Homes for Texas Heroes Program (2026 Guide)

For the Texans who keep their communities running — teachers, peace officers, fire fighters, EMS personnel, corrections officers, school nurses, nursing and allied health faculty, and the veterans who served before they came home — the math on a house in the community you serve doesn’t always work. Your rent already proves you can carry a mortgage payment. The wall is the cash you need up front. The Homes for Texas Heroes Program exists to make that math add up. Up to 5% of your loan amount in down payment help, often as money you never repay, plus a federal Mortgage Credit Certificate with the $400 issuance fee waived just because you serve.

Up to 5% Down payment assistance (of loan amount) TSAHC

620 Minimum credit score (640 for HFA conventional) TSAHC

$0 MCC issuance fee (waived for Texas Heroes) TSAHC

11+ Eligible hero professions TSAHC

Most Texas down payment programs operate under the same federal rules, which means most of them ask the same five questions: how much do you earn, what’s your credit score, are you a first-time buyer, what kind of loan are you using, and where are you buying? Homes for Texas Heroes adds a sixth question — what’s your occupation — and the answer that gets you in the door is broader than most public servants assume. Teacher aides, school librarians, school counselors, school nurses, county jailers, juvenile corrections officers, EMS personnel, and nursing/allied health faculty all qualify alongside the more obvious classroom teachers and patrol officers.

This guide walks through exactly how the program works: the full TSAHC Hero occupation list, the three ways you can take the assistance, what the income and price limits look like in your county, how it pairs with your loan type, what the MCC is worth and the Heroes-only $400 fee waiver, and the three conditions that have to all hit before federal recapture tax could ever apply. Every load-bearing figure links to a primary source — the TSAHC Income & Purchase Price Limits PDF, the TSAHC DPA & MCC Guidelines, the Who Is a Texas Hero guidance, or the IRS for tax rules. You can verify everything yourself.

What Is the Homes for Texas Heroes Program?

Homes for Texas Heroes is one of two homebuyer programs run by the Texas State Affordable Housing Corporation (TSAHC) — a self-sustaining nonprofit created by the Texas Legislature in 1994 to expand homeownership for moderate- and lower-income Texans. The sister program, Home Sweet Texas, is the wide-open one for most Texas buyers regardless of occupation. Homes for Texas Heroes is the program reserved for the people who serve — and it carries a benefit those buyers cannot get anywhere else: the $400 Mortgage Credit Certificate issuance fee is waived.

The program pairs a 30-year fixed-rate first mortgage with down payment help worth 2%, 3%, 4%, or 5% of your loan amount. Depending on how you set it up, that help may be money you never repay. Eligible Heroes may also add a Mortgage Credit Certificate for federal tax savings that keep coming year after year. The program works with FHA, VA, USDA, or conventional loans (using Fannie Mae’s HFA Preferred or Freddie Mac’s HFA Advantage products).

One important difference from Home Sweet Texas: Texas residency, or the intent to become a Texas resident, is required for Homes for Texas Heroes. If you serve in a qualifying Texas occupation and you live in (or are moving to) the state, this is usually the first program worth checking — and the one that may give you the most.

Three Myths That Keep Texas Heroes from Applying

This is where most public servants get the help wrong before they ever apply.

Myth 1: “Only classroom teachers and patrol officers qualify.” The reality: TSAHC’s Hero occupation list is broader than most public servants assume. It includes teacher aides, school librarians, school counselors, and school nurses on the education side; county jailers (TCOLE-certified), juvenile corrections officers (TJJD), public security officers, and EMS personnel (ECA, EMT, EMT-I, EMT-P, and licensed paramedics) on the public-safety side; nursing and allied health faculty members; and qualified veterans, including unmarried surviving spouses. The full list lives in TSAHC’s Who Is a Texas Hero guidance.

