San Antonio Down Payment Assistance

San Antonio is one of the most military-dense metros in the country, and a lot of buyers here start their search at the same place: the City of San Antonio’s HIP down payment program. Here’s the part that trips people up — HIP 80 and HIP 120 are not currently accepting new applications for FY 2026, and they only ever covered homes inside city limits. The bigger doors never closed. The statewide Texas programs that work across all of Bexar County and the surrounding seven-county metro are open year-round, carry higher income ceilings, and reach the JBSA communities, the suburbs, and every major school district. If you wrote off assistance because the city list said “closed,” you were looking at the smallest door in the building.

San Antonio down payment assistance is help — usually a grant, a forgivable second lien, or a federal tax credit — that may cover part or all of the down payment and closing costs on a home across the San Antonio metro and Bexar County. Eligible buyers may combine statewide programs from TSAHC and TDHCA with the federal Mortgage Credit Certificate tax credit, and — when funding is open — the City of San Antonio’s Homeownership Incentive Program. This guide covers every San Antonio-area program with real numbers, the actual rules, and primary-source links so you can verify everything yourself. If you have a 620 credit score and an income under your program’s limit, you may qualify for at least one — often more.

What stops San Antonio buyers — and why most of it doesn’t hold up

A lot of people who’d qualify here never apply. In San Antonio it usually comes down to one of these:

• “The city program is closed, so there’s no help.” The city’s HIP is one option among several — and currently paused. The statewide programs are open year-round, and TSAHC’s Bexar County income limit may reach approximately $130,833 at any household size per the TSAHC San Antonio page.
• “I earn too much to qualify.” Unlikely in San Antonio. Most local household incomes sit under the TSAHC ceiling, and My Choice Texas Home runs higher still — up to roughly $167,110 on conventional financing per the TDHCA income limits.
• “I’m active-duty and might PCS — it’s not worth it.” For many JBSA buyers it is. A VA loan covers zero down, and TSAHC assistance can cover closing costs on top; veterans and active military qualify under the Homes for Texas Heroes occupation list, per TSAHC.
• “My credit isn’t there yet.” The floor is 620 on most loan types for both TSAHC and TDHCA — below the U.S. average FICO of about 715. Lender overlays vary, which is why the lender you work with matters.

If one of those was your reason to stop looking, it’s worth a couple of minutes to see where you actually stand. Our short form takes under 60 seconds — no SSN, no credit pull.

What is down payment assistance in San Antonio, Texas?

San Antonio buyers have access to several overlapping sources of down payment and closing-cost help. Most of it flows through three structures: grants (no repayment), forgivable second liens (no monthly payment, forgiven over time if you stay in the home), or deferred second liens (no monthly payment, due only when you sell or refinance). The right structure depends on which program you qualify for and how long you plan to stay.

• TSAHC (Texas State Affordable Housing Corporation) — statewide programs that work across Bexar, Comal, Guadalupe, Kendall, and surrounding counties, typically delivering a grant of up to 5% of the loan amount when paired with FHA, VA, or USDA.
• TDHCA (Texas Department of Housing and Community Affairs) — statewide programs through the Texas Homebuyer Program portal at welcomehome.tdhca.texas.gov, including My First Texas Home and My Choice Texas Home.
• Federal MCC tax credit — worth 15% of your annual mortgage interest each year for the life of the loan, with no fixed annual cap at that rate and subject to your federal tax liability. Issued at closing under IRS §25.
• City of San Antonio HIP 80 and HIP 120 — the Homeownership Incentive Programs run by the City of San Antonio Neighborhood and Housing Services Department (NHSD). These are city-funded forgivable second loans for homes inside city limits. They are currently not accepting new applications for FY 2026; we cover them here for education, and you apply for them directly with the city.

San Antonio down payment assistance income limits (2026)

Every San Antonio-area program sets a maximum household income. The statewide programs run higher than most buyers expect, and for the TDHCA programs they vary by household size. Here’s how the three statewide programs line up for Bexar County, using the non-targeted, above-80%-AMFI figures we feature:

A quick read: Home Sweet Texas and Homes for Texas Heroes share a single TSAHC income limit that applies at any household size, so a dual-income teacher, first-responder, or nurse household usually fits comfortably. My First Texas Home is tiered by household size and is for first-time buyers on FHA, VA, or USDA loans, while My Choice Texas Home carries the highest limits, adds repeat buyers and conventional financing, and has no purchase price cap. The City of San Antonio HIP programs use their own AMI-based brackets, covered in the next section.

TSAHC vs TDHCA: which fits your San Antonio buy?

