t listed, pull the TDHCA PDF for the full table.

Step 2. Confirm your credit score. Aim for 620 middle. What to do: pull a free credit report at AnnualCreditReport.com.

Step 3. Connect with a TDHCA-participating lender. Not every lender offers MCTH. What to do: start with a licensed mortgage professional in our partner network — they can confirm participation and walk you through both structures.

Step 4. Complete homebuyer education. All borrowers must finish before closing. What to do: start the online course at TexasFinancialToolbox.com early.

Step 5. Choose your structure and close. Pick the 30-year deferred or 3-year forgivable second lien. What to do: discuss with your loan officer how long you plan to stay — the right structure depends on your timeline.

Documents to Have Ready

• Recent pay stubs (last 30 days) and W-2s or 1099s for the past two years
• Recent bank and asset statements (last 60 days)
• A government-issued photo ID
• Your homebuyer education completion certificate
• For veterans using a VA loan, your Certificate of Eligibility (request via VA.gov)
• NOTE: Federal tax returns are NOT required for My Choice Texas Home, since the program is generally not subject to §143 recapture

Frequently Asked Questions

Do I have to be a first-time homebuyer to use My Choice Texas Home?

No. My Choice Texas Home has NO first-time-homebuyer requirement. Repeat buyers, current homeowners selling and rebuying, and Texas families upsizing all qualify. That’s the program’s defining feature.

How much down payment assistance can I get?

Between 2% and 5% of your total mortgage loan amount as a 0% interest second lien. On a $300,000 loan, 5% is $15,000.

Does the assistance have to be paid back?

It depends on the structure. The 30-year deferred second lien carries 0% interest and no required monthly payment — repaid only when you sell, refinance, transfer, or pay off the first lien. The 3-year deferred forgivable second lien is forgiven at the 36-month mark as long as you stay current and keep the home as your primary residence.

What loan types does My Choice Texas Home work with?

All four major loan types: FHA, VA, USDA Rural Development, and conventional (via Fannie Mae HFA Preferred or Freddie Mac HFA Advantage). Conventional acceptance is one of MCTH’s key differentiators from My First Texas Home.

What are the income limits?

The highest of any Texas state DPA program, tiered by loan type and applied at any household size. In non-targeted areas, the over-80%-AMFI tier may reach approximately $227,460 in the Austin area, $192,950 (Conv) / $199,410 (FHA/VA/USDA) in the Dallas area, $173,400 (Conv) / $171,870 (FHA/VA/USDA) in Houston, and $167,110 (Conv) / $177,186 (FHA/VA/USDA) in San Antonio. Verify your area’s current figure in the TDHCA PDF.

Is there a purchase price limit?

No. My Choice Texas Home has NO purchase price limit. Your only constraints are your area income limit and your loan type’s standard agency loan limits.

Can I get the MCC tax credit with My Choice Texas Home?

No. The Mortgage Credit Certificate is NOT available with My Choice Texas Home — it pairs only with My First Texas Home. If the MCC is a priority for you, My First Texas Home is the path that may carry it (but requires first-time-buyer status with the standard veteran/targeted exceptions).

Will I owe a recapture tax when I sell?

Generally no. My Choice Texas Home is generally not subject to the federal §143 recapture tax, since it’s not structured as a bond-funded program in the way that triggers §143. TDHCA doesn’t require tax returns for MCTH qualification. Verify your specific situation with a tax professional before assuming.

What is repeat home buyer Texas down payment assistance?

Repeat home buyer Texas down payment assistance is DPA available to buyers who don’t meet first-time-buyer requirements. In Texas, the main option is My Choice Texas Home (TDHCA, this program). TSAHC’s Home Sweet Texas and Homes for Texas Heroes also serve repeat buyers on their standard tier. Most major Texas DPA programs that work for repeat buyers offer 2-5% of loan amount in assistance and require a 620 minimum credit score.

Is there non first time home buyer assistance Texas offers?

Yes. The major non-first-time-home-buyer assistance Texas offers includes My Choice Texas Home (TDHCA), Home Sweet Texas (TSAHC, no FTHB requirement on standard tier), and Homes for Texas Heroes (TSAHC, for public servants, no FTHB requirement). All three are designed to serve repeat buyers, and all three offer 2-5% of loan amount in down payment assistance. The federal Mortgage Credit Certificate generally requires first-time status (with veteran and HUD-targeted-tract exceptions), so it’s typically not available to non-first-time buyers.

The Bottom Line

My Choice Texas Home is the Texas DPA program built for the buyers most others rule out: repeat buyers, families with above-typical incomes, and buyers in higher-priced markets where purchase price caps shut others down. Up to 5% of loan amount in 0% deferred assistance, all four loan types, the highest income limits of any Texas state DPA program, no purchase price ceiling, no recapture exposure. The tradeoff — no Mortgage Credit Certificate — matters for some buyers and not others, and a participating lender can help you weigh it against My First Texas Home in one conversation.

If you’ve been quietly assuming Texas DPA isn’t for you because you’re not a first-time buyer or because your income is too high, this is the program built to prove you wrong. Use it.