Myth 2: “I make too much money.” The reality: non-targeted income limits reach approximately $146,625 in Dallas, Collin, and Denton counties; $167,250 in Travis County; $133,375 in Tarrant County; $130,833 in Bexar County; and $126,375 in Harris County — all at any household size on the standard tier per the TSAHC Income & Purchase Price Limits PDF. A teacher married to a nurse making $100K+ combined typically fits comfortably under these limits in every major Texas metro.

Myth 3: “I’m not a first-time buyer, so I can’t qualify.” The reality: TSAHC’s standard down payment assistance does NOT require first-time status, per the TSAHC DPA & MCC Guidelines. Repeat buyers, current owners selling and rebuying, and Heroes returning to Texas after service elsewhere may still qualify. The first-time requirement only attaches when you add a Mortgage Credit Certificate — and even then, qualified veterans (a meaningful share of the Hero population) and buyers in HUD-targeted census tracts are exempt.

Who Counts as a Texas Hero — Full Occupation List

The heart of this program is the occupation list. Here’s TSAHC’s official list of qualifying Hero occupations, per the Who Is a Texas Hero guidance:

Education (Professional Educator category): public K-12 classroom teachers, teacher aides, school librarians, school counselors, and school nurses.

Public safety: peace officers (TCOLE-certified), public security officers, county jailers (TCOLE), corrections officers (TDCJ, hazardous-duty pay), juvenile corrections officers (TJJD), fire fighters, and EMS personnel (ECA, EMT, EMT-I, EMT-P, licensed paramedics).

Healthcare faculty: nursing faculty members and allied health faculty members at qualifying institutions.

Veterans: qualified veterans, including unmarried surviving spouses. Veterans pair particularly well with Homes for Texas Heroes because they may also use a VA loan (zero down) and qualify for the Texas Veterans Land Board VLB home loan program.

If you’re not sure whether your exact job title falls inside one of these categories, ask rather than rule yourself out. We have occupation-specific deep dives for teachers, police officers, fire fighters, EMS personnel, corrections officers, nurses, and veterans — or start at the broader Heroes home loan hub. If your occupation truly isn’t on the Hero list, the general Home Sweet Texas program uses the same assistance amounts without the occupation requirement.

First-Time and Repeat Heroes — Both Qualify

If a lender or a colleague once told you Texas DPA programs are “only for first-time buyers,” you may have been told wrong about this one. For its standard down payment assistance, TSAHC does NOT require first-time status. Repeat buyers, current homeowners selling and buying again, and anyone who’s been a Texas homeowner before may still qualify.

The first-time rule only kicks in when you add a Mortgage Credit Certificate. Even then, the federal definition of “first-time homebuyer” — set by Fannie Mae, HUD, and the IRS in §143(d) — means someone who has not owned a primary residence in the last three years. Heroes returning to Texas after a stretch elsewhere may qualify even with the MCC. And the qualified-veteran exception covers the meaningful share of Heroes who served in the military.

The Heroes who tend to find a pleasant surprise here: teachers relocating to a new district, officers buying again after a divorce, firefighters and EMS workers upsizing for a growing family, and veterans who simply assumed their income was too high.

Your Three Options: No DPA, a Grant, or a Forgivable Second Lien

Homes for Texas Heroes gives you three ways to take the program, and the right one depends on what you need and how long you plan to stay near the school, station, hospital, or community you serve.

No DPA (0%) is for Heroes who already have their down payment saved but still want the program’s mortgage and the option to add an MCC with the Heroes-only $400 fee waiver. Because you’re not taking assistance, this option carries the lowest interest rate of the three.

The Grant (2-5% of loan amount) hands you cash that becomes money you never repay once you cross the six-month mark from closing. Available only on FHA, VA, and USDA loans. No monthly payment, no interest, no second lien on the property. Best fit: Heroes who may move or refinance in a few years.

The 3-Year Deferred Forgivable Second Lien (2-5%) is the same dollar amount with 0% interest and no monthly payment. It’s a second lien on the property that gets fully forgiven at the three-year anniversary of the note — not pro-rated, per the TSAHC Deferred Forgivable 2nd Lien FAQ. Works with every loan type, including conventional. Best fit: Heroes planning to put down roots near the community they serve.