Texas has two statewide DPA agencies. Both serve the San Antonio metro, both pair with the MCC, and both require a 620 FICO. The right one depends on first-time-buyer status, income, occupation, and loan type. Side by side:

For Bexar County buyers, the most-used TSAHC route is Homes for Texas Heroes (for eligible educators, peace officers, firefighters, EMS, corrections officers, nursing faculty, and veterans) or Home Sweet Texas (for general first-time and repeat buyers). On the TDHCA side, first-time buyers usually route to My First Texas Home, while repeat buyers route to My Choice Texas Home.

How San Antonio DPA works with FHA, VA, USDA, and conventional loans

Down payment assistance sits on top of a regular first mortgage, and each loan type pairs with it a little differently:

The most common pairing across San Antonio is FHA with Homes for Texas Heroes (for eligible occupations) or FHA with Home Sweet Texas (for everyone else within the TSAHC limit). VA buyers — and with JBSA-Lackland, JBSA-Randolph, and Fort Sam Houston, San Antonio has a lot of them — often pair VA financing with TSAHC assistance, using the zero-down VA loan for the purchase and the DPA to cover closing costs.

The City of San Antonio HIP 80 and HIP 120 programs

The City of San Antonio Homeownership Incentive Programs (HIP) are city-funded forgivable second loans administered by the San Antonio Neighborhood and Housing Services Department. Funding flows from HUD’s HOME Investment Partnerships Program and is allocated annually. There are two tiers: HIP 80 (households at or below 80% of the San Antonio-New Braunfels MSA area median income) and HIP 120 (first-time buyers at or below 120% AMI).

Important: the HIP 80 and HIP 120 programs are not accepting new applications for FY 2026. The city has indicated that, if renewed by City Council, funding may become available October 1, 2026. If you’re shopping in 2026, confirm the program’s status directly with the City of San Antonio NHSD before counting on HIP funds in a closing timeline. State-level TSAHC and TDHCA programs remain available the whole time.

HIP 120 (when funded) — up to $15,000 for first-time buyers

HIP 120 lends between $1,000 and $15,000 as a 0% interest, no-payment second loan toward down payment and closing costs on a home inside San Antonio city limits. The forgiveness structure is split: 25% of the loan is perpetual (returned at sale or refinance) and 75% is forgiven over 10 years. Key eligibility lines per the city’s HIP 120 program materials:

• First-time homebuyer — defined as not having owned a home in the last three years (with exceptions for displaced homemakers and target-area purchases)
• Home must be within San Antonio city limits
• Household income at or below 120% of the San Antonio-New Braunfels MSA AMI — roughly $81,150 (1 person), $92,750 (2 persons), or $104,350 (3 persons) on recent figures
• HUD-approved 8-hour homebuyer education course required before approval
• Minimum $500 earnest money deposit on the purchase contract

HIP 80 (when funded) — up to $30,000 for 80% AMI households

HIP 80 lends between $1,000 and $30,000 as a 0% interest, no-payment second loan toward down payment and closing costs on a home inside San Antonio city limits. Loans of $1,000–$15,000 are 100% forgiven over 5 years; loans of $15,001–$30,000 are 100% forgiven over 10 years. Key eligibility lines:

• Household income at or below 80% of the San Antonio-New Braunfels MSA AMI — roughly $54,150 (1 person), $61,850 (2 persons), or $69,600 (3 persons) on recent figures
• Home must be within San Antonio city limits
• HUD-approved 8-hour homebuyer education course required before approval
• Minimum $500 earnest money deposit on the purchase contract

The MCC tax credit for San Antonio buyers

The Texas Mortgage Credit Certificate (MCC) is a federal tax credit issued at closing under IRS §25. It lets eligible San Antonio buyers claim a percentage of their annual mortgage interest as a dollar-for-dollar federal income tax credit, every year they own the home. TSAHC issues its certificate at a 15% credit rate, and because that rate is at or below 20%, there is no fixed annual dollar cap — your benefit is limited instead by the federal income tax you actually owe. The credit is available for the life of the loan and may be reissued after a refinance.

Because the credit is non-refundable, it can reduce your federal tax bill to zero but won’t pay you cash beyond that. If your liability in a given year is lower than your calculated credit, you claim what you owe and may generally carry the unused portion forward up to three years under §25. A CPA can model the expected benefit for your San Antonio income and deductions before you commit at closing. One MCC per loan — a TSAHC MCC or a TDHCA MCC, never both. When an eligible Texas Hero pairs an MCC with DPA on the same loan, TSAHC waives the $400 MCC issuance fee. For the full mechanics, worked math, and recapture detail, see our Texas Mortgage Credit Certificate guide; the federal sources are IRS Form 8396 and IRS Publication 530.

