TSAHC vs. TDHCA: Which Texas Down Payment Assistance Program Is Right for You? (2026)

Two state agencies run most of the down payment assistance Texas buyers use: the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA). Both help with the cash needed at closing, both work through participating lenders, and both are widely available across the state. So which one is right for you? It depends on your income, your county, whether you are a first-time or repeat buyer, your loan type, and your goals.

How TSAHC and TDHCA Compare

When TSAHC May Be the Better Fit

TSAHC tends to appeal to buyers who want the option of a true grant (assistance that generally never has to be repaid) and to those in an eligible hero profession — teachers, police, firefighters, EMS, corrections officers, veterans, nursing and allied-health faculty, and more — since Homes for Texas Heroes waives the first-time-buyer requirement. Home Sweet Texas is also open to repeat buyers. Both TSAHC programs share the same county income limit, so the choice between them is about your profession and buyer status, not income.

When TDHCA May Be the Better Fit

TDHCA can be attractive for repeat buyers through My Choice Texas Home, which often allows higher income than many buyers expect (up to roughly $227,460 in the Austin area in non-targeted areas, depending on loan type). My First Texas Home serves first-time buyers and qualified veterans. In certain eligible counties, TDHCA buyers may also layer on grant gift funds through a local housing finance corporation.

Both Pair With the MCC Tax Credit

First-time buyers (and qualified veterans, or buyers in targeted areas) may add a Mortgage Credit Certificate through either agency. An MCC is a federal tax credit equal to 15% of your annual mortgage interest, with no annual cap; the amount you can claim depends on your tax liability.

Frequently Asked Questions