Interest rates move often. Here are the current TSAHC program rates for all three options — a starting point for the conversation, not a quote:

How Much You May Receive

The assistance is figured as a percentage of your total loan amount, not the purchase price. On a $300,000 loan amount, 5% is $15,000 working for you at the closing table. On a $400,000 loan amount, 5% is $20,000.

Worked example: a Hero purchasing a $325,000 home with an FHA loan and 3.5% down ($11,375) would carry a loan amount of approximately $313,625. At 5% Homes for Texas Heroes assistance, that’s $15,681 — enough to cover the FHA down payment AND most of the closing costs (which typically run 2-5% of the loan amount per CFPB closing disclosure guidance). The Hero brings far less cash to closing than the 3.5% number suggests.

Income Limits by County (2026)

This is the rule that surprises Heroes the most. “Down payment assistance” makes a lot of public servants assume the income limits must be low. They’re not.

How the limit works: TSAHC’s standard above-80%-AMFI tier (which is what most Heroes use) is a single “Any Family Size” limit per county — no household-size split. If the home you’re buying sits in a HUD-targeted census tract, the limit may be even higher. The figures below come straight from the TSAHC Combined Income & Purchase Price Limits PDF, effective for rate locks on or after May 28, 2025:

County / area	Non-targeted income limit (any household size)
Dallas / Collin / Denton	~$146,625
Tarrant	~$133,375
Travis	~$167,250
Harris	~$126,375
Bexar	~$130,833
El Paso	~$123,500

If your county isn’t listed, the TSAHC PDF carries the full statewide table. Verify the current figure for your county with TSAHC or a participating lender before applying — limits update periodically.

Purchase Price Limits

Purchase price limits are higher than many Heroes expect. The program publishes a separate maximum purchase price by county, with non-targeted and targeted-area tiers. These are real-world reachable for most Texas Hero families.

County / area	Non-targeted max purchase price
Dallas / Collin / Denton / Tarrant	~$585,006
Travis	~$593,363
Bexar	~$579,037
Harris / El Paso	~$544,232
Statewide non-targeted floor	~$544,232

Targeted-area limits run higher still — confirm the current figure for the property’s specific county with the TSAHC PDF before assuming a specific home qualifies.

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

Homes for Texas Heroes isn’t a mortgage on its own. It’s help that rides on top of a first mortgage, and the loan type you choose changes how far the assistance stretches.

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

With a VA loan (zero down for eligible veterans, active-duty, and certain spouses per VA.gov), the assistance goes toward closing costs and prepaids. The natural fit for the many Heroes who served in the military.

With a USDA Rural Development loan (zero down in eligible rural areas), the assistance again goes toward closing costs. Check the USDA eligibility map to confirm the property qualifies.

With a conventional loan, TSAHC uses Fannie Mae’s HFA Preferred or Freddie Mac’s HFA Advantage products. Both may include reduced mortgage insurance for eligible borrowers compared with a standard conventional loan at the same LTV.

One state program at a time. This article describes how a single TSAHC, TDHCA, or MCC program may apply to your purchase. ShopDPA does not market, package, or facilitate “DPA stacking” — combining multiple down-payment assistance programs into a layered structure on the same loan. Most Texas DPA programs have rules that prevent or restrict combining benefits. The licensed mortgage professional in our partner network will help identify which single state program fits your situation best.

The MCC Tax Credit — and the Heroes-Only $400 Fee Waiver

If the down payment help is the headline, the Mortgage Credit Certificate (MCC) is the gift that keeps giving. An MCC is a federal income tax credit, not a deduction — and that distinction matters. A deduction reduces your taxable income; a credit cuts the tax you owe dollar for dollar. The TSAHC MCC is worth up to 15% of the mortgage interest you pay each year, for as long as the home is your primary residence.