JBSA, Fort Sam Houston, and military buyers in San Antonio

San Antonio is one of the densest military communities in the country. Joint Base San Antonio (JBSA) consolidates three historic installations: JBSA-Lackland (Air Force basic training and security forces, southwest San Antonio), JBSA-Randolph (flight training, northeast near Universal City), and JBSA-Fort Sam Houston (the Army medical center and Brooke Army Medical Center, north-central). Add Camp Bullis and a large veteran population, and you get one of the strongest VA loan plus Heroes/Veterans DPA pairings in Texas.

How San Antonio military buyers may pair benefits:

• VA loan eligibility — qualifying veterans, active-duty members, and certain reservists or Guard members may use a VA home loan with 0% down, no monthly mortgage insurance, and a funding fee that is waived for veterans with a 10%+ VA-rated disability, per the VA Lenders Handbook M26-7.
• TSAHC Homes for Texas Heroes — veterans and active military qualify alongside teachers, peace officers, firefighters, EMS, and corrections officers. The DPA grant or forgivable second lien may cover closing costs on the VA loan, since VA itself requires no down payment.
• Texas Veterans Land Board (VLB) — the VLB, administered through the Texas General Land Office, offers a separate first-mortgage program for eligible Texas veterans, with rate discounts for veterans rated 30%+ service-connected disabled. Whether TSAHC DPA can pair with a VLB first mortgage depends on the program year’s rules — verify with a TSAHC-approved lender.
• MCC tax credit — military buyers who are first-time buyers (or buying in HUD-targeted areas) may also claim the MCC alongside the VA-plus-DPA combination, subject to the same federal tax-liability conditions described above.

San Antonio-area school districts and the Heroes program

The San Antonio metro contains more than 15 school districts across Bexar and the surrounding counties. For Homes for Texas Heroes participants in education roles — teachers, librarians, counselors, school nurses, teacher aides — employment is verified with a letter from the ISD HR department on official letterhead. Major districts:

Most districts have a benefits coordinator familiar with the Heroes letter, often turning it around in a few business days. Teachers shopping over the summer sometimes time the verification letter and a target August closing to line up with the school-year start, which avoids the summer-pay continuity questions that can come up in underwriting.

Where you buy in the metro changes which programs apply

“San Antonio” is really a metro of 2.6 million people across Bexar and seven surrounding counties. The line that matters most for the city program is the city limit:

• Inside City of San Antonio limits — the only area HIP 80 and HIP 120 cover (when open). Includes downtown, Southtown, King William, Tobin Hill, Monte Vista, Stone Oak, and the West and South Side neighborhoods. HUD-targeted census tracts that allow higher TDHCA ceilings cluster on the East, West, and South sides.
• Schertz / Cibolo / Universal City — outside city limits, so HIP doesn’t apply; TSAHC and TDHCA do. A primary JBSA-Randolph commuter zone, served by SCUCISD and Judson ISD.
• Helotes / Leon Valley / Hollywood Park — outside city limits. TSAHC and TDHCA available. Northside ISD; a JBSA-Lackland commuter zone.
• Converse / Live Oak / Selma — outside city limits. TSAHC and TDHCA available. Judson ISD; near JBSA-Randolph.
• New Braunfels / Comal County — inside the SA-New Braunfels MSA. TSAHC and TDHCA available. Higher median prices, where the TSAHC limit gives more room than tighter program tiers.
• Boerne / Kendall County — outside city limits. TSAHC and TDHCA available. Boerne ISD; higher median prices.

If you’re shopping across several areas, our short form can sort out the best fit based on the county, district, or base zone you land in. We don’t need an exact address — a target area is enough.

Credit score and DTI for San Antonio DPA

The credit floor is set by two layers: the program minimum (TSAHC, TDHCA, the city, or HUD) and the lender overlay — extra underwriting a given lender adds on top.

• TSAHC programs: 620 FICO minimum on most loan types (640 for HFA conventional)
• TDHCA programs: 620 FICO minimum on My First and My Choice Texas Home
• HIP 80 and HIP 120: typically aligned with the FHA or conventional first mortgage; verify with the City NHSD when the program reopens
• Lender overlays: some lenders apply 640 or 660 minimums above the program floor, especially on higher-DTI files

For context, the U.S. average FICO is around 715, so a 620 minimum sits well below it. If your score is borderline, the lender you’re introduced to matters — some work with manual underwriting and lower-FICO scenarios. Back-end debt-to-income usually caps around 45–50%, depending on loan type and credit, with room for compensating factors like reserves.

