TDHCA Interest Rates

You found a home you can afford on paper, and now the rate is the number that decides whether the monthly payment actually works. It makes sense to look hard at TDHCA rates before you commit, because TDHCA’s homebuyer program is built for buyers in exactly your spot. But TDHCA’s Rate Notice is written for lenders, with bond loans, combo loans, and two kinds of second liens on one page. This guide walks you through the current TDHCA rates, what each line means, and how to tell which option fits your cash, your income, and how long you plan to stay.

Four Things Buyers Get Wrong About TDHCA Rates

Most of the confusion around TDHCA comes from assumptions carried over from other programs. Clear these up first and the tables make a lot more sense:

• “Taking assistance means a much worse rate.” Not necessarily. On TDHCA’s own notice, the gap between a no-assistance loan and an assisted loan is often a fraction of a point. Compare the rows in the tables below and you’ll see the trade is usually smaller than people expect.
• “TDHCA is only for first-time buyers.” Only one of its two programs has that rule. My Choice Texas Home is open to repeat buyers too. Even My First Texas Home counts you as first-time if you have not owned and lived in a home in the last three years, and it waives the rule for qualified veterans and for homes in targeted census tracts, according to the My First Texas Home program matrix.
• “Repayable assistance means another monthly bill.” It does not. TDHCA’s 30-year repayable second lien carries 0% interest and no required monthly payment. It comes due only when you sell, refinance, transfer, or pay off the first mortgage.
• “The rate on TDHCA’s site is the rate I’ll get.” The published rate is the starting point. A participating lender reserves the rate for your loan, and TDHCA notes that rates change and depend on several factors.

If any of those held you back, it’s worth a second look at what you may qualify for.

Current TDHCA Rates Today

These are TDHCA’s current rates for its two homebuyer programs, taken from the TDHCA Rate Notice. TDHCA updates that notice as rates move, and we update these tables when it does. “N/A” means TDHCA is not offering that combination right now.

A “targeted area” is a qualified targeted census tract, which TDHCA’s income limits table describes as an area of severe economic distress. Buying there can lower the rate on the bond loan and waive the first-time buyer rule. The no-DPA bond loan is a first mortgage only, and TDHCA does not allow it to be combined with an MCC.

For every area’s 2026 figures, including household-size tiers and purchase price limits, see our TDHCA income limits guide.

How TDHCA Rate Options Work

Every line on the Rate Notice is a 30-year fixed-rate first mortgage. What changes from row to row is whether you take assistance, how that assistance is repaid, and whether you add a tax credit. TDHCA offers assistance of 2% to 5% of the total loan amount, funding permitting, in one of two forms:

Look at the tables above and you’ll notice the repayable option usually carries a lower rate than the forgivable one at the same assistance level. That’s the core trade: the forgivable lien disappears after three years, while the repayable lien keeps a balance on the home until you sell or refinance. If you plan to stay a long time and want the lower rate, the repayable option often costs less month to month. If you’d rather owe nothing on the second lien after three years, the forgivable option buys that with a slightly higher rate. Our guide to grants, forgivable loans, and deferred loans walks through that choice in more detail.

My First Texas Home vs. My Choice Texas Home Rates

TDHCA runs its rates through two programs, and the differences between them go beyond the rate itself:

For most first-time buyers who qualify, My First Texas Home has the lower rates on the notice. My Choice Texas Home trades a higher rate for more flexibility: no first-time buyer rule, no purchase price cap, a conventional loan option, and no recapture tax. The My First Texas Home guide and the My Choice Texas Home guide cover eligibility for each one.

TDHCA Rates vs. TSAHC Rates

Texas has two state agencies offering home loans with down payment assistance, and it’s smart to compare both. TSAHC publishes its own daily rates for Home Sweet Texas and Homes for Texas Heroes; you can see them on our TSAHC rates page. The two agencies set rates independently, so on any given day one may be lower for your loan type and assistance level. Income limits, first-time buyer rules, and the MCC also differ. TSAHC currently pairs its MCC only with its assistance, while TDHCA offers an MCC combo and a stand-alone MCC. Our TSAHC vs. TDHCA comparison lays those differences out side by side.