The Heroes advantage: the $400 MCC issuance fee is waived for buyers who qualify under Homes for Texas Heroes, per the TSAHC MCC FAQ. Most other buyers pay that fee. This is a real, Heroes-only savings on top of the tax credit itself — and one of the clearest reasons a qualifying public servant may want this program over the general Home Sweet Texas option.

Because the TSAHC MCC is rated at 15%, the old $2,000 annual cap that applies to certificates rated above 20% does NOT apply. Your benefit in any year is limited instead by the federal tax you actually owe. The credit is non-refundable, and unused credit may generally carry forward up to three years per IRS Form 8396 instructions.

That’s potentially tens of thousands of dollars staying in your pocket over the life of the loan. Two rules: since November 1, 2023, the TSAHC MCC is no longer offered on its own and must be combined with TSAHC down payment assistance (per the TSAHC MCC FAQ); and it’s generally limited to first-time buyers, with the standard exceptions for qualified veterans and HUD-targeted census tracts — meaning many Heroes who served in the military may add the MCC even as repeat buyers.

Credit Requirements

TSAHC sets a minimum representative credit score of 620 for FHA, VA, and USDA loans, and 640 for the HFA Preferred and HFA Advantage conventional options, per the TSAHC DPA & MCC Guidelines. The 640 minimum also applies to manufactured homes on any loan type. Scores in the 620-639 range may carry a small 0.25% origination charge.

It helps to remember that “minimum credit score” is a floor, not a finish line. For Heroes with steady public-service income and a clean payment history, the credit threshold is often the most reachable part of the whole process. If your score is sitting just under the line, a licensed mortgage professional in our partner network can often point to one or two specific moves (paying down a credit card balance, disputing a single reporting error, becoming an authorized user on a family member’s account) that may lift you over the threshold in 30-60 days.

Texas Residency Requirement

Homes for Texas Heroes requires Texas residency or the intent to become a Texas resident. This is one specific difference from Home Sweet Texas, which has no residency requirement.

If you’re moving to Texas to take a public-service job — a teacher accepting a position in Frisco ISD, a police officer transferring to Houston PD, a firefighter relocating to San Antonio — you may still qualify if you intend to establish residency. Document the offer letter or transfer order with your lender. If you’re an out-of-state buyer with no intention of moving to Texas, Homes for Texas Heroes is not the right fit, and our other coverage at the Texas DPA hub may surface a better match.

Homebuyer Education — What’s Required

Homes for Texas Heroes requires at least one borrower on the loan to complete a homebuyer education course before closing. TSAHC accepts both in-person and online courses; the approved options live at TexasFinancialToolbox.com, a TSAHC-administered site. The course covers budgeting, the mortgage process, and what to expect as a homeowner.

The online version typically takes about an hour. Since homebuyer education is one of the few requirements completely in your control, knock it out early so it never holds up your closing timeline.

Recapture Tax — Three Conditions That Must All Hit

You may have heard scary things about a “recapture tax.” Here’s the honest version: in practice, it rarely touches anyone, and it only matters if you used a bond or MCC structure — not the standard non-bond DPA.

The federal §143 recapture tax may apply only if all three of these conditions hit:

1. You sell or refinance away from the financed property within nine years of closing.
2. Your household income at the time of sale exceeds the IRS recapture-adjusted income limit for that program year.
3. You realize a gain on the sale that exceeds the recapture threshold.

If even one condition doesn’t hit, no recapture tax is owed. In practice, very few Texas Heroes ever trigger all three at once.

TSAHC also offers a recapture tax reimbursement program: if you do hit all three and owe the federal recapture tax, TSAHC may reimburse the amount on eligible loans. Verify the current procedure with TSAHC directly. As always, confirm your specific situation with a tax professional.

Homes for Texas Heroes vs Home Sweet Texas vs TDHCA Programs

Texas has two state down payment assistance agencies — TSAHC and the Texas Department of Housing and Community Affairs (TDHCA) — and four major programs across them.

