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

Two state agencies, two sets of program names, and two rate sheets that change on their own schedules. If you’ve tried to compare TSAHC and TDHCA on your own, it probably felt like reading two instruction manuals for the same appliance. The good news is that the differences come down to a handful of rules: who qualifies, how the assistance is structured, and what it costs. This guide lines them up side by side so you can see which one is more likely to fit your purchase.

Four Assumptions That Lead Buyers to the Wrong Program

• “They’re basically the same program.” They share a goal, but not the rules. TSAHC offers a grant option, and TDHCA doesn’t. TDHCA offers a 30-year repayable second lien on its standard programs, while TSAHC limits its repayable option to bond-funded loans for lower-income first-time buyers.
• “TSAHC always has higher income limits.” Not always. TSAHC’s Home Sweet Texas limit is 150% of area median, but TDHCA’s My Choice Texas Home reaches 170% on FHA, VA, and USDA loans. For a teacher or firefighter, TSAHC’s Homes for Texas Heroes also reaches 170%.
• “A grant is always the better deal.” A grant never has to be repaid, but on TSAHC’s current rate sheet, grants carry a higher first-mortgage rate than the same amount as a forgivable lien. Over 30 years, the rate can matter more than the difference in structure.
• “I have to pick an agency before I talk to a lender.” You don’t. Many lenders participate in both, and they can price your loan each way.

If one of those was steering your decision, the side-by-side below is worth a careful look.

How TSAHC and TDHCA Compare

Both agencies offer 30-year fixed-rate first mortgages through participating lenders, with optional down payment assistance and a Mortgage Credit Certificate. Here’s how the main rules line up:

TSAHC vs. TDHCA Income Limits

Both agencies updated their limits in 2026. TSAHC raised Home Sweet Texas to 150% of area median and Homes for Texas Heroes to 170%, and TDHCA’s new limits took effect July 13, 2026. Here’s how they compare in the largest metros:

The pattern is easy to read. If you’re a first-time buyer with income under the My First Texas Home limit, both agencies are open to you. Between that limit and about 150% of area median, TSAHC’s Home Sweet Texas and TDHCA’s My Choice Texas Home both fit. Above that, Homes for Texas Heroes (if your job qualifies) and My Choice Texas Home on a government loan are the options. Our TSAHC income limits guide and TDHCA income limits guide cover every county, and the 2026 income limit increase explains what changed.

How the Down Payment Assistance Differs

Both agencies call it down payment assistance, but what you sign at closing isn’t the same:

The trade-off at both agencies is the same: the more you’re given and the more permanent it is, the higher the first-mortgage rate tends to be. Our guide to grants, forgivable loans, and deferred loans walks through how to weigh them.

One caution on grants: TSAHC’s daily rate sheet shows which options are open each day, and grant pricing isn’t always listed. Check today’s TSAHC rates before you count on a grant, and ask your lender which structures are available when you apply.

When TSAHC May Be the Better Fit

• You’ve owned a home before. TSAHC’s main options don’t require first-time buyer status, and neither does TDHCA’s My Choice Texas Home, so compare those two.
• You want assistance you’ll never repay. Only TSAHC offers a grant.
• You’re a teacher, first responder, or veteran. Homes for Texas Heroes allows up to 170% of area median at any household size.
• Other adults in your home earn income. For TSAHC’s main options, only the borrowers’ income counts toward the limit, not everyone in the household.

When TDHCA May Be the Better Fit

• You’re a first-time buyer under the My First Texas Home limit. My First Texas Home carries TDHCA’s lowest rates, and it pairs with an MCC.
• You want a 0% lien with no monthly payment and a lower rate. TDHCA’s 30-year repayable lien is usually priced below its forgivable option.
• You want a stand-alone MCC. TDHCA still offers one, and TSAHC no longer does.
• You’re buying in certain counties with extra gift funds. Some local housing finance corporations add gifts on top of TDHCA loans; see our TDHCA rates guide for the current list.

What to do: Check two things first: whether you’re a first-time buyer, and which income band you fall into. Together, those usually narrow the choice to one or two programs.

Is TSAHC Worth It?

For many buyers, yes, but it depends on what you’re comparing it to. Here’s the honest version. TSAHC assistance has a cost: assisted loans carry a higher rate than TSAHC’s own no-assistance option, and lenders can charge a 1% origination fee plus customary fees, according to TSAHC’s rate sheet. What you get in return is cash toward your down payment and closing costs, and possibly a grant you never repay.

TSAHC tends to be worth it when you don’t have enough saved for the down payment and closing costs, when you plan to stay in the home at least a few years, and when the monthly payment still works at the assisted rate. It may not be worth it if you already have your down payment, since a market-rate loan or TSAHC’s no-assistance option may cost less over time. The only way to know for your situation is to compare the payment with and without assistance, side by side.

How the MCC Works at Each Agency

A Mortgage Credit Certificate gives you a federal tax credit for part of the mortgage interest you pay each year, claimed on IRS Form 8396. Both agencies set the credit rate at 15%. TSAHC offers the MCC only with its own loans (the no-DPA loan or its non-bond assistance) and no longer offers a stand-alone MCC, according to its rate sheet. TDHCA offers it with a My First Texas Home loan or on its own. At both agencies, the MCC comes with first-time buyer rules, lower income limits, and purchase price limits. The credit can’t exceed your federal tax liability, so ask a tax professional what it’s likely to be worth for you.

Compare Rates on the Same Day

The two agencies set their rates independently, and both change them often. A program that’s cheaper this week may not be next week. Before you decide, look at today’s TSAHC rates and today’s TDHCA rates for your loan type and assistance level, then ask a lender to confirm both.

How to Choose Between TSAHC and TDHCA

1. Confirm your buyer status. First-time buyers can consider all four programs. Repeat buyers can compare TSAHC’s main options with My Choice Texas Home.
2. Check your income band. Use the table above to see which programs your income fits.
3. Decide what kind of help you want. A grant, a forgivable lien, a repayable lien, or just a lower rate.
4. Compare rates the same day. Rates move independently at each agency.
5. Ask a participating lender to price both. Many lenders work with TSAHC and TDHCA, and a side-by-side payment comparison is the clearest way to decide.

If you’d like help, you can see what you may qualify for and get connected with a licensed mortgage professional in our Texas partner network who works with both agencies.

There isn’t a universal winner between TSAHC and TDHCA, and that’s actually good news for you. Two agencies means two chances to find terms that fit. Narrow it down with your buyer status and income, compare the rates on the same day, and let the monthly payment make the final call.

TSAHC vs. TDHCA: Frequently Asked Questions

TSAHC vs. TDHCA: 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 TSAHC, TDHCA, HUD, the IRS, or any government agency. Program terms, rates, fees, income limits, and eligibility are set by each agency and its participating lenders and change frequently; figures on this page are based on each agency’s published materials and may lag the official sources. Assistance is subject to funding availability and lender approval. The MCC is a non-refundable federal tax credit that depends on your tax liability; consult a tax professional. My First Texas Home loans and MCCs may be subject to federal recapture tax if you sell within nine years and other conditions apply. Confirm your eligibility and rate with a participating licensed lender. Equal Housing Opportunity.