What Sets the TDHCA Rate You Actually Get

The Rate Notice gives you the menu. Your final rate depends on a few choices and facts about your file:

1. Which program you use. First-time buyers who meet the income and purchase price limits can usually get the lower My First Texas Home rates.
2. Whether you take assistance, and how much. No DPA carries the lowest rate on a given line. Each step from 2% to 5% assistance usually adds a small amount.
3. Repayable or forgivable. At the same assistance level, the repayable second lien is usually priced lower.
4. Your loan type. FHA, VA, and USDA loans are priced on one line. Conventional loans through My Choice Texas Home are priced by investor (Fannie Mae or Freddie Mac) and by income tier.
5. Your income tier on a conventional loan. Borrowers at or below 80% of area median income usually get a lower conventional rate. The lender’s underwriting system sets that tier based on your qualifying income and the property address.
6. Where the home is. A home in a targeted area can qualify for a lower bond rate.
7. Your credit and debt. Every option needs at least a 620 middle credit score. Manually underwritten FHA, VA, and USDA loans are capped at a 45% debt-to-income ratio, and a manually underwritten FHA loan carries a 0.25% pricing adjustment, according to the program matrices.

What to do: Decide first whether you need assistance and whether you qualify as a first-time buyer. Those two answers narrow the Rate Notice to one or two lines, and a lender can take it from there.

Pairing the MCC With a TDHCA Rate

A Mortgage Credit Certificate does not lower your interest rate. It gives you a federal tax credit for part of the mortgage interest you pay each year, claimed on IRS Form 8396. On TDHCA’s combo loan the credit rate is 15%, so the credit can offset part of a higher rate, depending on your federal tax liability. The credit is limited by your federal tax liability, and Form 8396 lets you carry an unused credit forward to later years.

The Rate Notice lists a $400 MCC issuance fee on the combo, waived for military buyers, and a $1,000 fee for a stand-alone MCC. According to the TDHCA programs page, the MCC is available to veterans and first-time buyers with a first mortgage through the program, or as a stand-alone option, while supplies last. Ask your lender to show you the payment with and without the combo so you can see what the credit is worth for your situation.

Extra Gift Funds in Some Texas Counties

In a few areas, local housing finance corporations add a gift on top of a TDHCA loan, with no repayment required and subject to availability. The My First Texas Home matrix lists these partners:

If you’re buying in the Austin area or elsewhere in those counties, ask your lender whether gift funds are still available when you apply. Income limits for the gifts follow the My First Texas Home limits.

How to Lock a TDHCA Rate

1. Check the income limits. TDHCA publishes its limits by county in its income and purchase price limits table. Our eligibility and income limits guide explains how income is counted.
2. Take a homebuyer education course. TDHCA requires a HUD-certified pre-purchase course for every borrower before closing.
3. Work with a participating lender. TDHCA loans go through lenders on its participating lender list, so confirm your loan officer’s company is on it.
4. Pick your structure. Decide on no DPA, the MCC combo, or 2% to 5% assistance as a repayable or forgivable second lien.
5. Have your lender reserve the rate. The lender reserves your rate in TDHCA’s system, and TDHCA requires the loan to be purchased within 60 days, so time your reservation with your closing date.

If you’d rather not sort through the options alone, you can see what you may qualify for and get connected with a licensed mortgage professional in our Texas partner network who works with TDHCA programs.

TDHCA’s rate sheet looks technical, but the choice underneath it is simple: how much cash you have, how long you plan to stay, and whether you qualify as a first-time buyer. You won’t find a perfect answer in the table alone, and that’s fine. Narrow it to one or two lines, ask a lender to price both, and you’ll be comparing real payments instead of guesses.

TDHCA Rates: Frequently Asked Questions

TDHCA rates: frequently asked questions

† 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 TDHCA, TSAHC, HUD, the IRS, the VA, or any government agency. Interest rates, program terms, fees, and eligibility are set by TDHCA and its participating lenders and change frequently; the rate tables shown here are based on TDHCA’s published Rate Notice and may lag the official source. The MCC is a non-refundable federal tax credit that depends on your tax liability; consult a tax professional. My First Texas Home loans may be subject to federal recapture tax if you sell within nine years and other conditions apply. Confirm your exact rate with a participating licensed lender. Equal Housing Opportunity.