Homes for Texas Heroes is the TSAHC option built specifically for public servants — and the only one that carries the $400 MCC fee waiver. Home Sweet Texas is the broader TSAHC option for buyers of any occupation. On the TDHCA side, My First Texas Home is the first-time-buyer option (FHA/VA/USDA-only), and My Choice Texas Home drops the first-time requirement with the highest income limits across all four loan types. If you qualify as a Texas Hero, this is usually the program worth checking first. Our full guide to Texas down payment assistance lays them all out side by side.

Step-by-Step: How to Get Started

Six steps from “wondering if you qualify” to “closing on a home in the community you serve”:

Step 1. Confirm your Hero occupation. Check that your public-service role appears on the TSAHC Hero occupation list. What to do: open the Who Is a Texas Hero PDF; if your title isn’t an exact match, ask a TSAHC-approved lender rather than ruling yourself out — the categories are broader than they look.

Step 2. Check the income limit for your county. Compare your household income to the non-targeted income limit in the table above. The standard tier applies at any household size. What to do: if your county isn’t in the table above, pull the TSAHC Income & Purchase Price Limits PDF for the full statewide table.

Step 3. Confirm your credit score and budget. Aim for 620 for FHA, VA, or USDA, or 640 for HFA Preferred or HFA Advantage conventional. What to do: pull a free credit report at AnnualCreditReport.com and check the middle of your three FICO scores.

Step 4. Connect with a TSAHC-participating lender. Not every lender offers TSAHC programs. What to do: start with a licensed mortgage professional in our partner network — they can confirm you’re working with a TSAHC-approved lender and walk you through the Heroes-specific MCC fee waiver.

Step 5. Complete homebuyer education. At least one borrower finishes an approved course before closing. What to do: start the online course at TexasFinancialToolbox.com early — it takes about an hour.

Step 6. Choose your DPA option and head to closing. Pick No DPA, the grant, or the 3-year forgivable second lien. What to do: discuss the trade-offs with your loan officer before locking your rate — the right option depends on your loan type and how long you plan to stay near the community you serve.

Documents to Have Ready

• Recent pay stubs (usually the last 30 days) and W-2s or 1099s for the past two years
• Federal tax returns for the past two years, especially if you’re self-employed
• Recent bank and asset statements (last 60 days)
• A government-issued photo ID
• Documentation of your qualifying Hero occupation — an employer letter on letterhead, your TCOLE card, your teaching certificate, or equivalent
• Your homebuyer education completion certificate
• For veterans using a VA loan, your Certificate of Eligibility (request via VA.gov)

Frequently Asked Questions

Who counts as a Texas Hero for this program?

TSAHC’s Hero list is broad. It includes public K-12 classroom teachers, teacher aides, school librarians, school counselors, school nurses, peace officers (TCOLE), public security officers, county jailers, corrections officers (TDCJ), juvenile corrections officers (TJJD), fire fighters, EMS personnel (ECA, EMT, EMT-I, EMT-P, paramedics), nursing and allied health faculty members, and qualified veterans (including unmarried surviving spouses). The full list lives in the Who Is a Texas Hero PDF. If you’re unsure whether your job title fits, ask a participating lender rather than assuming — the categories are wider than many buyers expect.

Do I have to be a first-time homebuyer to use Homes for Texas Heroes?

The honest answer is usually no. TSAHC’s standard down payment assistance does not require first-time status, so repeat buyers may qualify. The first-time requirement only applies if you add a Mortgage Credit Certificate, and even then qualified veterans and buyers in HUD-targeted census tracts are exempt.

How much down payment assistance can I get?

You may choose 2%, 3%, 4%, or 5% of your total loan amount. On a $300,000 loan, 5% is $15,000 toward your down payment and closing costs.

Does the assistance have to be paid back?