HUD homebuyer education for San Antonio buyers

Every major San Antonio program — TSAHC, TDHCA, HIP 80, and HIP 120 — requires a HUD-approved homebuyer education course before closing. Courses run 6–8 hours; the City of San Antonio specifically requires an 8-hour HUD-approved class for HIP applicants. Two paths:

• Online courses — Framework Homeownership and eHome America are the most common. Self-paced, $75–$99, often finished in one sitting.
• Neighborhood Housing Services of San Antonio — a HUD-approved counseling agency offering in-person homebuyer education; schedules at nhsofsa.org. Other HUD-approved agencies are listed through HUD’s Find a Housing Counselor tool.

Save the certificate — your loan officer needs it before clear-to-close, and HIP applications require it before submission. Some lenders ask for it at pre-qualification, so it can help to finish the course early.

Recapture tax for San Antonio DPA buyers (IRS §143)

The federal recapture tax under IRC §143 applies to certain mortgage-revenue-bond–financed loans, which includes most TSAHC and TDHCA first mortgages. The accurate version: recapture can apply only when three conditions all happen:

• You sell the home within 9 years of buying it
• Your household income at sale exceeds the program’s adjusted limit for Bexar County and your family size
• You realize a capital gain on the sale

If any one of those doesn’t happen, no recapture is owed, and most San Antonio DPA borrowers never trigger all three. Even when it applies, both TSAHC and TDHCA run reimbursement programs that may cover the federal tax owed for eligible borrowers. Save your closing documents and contact the issuing agency before you file the year you sell. The federal source is IRS Form 8828. This is general information, not tax advice — talk to a CPA before selling if you think recapture might apply.

Step by step: from form to closing day in San Antonio

The path a San Antonio buyer takes through ShopDPA:

1. Tell us about your situation through our short form. Under 60 seconds, no SSN, no credit pull, no cost.
2. See your options. We line up the Texas state programs — TSAHC, TDHCA, MCC — that may fit your Bexar, Comal, Guadalupe, or Kendall county purchase, plus a note on whether the City of San Antonio HIP may apply if you’re buying inside the city and funding is open.
3. Meet your Texas loan officer. A licensed mortgage professional in our partner network walks you through your real options for your income, credit, target area, and any military or Heroes-eligible status. The lender does the underwriting; ShopDPA introduces.
4. Complete homebuyer education. A 6–8 hour HUD-approved course online, or the 8-hour in-person class for HIP applicants at NHSSA or another SA agency.
5. Apply for the program. Your lender submits the TSAHC or TDHCA enrollment. If HIP is the right fit and open for applications, you apply directly with the City of San Antonio NHSD.
6. Close on your home, with the assistance layered in along the way.

ShopDPA is a Texas home loan referral service. We connect Texas buyers with licensed mortgage professionals in our partner network. We are not a mortgage broker, lender, or loan officer, and we do not originate, fund, or service loans.

Documents to have ready for pre-qualification

• Photo ID — Texas driver’s license or state ID
• Income — last 2 pay stubs, last 2 W-2s, last 2 years of federal tax returns (1040 plus all schedules)
• Self-employment, if applicable — last 2 years of business returns plus a year-to-date profit & loss statement
• Assets — last 2 months of bank statements (all accounts) and recent retirement or brokerage statements
• Large deposits — a letter of explanation and paper trail for any deposit over about $500 not from payroll
• Military / VA buyers — DD-214 (or a current Statement of Service for active duty); your lender can pull the Certificate of Eligibility
• Heroes program — a current employer verification letter on letterhead (from your ISD HR, your department’s benefits office, or your hospital’s HR for nursing faculty)
• Homebuyer counseling certificate — from your HUD-approved course (the 8-hour version for HIP applicants)
• Purchase contract — the fully executed sales contract, with the $500 earnest money deposit if applying for HIP

San Antonio down payment assistance: frequently asked questions

† ShopDPA is an independent Texas home loan referral service. We are not a mortgage broker, lender, or loan officer, and we are not affiliated with TSAHC, TDHCA, the City of San Antonio, HUD, the IRS, the VA, or any government agency. Program details, income limits, and dollar figures are summarized from primary sources and may change; the City of San Antonio HIP programs in particular were not accepting applications at the time of writing — confirm current terms and funding status with the issuing agency or a participating lender before applying. This page is general information, not financial, legal, or tax advice.