In most cases, no. With No DPA you take no assistance and have nothing to repay. The grant option becomes money you never repay six months after closing. The 3-year deferred forgivable second lien carries no monthly payment and is forgiven at the three-year mark. The grant or second lien may become repayable only if you sell, transfer, refinance, pay off the first lien, or stop occupying the home as your primary residence before the relevant mark.

What are the income limits?

Higher than most public servants expect, and they apply at any household size on the standard tier. In non-targeted areas, the maximum may reach approximately $146,625 in Dallas, Collin, and Denton counties; $167,250 in Travis County; $133,375 in Tarrant County; $130,833 in Bexar County; $126,375 in Harris County; and $123,500 in El Paso County. Verify your county’s current figure in the TSAHC PDF.

What credit score do I need?

620 for FHA, VA, and USDA loans; 640 for the HFA Preferred and HFA Advantage conventional options.

Is the $400 MCC fee really waived for Heroes?

Yes. The $400 Mortgage Credit Certificate issuance fee is waived for buyers who qualify under Homes for Texas Heroes, per the TSAHC MCC FAQ. For most other buyers that fee applies, so this is a real, Heroes-only savings on top of the tax credit itself.

How much can the MCC tax credit save me?

The TSAHC MCC is a federal income tax credit worth up to 15% of the mortgage interest you pay each year, for as long as the home is your primary residence. Because the rate is 15%, the $2,000 federal cap that applies to higher-rate certificates does not apply, but your benefit in any year is limited by the federal tax you actually owe. Unused amounts may generally carry forward up to three years. Claim the credit on IRS Form 8396.

Do I have to be a Texas resident?

Yes, or intend to become one. Homes for Texas Heroes requires Texas residency or the intent to establish it. Heroes moving to Texas to take a public-service position may still qualify if they document the offer letter or transfer order.

Can I use a hero program mortgage with FHA?

Yes — and FHA is one of the most common loan-type pairings for Homes for Texas Heroes. The hero program mortgage works with FHA (3.5% minimum down, 580+ credit floor per HUD), VA (zero down for eligible veterans), USDA Rural Development (zero down in eligible rural areas), and conventional loans via Fannie Mae HFA Preferred or Freddie Mac HFA Advantage. The Grant DPA option is FHA/VA/USDA only; the 3-year forgivable second lien works with conventional too. Most Texas Hero buyers pair Heroes with FHA for the lowest down payment combination — assistance covers the 3.5% FHA down and chips into closing costs.

Is there specific Texas teacher home buying assistance?

Texas teacher home buying assistance comes primarily through Homes for Texas Heroes (TSAHC). Eligible educators include public K-12 classroom teachers, teacher aides, school librarians, school counselors, and school nurses. Teachers may receive 2-5% of their loan amount in down payment help, the $400 MCC fee waiver, and access to a 15% mortgage interest tax credit. Income limits reach approximately $146,625 in Dallas County and $167,250 in Travis County at any household size. See our occupation-specific guide for Texas teachers for additional detail on TRS pension qualification, ISD-by-ISD employment verification, and school-year closing timing.

Will I owe a recapture tax when I sell?

Probably not. A federal §143 recapture tax may apply only if all three of these happen: you sell or refinance within nine years, your income at the time of sale exceeds the recapture-adjusted limit, and you realize a gain above the threshold. If any one condition is not met, no recapture is owed. TSAHC offers a reimbursement program that may refund it if all three do hit.

The Bottom Line

Homes for Texas Heroes is the most generous down payment assistance program available to public servants in Texas. The income limits are higher than most Heroes expect, the first-time requirement doesn’t apply to the standard down payment help, the assistance pairs with every major loan type, and the $400 MCC issuance fee is waived — a real Heroes-only savings. If you serve in a qualifying occupation, meet your county’s income limit, and have a 620 credit score, the only step left is checking with a TSAHC-approved lender to see which of the three options fits your situation.

Closing on a home near the community you serve in Texas is harder than it was five years ago. The cash you need at closing has climbed alongside home prices and rates. Homes for Texas Heroes exists to make that math add up for the people who keep Texas running. Use it.